Credit Cards

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 amount owed on the card increases. Record each expense as a movement from the credit card account to the appropriate expense account.

Recording a partial payment

When you make a partial payment, the amount owed on the credit card decreases by the amount paid.

Date	Amount	From Account		To Account	Description
04/03/2017	255.00	Bank Account	>>	Credit Card	Partial credit card payment

For simplicity, the examples shown here use the same date in the screenshot, but they represent a sequence: expenses increase the amount owed, payments reduce it, interest adds to the unpaid balance, and the final payment clears the liability.

Recording interest charges

The credit card company charges interest on the remaining unpaid balance. Record this as a movement from the credit card account to an interest expense account, which increases the amount owed.

Date	Amount	From Account		To Account	Description
04/03/2017	30.00	Credit Card	>>	Credit Card Interests	Interest on outstanding balance

Paying off the full balance

When you pay the remaining outstanding balance, the outstanding balance returns to zero.

Date	Amount	From Account		To Account	Description
04/03/2017	280.00	Bank Account	>>	Credit Card	Full credit card payoff