Record Information for Handwritten Two-Party Checks

You can use the AP Check Print form to record information for handwritten two-party checks.

You can issue checks to two payees—the vendor and a second vendor or supplier to the vendor. A two-party check (also known as a joint check) is generally used on the transaction to ensure payment to a supplier by a particular subcontractor. For example, if you have not received a signed Waiver of Right To Lien form back from a subcontractor’s supplier, you can issue a two-party check to the subcontractor to ensure the supplier receives payment from the sub.

The following steps discuss how to record two-party information for hand-written checks.

  1. Create the supplier record in the AP Vendors form.
    Note: You can create suppliers as either a regular or a supplier vendor type. To set them up as a supplier, select the Supplier option from the Vendor Type field in the AP Vendors form.
  2. Set up the transaction (in either the AP Transaction Entry, AP Recurring Invoices, or AP Unapproved Invoice Entry form) and assign the supplier to each line on the transaction that comprises the two-party check. If you do not assign the supplier here, you can assign the supplier in the AP Payment Posting or AP Payment Control Detail forms (accessed from the AP Payment Workfile form).
    Note: If only part of the subcontractor’s check should be two-party, use the AP Payment Control Detail form to split the transaction into parts and assign the supplier to the portion requiring a two-party check. For more information, see Create a Partial Payment.
  3. Set up the information in the AP Payment Posting form, making sure to select M-Manual from the Check Type drop-down and enter the check number in the CM Ref# field.
  4. Process the batch as normal.

    If there is ever a need to write a three-party check, set up a supplier in the AP Vendors form with the name being both the second and third parties.