How Accounting Entries for Corporate Card Transactions Are Distributed

Accounting entries vary depending on which payment option is used by your company.

The following table illustrates a sample expense report with various payment liabilities and amounts.

Payment Method	Amount
Cash	500 USD
Corporate Card Business Expenses	650 USD
Corporate Card Personal Expenses	299 USD
Corporate Card Transactions from Corporate Card Issuer	949 USD

Data in the preceding table is used in subsequent sections to illustrate how accounting entries are distributed for each payment liability.

Settings That Affects Payment Options

The following options available from the Payment Option choice list in the Create Company Account dialog box affect payment liability: Both, Company, and Individual.

How Accounting Entries for Payment Options Are Calculated

When an employee's expense report is exported to Payables, the amount of the payment request equals the amount due the employee.

The following table summarizes amounts owed by a company to an employee and the corporate card issuer based on the payment liability.

Payment Liability	Expense Report Total	Amount Due Employee	Amount Due Corporate Card Issuer
Individual Pay	1,150 USD	1,150 US	0
Both Pay	1,150 USD	500 USD	650 USD
Company Pay	1,150 USD	201 USD	949 USD

Accounting Entries for Individual Pay

Since the payment option is Individual Pay, a single payment request is created to reimburse the employee. It's the employee's responsibility to pay the card issuer.

The following table describes the accounting distributions for a corporate card with Individual Pay liability.

Account	Debit	Credit
Cash and other expenses	500 USD	Not Applicable
Corporate card business expenses	650 USD	Not Applicable
Employee liability	Not Applicable	1,150 USD

Accounting Entries for Both Pay

With Both Pay liability, two payment requests are created, one to pay the employee for any out of pocket expenses and a second one to pay the card issuer.

The following table describes the accounting distributions for a corporate card with Both Pay liability.

Account	Debit	Credit
Payment Request for Employee Cash and other expenses	500 USD	Not Applicable
Due to employee	Not Applicable	500 USD
Corporate card business expenses	650 USD	Not Applicable
Expenses clearing account		650 USD
Payment Request for Card Issuer Expenses clearing account	650 USD	Not Applicable
Due to card issuer	Not Applicable	650 USD

Accounting Entries for Company Pay

With Company Pay liability, a company can pay the card issuer at any time. The payment request for an employee is created when an expense report is approved and processed, while the payment request for the card issuer is created separately.

The following table describes the accounting distributions for a corporate card with Company Pay liability.

Account	Debit	Credit
Payment Request for Employee Cash and other expenses	500 USD	Not Applicable
Corporate card business expenses	650 USD	Not Applicable
Expenses clearing account	Not Applicable	949 USD
Due to employee	Not Applicable	201 USD
Payment Request for Card Issuer Expenses clearing account	949 USD
Due to card issuer	Not Applicable	949 USD