Use this process to enter supplier checks, print them, and then send them to suppliers. The process begins with the entry of the check in the Supplier Check window. The check is matched with the invoices it covers. When the check is saved, a payment is created as well as a voucher in the hold table in IFS Accounting Rules. The matched invoices are paid, and the supplier debt from the invoices (IP1) is removed. However, a new supplier debt appears (PP21), which is represented by the entered open supplier check. If the check is not completely matched with invoices, the remaining unmatched part is stored as a payment on account (PP30) or payment in advance (PP37). It later can be matched with invoices using the supplier offset feature. When the Tax Type is Payment, it’s possible to apply the correct Tax Currency Rate and as a result there will be a currency gain or loss, for which the posting types PP62 or PP61 are used respectively. After entry, the status of the check is Created, and the open supplier check is found in the Accounts Payable Ledger with its series ID and number.
Next, the supplier checks are printed and sent to the suppliers. This is also done in the Supplier Check window.
Depending on how the basic data is set up in the Payment Documents window, the checks are considered cashed at printout or posted to an interim account until confirmation is received from the financial institution, or payment institute, that the check has been cashed. When the checks are printed, a voucher is generated with postings to accounts payable and, if used, to the transit account. The transit account is a temporary account for checks that are waiting to be cashed by the bank. When the checks are reported as cashed, another voucher is created that reverses the posting to the transit account and debits the cash account. Checks can be reprinted. For payments made by check, the system creates a unique payment ID with Check Payment as the payment type. Once the invoices are matched with the payment, the payment and the matched invoices will be assigned with a unique matching ID and a matching date. This matching ID will be shown with both invoices and payments in the relevant queries and reports which will make you easily identify what payments are connected to which invoices.
You can specify the number of invoices to be printed on each check per payment occasion, the number of checks per payee per occasion, and any cancellation of the first check, i.e., the total of all checks slips printed an the last check. This information should be specified before you use the manual supplier check payment function. The process handles functions for canceling printed checks, reprinting previously printed checks, and correcting checks, e.g., those that were incorrectly cashed.
There is a function within the Manual Supplier Check Payment process that handles supplier offsets between debit and credit invoices, between payments on account and invoices, between payments in advance and invoices, and against parked payments. The offset process does not cause any cash flows in the cash accounts, and the total amount must always be zero.
You can print laser checks by specifying Laser Check as the check template in the Payment Documents window. This formats the text fields so that they will be printed correctly on standard laser check forms.
Note: Before entering information, verify that the required basic data has been set up according to the instructions in the Define Financials Basics/Set up Basic Data Accounts Payable process.