Posting One Check Between Two Customers

Posted by Alan on May 14, 2007, 1:45 pm

Please log in for more thread options

I have a check from customer A paying for invoices for customer A and
invoices for customer B. I usually use the receive payments window and
prepare deposit slips within QB. How do I handle this situation? Someone
suggested pretending that I have two checks, each for the portion of the
check that invoices pay. That would work until we print the deposit slip
which would indicate two checks rather than the one check I actually
received. That wouldn't square with what we take to the bank and probably
would not sit well with the teller. Now we could make corrections to the
deposit slip by hand, or even create a new one by hand as a workaround but
theoretically, at least, you aren't supposed to have to to corrections with
a pen to what Quickbooks produces. Spliting one check between two different
customers seems like it ought to be a simple procedure. How do I do it
right?

Posted by Laura on May 14, 2007, 2:25 pm

Please log in for more thread options

>I have a check from customer A paying for invoices for customer A and

>invoices for customer B. I usually use the receive payments window and

>prepare deposit slips within QB. How do I handle this situation? Someone

>suggested pretending that I have two checks, each for the portion of the

>check that invoices pay. That would work until we print the deposit slip

>which would indicate two checks rather than the one check I actually

>received. That wouldn't square with what we take to the bank and probably

>would not sit well with the teller. Now we could make corrections to the

>deposit slip by hand, or even create a new one by hand as a workaround but

>theoretically, at least, you aren't supposed to have to to corrections with

>a pen to what Quickbooks produces. Spliting one check between two different

>customers seems like it ought to be a simple procedure. How do I do it

>right?

Splitting bwt the 2 customers using the same check number will look like 2
checks on the deposit slip but I doubt the bank will even notice. Most banks
tally up the physical checks and compare it against the total on the deposit
slip. I would not worry about it.

Posted by Alan on May 14, 2007, 8:05 pm

Please log in for more thread options

> Splitting bwt the 2 customers using the same check number will look like 2

> checks on the deposit slip but I doubt the bank will even notice. Most

> banks tally up the physical checks and compare it against the total on the

> deposit slip. I would not worry about it.

When I went to the bank today, I asked the teller if this situation would be
a problem and he said it would. Then he pauased and asked the teller next to
him and she said the same thing. So, I'm back to my original question.

Posted by Laura on May 15, 2007, 7:50 am

Please log in for more thread options

>> Splitting bwt the 2 customers using the same check number will look like

>> 2 checks on the deposit slip but I doubt the bank will even notice. Most

>> banks tally up the physical checks and compare it against the total on

>> the deposit slip. I would not worry about it.

> When I went to the bank today, I asked the teller if this situation would

> be a problem and he said it would. Then he pauased and asked the teller

> next to him and she said the same thing. So, I'm back to my original

> question.

I find that a lazy answer on their part. Many of my client's deposit slips
are so illegible that the bank does not even read them any more. They Proof
out using the actual checks and then check the total on the deposit slip.

I would suggest you test the answer at your bank. Go with a manually
prepared deposit slip just in case what they refuse to accept the QB one.
Don't point out the double entry. Just present it and see what happens.

If you really want to present the bank with a correct deposit slip produced
by QB here's one way to do it:

-Receive Payment for Cust#1 for the entire amount
-Create Clearing bank account
-Do 2 journal entries:
a) Debit A/R Cust#1 & Credit Clearing account
b) Debit Clearing account & Credit A/R Cust#2
These leave an Overpayment on Cust#1 and an unapplied payment on Cust#2

-Receive Payment for Cust#1 and click on Apply Discount & Credits. This
leaves a zero check and removes the overpayment.
-Receive Payment for Cust#2 and click on Apply Discount & Credits. This
leave a zero check and removes the unpaid invoices.

One caveat - since the payment for cust#2 was done through JE instead of the
Customer module, the invoice is cleared but the transactions DO NOT show up
on the customer transaction reports. That's one reason why I don't like this
method. It does work. Its a lot more steps. Preparing a manual deposit slip
for these rare cases (if you find you bank refuses the QB one) is a much
faster way of accomplishing this.

Posted by Golden California Girls on May 15, 2007, 10:55 am

Please log in for more thread options

Laura wrote:

>>> Splitting bwt the 2 customers using the same check number will look

>>> like 2 checks on the deposit slip but I doubt the bank will even

>>> notice. Most banks tally up the physical checks and compare it

>>> against the total on the deposit slip. I would not worry about it.

>> When I went to the bank today, I asked the teller if this situation

>> would be a problem and he said it would. Then he pauased and asked the

>> teller next to him and she said the same thing. So, I'm back to my

>> original question.

> I find that a lazy answer on their part. Many of my client's deposit

> slips are so illegible that the bank does not even read them any more.

> They Proof out using the actual checks and then check the total on the

> deposit slip.

> I would suggest you test the answer at your bank. Go with a manually

> prepared deposit slip just in case what they refuse to accept the QB

> one. Don't point out the double entry. Just present it and see what

> happens.

> If you really want to present the bank with a correct deposit slip

> produced by QB here's one way to do it:

> -Receive Payment for Cust#1 for the entire amount

> -Create Clearing bank account

> -Do 2 journal entries:

> a) Debit A/R Cust#1 & Credit Clearing account

> b) Debit Clearing account & Credit A/R Cust#2

> These leave an Overpayment on Cust#1 and an unapplied payment on Cust#2

> -Receive Payment for Cust#1 and click on Apply Discount & Credits. This

> leaves a zero check and removes the overpayment.

> -Receive Payment for Cust#2 and click on Apply Discount & Credits. This

> leave a zero check and removes the unpaid invoices.

> One caveat - since the payment for cust#2 was done through JE instead of

> the Customer module, the invoice is cleared but the transactions DO NOT

> show up on the customer transaction reports. That's one reason why I

> don't like this method. It does work. Its a lot more steps. Preparing a

> manual deposit slip for these rare cases (if you find you bank refuses

> the QB one) is a much faster way of accomplishing this.

The real problem is they count the number of checks and it has to match the
number of items on the deposit slip.