How to enter a Check.
Before you enter a check, these three conditions must be true, you must have:
a bank account to withdraw money from,
an expense account or another type of GL Account to identify the category of what is paid,
and have added a contact to send the check to.
Remember, only users given the right to enter checks can do so. To learn about managing user rights to enter checks, read, 'Who can enter a checks?'
The steps to enter a check can be broken down into three major steps. These steps are: One, indicate who the check is for. Two, enter the check details like the amount and date. Three, indicate the GL accounts effected by the check.
The first step begin with opening the 'Check' window.
Click the 'Accounting' menu bar selection and then select, 'Payable -- CHECKS.' An illustration of the first step is in the slide below.
The 'Checks' window opens in view mode. From this window you may view the checks printed, in circulation, cashed and cancelled. You may also open the new checks window from here.
The 'Checks' window is shown below.
Click the 'Add a new check' button to open the 'New Check' window.
The 'New check' window appears below. The window has two main features. At the top are the fields to search for the contact. The contact is the person business or organization where the check is to be sent. The bottom section is the area to enter the GL Accounts information to explain what is being purchased.
In this case the user Larry Potter wants to write a check for the electricity bill for the month of January. The check is to be made out to the electricity company.
In the next slide, Larry has selected the contact type, 'Supplier.' Next he clicks the 'Search' button. A list of supplies appears. He then selects the appropriate supplier from the list -- Southern California Edison.
The contact name and address replaces the prior search list. The next slide shows the name and address of the contact.
It is now time to enter the check details.
First enter the amount of the check. In this case, Mr. Potter entered 85.00 dollars.
In the next slide these check details are entered.
The check presently indicates the receiver of the check and the amount to be paid.
Now we want to specify which GL accounts are involved in the transaction and the details associated with the entry.
First, enter the date when the expense occurred. Enter it in the left most field. In the slide below, the date of the entry. Mr. Potter enters, '2001-03-31.'
Next click the field labelled, 'GL.' A list of GL accounts will appear in the adjacent field. The check is being made for an electricity expense. A GL account of the Type, 'Expense' is to be selected.
Select the appropriate GL account that applies. In his case, the GL account, '4500 - Expense - Electrically supply' is selected.
The slide below illustrates the GL account selected.
After the GL account is selected, enter the dollar amount for the expense. In the case of the 'Electrical bill' sum is: '$85.00'
The next three steps are optional but are recommended if the information is available.
One, enter a reference number if you have one. The reference number is the number found on the received bill from the expense source.
Two, enter a note that will appear on the printed check.
Three, enter a comment, as reminder to yourself explaining the reason the check was entered.
The final step for adding a GL account is to add the GL account to the list. Click the 'Add' button.
When the GL account totals and the amount entered in the green check area are the same amounts, you may proceed to the final step. If the amounts are not the same, the message just above the GL account area reads, 'This check cannot be printed. There is a (some dollar figure) $ difference.
The next and final step is to save the check. Click the 'Save' button.
In the final slide, we see the check status is, 'ToBeIssued.' The check is not sent. It has only been entered.
Related topics:
To learn how to print a check to make a payment, read, 'How to manually print a check?'
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