How do I pay a supplier by check?

Match the invoice to the delivery, check the due date, then print a check payable to the supplier's name as shown on the invoice. Put the invoice number in the memo or on the stub, sign it after comparing the amount to the invoice, and deliver it with time to spare. Record the check number and mark the invoice paid.

Can I pay more than one invoice with a single check?

Yes. Add up the invoices, subtract any credits, and write one check for the total. Show each invoice number and amount on the stub so the supplier applies the payment to the right invoices. Keep a copy of that list with your records, and mark every invoice paid with the same check number.

What does 2/10 net 30 mean on an invoice?

It generally means you can take 2 percent off the invoice if you pay within 10 days, and otherwise the full amount is due within 30 days. On a $1,000.00 invoice, paying inside 10 days would mean a $980.00 check. Terms differ by supplier, so confirm how your supplier counts the days.

How long before the due date should I mail a supplier check?

Mail delivery times vary, so allow extra days, and more for a supplier in another state. Ask the supplier whether the date it receives the check or the date you mailed it counts for the due date. Many owners simply print and mail checks about a week early to be safe.

Should I put the invoice number on the check?

Yes. Put the invoice number or your account number in the memo line, and list every invoice on the stub if one check pays several. It helps the supplier apply your payment correctly, and it gives you a matching record if a question comes up later. The memo line is short, so use the stub for detail.

How Small Shops Can Pay Suppliers by Check

A small shop can pay suppliers by check by matching each invoice to its delivery, noting the due date, printing a check payable to the supplier with the invoice numbers on the stub, and recording the check in a register. Paying on the terms rather than on impulse keeps cash in the shop longer. Here is a routine that fits an owner who also works the counter.

Why do small shops still pay suppliers by check?

Many wholesalers, distributors and local vendors still accept checks, and a few small ones prefer them. A check gives you a date, a number and an amount that you control, and it does not require handing out online banking details. You also decide the day the money leaves your account, within the supplier's terms.

The trade-off is time. A check has to be printed, signed and delivered, so it needs a little planning. Some suppliers will steer you toward cards or bank transfers, so ask each one what it accepts and what it charges for each method.

How do payment terms affect when you print the check?

Payment terms are printed on the invoice or set in your account agreement, and they tell you when the money is due. They differ by supplier, so read them each time until you know them.

Term	What it generally means	When to print the check
COD	Cash on delivery: payment is due when the goods arrive	Before the delivery, so the driver can collect it if the supplier takes checks
Due on receipt	Payable as soon as you receive the invoice	The same week
Net 15 or Net 30	Full amount due 15 or 30 days after the invoice date	Early enough to arrive a few days before the due date
2/10 net 30	Generally a 2 percent discount if paid within 10 days, otherwise the full amount is due in 30 days	Inside the discount window if you can spare the cash
Monthly statement	The supplier totals the month's invoices on one statement	After you match the statement to your invoices

Here is what a discount is worth. On a $1,840.00 invoice with 2/10 net 30 terms, paying within 10 days takes off $36.80 and the check is for $1,803.20. Whether that is worth paying early depends on your cash that week. Confirm the exact terms with your supplier.

Step by step: paying a supplier invoice by check

Match the invoice to what arrived. Compare quantities and prices to the delivery slip or your purchase order. Note shortages and damaged goods, and ask for a credit before you pay.
Write the due date on the invoice and file it in an unpaid folder sorted by due date, or put the date on a calendar.
Pick the print date. If you will mail the check, allow extra days for delivery, because a check that arrives late can mean a late fee. Ask the supplier whether the date mailed or the date received counts.
Enter the check. Use the supplier's name exactly as it appears on the invoice and statement, and put your account number or the invoice number in the memo.
List the invoices on the stub when one check pays several. Show each invoice number and amount, plus any credit you are taking as its own line.
Print, then compare the amount on the check to the invoice total before you sign.
Mail or hand over the check and note the date you sent it.
Record and file. Write the check number and date on the invoice, mark it paid, and add the check to your register.

How do you pay several invoices with one check?

Suppliers that deliver weekly often send several open invoices at once. Paying them together with one check saves postage and paper, as long as the stub tells the supplier exactly what the money covers. Otherwise they may apply it to the oldest invoice and leave the wrong one open.

For example, you owe invoice 4417 for $612.30, invoice 4452 for $289.75 and invoice 4460 for $1,038.40, and the supplier owes you a $90.00 credit for damaged stock. The check is for $1,850.45, written as One thousand eight hundred fifty and 45/100. The stub lists the three invoices, the credit and the total, so the supplier can match every line. If you want a second look at how to write the words, see How to Write the Amount in Words on a Check.

What records should a shop keep for supplier payments?

Check number, date, payee and amount for every check
The invoice numbers each check paid, and the credit memos applied
A copy of the invoice, marked paid with the check number
A monthly register report you can hand to your accountant
Voided and reissued checks, shown as voided rather than deleted from your notes

At month end, compare your register to the bank statement and look for any check that has not cleared. The routine is described in How to Keep a Digital Record of Printed Checks. Ask your accountant how to record inventory purchases and how long to keep supplier invoices. If a vendor is a person or business that provides services rather than goods, such as a repair contractor, ask your accountant about Form W-9 and year-end reporting. How to Print Contractor Checks covers the basics.

Common mistakes when paying suppliers by check

Paying from a monthly statement without matching it to your invoices and delivery slips
Paying the same invoice twice because the first check was never marked on the invoice
Shortening the supplier's name so the deposit does not match its account
Missing an early-pay discount because the invoice sat in a pile
Mailing a check on the due date and hoping it arrives in time
Forgetting to record a check that was voided, lost or replaced

In Check Writer 123 you can save each supplier once, paste invoice numbers and amounts from a spreadsheet onto the check stub, and print up to 50 selected checks together if you pay on a fixed day. There is a 14-day free trial with no card, and plans start at $9.99 a month. Print the checks on your set day, then mail or hand them over the same afternoon.

Putting it together

A reliable supplier routine is short: match, note the due date, print on a set day, sign after checking the amount, mail with time to spare, and record. For the weekly run, read How to Print Multiple Checks at Once, and for the accounts payable side in general, How to Print Vendor Checks.

If refunds to customers are the other half of your check writing, see How to Issue Customer Refund Checks. The check printing page for daycares and small shops gives the shorter overview.