0410-00 Virtual Checks or Drafts via eEnvelopes

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                   TO: Interested Christians                                                                                   FROM: Jim Bramer, Retired CPA
                                                                                                                                                      FILE: 0410-00/env   

                   RE: Virtual Check Plastic Payment System via eEnvelope                       Originated in September 2004                  

      Consider the Virtual Check Plastic Payment system.  For perspective, see content of our Editorial at  0911  but the general idea is to get away from the use of the Buffer system  within Spending Control  or having to deal with "accrual vs cash basis" accounting  issues and you charge the (a) weekly plastic purchases as if you had paid for them by cash each (a) week.

     The process goes something like this:

    1>  Following the Spending Control  usual scenario, you would place all receipts in pre-determined Envelopes

As a part of your Envelope-Box Spending Control system you buy using Credit Cards/Plastic.

    3>  You w
eekly(1) get Credit Cards/Plastic Charges information from those small slips themselves or, better yet, from Online Print out from your Credit Card info via the Internet.  Ask me at Jim@bcidot.org about the helpful free print screen product.

    4>  If you are going to post the total only to the Envelope-Box, then r
ecap said Credit Cards/Plastic charges by the applicable Envelope - Box perhaps via a Excel doc. But preferable, you would enter into your Spending Control system by vendor.

    5>  You process the
weekly draft or check and reduce the applicable Envelope-Box balance accordingly. This check is seldom actually produced (see Choice One below), but you handle within the  Spending Control  system during the month as if it were.

    6>   Remember, this check has reduced the Checking Account balance but it has not been released so the balance is not accurate.
Some like to set up dummy Checking accounts for just such a purpose.

    7>  When you do
this weekly, it will result in probably three drafts or  virtual checks for the month to date.

When you timely pay your monthly Credit Card/Plastic Statement you will have the following choices:

Choice One:

    Produce a 4th draft or virtual check that you compute as follows:  Working from the actual detailed Credit Card/Plastic statement, you take the monthly total and subtract the amount of the three previous virtual checks.  You might find that you have missed some of those small charge slips during the month when you did your weekly processing.
And release all four drafts/checks at the same time ---- perhaps via your Online Payment option.

Choice Two:

   Cancel/void the three drafts/virtual  weekly checks that will also back out the original charges made to the Envelopes
Then write a monthly check for the total and then charge the respective Envelopes for all that month, etc.  Of course, you would do this canceling and writing of the one check at the same time so as to not distort Envelope balances that you relied on earlier in the month to do your buying, etc.

     (a) You may prefer to update your financial records every pay day or semi-monthly; if so, develop some way to frequently update your Envelope balances so you will buy from updated info.


           Please Click Here for a folder list of Spending Control writings on www.bcidot.org.  Feel free to contact me at Jim@bcidot.org if you have any comments or questions about any of these matters.  Remember -- It is my desire to encourage you in your Christian walk and to be "Your Servant for Jesus Sake:" Thank you.   II Corinthians 4:5B  This was updated last: June 04, 2010   

Email Address:  Jim@bcidot.org  - Phone: (559) 298-5507  -- 
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