Overview
Expenses created in DoorLoop are usually paid with your operating account and recorded automatically. However, for those who choose to pay expenses with a credit card, you'll need to take a few extra steps to record it properly in DoorLoop. It's still a very simple process, though, once you learn the basics.
The Steps
To create an expense that you paid with a credit card account, click the + Create New button at the top left corner. Then click on Expenses under the Other Transactions section.
On the New Expense window, complete the relevant fields as follows:
Select Payee - select the Vendor you are paying.
Reference - use the default unique reference number, or enter your own.
One-Time Expense - make sure this is selected unless you actually do want to create a recurring expense for the same amount.
Expense Date - Select the payment date for the expense.
Pay From Account - choose the Liability > Credit Card account that you created in your Chart of Accounts that will be paying the expense (see here for steps)
Payment Method - choose Credit Card as the payment method.
Category - select the appropriate expense category for accounting and reporting purposes (most likely an Expense account).
Property - choose the property incurring the expense.
Description - add an optional desctription for the expense.
Amount - enter the amount of the expense.
Add multiple expense lines by clicking on the + Add Line Item. You can remove line items by clicking on the trash can icon on the right side of each line item.
Add any additional information in the Add memo section.
Click Save when complete.
If you have expenses on other properties that you also use the same credit card to pay off, just repeat the above steps again for each property.
How does paying an expense from a credit card account appear on the Cash Flow Statement?
Expenses paid with a credit card account will appear as a line item under Expenses on the Cash Flow Statement. There will also be an additional line item (credit card account) under Adjustments to reconcile Net Income to Net Cash. What this second entry does is balance out the expense so it does not affect your cash flow. This is because the expense was not paid for from the operating account.
Example
We created a $200 expense (security) on four different properties. You can see this reflected on the Cash Flow Statement report here on the Security line item under Expenses showing -$800.00. Normally this would be correct if you used a payment method that came straight out of your operating account and you would be done with it.
However, because this was paid with a credit card, you need to reflect the fact that this is a payment made with someone else's money. Mainly, it's money that hasn't come out of your Operating Account yet (We'll explain more in the next section).
Because of this, you'll see this payment under the Adjustments to reconcile Net Income to Net Cash category with its own line item (in this case, Chase Visa Credit Card.) You'll notice this is a positive $800.00 amount which balances out the negative amount from the Expenses so that this will not impact your actual cash flow.
To remove this item from your Adjustments to reconcile Net Income to Net Cash, you'll need to record that you paid off the credit card with the corresponding bank account. To record this payment, read the article: Pay Off Credit Card Debt with a Bank Account Transfer
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