Customer Check Payment—Key Exercises

Basic Data Setup

Payment Document Basic Data

Purpose: The purpose of this exercise is to set up the payment document information that is used in the customer check payment process. Two different customer check payment documents will be defined: one that uses an interim (clearing) account, and one that does not use such an account. If an interim account is used, postings will be made to an interim cash account when the customer checks are sent to the payment institute for cashing. If an interim account is not used, postings will be made directly to the cash account when checks are sent for cashing.

Windows:
Payment Documents

1. Open the Payment Documents window and populate (F2).
2. Verify that the payment document for customer checks that exists has the Use Interim Cash Account check box cleared.
3. Enter a new payment document with the information shown in the table below.

4. Save your changes (F12).

Note: As the customer check number is always entered manually, there is no need for defining any new number series.

Define Voucher Types

Purpose: The purpose pf this exercise is to define voucher types. To be able to register a previously cashed check in Mixed Payments, the voucher type used must be connected to both function group N (in Mixed Payments) and function group B (in Payments Received).

Windows:
Voucher Type

1. Open the Voucher Type window, and query for voucher type N.
2. Make sure that the Single Function Group is not selected.
3. Make sure that function group B, in payments received, is connected to voucher type N, in mixed payment.
4. Save any changes. 
5. In the upper portion of the window, right-click and then click Voucher Series per Voucher Type.
6. Select your year, right-click, and then click User Group per Voucher Series. 
7. Make sure that your user group is connected to both function group B and N, and that both are selected as default type.
8. Save any changes.  

Required Data

Enter and Post a Customer Invoice

Purpose: The purpose of this exercise is to enter the data required for the Create Payment Document Proposal functionality.

1. Enter a few Customer Invoices.

General exercise for Manual Customer Invoices 

Main Exercises

Cashed Check

Enter and Match a Cashed Check

Purpose: The purpose of this lesson is to show you how to enter a check that was previously cashed.

Windows:
Mixed Payment

1. Open the Mixed Payment window.
2. Create a new record (F5).
3. Select the cash account where the cash was received.
4. Select a balance method.
5. Click the Transactions tab, and create a new record (F5). This tab has many columns that are used for different transaction types, but only a few are used for entering a customer check payment.
6. Enter the following information shown in the table below.

7. Save the record (F12).
8. Select the transaction line, right-click, and the click Match Payment. The Select Batch of Invoices window automatically appears with the open invoices for the customer that you specified in previous step.

Note: The Select Batch of Invoices window  is used to match customer invoices/installments with the check payment. If you approve the mixed payment without matching invoices/installments, a payment on account is created, and the check needs to be matched or offset as a separate step.

9. Select the invoices/installments you want to match, and click OK. The Matching window appears.
10. The invoices/installments now appear. If you have matched invoices/installments with the total amount the same as the check payment amount, the check is now balanced. Click OK or save to close the window.
11. In the header section of the Mixed Payment/Transactions  window, right-click and then click Approve. A window appears with payment voucher information.
12. Click OK. A window appears showing the payment and voucher number that were created. Write down the voucher number.
13. Click OK to close the window.

Handle Customer Checks without Using a Clearing Account

Enter Customer Check and Match with Invoices

Purpose: The purpose of this exercise is to show you how to enter customer checks and match them with invoices/installments. At least two different checks must be entered and matched to continue with the two examples of cashing a check. If the check is not completely matched, the remaining portion is stored as a payment on account. When matching the check with invoices/installments, discounts can be used, parts of invoices can be written off, difference items can be created, and partial payments can be made. Invoices/installments in other companies can also be matched, and a deduction used, as long as the customer is defined in the other companies.

Windows:
Customer Check

1. Open the Customer Check window.
2. Create a new record (F5).
3. Enter check information as shown in the table below.

Note: It is important that you not save the check information at this point. If you save this information without matching invoices/installments, a payment on account will be created, and the matching will need to be performed as a separate step.

4. Select the check line, right-click, and then click Match/View Invoices. The Select Batch of Invoices window appears automatically with the open invoices/installments for the customer whom you specified in the previous step.
5. Select the invoices/installments, and click OK. The invoices/installments now appear in the Matching window. If you have matched invoices/installments so that the total amount equals the check amount, the check is now balanced.
6. Click OK or save to close the window and return to the Customer Check window.
7. Create a new record (F5) to enter a new check.
8. Repeat steps 1–6 above.
9. Once all checks have been entered and matched, save your changes. A window appears with payment voucher information.
10. Click OK to close the window. The checks now have the Created status.
    

Manual Cash of Customer Check

Purpose: The purpose of this exercise is to show you how to cash a customer check manually. A check is cashed when the amount on the check is actually received on a bank account. Manual cashing is used when one or a small number of checks is cashed. If a large number of checks is cashed, it is more efficient to use the automatic cash via cashing proposal, as shown in the following exercises. The result of the cashing is that the check is set to Cashed status. The payment amount is posted from the open checks account to the cash account on the payment voucher created.

Windows:
Customer Check

1. Open the Customer Check window.
2. Find your checks by performing a query (F3) or populating the window (F2).
3. Select the check, right-click, and then click Cash Check.
4. Enter the cash account to which the cash was received, and click OK. A window appears with payment voucher information.
5. Click OK to close the window. 
6. The check now has the Cashed status.

Cash Checks via Cashing Proposal

Purpose: The purpose of this exercise is to show you how to use the cashing proposal to cash several checks at the same time. This function is used to print out a cashing report to bring to the bank along with the checks. The result of the cashing is that the check is set to the Cashed status, and a voucher with postings from the open checks account to the cash account is created.

