Corporate credit card entries

Company issues a credit card to an employee for expenses. How do we make those entries? Please provide the flowchart.

When we talk about Credit Card Entry, it is not a single straight-line process. In reality, there are two parallel processes and a third process that connects them:

1. Employee Expense Claims

   • Employees raise expense reimbursement claims whenever they incur costs.

   • A claim may be for cash, personal card, or company credit card.

   • If the expense was paid using the company card, it is still part of the claim workflow, only marked as “Paid by Corporate Card.”

2. Credit Card Transactions (Company Side)

   • Independently, the company records credit card transactions.

   • This can be done manually, by uploading card statements, or via API integration with the bank.

   • All such entries flow into the Credit Card Ledger, showing the company’s liability to the card issuer.

3. Matching & Settlement

   • Once claims are approved, they are reconciled with card transactions.

   • If the claim was marked Paid by Corporate Card, the approved claim is offset against the matching card transaction.

   • Claims settled by cash or personal card are credited to the employee’s payable account for reimbursement.

   • Any card spend without a valid claim, or rejected claim amounts, are debited to the employee for recovery.

This way, the system ensures that:

• All employee claims are processed correctly.

• All card transactions are accounted for.

• Every expense is either reimbursed to the employee, offset against the card, or charged back to the employee if non-claimable.

Workflow Overview

👉 In short, Credit Card Entry is not just about expense booking — it is about keeping these three flows in sync so reconciliation is seamless and accountability is clear.