Occasionally you may have to write a check to pay a bill and will probably never have to write a check to that particular company or person again. We call this a “one-off” check, and It is not really necessary to create a new vendor record to write this one-off check. Below is method we recommend for producing a one-off check.
- Set up a Miscellaneous vendor in Maintain Vendors with the following information:
Vendor ID: MISC
Name: Miscellaneous
Expense Account: Create a new General Ledger account
Account ID (for example): 2999
Description: Exchange
Account Type: Other Current Liabilities
No other fields in Maintain Vendors are required for this Miscellaneous vendor record.
- To write the “One-Off” check you must use the task Write Checks. You cannot use Bills, Pay Bills, or Payments.
- In the task Write Checks enter the Vendor ID: MISC When you follow this procedure r you will be able to type in the Payee for the check and the Payee Address on the Write Checks screen, and you will be able to enter the correct Expense Account for that check.
- The idea of defaulting this MISC vendor to Exchange is that, as a part of the procedure for Period (month) End Closing, one of the steps is to identify and reconcile all items in the Exchange account and make adjustments as necessary. Therefore, if the correct Expense account was not entered when writing the check, it can be adjusted at the period or month end closing.
- Since you are using the Vendor ID MISC most reports will not show the PAYEE or ADDRESS on the check.
- To see the Payee, at a later date:
- Reprint the check on blank paper OR
- In Account Reconciliation the Payee name will appear in the Payee/Description column.
- To see the Address, at a later date:
- Reprint the check on blank paper OR
- In the Cash Disbursements Journal report add the column for Address.
You can use the MISC vendor for all “One-Off” checks you need to write, without having to create multiple vendor records that you will never need again.
Need to learn a new way to more efficiently use that accounting software that you have been using forever? Get in touch with us by email ([email protected]) or by phone at 610-941-2116 with your Sage 50 questions.
Alan Phillips is an experienced accountant, and has supported clients as a Sage Certified Consultant since 2002. Prior to that time he spent 13 years in public accounting and 14 years in the private sector, as a controller and financial vice-president. He brings to Crosspointe Consulting Group a deep understanding of the accounting needs of many business types, which complements his skills with software implementation, training and professional advice. Alan’s consulting skills help small businesses more efficiently use their accounting software, and thus enable them to make better and more timely business decisions.