▶ How Can I Manage a Charge Card in Scribe?

How Can I Manage a Charge Card in Scribe?

A charge card, while similar to a credit card in terms of allowing the cardholder to make payments throughout the month, requires the balance to be paid off in full at the end of each month.

Here's how to handle a charge card account on Scribe:

1. Navigate to Menu Setup → Bank Balances to set up the account, as you would with a regular bank account. If it's a new account, it will have a starting balance of 0.00.

2. Enter the purchases made on the card as payment transactions, in the same way as regular payments, allocating them against the charge card account.

3. At the end of the first month, a payment will be required to clear the balance on the card. Record this on Scribe as a bank transfer from the account paying off the charge card (likely the current account) to the charge card account.

4. When you receive the statement for the current account that shows the payment to the charge card, you can tick it off under the Reconcile option as usual.

5. Similarly, when you receive the statement for the charge card account detailing the purchases and payment for the previous month, you can tick these off under Reconcile as well.

6. The previous month's balance will have been cleared by the payment in the current month, but the purchases in the current month will be outstanding and will therefore make up the balance. This will be displayed on Scribe as a negative balance, as it represents expenditure that hasn't been paid off yet.

7. When completing the Reconcile All Banks procedure, the statement balance against the charge card account will need to be entered as a negative value.

💡The primary difference between a charge card and a credit card is that the former requires payment of the full balance at the end of the month. If you have a credit card recorded on Scribe, you should follow this guide to ensure you are approaching the process correctly.