Accounts Payable - Print a Check without a Vendor Record

Tip of the Day: In Microsoft D365 Finance and Supply Chain (D365 F&SC) in Accounts Payable, have you ever wondered how to print a one-off check to a supplier without setting up a vendor record?

It happens in everyday business, right? What if a new service cuts the grass or a tree falls in the middle of the road and must be removed ASAP? What if you buy coffee from a different supplier? Sometimes we want to be able to “try out” a supplier before setting them up as a vendor. . .or maybe it’s an urgent request and you don’t have time to do the setup. . .because we all know that setting up a new vendor record can be a lot of paperwork for both you and the new supplier.

To save time and effort, D365FO Accounts Payable Payment Journals allows you to cut a one-off check without the hassle of setting up the vendor record. How you ask? It’s actually quite simple. Please follow the steps below.

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Cash and Bank Management Setup

First, go to Cash and Bank Management > Setup > Cash and Bank Management Parameters > General > Check Setup > and set the Allow checks for bank or ledger accounts field to Yes. This tells D365FO Accounts Payable Payment Journals that you’re allowed to create a payment against an Account type = ledger account.

If the Allow checks for bank or ledger accounts field is set to No that’s telling D365FO Accounts Payable Payment Journals that you’re only allowed to create a payment to a vendor, which means that a vendor record needs to exist before a payment is made.

Figure 1: Cash and Bank Management > Setup > Cash and Bank Management Parameters > General > Check Setup > set the Allow checks for bank or ledger accounts field to Yes

Vendor Payment Journal

Next, go to Accounts Payable > Payments> Vendor Payment Journal > click New > select the Journal Name and update the Description > click Lines > click General > set the Account Type = Ledger

Figure 2: Accounts Payable > Payments> Vendor Payment Journal > click Lines click General > set the Account Type = Ledger

Click back on List > under the Account enter the cost account (this is that account that be debited), enter the amount in Debit, and set the Offset Account to the bank (the GL account setup on the Bank will be credited).

Figure 3: Accounts Payable > Payments> Vendor Payment Journal > Lines > Account

Click on Payment > set the Method of Payment = Check > enter the name that you want to print on the check in the Recipient Name field

Figure 4: Accounts Payable > Payments> Vendor Payment Journal > Lines > Payment > populate Method of Payment and Recipient Name

Click Generate Payments > select the Method of Payment and the Bank Account > click OK

Figure 5: Accounts Payable > Payments> Vendor Payment Journal > Generate payments

The Pay to the order of on the check will print with the information entered into the Recipient Name field.

Figure 6: Accounts Payable > Payments> Vendor Payment Journal > Printed Check

You can now post the Vendor Payment Journal.

Success! You have successfully printed a check to pay a supplier without setting the supplier up as a vendor.