To pay a material supplier by check, match each invoice to a delivery ticket or purchase order, approve the total, then write one check to the supplier with the invoice numbers listed on the stub and the job name on the memo line. Record the check number against every invoice it covers, so the supplier statement and your books agree at month end.
How do supplier invoices differ from subcontractor invoices?
A subcontractor usually sends one invoice per stage of one job. A lumberyard, electrical wholesaler or plumbing supply house sends many invoices a month, often one per delivery, often across several of your jobs, and then a statement that adds them all up. That changes how you pay: you are matching a pile of invoices to a pile of deliveries, and one check often has to cover several of them.
The goal is a payment record that answers two questions quickly. Which invoices did this check pay, and which job does each belong to? If you can answer both from your register and the stub, you will never overpay or lose track of a credit.
What should you check before paying a supplier invoice?
- Delivery ticket. The signed ticket from the driver or counter should match the quantities on the invoice. Sign and keep it.
- Price. Compare the unit prices against your quote or contract pricing. Lumber and some metals can change between quote and delivery, so confirm what was agreed.
- Job or PO number. Each invoice should show which job it belongs to. If it does not, write the job on it before it gets filed.
- Returns and credits. A returned pallet of drywall or a credit memo should be subtracted before you pay.
- Discount terms. Some suppliers offer a discount for paying within a stated number of days. Read the terms on the invoice rather than assuming.
How do you pay several invoices with one check?
Paying from the supplier's monthly statement is the cleanest approach. You compare the statement to your approved invoices, then send one check for the total with a list of what it covers. Here is an example with made-up numbers.
| Invoice | Job | Amount |
|---|---|---|
| 48812 | Oak Ave addition | $1,436.20 |
| 48930 | Oak Ave addition | $812.75 |
| 49104 | Pine St bath | $389.40 |
| Credit 7731 | Pine St bath | -$64.00 |
| Total check | $2,574.35 |
The check is written for $2,574.35, which reads Two thousand five hundred seventy-four and 35/100. The invoice numbers and the credit go on the stub so the supplier can apply the payment correctly. In your register, record the one check number against all four lines, with each amount tagged to its own job. That way job costing stays accurate even though the bank shows only one withdrawal.
If your check stub has room for invoice lines, list them there. Some check printing tools let you paste a list of invoice numbers and amounts from a spreadsheet; see how to print vendor checks for how that workflow works.
How do you pay by check for a contractor account?
Many suppliers give established contractors an account with terms, for example payment due by the end of the following month. Pay from the invoice date or the statement date as the terms specify, and keep a short list of your accounts: supplier name, account number, payment terms and the person to call. Put the account number on the memo line when the supplier asks for it, because it helps their accounts receivable team post your payment to the right customer.
A small business with a handful of suppliers can print one check per supplier per month. A larger shop may pay twice a month. Whichever you choose, set the day and keep to it, because predictable payment is what keeps credit terms open.
What goes on the memo line for supply payments?
Use the account number or the job name, and keep it short. Examples that work: "Acct 20417 - Oak Ave", "Statement May - 3 jobs" or "Inv 48812, 48930". If a single check spans more than a few invoices, write "see stub" and list them on the stub. For more on this, see what the memo line on a check is for.
What if a supplier check is lost or wrong?
Suppliers receive a lot of mail, and checks do go missing. If one has not cleared after a reasonable time, call the supplier first to confirm they did not receive it and look at your bank activity. If you reissue, void the original in your records and talk to your bank about a stop payment so you do not pay twice; the bank may charge a fee.
If you printed the wrong amount, do not cross it out. Void it, and print a replacement with a new check number. A mistake on the face of a check can cause the bank or the supplier to reject it.
Common mistakes when paying suppliers by check
- Paying from a stack of invoices without reading the supplier statement, which hides missing credits.
- Writing one check with no breakdown, so the supplier applies it to the wrong invoices.
- Forgetting to record which job each invoice belongs to, which spoils job costing.
- Paying duplicate invoices because both a copy and the original came in the mail. Mark each invoice paid with the check number.
- Letting the same person receive the materials, approve the invoice and sign the check on a larger account. If you have only one person, review the register monthly.
Putting it together
Set a pay day for suppliers, approve invoices against delivery tickets, pay from the monthly statement and write the check number on every invoice it covers. If you also pay subs, the routine in how to pay subcontractors by check works alongside it, and the totals feed into the records described in how to track subcontractor payments for tax time. The check printing for contractors page shows how the pieces fit together.
Check Writer 123 can print invoice lines on the check stub (paste them from a spreadsheet), keeps a saved list of vendors, and lets you run a separate bank account for each business or job account. Keep QuickBooks for your books and print the checks here; the register exports to CSV so you can total it by payee. Try it free for 14 days with no card.