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Joint check processing. Now that I processed the joint check in A/R, I still need to send the check off to the Vendor for payment on our Account for our Customers job.

Forum|Forum|6 years ago
April 13, 2020
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QuickBooks Desktop

Best answer by Maybelle_S

Thank you for posting here in the Community, @JLJ1.

Let me give you some insights about joint checks.

In most cases, joint checks are received by subcontractors in the construction industry. Many of the contractor clients receive these checks and they are made payable to "Sub-contractor" and "Supplier". In this case, the Supplier is the Vendor of Sub-contractor and has supplied material for a particular job.

The first thing you want to do in QuickBooks creates a "Joint Checks - Clearing" bank account. While not a real bank account, it will be used as a clearing account for the two-party checks. Once done, please follow the steps below to process your Accounts Receivable (A/R) go directly in the joint check account.

Here's how:

Go to the Edit menu, at the bottom select Preferences.
Select Payments.
From the Company Preferences window, put a checkmark beside Use Undeposited Funds as a default deposit to account.
Select OK.

Lastly, you can always visit our Help Articles hub for QuickBooks Desktop in case you need some related references in managing your account and other related transactions.

Know that I'm always here if you have follow-up questions. I'm here to help however I can. Take care and have a good one.

M

Maybelle_SAnswer

Thank you for posting here in the Community, @JLJ1.

Let me give you some insights about joint checks.

In most cases, joint checks are received by subcontractors in the construction industry. Many of the contractor clients receive these checks and they are made payable to "Sub-contractor" and "Supplier". In this case, the Supplier is the Vendor of Sub-contractor and has supplied material for a particular job.

The first thing you want to do in QuickBooks creates a "Joint Checks - Clearing" bank account. While not a real bank account, it will be used as a clearing account for the two-party checks. Once done, please follow the steps below to process your Accounts Receivable (A/R) go directly in the joint check account.

Here's how:

Go to the Edit menu, at the bottom select Preferences.
Select Payments.
From the Company Preferences window, put a checkmark beside Use Undeposited Funds as a default deposit to account.
Select OK.

Lastly, you can always visit our Help Articles hub for QuickBooks Desktop in case you need some related references in managing your account and other related transactions.

Know that I'm always here if you have follow-up questions. I'm here to help however I can. Take care and have a good one.

A

ATWtile

The first thing you want to do in QuickBooks creates a "Joint Checks - Clearing" bank account. While not a real bank account, it will be used as a clearing account for the two-party checks. Once done, please follow the steps below to process your Accounts Receivable (A/R) go directly in the joint check account.

Here's how:

Go to the Edit menu, at the bottom select Preferences.
Select Payments.
From the Company Preferences window, put a checkmark beside Use Undeposited Funds as a default deposit to account.
Select OK.

Is it possible to get step by step instructions after setting up the “Joint Check Clearing” account? I have that done, the set up so far, but how do I RECEIVE the payment/PROCESS a virtual DEPOSIT (I’m guessing it is virtual since I’m bringing the check to the vendor) and then PAYING the bills for the vendor involved would I select the bills to be paid and use the Joint Check Clearing instead of the usual bank account for selecting which bills to pay/write a check(?)

Thank you in advance

Donna

Rubielyn_J

Welcome to the Community, @ATWtile.

Let me sort things out for you. After creating a Joint Checks-Clearing account, you can receive payment from the customer. I'll show you how:

Go to the Customers menu, then choose Receive Payments.
In the Received From drop-down, select the customer's name.
Enter the Payment amount.
Make sure the Date is correct, then select the Payment method.
Click Save & Close.

Once done, you can now deposit the payment to the Clearing account you created.

Here's how:

Go to the Banking menu, then select Make Deposits.
In the Make Deposits window, select the clearing account you want to put the deposit into from the Deposit to dropdown.
Check the deposit total, make sure the account and selected payments match the deposit slip from your bank.
Enter the Date you deposited at your bank.
When done, click Save and Close.

You can also pay the vendor using the clearing account. Then, deposit the remaining balance to your business bank by creating a bank transfer.

I've added these articles that can guide you to track a transaction in QuickBooks desktop:

Please let me know if you have other concerns. I'd be glad to help you as soon as I can. Have a great day!

J

jackieh0

We often get joint checks. We pay the invoice then the material cost.

Uncertain how to process the payment when it is sent directly to the supplier to pay for materials that we have open bills for.
so if invoice is $50,000 $20,000 of it is material we are billed for to complete the job... how do we clear out the bills for the materials that the supply company was paid directly for.

KlentB

I'll help you in handling that, jackieh0.

Since the payments are directly sent to the supplier, you can create a bill credit and apply it to the bill to clear the balance. Here's how:

Go to the Vendors menu, then choose Enter Bills.
Click the Credit radio button at the top of the window.
Select the appropriate vendor, then enter the payment date.
Enter any associated credit number into the Ref. No. field.
Then enter the amount of the payment directly sent to your vendor in the Credit Amount field.
Select the affected accounts or items, then hit Save & Close.

Once done, you may now apply it to the bill to close the transaction or reduce the total balance:

Go to the Vendors menu.
Select Pay Bills.
Choose the bill that you wish to be paid.
Click the Set Credits button at the bottom to apply the credits.
Select Pay Selected Bills.

I also encourage checking this article to help outstanding bills for your and track the money you owe your vendors: Accounts Payable workflows in QuickBooks Desktop.

The Community is open 24/7, so please don't hesitate to visit us again here if you have any other concerms or follow-up questions. Have a good one.

H

henleycg

How do you do this in Quickbooks Online or is this desktop specific?

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