1. Create an Item Purchase or Payables Journal transaction for the vendor as you normally would.

2. In Chart of Accounts, set up a holding account specifically for the credit card used for the purchase.

This account can be any account number you want, as the net effect to the account will be zero.

3. Set up the credit card company as a new vendor in Vendor Setup. In the Default Acct field, select the holding account that was set up in Step 2 above, then click Save.

4. In Vendor Payments, choose the holding account you set up in Step 2 from the Disc/Adjust Account pop-up list.

5. Select the original vendor’s payable, then Tab to the Disc/Adj field and enter the amount of the payable.

Note: This step can be performed when the credit card statement is received for ease of reconciliation.

6. Create a new Payables Journal transaction to the credit card company. Make sure it is tied to the holding account that was originally set up for it in Step 2 above. (It should be the default account tied to the credit card vendor in Step 3 above.)When the credit card bill is received it can be paid it as a normal payable, and can be tracked in transaction history.