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"How do I set up a vendor so that I can write a joint check?"
There are two methods for issuing a joint check:
| 1. | The first method is to write a check through the Handwritten Checks option in the Payables module and override the vendor's name before printing the check. This is the easiest method but there is no audit trail that a joint check was written. |
| 2. | The preferred method is to create a new vendor with the joint name and then link the new vendor to the primary vendor via the Clients > Client List > Account Tab > 1099 Client Number field. This will produce just one 1099 at the end of the calendar year. Please read the section on 1099s in the Payable module for more information. Invoices must entered as described in the example below in order to fully document the joint check payment: |
Example:
| 1. | ABC Company (client number 2) needs to be issued a joint check with XYZ Supply Co. Set up a new client number and enter the company name as "ABC Company and XYZ Supply Co." |
| 2. | The address should be entered with the primary client's (ABC Company's) address information. |
| 3. | Enter client number 2 in the 1099 Client Number field of the new company. When 1099s are calculated, only one 1099 will be produced for ABC Company and the amount will include the joint check amount. |
| 4. | In accounts payable, enter the full amount of ABC Company's invoice to the job, phase and general ledger account. Also enter a negative invoice amount payable to ABC Company for the amount of the joint check; code to the same job/phase/account. You may want to enter an invoice description such as JT - ABC & XYZ on this invoice. The two invoice amounts will net to the total that ABC Company should receive. Also enter a positive invoice amount payable to ABC Company and XYZ Supply Co. for the amount of the joint check; also code this invoice to the same job/phase/account. |
| 5. | When the invoices are scheduled for payment, all three invoice entries can be selected for payment at the same time. The joint check will be issued to the joint name and one check will be issued to ABC Company. The check stub for ABC Company will show both the full amount of the invoice along with the joint check deduction. The job cost and the general ledger expense accounts will show multiple entries that net to the full amount of the original invoice but they will show who actually received the check (as long as the notation is made on the invoice description). |
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