Payroll > Payroll Cycle > 3rd Party Payee Checks

PakEnergy’s Payroll system can print third party payee checks within the Payroll system to allow for privacy of records (i.e. Child Support, IRS Garnishments). It’s important to have a separate account from your main A/P account to make it easier to print your A/P checks directly from Payroll.

Before using the system, complete the one-time setup for Company Maintenance. When the company options have been entered, continue by setting up the employees. After employees are set up, you are ready to run Payroll cycles and print checks.

1.Account Maintenance (F11)
Setup a separate Accounts Payable for the 3rd Party Checks in Account maintenance. Attach the Vendor Sub-Table to the account, the Account Type will be Payable, and for the A/P Bank code use the Payroll bank code.

2.Sub-Account Maintenance (F12)
Add the payees in which the 3rd Party checks will be written to the vendor Sub-Table.

3.In Payroll - Master File Maintenance - Basic Options
On the G/L tab: Enter the 3rd party A/P account in the "Separate A/P Account" field. This opens up the Print 3rd Party Checks menu item and tells the system which account to use to pull in payable items.

NOTE: If you are a payroll only company (no G/L), in order to use 3rd party checks you must have the "Create G/L entries and "Automatically Post G/L entries" turned on (checked). This creates the posting to Accounts payable and allows you to pay the payable through 3rd party checks in Payroll.

4.Pay/Deduction Detail
In Master File Maintenance > Basic Options > Detail Codes tab add the account number to any deduction detail code you would like to create an invoice. This can either be done at the Company level or the Employee level depending on what needs to be affected. However, this is typically done at the Company Level.

5.Employee Master
Setup the employee deduction in Employee Master > Earnings/Deductions tab.

6.Payroll Cycle
Run a regular payroll cycle all the way through to Updating/Posting the Cycle. The cycle must be posted to run 3rd Party Checks.

7.Print the 3rd Party checks
The Print 3rd Party Checks menu looks much like the Pay A/P menu item. The Account will default from the Company Setup. The Bank Code will default from the Account setup. The First Check number is based off the Bank Code. Click on Extract at the bottom of the screen to pull in any A/P invoices that were created from the Payroll cycle.

The Extract Statistics will show at the bottom of the screen. Review all this information to make sure it looks correct.

•If information is not correct, select Clear Extract to start over.

•If you wish to review the invoices to be paid, select the Review button. The expand (+) will allow you to review the open invoices for each vendor that will be paid as well as any associated documents.

•If the information is correct click on Print Check. You have the option of printing one check at a time or all of the checks at once.

•NOTE: checks cannot be extracted or printed for a check date that is on/before the last reconciliation for the bank code.

3rd Party Payee Corrections

•Checks: Void a check through the Accounts Payable system using the Void A/P Check Utility. After you have voided the check, a new check can be reissued using the above procedures.

•Invoices: You cannot void these invoices through A/P Void Invoice. You must issue a credit deduction through payroll to reverse out the entry or reissue the check.