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, and then: |
- In the Account text box, enter the cash clearing account number.
- In the Deposit# text box, enter the deposit transaction number.
- In the Date text box, enter the deposit date.
- In the Description text box, enter a brief statement about the transaction.
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2
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Do one of the following: |
- In the Client text box, enter a client number.
- In the Job text box, enter a job number.
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3
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Do one of the following: |
- Click the Contract Invoices tab.
- Click the Service Invoices tab.
- Click the Display button.
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4
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In the grid, do the following: |
- In the Paid cell, enter the total amount received. Do not include any discount or credit in this amount.
- In the Discount Available cell, enter the amount of the discount.
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5
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Repeat step 4 for each invoice. |
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6
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On the File menu, click Save. |
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7
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Open 4-3-1 Select Invoices to Pay. |
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8
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In the Invoice Selection window: |
- Enter the selection criteria.
- Select other options as desired.
- Click OK.
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10
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In the Set to Pay text box, enter the total amount to be paid. |
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11
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Do not include a discount in this amount. |
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12
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On the File menu, click Save. |
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13
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Open 4-3-2 Pay Vendors. |
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15
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Select Check in the Pay By field. |
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16
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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.
More resources
For additional online resources for Sage 100 Contractor products, visit the Sage Customer Portal. Use the portal to access the knowledgebase, chat online with customer support, or enter a customer support ticket.
For additional training on Sage products, visit Sage University.