There are several ways, but my favorite is to use "intercut" in your slug line. This is taken from a BBC file on screenplay formatting.
INTERCUT - INT. LOCATION #1/LOCATION #2 - DAY
This, I think, is the easiest way to show a phone conversation.
CHARACTER #1
(into phone)
Here, you type your dialogue as normal.
CHARACTER #2
(into phone)
While indicating that both characters are on the phone.
CHARACTER #1
(into phone)
And then when the conversation is over, this is how you show it.
(hangs up)
Especially if you are going to continue the dialogue and scene beyond the phone conversation.
Hope this helps!
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Find the next word. Write it down. Repeat. Repeat. Repeat. --Neil Gaiman
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