How do I create a joint check?

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There are two methods for creating a joint check in accounts payable:

 

1.The simplest method is to write a check through the Handwritten Checks option and then select the Override Vendor Check Information. The vendor's name and address fields can then be modified to include the name(s) of additional parties. This method will post the check with the client number assigned to the primary vendor but the description of the transaction will pick up the information as entered in the Name field. It is advised that joint checks be issued first and then the remainder of the invoice(s) can then be paid through the Schedule Payments option.
                       
2.The other method for creating joint checks requires more steps but the result is twofold. First, the payment will always be linked to client number that corresponds to the specific party names and, second, both checks can be issued through the Schedule Payments option at the same time. Note: Setting up separate client I.D. numbers allows you to track all payments to one joint check vendor without lumping the payments with other payments made to the primary vendor. In addition, separate I.D. numbers allow you to print all automatic checks to a primary client within the same batch. In other words, a check for ABC Company and XYZ Supply Co. can be printed in the same batch as the check for ABC Company.
 
When creating a joint check in this manner, a new vendor number must be set up and linked to the primary vendor in order to produce just one 1099 at the end of the calendar year.
 
Example:

 

1.        ABC Company (client number 2) has billed your company in the amount of $1,000.00 but you need to issue a check joint with his supplier, XYZ Supply Co., in the amount of $750.00.                        
 
2.        Set up a new client number and enter the company name as "ABC Company and XYZ Supply Co." The address should be entered with the primary client's (ABC Company's) address information. Enter client number 2 in the 1099 Client Number field. When 1099s are calculated, only one 1099 will be produced for ABC Company and the amount will include the joint check amount.
 
3.        Once the vendor information has been set up, then enter ABC Company's invoice in the full amount of $1,000.00. This will create an historical record of the amount that ABC Company originally billed to you.
 
4.        Next, enter a credit invoice to ABC Company in the amount of $750.00. You can use the original invoice number and modify the invoice description to reflect the reason for the deduction. This will create an historical record of a joint check that was deducted from the original invoice.
       
5.        Now enter an invoice using the vendor number for ABC Company and XYZ Supply Co. in the amount of $750.00.
 
6.        Once all of the invoice entries have been processed, the accounts payable checks can be written. When the invoices are set up for payment for ABC Company, both the original $1,000.00 entry and the $750.00 joint check deduction will appear on the stub which will clearly show ABC Company how the net payment of $250.00 was calculated. Remember, the check for ABC Company and XYZ Supply Co. can be included in the same check batch because the vendor numbers are different.