How to use checks?

Hello friends,

here in Argentina is very usual to use checks for payments.

For instance a supplier give you 60 items for a total value of $60.000, and you give them 3 checks each for value of $20.000 for 30/60/90 days.

I would like how to use Manager to do that. I think I am using wrong.

My process:

  1. I create a purchase invoice with the inventory items that we buy. This add a $60.000 to Bills to pay in the liability. (I already created the inventory items)
  2. I add a inventory item called checks, so after 30 days I go to my cash account and use the Spend Money function, so I spend $20.000 on the item “check”. And do the same after 60 and 90 days.

Is there another way to use checks in Manager?

Thank you!

To have in mind: our business is a clothing retail so we have a loooot of inventory items.

Checks are not inventory items. Inventory items are only things you hold for sale or production. So your clothing is inventory. To pay the Accounts payable liability, go to the Cash Accounts tab and Spend money. Select the bank account from which you will pay. Post the transaction to Accounts payable => Supplier name. If everything is one one purchase invoice, select that number. But if there are many purchase invoices, leave the invoice number blank. Manager will allocate to the oldest first, then the next oldest, until the money is used up.

As for writing checks with future dates, in some places that is illegal, in others legal. Assuming it is legal in Argentina, you have choices:

  1. Enter all three checks with issue dates when you will actually write and send them. Manager will ignore future-dated checks for reporting purposes until their issue dates arrive. You have the burden to remember to write and send the checks.

  2. Write all three checks and send them, but with future dates. Enter them the same way. This ends your work and puts the burden on the supplier to remember to deposit the checks. (Or perhaps the supplier deposits them immediately and the worry is on the bank when to process them–however it works in Argentina.)

  3. Write and send the checks separately on appropriate dates. Enter them only when they have been sent. This is much like #1, but makes Manager more accurate if you forget to write the checks. (They will not automatically be included in your accounting even though you forget to send them.)

Read this Guide for more on spending money:
Read this one on cash accounts:

1 Like

Thank you for your reply my friend!

Sorry but I don’t understand how to do what you say. I will explain the process for our business so you can give
me a better answer please!

  1. We create a purchase order/purchase invoice, inside the order there is 10 items from inventory and every item have 10 qnty.

  2. The total for that order is $6.000, I write the 3 checks, today is May 12, so I write: one for 12 June for $2.000, one for 12 July for $2.000 and one for 12 August for the other $2.000. The bank will discount me $2.000 everytime the supplier deposit the check on the date or up to 30 days after the date. (That is how the checks works here in Argentina). So first we send the 3 checks and after that they send the products to us.

Right now I am adding purchase invoices and this add the amount to accounts payable on liabilities (that is good), but I need to know a way to say to Manager, Okay, today is June 12 and will pay 1/3 of the pending invoice.

Thank you for your time, really appreciate your answer. (Sorry for my english).

Your English is fine. Lots better than my Spanish!

It sounds like you are doing everything correctly on the purchase invoices. One thing you might want to look into is the use of goods receipts, since you are paying for the goods before you actually have them in hand. But your inventory will show them as being in stock. There isn’t a Guide on goods receipts yet, so search the forum, including the Releases category.

As for payment, if I understand you correctly, you are sending all three checks at once. This was my option #2. Enter three separate Spend money transactions for $2.000. Date them 12 June, 12 July, and 12 August. Write the corresponding checks and send them to the supplier. Allocate all transactions to Accounts payable, the customer’s name, and the purchase invoice number. Manager will do the rest. As the dates arrive, the transactions will be incorporated into your Summary. You should show the transactions as Pending until the supplier deposits the checks and the bank processes them. Then you will edit the transactions to show they are Cleared. See this Guide:

Thank you for your quickly reply.

In that case, I add $2.000 in concept of what? Because I already added the items to my inventory, and if I add again in the Spend Money option I would have 2 times the items (and also I can’t add 1/3 of a item hehe).

Do I have to create a new account for the Goods? Or just don’t put anyting in the form?

Once again, really appreciate your help!

In the Spend Money option you use for the Account - Accounts Payable + Supplier + Invoice, this will pay the purchase invoice. You don’t re-enter the inventory items.

1 Like

Awesome my friend! That was I looking for, it was so easy!! :flushed:

Thank you very much!