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.

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: 

1. Go to the Edit menu, at the bottom select Preferences.
2. Select Payments.
3. From the Company Preferences window, put a checkmark beside Use Undeposited Funds as a default deposit to account.
4. 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

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:

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

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

Here's how:

1. Go to the Banking menu, then select Make Deposits.
2. In the Make Deposits window, select the clearing account you want to put the deposit into from the Deposit to dropdown.
3. Check the deposit total, make sure the account and selected payments match the deposit slip from your bank.
4. Enter the Date you deposited at your bank.
5. 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:

• Get started with customer transaction workflows in QuickBooks Desktop.
• Accounts Payable workflows 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!

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@Rubielyn_J wrote:

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:

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

Once done, you can now deposit the payment to the Clearing account you created. Here's how:

1. Go to the Banking menu, then select Make Deposits.
2. In the Make Deposits window, select the clearing account you want to put the deposit into from the Deposit to dropdown.
3. Check the deposit total, make sure the account and selected payments match the deposit slip from your bank.
4. Enter the date you deposited at your bank.
5. 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:

• Get started with customer transaction workflows in QuickBooks Desktop.
• Accounts Payable workflows 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!

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• 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.

Does this part work even though I'm not going to deposit any of the joint check into our bank account? maybe I misunderstood: Joint Check Clearing IS the "bank account"?

Hello there @ATWtile,

The reason why you transfer the remaining balance of the Joint Check-Clearing account to your bank account because the payment transaction will not be recorded to the bank account where the payment should be.

However, there's another way to transfer the payment from customers going to your vendor. You can do a Journal Entries to transfer the transaction, I recommend contacting your accountant to follow some advice and assist you with the process.

Follow these steps on how to add a journal entry:

1. Go to the Company menu
2. Select Make General Journal Entries.
3. Fill out the fields. Make sure your debits equal your credits when you’re done.
4. Click the Save & Close button.

I'd also added an article in case you need help importing journal entries from your accountant.

If you have follow-up questions, feel free to drop a comment below.

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. 

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:

1. Go to the Vendors menu, then choose Enter Bills.
2. Click the Credit radio button at the top of the window.
3. Select the appropriate vendor, then enter the payment date.
4. Enter any associated credit number into the Ref. No. field.
5. Then enter the amount of the payment directly sent to your vendor in the Credit Amount field.
6. 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:

1. Go to the Vendors menu.
2. Select Pay Bills.
3. Choose the bill that you wish to be paid.
4. Click the Set Credits button at the bottom to apply the credits.
5. 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.

I created the Chart of Accounts and now I am stuck.  I'm not sure how to get into preference.

Thanks for chiming in on this thread, @armi777. Let me help you in locating the preferences in QuickBooks Desktop (QBDT).

We can simply get into the Preferences by clicking the Edit menu at the top.

However, if you can't see this option, we can run the Verify and Rebuild data tools to get this resolved. This way, we can verify and resolve the most commonly known data issues within your company file. Also, please ensure that your QuickBooks Desktop is up to date. So you'll always have the latest features and fixes.

Here's how to verify the data:

1. Navigate to the File menu.
2. Choose Utilities, then select Verify Data.
3. Click OK when you see the message, QuickBooks detected no problem with your data.
4. If Verify finds an issue with your data, you'll be prompted to Rebuild Now or View Errors.
5. Click Close or View Errors and take note of the specific error message.

Next, here's how to rebuild the data:

1. Go to the File menu.
2. Choose Utilities, then select Rebuild Data.
3. Click OK if you receive a prompt to back up your company file.
4. Click OK when you get the message, Rebuild has completed, and proceed to the next step.
5. Run Rebuild Data again to make sure there are no errors.

Additionally, to learn the different ways you can track customer transactions in QBDT, I'd recommend checking out this article: Get started with customer transaction workflows in QuickBooks Desktop.

It'll always be my pleasure to help if you've got other QuickBooks concerns. I'll be here to assist you. Have a good one!

I don't have a desktop.  I have online QuickBooks 

Hello there, @rickwillard89.

Allow me to step and share some information on how you can go to the chart of account preferences in QuickBooks Online (QBO).

Here's how:

1. Hit the Gear icon on the Toolbar.
2. Under Your Company, tap Chart of Accounts.
3. Find the account you want to edit.
4. Click the drop-down in the Action column, then choose Edit.
5. Tick Save and close to confirm.

For more details about this process, you may read through this link: How to deactivate an account or restore a deactivated account.

Feel easy to check out these pages below about handling your banking data and multiple accounts in QuickBooks. 

• Banking
• Learn about the chart of accounts in QuickBooks

Feel at ease to drop a comment below if you have any concerns about chart of accounts. I'd be glad to help. Take care!

I'm in receiving payment and the invoice I generated for this customer comes up.  So, my question is where do I receive payment or where do I deposit payment, in the "joint checks-clearing bank account"?

So, under receive payments, there is a drop-down menu that reads joint checks-clearing bank account (this is the account that I created based on step one), along with my active or actual business account.  

Hi there, @armi777. Now that I'm here, I'll answer your query so you can proceed to post your invoice payments or deposits to your preferred account in QuickBooks Online (QBO).

If you want to post invoice payments or bank deposits to the account you've created in your chart of accounts, you'll want to select that account whenever you receive payments for your invoices or process bank deposits in QBO. This way, the transactions will be posted on your Joint checks-clearing bank account in your COA.

Also, if you plan to do bulk or combine payments in the future before posting them in your real bank account, you can choose Undeposited Funds in the Deposit to section. Visit this article for more information: Deposit payments into the Undeposited Funds account in QuickBooks Online.

