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Thank you for posting here in the Community, @JLJ1.
Let me give you some insights about joint checks.
In most cases, joint checks are received by subcontractors in the construction industry. Many of the contractor clients receive these checks and they are made payable to "Sub-contractor" and "Supplier". In this case, the Supplier is the Vendor of Sub-contractor and has supplied material for a particular 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:
Lastly, you can always visit our Help Articles hub for QuickBooks Desktop in case you need some related references in managing your account and other related transactions.
Know that I'm always here if you have follow-up questions. I'm here to help however I can. Take care and have a good one.
Thank you for posting here in the Community, @JLJ1.
Let me give you some insights about joint checks.
In most cases, joint checks are received by subcontractors in the construction industry. Many of the contractor clients receive these checks and they are made payable to "Sub-contractor" and "Supplier". In this case, the Supplier is the Vendor of Sub-contractor and has supplied material for a particular 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:
Lastly, you can always visit our Help Articles hub for QuickBooks Desktop in case you need some related references in managing your account and other related transactions.
Know that I'm always here if you have follow-up questions. I'm here to help however I can. Take care and have a good one.
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:
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:
Once done, you can now deposit the payment to the Clearing account you created.
Here's how:
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:
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!
@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:
- Go to the Customers menu, then choose Receive Payments.
- In the Received From drop-down, select the customer's name.
- Enter the Payment amount.
- Make sure the Date is correct, then select the Payment method.
- Click Save & Close.
Once done, you can now deposit the payment to the Clearing account you created. Here's how:
- Go to the Banking menu, then select Make Deposits.
- In the Make Deposits window, select the clearing account you want to put the deposit into from the Deposit to dropdown.
- 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.
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!
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:
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:
Once done, you may now apply it to the bill to close the transaction or reduce the total balance:
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:
Next, here's how to rebuild the data:
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:
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.
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:
These are the steps if you're using QuickBooks Online:
You can read the following articles below for more information on managing a chart of accounts:
Once everything is in order, you might want to view the following links, which will serve as your guide to effectively reconciling your accounts:
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:
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:
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:
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.
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