Check Portfolio 

Definition

A collection or group of checks receivable. Storing checks in portfolios makes it easier to manage them.

You can work with as many portfolios as you like, but you must keep bounced checks in separate portfolios from other checks receivable.

Use

Customizing

Define your check portfolios in Customizing for Financial Accounting (FI), by choosing Bank Accounting ® Business Transactions ® Bill of Exchange Transactions ® Bills of Exchange Receivable ® Post Bill of Exchange Receivable ® Bill of Exchange Portfolios ® Define Bill of Exchange Portfolios.

You assign a special G/L account to each portfolio. If the portfolio is for checks receivable, enter an alternative special G/L account for checks receivable. If it is for bounced checks, enter a special G/L account for bounced checks.

Day-to-Day Activities

When you enter an incoming postdated check, you specify which portfolio you want to record it in. The system debits the check to the customer account, and makes an entry in the special G/L account that you have assigned to the portfolio in Customizing.

When a check bounces, the system effectively removes the check from the portfolio for checks receivable and transfers it to a portfolio for bounced checks. You specify which bounced check portfolio you want to use in the transaction. Again, this portfolio also controls which special G/L account the system records the check in.

You can display which checks any portfolio currently holds using the Postdated Checks List.