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T
TCowan59
October 13, 2022
Question

Many Jobs Paid with Single Check from 3rd Party

  • October 13, 2022
  • 2 replies
  • 0 views

I have several jobs, all individually invoiced to separate customers.  My relationship is with each customer, and each is responsible for their individual payment.  Some of these customers have benefactors who pay a portion of each invoice each month, with a single check.  For example, customers A, B, C, and D each owe $500 to my company.  Each month, Benefactor X writes a single check that is apportioned to the four of them in amounts noted in a cover letter.  I record 8 payments, noting that 4 of them from X all have the same check number.  From this entry method, there are 2 issues:

 

  1. When making Deposits, my deposit slip indicates "8" items (not 5) understandable.
  2. I have to make certain I didn't "fat finger" any of the 4 amounts, as they need to sum up to the value of the single check.

 

What is a better way to handle this bulk-multi-payment from a 3rd party?

2 replies

T
TCowan59Author
October 13, 2022

Update:
Found the following: https://quickbooks.intuit.com/.../transfer-customer-credit-one-job-another-desktop...  hoping it would resolve my issue, however, by entering the 3rd party as an independent customer:job, it is NOT visible in the AVAILABLE CREDITS list.

In the example posted here, the 3rd party is showing a credit of 2240, that is not available to the current job that needs $500 of that credit.

 

JessT
JessT
October 13, 2022

Hi TCowan59,

The article you shared only applies when the benefactor is also a customer who wants to pay for other customers.

 

The method of recording this is quite lengthy and involves journal entries, so please verify this with an accounting professional to ensure your records are accurate.

 

First, record the payment as a deposit and use an Other Current Liability category, depending on your accountant's advice.

 

 

Second, create a journal entry to flow the amount from Other Current Liability to a barter account.

 

 

Third, transfer a portion of the amount from the barter account to A/R for one customer. This transaction will turn into credits which can be applied as a payment to an invoice. You'll do this for each customer.

 

 

Fourth, apply the available credits as payment to each customer's invoice.

 

 

On the other hand, you can also check the article about bank reconciliation should you need it in the future.

 

Let me know if you need anything else. The QuickBooks Team is always available to help.

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