Windows:
Check Cashing Proposals

1. Open the Check Cashing Proposals window.
2. Right-click and then click Load New Check Cashing Proposal. A window appears in which you can specify the selection criteria for the proposal. 
3. Enter a date interval (payment date from the checks) that includes your checks.
4. Also enter the cash account to which the cash will be received, the currency of the checks, and a check way of payment.
5. Click OK. A check cashing proposal is created and displayed in the Check Cashing Proposals window.
6. Right-click the proposal and click Details to see all the checks that are included in the proposal.

Note: The check series ID controls whether a clearing account is used. Therefore, make sure that only checks from the check series ID that does not use an interim account are included in the proposal.

7. You can also add checks manually to the proposal by adding a new record (F5); specifying the customer, series ID, and check number; and saving your changes.
8. Return to the Check Cashing Proposals window.
9. Right click the proposal and then click Acknowledge.
10. Right-click the proposal again and click Print Check Cashing Report. This report is sent or brought to the bank along with the actual checks. A window appears in which you can enter information (e.g., voucher date and voucher text) that will be used on the payment voucher that is created.
11. Click OK. A window appears with payment voucher information.
12. Click OK to close the window. The checks now have the Cashed status.

Handle Customer Checks Using a Clearing Account

Enter Customer Check and Match with Invoices 

1. Follow steps from previous Enter Customer Check and Match with Invoices exercise, with the following changes:

Manual Cash of Customer Check

1. Follow steps from previous Manual Cash of Customer Check exercise to cash the check.

Create Cashing Proposal

Purpose: The purpose of this exercise is to show you how to create a check cashing proposal and print out the check cashing report. This report is sent to the bank along with the checks for cashing. Use the cashing proposal to cash multiple checks at a time. The result of the cashing is that the check is set to the Sent for Cashing status, and a voucher with postings from the open checks account to the clearing/interim cash account is created.

Windows:
Check Cashing Proposals

1. Follow the steps in the Cash Checks via Cashing Proposal exercise above.
2. The checks now have the Sent for Cashing status and must be cashed in a separate step when a notice from the bank about cashed checks is received.

Acknowledge Cashing Proposal

Purpose: The purpose of this exercise is to show you how to acknowledge a check cashing proposal, i.e., confirm that all included checks were cashed. The result of this process is that the checks included in the report receive the Cashed status. A payment voucher is created with postings from the clearing/interim cash account to the cash account.

Windows:
Mixed Payment

1. Open the Mixed Payment window.
2. Create a new record (F5).
3. Select the cash account where the cash was received and select a balance method.
4. Click the Transactions tab, and create a new record (F5). This tab has many columns that are used for different transaction types, but only a few are used for entering an acknowledgement of a cashing proposal.
5.  Enter the information from the table below.

6. Save the record (F12).
7. By selecting the transaction line, right-clicking, and then clicking Match Payment, you can see which checks are included in the proposal.
8. In the header portion of the Mixed Payment window, right-click and then click Approve. A window appears with payment voucher information.
9. Click OK. A window appears in which you can see the payment and voucher number that were created.
10. Click OK to close the window. All checks included in the proposal now have the status Cashed.

Offset Check

Enter Customer Check without Matching with Invoices

Purpose: The purpose of this exercise is to show you how to enter a unmatched check to be later matched in the Offset Check exercise.

1. Follow steps 1.-3. from previous Enter Customer Check and Match with Invoices exercise.
2. Save this information without matching invoices/installments, a payment on account will be created, and the matching will be performed as a separate step.
   

Offset Check

Purpose: The purpose of this exercise is to show you how to match a check that was previously entered without any invoice/installment matching or not fully matched when entered. When the check is entered, a payment on account is created, and this payment must be offset using the Offset function. The result of the process is a payment and payment voucher. The offset function does not cause any cash flows in the cash accounts, and the payment voucher is a posting between the Unmatched Customer Checks and the Customer Claim accounts.

Windows:
Customer Check

1. Open the Customer Check window.
2. Perform a query (F3) or populate the window (F2) to find the checks that are not matched. Unmatched checks have an amount in the Not Matched Amount field.
3. Select your unmatched check, right-click, and then click Offset. The Customer Offset window appears, and the General tab is automatically populated with data. The Transactions tab is also automatically populated with the payment on account that is connected to your check.
4. Right-click and then click Select Batch.
5. Populate the window (F2) to view the open items/installments.
6. Select the open items/installments that you want to match with the payment on account.
7. Click OK.

Note: When the value in the Remaining Amount on Payment field is 0 (zero), the payment of account is fully offset. It is also possible to have a remaining amount that is not 0 (zero), in which case the remaining amount must be offset later.

8. Save the transaction (F12). A window appears that displays the payment and voucher number that were created.
9. Click OK to close the window.

Cancellation of Checks

Cancel Check

Purpose: The purpose of this exercise is to show you how to cancel a check. This is useful when checks have been returned or are unpaid.

Windows:
Customer Check

1. Open the Customer Check window.
2. Populate the window (F2).
3. Select the line that contains the check that you want to cancel. Right-click and then click Cancel Check. A window appears with voucher information.
4. Click OK to confirm. A message appears with payment information.
5. Click OK to close this message. The cancelled check now has status Cancelled.

Reverse Canceled Checks

Purpose: The purpose of this lesson is to create a copy of a check that has incorrectly been reported as canceled.

Windows:
Customer Check

1. Open the Customer Check window.
2. Populate the window (F2).
3. Select the canceled check, right-click, and then click Copy Cancelled Check. A new entry with the data from the canceled check is created, including matched invoices/installments.
4. Verify the data, and save your changes (F12). A message is displayed with payment information.
5. Click OK to close the window.

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