Any new work should be opened as a job ticket, as it happens. A job ticket can be opened anytime after it is conceived, and certainly before the work begins. It's important to open new jobs as soon as possible, since purchase orders and time can't be tracked without a job number.

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Oldest invoices are paid off first, using the auto-allocate option, but can be changed. So you can decide which invoices should be paid with a check -- and which ones shouldn’t.

Vendor payments credit the cash account and debit the A/P liability account. Discounts or other adjustments can be included with each payment, making it easy to track early-payment discounts offered by vendors. Adjustments and discounts debit your A/P account and credit your earned discounts account.

The Vendor Invoice Aging (printed from the Snapshots menu) is commonly used when preparing to write checks because is shows every unpaid invoice so it can be used as a checklist of the bills to pay.

✳️ If you checked the Auto-allocate option when the check was added, the check amount will be applied automatically to the vendor’s oldest invoices. This is a fast, easy way to pay your payables. It’s flexible, though, so you can still adjust which invoices will be paid -- and which ones won’t. You can’t save this check until its amount is completely applied to invoices.

🔹To write checks, open the Checkbook window then click the Add toolbar button.

HERE'S HOW IT WORKS

• A PDF of an invoice, quote, estimate, etc. can be attached to the check.
• Handwritten checks won't be printed.
• Internal approval isn't needed for checks, but there's an option to require someone else to post checks.
• A check can be written to anyone; they don’t have to be vendors, either.
• When the check is posted, this amount will debit the employee receivables G/L accounts.

⚠️ Printed checks have limits. The standard check can contain only 17 line items (i.e., paid invoices or job costs). If you’re paying off more than 17 invoices, additional checks will be created automatically.

📎 You can enter dozens of overhead expense accounts onto a check’s distribution. But the expense amounts on the line items are totaled, and must equal the check’s amount or else the distribution can’t be saved.

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TO WRITE A CHECK FOR OVERHEAD EXPENSES

1️⃣ From the Checkbook window, click on the Add toolbar button.

The Write Check dialog box opens, prompting you to select the type of check you wish to write.

2️⃣ Click on the Vendor Payment radio button.

3️⃣ Choose a bank account from the cGL pop-up menu, then confirm the check number.

The G/L account number determines from which bank account this check will be written. You can manage many bank accounts, writing checks and making deposits by entering a different G/L account number. Only G/L accounts that are tagged as checking accounts can be used for employee expense advances. When you choose the account to use, you'll see the account's current balance displayed.

📎 Checks are numbered automatically based on the cash account’s G/L number. You can change the number by typing in a new number over the old. Changing the check number doesn’t affect the next check’s number -- it will be the next check number in sequence.

4️⃣ Enter the check date, then confirm the accounting period from the pop-up menu.

This is the date the check was added. It is entered as today’s date automatically, but can be changed. The date appears on the printed check. It does not affect posting or the General Ledger (unlike the period). Cash reports can be printed by check date, showing all of the checks that were written for a range of dates. The accounting period determines how this check will affect your financial statements. The current period is copied from Agency Information, but can be changed. A check can be posted into any unlocked accounting period.

📎 Is this a hand-written check? The handwritten check option keeps the check from being printed. It should be checked only for checks that shouldn’t be printed. It can be changed later, if needed.

5️⃣ Enter the vendor number (optional) and paid to (i.e., payee) name (not optional).

The vendor number associates this check with a vendor account. A check can only be written to one vendor. Tabbing past the vendor number copies the address and account balance to the check. The check’s address (which appears on the printed check) can be changed without affecting the vendor account. The vendor’s account balance is copied into the check amount; Clients & Profits makes an assumption that you’re paying off the vendor’s balance in full, as a shortcut. The vendor name is copied into the paid to (i.e., payee) name, but can be changed. The paid to name appears on the printed check, so it can be edited to include an account number, mail stop, or some other kind of information.

6️⃣ Enter the check amount and select the auto-allocate option, if applicable.

This is the amount you wish to pay to the vendor, less any discounts or adjustments. This amount will be distributed to unpaid invoices. Tabbing past the check amount displays the written amount, which can’t be edited. You can write a check for more than the vendor’s balance; if so, one of the vendor’s invoices will be overpaid. When the check is posted, the vendor will have a credit balance. Later, this credit balance can be applied to upcoming invoices.

📎 The auto-allocate option will automatically pay off the vendor’s oldest invoices first. Using this option saves time when paying off many invoices for vendors like Fedex, that send many invoices during the month. Even with the auto-allocate option, you can still change which invoices are paid with this check.

📎 1099-able? The "Include on year-end 1099 report" checkbox controls if this check will be included in the total amount printed on the 1099 for this vendor. It will be checked by default if this vendor is set to include checks on the 1099 (Setup > Vendors, then select this option setting in the Account Info window). However, not all checks for a vendor must be included on the 1099, so C&P provides the flexibility to include or exclude certain checks on the 1099 total via this checkbox. The tax ID is typically be the payee's Social Security Number.

7️⃣

8️⃣ Enter the check memo and the (optional) mail check to address.

The memo describes the check’s purpose (e.g., payment on account, credit, etc.) on cash reports and G/L reports. A default memo can be set up on the vendor file. The memo is user-defined, and can be changed later. If you are planning to take an early-payment discount, enter the check amount as the payment less the discounts.

📎 The vendor’s address is copied from the vendor account, but can be changed. This address appears on the printed check. You may need to change the address to send it to a different location, such as a corporate office or accounting department. It only appears on this check. Changing the check’s address doesn’t affect the vendor’s address.

📌 A separate address for payments can be set up on the vendor account that will copy to checks. Use this address, if checks are always sent to a different location than the vendor’s main address.

9️⃣ Click on an A/P invoice to select it for payment by this check. Repeat these steps until the check’s remaining payment amount is completely allocated:


🔟 Click Save.

Once the overhead expense check is saved, it can be proofed, changed, or deleted anytime before it is posted. The check doesn’t update the General Ledger until posting. Posting creates journal entries. Overhead expense checks don’t affect vendor balances, since they’re not paying off invoices. Unposted checks don’t appear on job, cost, or accounting reports.


TIPS

📌 For better accountability, the check # entered on the check should match the pre-printed number on the check stock. To change the next sequential check number, you can change the check number in the cash account. Once you’ve saved this check, choose Chart of Accounts from the Setup menu. Find the account you wish to change, then double-click on it. The next check number for this account appears at the bottom of the Edit Account window. Changing it here will affect the next check to be added.

📌 If your vendor offers discounts for early payments, you can enter them when applying the check amount. Discounts decrease the invoice’s balance due, just like a payment amount. The debit to A/P in the General Ledger will be the amount of your discount plus the amount of the check. You can enter discounts on any invoice, without limitations. The credit goes to the early-payment discount account.

FAQs

💬 Can I include an invoice on a vendor payment check before its due date? Yes. Accounts Payable invoices can be paid anytime after being posted, regardless of the due date. Simply post the A/P invoice, then write the vendor check.

💬 Can I change the staff member's initials? Yes, the Re-number utility will change all of a staff member's time entries, job tasks, etc. automatically. If the staff member also has a vendor account (which is used for expense report reimbursements) it will be renumbered as well.

SEE ALSO
Checkbook
Recording Online Payments
Bank Reconciliation FAQ

EXPLAINERS
Employee Expense Advances