Reconciling Credit Card

[rflores]

Hello,
I’m hoping someone can offer some insight on a reconciling problem I am having. We have a supplier that charged our company credit card in June however; the product will not be received until sometime in July. Does anyone know how I can reconcile the AMEX for June? I considered creating an advanced payment entry in our system however, once posted and AMEX is reconciled it will leave a zero balance due and I’m not sure how we would proceed once the product is received how it would be vouchered and reconciled in July.

Sincerely,
Rosie

 

[Counterofbeans]

I'm not sure I understand the question, but, from an accrual accounting viewpoint, I'd simply Dr some prepaid expense/other current asset account when you pay the CC invoice. I'm a little surprised that you'd pay the CC invoice so quickly, meaning, it seems to me that you'd pay the CC invoice in July, the same month you'd receive this asset (this would simplifying the accounting).

Once the product is actually received, I'd Dr. whatever corresponding asset account the asset relates to (inventory? fixed asset? etc.) and Cr. the prepaid expense/other current asset.

If you are actually using a system generated purchase order to receive the asset, then subsequently vouch the payment related to such asset, that can get a little dicey when you pay outside the system (i.e. via a CC), but the above is where you ultimately want to end up at.