Entering payments against invoices
Entering credits and applying payments to invoices simultaneously
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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Open 3-3-1 Cash Receipts, and then:
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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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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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Do one of the following:
- Click the Contract Invoices tab.
- Click the Service Invoices tab.
- Click the Display Invoices button.
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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.
- Repeat step 4 for each invoice.
- Click > .
- Open 4-3-1 Select Invoices to Pay.
- In the Invoice Selection window:
- Enter the selection criteria.
- Select other options as desired.
- Click OK.
- Locate the invoice.
- In the Set to Pay text box, enter the total amount to be paid.
- Do not include a discount in this amount.
- Click > .
- Open 4-3-2 Pay Vendors.
- Select the payee.
- Select Check in the Pay By field.
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Click [OK].
Print the check to blank paper in the 4-3-5 Report Printing window.
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.