Account for Hand Written Checks to AP

Accounting for Hand Written Checks to Accounts Payable

To account for checks that you write by hand for A/P Invoices, you will enter a payment to A/P Invoices. This routine works exactly like the routine for entering payments to Receivables (Enter Payments from Owners).

TUTORIAL SCENARIO

Only one invoice was entered earlier in the tutorial section Add an A/P Invoice, so be sure not to pay ALL of it now. If you pay it all you can't use it in the next section (A/P Computer Generated Payment Checks). We will pay a partial amount on the Invoice now.

From the Drop Down Menu, select A/P - Make Payments and JE’s

After entering values for Company Number and Vendor Number click Get Data.

For the Tutorial, complete as above - don't pay All of the Invoice, because we want to use the invoice again in the next section, when we Print A/P Computer Checks.

Note: GL Number 21000 is hard coded for Accounts Payable. Derek will make an automatic Debit to that GL Number for Accounts Payable checks. See GL Number Restrictions.

Locate the invoice you are applying this payment to and click on it to highlight it and choose one of the payment options from the bottom left side of screen.

After completing the fields, click OK which closes the 'Apply Payment' window. Close the A/P manual payment window.

*You are finished*

Reports To Verify for Checks

A/P Inquiry Report - should show the payment listed below the Invoice. The Invoice Balance should be reduced by the amount of the payment.

Monthly Transaction Listing Report - should show a debit to Accounts Payable (G/L Number 21000) and a credit to the Cash Account you specified.

Note: GL Number 21000 is hard coded into the system for Accounts Payable.

Check Listing Report from the Transaction program should show a list of hand written checks if you posted against the cash account.