Holding account for American Express Card payments

How-to
1

Hi

I have two business bank accounts Account 1 and Account 2.

Some card transactions need to be paid by account 1 and some by account 2.

American Express want to be paid a monthly total amount.

Is the best way to do this to open a holding (dummy) account, pay the American Express through one of the ‘real’ bank Accounts, say Account 1 and tag the payments from both accounts to to the newly created American Express holding account?

Or is there a better way?

Any advice appreciated. . .

Chris

2

Hi, you should create a bank account in quickfile for each American Express bank account. For the fee, it depends how you pay it? Do they take it or do you pay it from one of your two accounts? If so, enter the fee transaction to the relevant account in quickfile. Or just upload a CSV file, which you can download from your bank.
If you pay it from a complete different account, create another account in quickfile and post it to that account

Hope this helps

3

Hi

Thanks for helping. . . I only have one Business American Express account, but my 2 business Coop Bank accounts (Acct 1 & Acct 2) will pay for the Amex transaction depending on what it is. I do it this way for historical reasons, which I would not want to change. I want Account 2 to pay American Express (because that is the account that needs to pay in the majority of cases). In those cases where Account 1 needs to pay I would wish to transfer the actual money from Account 1 to Account 2.

I need to track the process in Quickfile, and tag accordingly.

I think what you are saying is that I pay the whole amount to Amex from one account (my preference is Acct 1) download the transactions to that account and tag to the supplier then for any transactions. From the other account (Account 2) make an internal bank transfer but again tag to the supplier. In this way both accounts pay for the appropriate invoice, and Account 2 Pays its dues to Account 1.

4

Any credit or charge card should be represented by a bank account in QuickFile. When you pay for something by Amex you mark it as paid from the Amex holding account (which will cause it to show “overdrawn”), when you pay your Amex bill using funds from one of your other accounts then that is simply a bank transfer from the paying account to the Amex holding account (bringing its balance back towards - or to - zero).

The “payment to a supplier” happens in the Amex holding account on the date when you make the card payment, not in the bank account on the date that you pay the bill.

5

Thanks Ian - that is very helpful.

6

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