Paying invoices by cheque

Hi, can I have your advise for the following question:

  1. I pay supplier with 1 cheque for 3 invoice where should I go and entering the cheque?
  2. When we order, we pay a deposit by cash and balance by cheque, where should I enter it?

You have two basic choices:

  1. If you are paying immediately, there is no need to create a purchase invoice. Just select the bank account you will pay from and click Spend Money. Allocate the payment to the appropriate expense account(s). Show your supplier as Payee. Note that this approach is simpler, but deprives you of the ability to track the payment to a specific supplier invoice.

  2. If you are not paying immediately or want the traceability described above, create purchase invoices for the three customer invoices. See the Guide at When you are ready to pay, allocate the payment instead to Accounts payable. Read the Guide at Guides | Manager. If you handled the cash payment correctly, that should already have been entered against the supplier by allocating the deposit to Supplier credits.

When I go to spend money I go to the bank account. My question is what if I pay by cheque instead of cash?

When we order we pay a deposit by cash and balance by cheque, when I go to spend money, it only shows cash at bank, which is correct but there doesn’t have a selection of the payment method.

Bank accounts and cash accounts are handled similarly by Manager. But you should use a bank account only for transactions backed up by paper: cheques, deposit receipts, and so forth. Cash accounts should only be used for hard currency: petty cash, expense claims paid out of pocket, etc.

You will eventually reconcile cash accounts by counting the paper money and coins. Bank accounts will be reconciled when you receive a statement from the financial institution.

I’m not sure I completely understand your questions, though. If you received an invoice from your supplier that would be paid in the future, you should have created a purchase invoice. To do so, you would have to set up your supplier in Manager. Then, after selecting Accounts payable during the Spend Money transaction, you would have the opportunity to select the supplier involved. You would enter the cash deposit, working from within the cash account. When you paid the balance of the purchase invoice by cheque, you should do the same thing, but from within the bank account. Manager will be able to apply your payments both from cash and bank accounts to the appropriate invoice.

From an accounting perspective, the cash account and the bank account are completely separate. They do not interact with one another. But they both interact with Accounts payable.

I hope that helps.

Hi Tut,
I gotta it. Thank ya