TO:  Whom It May Interest                                                                                          FROM: Jim Bramer, Retired CPA
                                                                                                                                                                   FILE:  0201-15/01

                         RE:  Weekly Plastic Payment                                                                                   Originated in November 2006                                    


       Let's suppose that you are just now attempting to follow the TRUISM  that you pay no Credit Card charges (Interest Expense) since you monthly pay off the total due to your Plastic or Credit Card company.  At least in the beginning of this process, you might find that you are more comfortable doing this weekly via an Online Payment rather than monthly, etc.  
       Incidentally, you might find of interest more info along these lines when you  GO HERE.
       Factors in doing this very fine process include at least the following:

  •    You make use of only the weekly Buffer - Float Factor described when you CLICK HERE

  •    You do not have to establish a Credit Card account within your COMPASS (Internet and QBs accounting system) and weekly post each purchase thereto since -

  •    You go Online each week and print out a hard copy of your unpaid Credit Card transactions and the unpaid total.

  •    Hopefully you have retained all of your Credit Card purchase slips and you attach them to this hard copy.  If such slips are lost (as we all know, they are so small and they are so easily mis-placed, etc.) and since it has only been a week, you likely can verify the purchase even though you can not locate the signed copy etc.

  •   Each Wednesday of the week, you process a weekly Online payment (check equivalent) to the Credit Card Company as you pay off what is due to them.  See below as to what happens on each Thursday.

  •   You distribute the amount of each purchase by Credit Card into the applicable BuxBox (per your Chart of Accounts as shown by QBs (QuickBooks) Equity Account) and possibly to QBs Class Account process for tax deductible items. 

  •   This includes posting the purchase date and vendor name in the Memo area of the QBs Bill Payment system for future buying reference and information.

  •   The Online Payment System shows this transaction as the equivalent to a distributed weekly check within your Online Bank Statement - probably on that Wednesday or no later than the next day, or Thursday.

  •   Each Thursday you go to your Online Bank Statement and make sure that this distributed weekly payment is there.

  •   So both the above Online Check and other checks that show up within your Online Bank Statement get into your COMPASS (Internet and QBs accounting system)

  •   And you render the applicable CHART (Financial Status and Activity reports) so you know how much you can spend by pre-approved category (BuxBox) for the upcoming week.

  •  Some Online Bank Statement systems (See www.eccu.org, for example) allow you to electronically transfer these transactions to your COMPASS (Internet and QBs accounting system).  Then you simply reclassify the activity to the applicable categories, etc.

  •  You might also find of value the Expenditure Category ID System etc found within the www.eccu.org Online Bank Statement system.

Contact Jim@bcidot.org if you have questions or need more specifics about any of this.    

This was updated on March 01, 2012