Additionally, here's an article to help you categorize and matched bank transactions in QBO: Categorize and match online bank transactions in QuickBooks Online.

You can also check this article in case you'd like to reconcile an account in QBO: Reconcile an account in QuickBooks Online.

Know that you can always get back to me if you need further assistance managing invoice payments or deposits in QuickBooks, @armi777. Also, feel free to post again in the Community space if you have any additional QuickBooks-related concerns. I'll be more than happy to help you out again. Thanks for choosing QuickBooks. Take care, and have a great weekend!

Hi! Can you provide the steps for creating a Joint Checks-Clearing bank account?

Thanks for joining the thread, Sabrina_s.

I'll walk you through the process of creating a joint check clearing account.

If you're using QuickBooks Desktop, please follow the steps below:

1. Go to the Lists menu, then Chart of Accounts.
2. Right-click anywhere in the Chart of Account screen, then select New.
3. In the Add New Account window, choose the Bank radio button.
4. Click Continue.
5. In the Account Name field, enter Clearing Account, Barter Account, or Wash Account.
6. Don't enter an opening balance.
7. Once done, hit Save & Close.

These are the steps if you're using QuickBooks Online:

1. Sign in to your QuickBooks account and go to Accounting on the left-side panel.
2. Select Chart of Accounts.
3. On the Chart of Accounts screen, click the New tab.
4. Choose Bank Accounts in the Save account under section.
5. Select the best option from the Tax form section that describes your clearing account.
6. Type in your desired clearing account name in the Account name area.
7. Make sure you do not type in any amount on the balance before clicking Save.

You can read the following articles below for more information on managing a chart of accounts:

• Work with the chart of accounts in QuickBooks Desktop
• Learn about the chart of accounts in QuickBooks Online

Once everything is in order, you might want to view the following links, which will serve as your guide to effectively reconciling your accounts:

• Reconcile an account in QuickBooks Desktop
• Reconcile an account in QuickBooks Online

You're welcome to post again if you need further assistance. We're happy to help you.

I created my joint clearing account (fake account)

I received payments by going to my customer and clicking on the open invoice that is being paid.  I make sure that I deposit or receive this payment to the joint clearing account (fake account).

Once I received the payment, I can now go to pay bills.  I pay bills and make sure that the bills are being paid from the Joint clearing account (fake account).  After all the bills are paid, the balance left in the fake account is what I netted (income).  My question is how do I transfer to my business checking account?

Also, once I paid the bills, the QB created a "print check" that is sitting in the fake account or que.  I don't need to print checks because my vendors or suppliers were paid by the customer in a joint check.  How do I clear this print checks?

We're nearly there, armi777.

Let's create a journal entry to transfer the fund to your business checking account. Here's how:

1. Go to the + New menu and then select Journal entry.
2. Select the correct accounts.
3. Enter the net income.
4. Once done, click Save and close.

For more details, please see the article: Create a Journal Entry.

I also suggest consulting an accountant to ensure the transaction is correct.

To clear the check on the print queue, I'd recommend following these steps:

1. From the + New menu, select Print Checks.
2. Select the check you want to clear, then click on Remove from list.
3. Select Yes on the prompt message.

Lastly, I've added an article that'll help you match your QuickBooks accounts to your bank and credit card statements: Reconcile Workflow.

Please let us know if you need additional assistance with the steps. We want to ensure the fund is transferred and the checks are removed.

Thank you for everyone's help.  I could not get to this point of joint check processing without your help.

I would love to print this "how-to" in a word format so that I can save it in case I forget a step.

You're most welcome, @armi777. 

I’m glad to hear that the issue about your joint check processing are now resolved. 

In case you need tips and related articles when managing your account, feel free to visit our Community website for more insights.

If there's anything else you need help with, please come by the Community. We're here to lend a hand. Wishing you and your business continued success.

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

How to perform Joint Check processing and account setup in Quickbooks Online specifically?

Thanks for joining this thread, @henleycg.

If you're referring to setting up a Joint check-clearing account in QuickBooks Online, here are the steps we need to take:

1. In your QBO account, proceed to the Accounting menu on the left-side panel.
2. Choose Chart of Accounts and click the New tab.
3. In the Account Type ▼ dropdown, choose an account type.
4. Under the Detail Type ▼ dropdown, select the detail type that best fits the transactions you want to track. 
5. Enter your desired clearing account name in the Account name area.
6. Ensure not to put any amount on the balance before clicking Save.

I'm also adding this link to manage your accounts to help track your financial information: Learn about the chart of accounts in QuickBooks Online.

You can also check out this resource to help review the transaction history and current balance: Find, review, and edit transactions in account registers in QuickBooks Online.

Feel at ease to comment below if you need further assistance about Joint Check processing and account setup in Quickbooks Online. I'll be around to lend a helping hand. 

Hello 

quick question, under receive payment (QuickBooks online), there is a "deposit to" box, is this where I choose to deposit into a clearing account?  If so, then what about step 2, does that still need to be done?

Hello there, @armi777.

Let me share some information about using a clearing account in QuickBooks Online (QBO).

Yes, you can directly select the clearing account under Deposit to when receiving payments. Please know that you'll just need to make a deposit if the payment received is under the undeposited funds account.

You can check out this article to learn more about how to use clearing accounts in QBO: Why use clearing accounts in your accounting system for PayPal, credit cards, and other payment chan...

You may also want to reconcile your accounts in the future. This will help make sure your QuickBooks transactions match your bank statement.

Feel free to leave a comment below if you have other concerns or follow-up questions about the clearing account. We're always here to help.