Customer payments and joint checks - QB Contractors

SoCalEx · ‎November 02, 2024

We are using Desktop Premium for Contractors.

A progress billing invoice was submitted to our customer ( General Contractor) for $45,000.00

One of our vendors submitted a progress waiver for $10,000, so a joint check was issued.

Two checks were issued - $35,000 to us and $10,000 to our vendor.

I paid the vendor invoice using the joint check-clearing feature.

-How do I record the payment to the invoice if the amount due is $45,000?

Please help!

GebelAlainaM · ‎November 02, 2024

You can create a credit memo and apply it to the outstanding balance, @SoCalEx. I'll be glad to guide you through the steps.

To clear the $45,000, you can receive the payment for the $35,000 and create a credit memo for the $10,000 remaining balance.

Here’s how:

Go to the Customers menu, then select Create Credit Memos/Refunds.
Select your customer from the Customer: Job drop-down.
Enter the items you're giving credit for.
Set the correct amount and add the other necessary info.
Click Save & Close.

After that, apply it to the invoice with the remaining balance by following the steps highlighted in the Option 3 section of this article: Give your customer credit or refund in QuickBooks Desktop for Windows.

I've added these articles for future reference in tracking a transaction's workflow in QuickBooks Desktop:

Please let me know by replying to this thread if you need clarification on handling joint split checks in QuickBooks. I'm always happy to help you.

SoCalEx · ‎November 03, 2024

Hello

The full amount due—$45,000—was applied to the customer progress invoice. When reconciling the bank statement, I am off the amount paid to the vendor ($10,000) using the joint check clearing. If I apply the correct amount of the check to the customer invoice, I still show a balance owed of $10,000.

Is this the correct way to record joint checks?

Pay the customer invoice to show the true amount paid—$35,000—and create a credit memo for the amount owed that was applied to the vendor invoice of $10,000 using the joint check clearing?

Is there any other steps I need to take?

LollyNino_C · ‎November 03, 2024

Thank you for your response, @SoCalEx!

The steps shared by my colleague effectively outline how to manage joint checks in QuickBooks Desktop (QBDT).

Yes, creating a Credit Memo is the correct method for recording joint checks. It’s essential to keep your invoice, credit memo, and bills organized with accurate dates and references for clear auditing.

For any additional guidance, I recommend consulting with your accountant or an accounting professional. They can provide valuable insight into best practices and ensure your accounts stay accurate. If you need help finding a professional, check out our ProAdvisor page for support.

Here are some resources that might help manage reports and customize them in QBDT:

If you need further assistance handling joint split checks in QBDT, please click the Reply button below. I’m here to help! Have a great day!

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Customer payments and joint checks - QB Contractors