How to Book Two-Party Checks in QuickBooks for Contractors |

QuickBooks construction client called today, here is the question. They invoiced a client for $100,000. The client made payment in the following fashion: (1) $57,000 to my client for their services on one check, and (2) the balance of the invoice in multiple checks to each subcontractor directly. Should I advise the client to (1) delete the invoice and reissue a invoice for the $57k, or (2) issue a credit for the balance to an account called "direct vendor pay". This client is the one I was talking to you about when we did the webinar. They have NOT started using items yet, so deleting the invoice would not effect the items….I think?

I’d receive this as two payments: one deposited to the checking account for your share, the other deposited to a trade or clearing bank account (you may need to create one) for the subcontractors' share. Then write a “check” to your subcontractors using the same trade/clearing account, or pay the bill using the trade/clearing account if it’s already been entered. Note: the trade/clearing account balance should equal $0 once all the entries are made.

This also works if you receive a two-party check from a customer that you need to send on to the sub.

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman, CMA, CFE, CFM, MBA

Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

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