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Digression on Credit Cards

If you want to record transactions made on a credit card, you can either set the card company up as a creditor (which means you enter your card expenses as creditor invoices), or more easily as a bank account of type Credit Card, which sets the “bank” account up as a current liability account.

In the latter case payments made using the credit card are ordinary payments out of the credit card “bank”, and when you pay the credit card, you do a payment out of your ordinary bank account to the credit card “bank” (or a creditor invoice coded to the credit card “bank” account).