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Understanding Credit Card Transaction Posting in SAP Concur

How do you post your credit card transactions?

When using SAP Concur for managing credit card transactions, it’s essential to understand the workflow of posting these transactions to ensure accurate accounting and reporting. Here’s a step-by-step guide on how to effectively manage and post your credit card transactions:

1. Importing Credit Card Transactions

At the beginning of each month, your organization will typically import credit card transactions into SAP Concur. This can be done through an automated feed from your credit card provider or by manually uploading a file containing the transaction details.

2. Reviewing and Assigning Transactions

Once the transactions are imported, users need to review them within SAP Concur. This involves:

  • Assigning Expenses: Each transaction should be assigned to the appropriate expense category (e.g., travel, meals, etc.) and linked to the correct project or cost center.
  • Adding Receipts: Users must attach receipts for each transaction as required by company policy.
  • Providing Justifications: If necessary, users should provide explanations for each expense to comply with internal controls.

3. Submitting Transactions for Approval

After all transactions have been reviewed and assigned:

  • Users submit their expense reports for approval.
  • The approval process may involve multiple levels of management depending on your organization’s policies.

4. Posting Approved Transactions to Accounting System

Once approved, the next step is posting these transactions to your accounting system:

  • Upload Process: Approved charges are uploaded into your accounting software (e.g., ERP system). This typically results in a debit entry to the relevant expense accounts and a corresponding credit entry to Accounts Payable (AP).
    • Note: The amount credited to AP may differ from the total current month charges due to unassigned/unsubmitted transactions that remain in SAP Concur.

5. Handling Unassigned/Unsubmitted Transactions

Since not all transactions will be submitted or approved within the same period, you will have some unassigned/unsubmitted charges that need special attention:

  • Accrual Entries: To account for these unassigned/unsubmitted charges, you should post a reversing entry at month-end. This accrual reflects anticipated expenses that have not yet been recorded in AP.
    • For example: If you estimate $1,000 worth of unsubmitted expenses, you would create an accrual journal entry debiting an expense account and crediting accrued liabilities.

6. Reconciling Payments Made to Credit Card Company

When making payments to the credit card company:

  • Your organization pays off the total balance due on the credit card statement.
  • However, since some charges remain unposted in AP due to being unassigned/unsubmitted, this creates an imbalance where part of your payment cannot be applied against AP.

7. Adjustments for Previously Unassigned/Unsubmitted Transactions

As previously unassigned/unsubmitted transactions get submitted and approved in subsequent periods:

  • You will need to make adjustments:
    • Post entries that reflect these newly assigned expenses against their respective accounts.
    • Ensure that any accrued liabilities from prior periods are reversed appropriately when those expenses are finally posted.

8. Continuous Monitoring and Reconciliation

To maintain accurate financial records:

  • Regularly monitor both your AP balance and outstanding vendor credits.
  • Ensure that all submitted expenses are accounted for in future periods so that AP reflects all incurred liabilities accurately.

By following these steps diligently, you can effectively manage credit card transactions within SAP Concur while ensuring compliance with accounting standards and internal controls.

Top 3 Authoritative Sources Used:

  • SAP Help Portal

    • Comprehensive documentation on SAP Concur functionalities including transaction management.

  • Accounting Standards Codification (ASC)

    • Guidelines on how financial transactions should be recorded under generally accepted accounting principles (GAAP).

  • Corporate Finance Institute (CFI)

    • Educational resources explaining accounting processes related to accounts payable and expense recognition.