Credit Cards
How to record credit card expenses, partial payments, interest charges, and full payoffs in Bkper.
A credit card represents money you owe — making it a liability type account (yellow in Bkper). Setting it up this way lets you track the outstanding balance, payments, and interest charges accurately.
Setting up the account
Create a Credit Card account as a liability alongside your other accounts.
Recording expenses
When you charge expenses to the credit card, the card’s balance increases. Each expense is recorded from the appropriate expense account to the credit card account.
Recording a partial payment
When you make a partial payment on the outstanding balance, the credit card balance decreases by the amount paid.
| Date | Amount | From Account | To Account | Description | |
|---|---|---|---|---|---|
| 15/01/2024 | 250.00 | Credit Card | >> | Bank Account | Partial credit card payment |
Recording interest charges
The credit card company charges interest on the remaining unpaid balance. Record this as a movement from an interest expense account to the credit card account, which increases the outstanding balance.
| Date | Amount | From Account | To Account | Description | |
|---|---|---|---|---|---|
| 31/01/2024 | 30.00 | Interest Expense | >> | Credit Card | Interest on outstanding balance |
Paying off the full balance
When you pay the total remaining credit, the balance is zeroed out.
| Date | Amount | From Account | To Account | Description | |
|---|---|---|---|---|---|
| 01/02/2024 | 285.00 | Credit Card | >> | Bank Account | Full credit card payoff |
