Managing Credit and Prepaid Cards in Bank Accounts

Managing Credit Cards

Setting up Your Credit Card Account

Navigate to the Bank Accounts: Here, you can establish a new account specifically for your credit card. Make sure to set the account type to "Credit Card."



Recording Credit Card Transactions

Logging Bill Payments: When booking a bill payment in the system, select your Credit Card account as the 'paid-through' account.

Paying Off Your Credit Card Debt

Recording Payments: Whenever you make a payment towards your credit card debt, log a debit in the Credit Card liability account reflecting the amount you've paid.

Classify to Account: This is a critical step. It ensures both a decrease in your bank account balance and a corresponding reduction in the credit card debt you owe.

Managing Prepaid Cards

Setting up Your Prepaid Card Account

Navigate to the Bank Accounts Module: Just like with credit cards, you'll establish a new account. However, this time set the account type to "Bank."

Naming the Account: For ease of reference, name the account in a way that is easily distinguishable. For instance, "HSBC MC Prepaid Card ending in 1234."

Recording Prepaid Card Expenses

Logging Bill Payments: When recording a bill payment, choose the Prepaid Card account as the 'paid-through' account.

Loading Your Prepaid Card

Record the Addition of Funds: Whenever you add funds to the prepaid card, register a debit in the Prepaid account.

Classify to Account: In this case, you'll select the bank account you're transferring funds from. Doing this will record a credit in that account, denoting the outflow of funds.