Entering receivable two-party checks
There are several ways to handle two-party checks. If the other payee has signed the check over to your company, deposit and receive the check normally. When you have to sign over the check to a second payee, it is necessary to enter two transactions in the accounting. Make the first transaction in 3-3-1 Cash Receipts, and the second in 4-3-1 Select Invoices to Pay and 4-3-2 Pay Vendors.
To enter a receivable two-party check:
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1
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Open 3-3-1 Cash Receipts. |
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a
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In the Account text box, enter the cash clearing account number. |
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b
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In the Deposit# text box, enter the deposit transaction number. |
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c
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In the Date text box, enter the deposit date. |
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d
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In the Description text box, enter a brief statement about the transaction. |
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3
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Do one of the following: |
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a
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In the Client text box, enter a client number. |
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b
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In the Job text box, enter a job number. |
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4
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Do one of the following: |
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a
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Click the Contract Invoices tab. |
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b
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Click the Service Invoices tab. |
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c
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Click the Display button. |
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5
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In the grid, do the following: |
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a
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In the Paid cell, enter the total amount received. Do not include any discount or credit in this amount. |
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b
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In the Discount Available cell, enter the amount of the discount. |
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6
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Repeat step 5 for each invoice. |
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7
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On the File menu, click Save. |
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8
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Open 4-3-1 Select Invoices to Pay. |
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9
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In the Invoice Selection window: |
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a
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Enter the selection criteria. |
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b
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Select other options as desired. |
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11
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In the Set to Pay text box, enter the total amount to be paid. |
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12
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Do not include a discount in this amount. |
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13
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On the File menu, click Save. |
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14
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Open 4-3-2 Pay Vendors. |
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16
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Select Check in the Pay By field. |
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17
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Click [OK]. Print the check to blank paper in the 4-3-5 Report Printing window. |
Note: The account used should be the same check clearing account used when you received the two party check, not your regular checking account.
Tips:
- Entering the two transactions produces the same audit trail as if you cashed the client’s payment and then sent a check to the vendor. If you do not have to send a check, immediately print the check on blank paper instead of a check form. This will help prevent any confusion about the transaction the next time you print checks.
- It is a good idea to include a note referencing the client check number in both transactions. This connects the two transactions together, providing a clear audit trail.