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Feature Guide - Job Costing (3.25MB)

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Writing checks for overhead expenses is similar to writing checks to for job costs.  

Like job cost checks, overhead checks aren’t vendor payments for unpaid invoices. Overhead checks are written for expenses for which there are no vendors, such as one-time suppliers like delivery services. Otherwise, everything you’ll enter about an overhead expense check is the same -- account number, check number, date, amount, accounting period, and a memo that describes the purchase.

An overhead expense check can be written to anyone (i.e., they don’t have to be vendors).

A single check can be distributed to any number of overhead expense accounts (i.e., debit G/L accounts). Because overhead expenses don’t affect jobs, overhead expense checks don’t include jobs and tasks.

Writing checks for overhead expenses saves you the step of entering the vendor’s invoice into Accounts Payable. If you buy an expense by check, be careful that no one enters the invoice later by mistake. If this happens you’ll be paying twice for the same purchase.

To write an overhead expense check

1 Choose Edit > Write Check > Overhead Expense.

The Write Overhead Check window opens.

Overhead expenses and vendors. If you pay for an overhead expense with a check, be sure that the vendor’s invoice isn’t entered. If so, the vendor may be paid twice for the same purchase.

2 Enter the checking account’s G/L number.

The G/L account number determines from which bank account this check will be written. You can manage many bank accounts, writing checks and making deposits by entering a different G/L account number.

3 Enter the check number.

Checks are numbered automatically based on the cash account’s G/L number. You can change the number by typing in a new number over the old. Changing the check number doesn’t affect the next check’s number -- it will be the next check number in sequence.

To change the next sequential check number, you can change the check number in the cash account. Once you’ve saved this check, choose Chart of Accounts from the Setup menu. Find the account you wish to change, then double-click on it. The next check number for this account appears at the bottom of the Edit Account window. Changing it here will affect the next check to be added.

For better accountability, the check number entered on the check should match the pre-printed number on the check stock.

4 If the check is hand-written and shouldn’t be printed, click the Hand-written check option.

The handwritten check option keeps the check from being printed. It should be checked only for checks that shouldn’t be printed. It can be changed later, if needed.

5 Enter the check date and accounting period.

This is the date the check was added. It is entered as today’s date automatically, but can be changed. The date appears on the printed check. It does not affect posting or the General Ledger (unlike the period). Cash reports can be printed by check date, showing all of the checks that were written for a range of dates. The accounting period determines how this check will affect your financial statements. The current period is copied from Agency Information, but can be changed. A check can be posted into any unlocked accounting period.

6 Enter the vendor number and payee name.

If the vendor has an account in Clients & Profits X, its name, address, and tax information will be copied to the check. If not, you’ll need to add the payee name, mailing address, and tax ID number manually.

7 Enter the check amount.

This is the amount you’re paying for the overhead expense. Tabbing past the check amount displays the written amount, which can’t be edited. When the check is posted, this amount will debit one or more expense G/L accounts.

8 Enter the check memo.

The memo describes what is being purchased by this check. It appears on cash reports and G/L reports.

9 Enter the vendor’s payment address.

10 Check or Uncheck the "Include on year-end 1099 report" checkbox

This checkbox controls if this check will be included in the total amount printed on the 1099 for this vendor.  It will be checked by default if this vendor is set to include checks on the 1099 (Setup > Vendors, then select this option setting in the Account Info window).  However, not all checks for a vendor must be included on the 1099, so C&P provides the flexibility to include or exclude certain checks on the 1099 total via this checkbox.

11 If the check only needs to be distributed to one debit G/L account, then click Save.

However, the check’s amount can be split between many different expense G/L accounts by selecting the distribute to many dGLs option. When this option is selected and the check is saved, the Overhead Expense Distribution window opens, prompting you to enter the check’s line items.

Distributing an overhead expense check

1 Enter the debit G/L expense account.

Distribute the check’s expenses. A overhead expense check can be distributed to many different expense G/L accounts. The distribution total must equal the check amount to be saved.

This account will be debited when the check is posted. If you’re not sure about a G/L account number, leave the field empty then press Tab. The Chart of Accounts lookup list opens, listing your G/L accounts. When you find the right account, double-click on it to copy it to this expense item.

2 Enter the expense amount, then press Tab to add the line item to this check.

3 Repeat these steps for the check’s remaining expense.

4 When the check is completely distributed, click Save.

You can enter dozens of overhead expense accounts onto a check’s distribution. The expense amounts on the line items are totaled, and must equal the check’s amount or else the distribution can’t be saved.

Once the overhead expense check is saved, it can be proofed, changed, or deleted anytime before it is posted. The check doesn’t update the General Ledger until posting. Posting creates journal entries. Overhead expense checks don’t affect vendor balances, since they’re not paying off invoices. Unposted checks don’t appear on job, cost, or accounting reports.