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 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:
|
1
|
Open 3-3 Cash Receipts. |
|
a
|
In the Account text box, enter the cash clearing account number. |
|
b
|
In the Deposit# text box, enter the deposit transaction number. |
|
c
|
In the Date text box, enter the deposit date. |
|
d
|
In the Description text box, enter a brief statement about the transaction. |
|
3
|
Do one of the following: |
|
a
|
In the Client text box, enter a client number. |
|
b
|
In the Job text box, enter a job number. |
|
4
|
Do one of the following: |
|
a
|
Click the Contract Invoices tab. |
|
b
|
Click the Service Invoices tab. |
|
c
|
Click the Display button. |
|
5
|
In the grid, do the following: |
|
a
|
In the Paid cell, enter the total amount received. Do not include any discount or credit in this amount. |
|
b
|
In the Discount Available cell, enter the amount of the discount. |
|
6
|
Repeat step 5 for each invoice. |
|
7
|
On the File menu, click Save. |
|
8
|
Open 4-3-1 Select Invoices to Pay. |
|
9
|
In the Invoice Selection window: |
|
a
|
Enter the selection criteria. |
|
b
|
Select other options as desired. |
|
11
|
In the Set to Pay text box, enter the total amount to be paid. |
|
12
|
Do not include a discount in this amount. |
|
13
|
On the File menu, click Save. |
|
14
|
Open 4-3-2 Pay Vendors. |
|
16
|
Select Check in the Pay By field. |
|
17
|
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.