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 Reconciling Cashed Checks in Contract Accounts Receivable and Payable

Prerequisites

If you want to process check encashments automatically in Contract Accounts Receivable and Payable (FI-CA), make the following settings in the Implementation Guide for Contract Accounts Receivable and Payable under Start of the navigation path Basic Functions Next navigation step Check Management. End of the navigation path

  • Define Bank Clearing Account for the Encashment of Outgoing Checks

  • Define Document Type for Check Encashment

Features

When you issue checks, one document is posted for each check. This document is reflected in the posting record Payable to Issued Checks . You define the account for issued checks in the Implementation Guide for Contract Accounts Receivable and Payable (Posting area 1061: Start of the navigation path Business Transactions Next navigation step Payments Next navigation step Creation of Incoming/Outgoing Payments Next navigation step Define Bank Accounts for Payment Program End of the navigation path ). When the check is cashed, credit the account Issued Checks . FI-CA supports two posting scenarios:

  1. One-step procedure

    For each check cashed, one posting Issued Checks to Bank Account is created.

  2. Two-step procedure

    Firstly, in General Ledger Accounting , there is one posting for each check cashed or per total, Cashed Checks to Bank Account .

    Secondly, there is one posting for each cashed check in FI-CA: Issued Checks to Cashed Checks .

The two-step procedure has the advantage that the balance of the bank account in the general ledger can be updated almost immediately. In both cases, you have to define the second account for the posting in FI-CA in Customizing. You define the Bank Account if you use the one-step procedure, and the Cashed Checks Account if you use the two-step procedure. You maintain the relevant entry in the Implementation Guide for Contract Accounts Receivable and Payable under Start of the navigation path Basic Functions Next navigation step Check Management Next navigation step Define Bank Clearing Account for the Encashment of Outgoing Checks End of the navigation path .

The clearing account for issued checks is determined as follows:

If there is no payment document for the transfer of the encashment data because the check was issued manually, then the posting is made to the check clearing account defined in Customizing for the payment program. If the check already exists in check management, the posting is made to the check clearing account to which the payment was posted. The status of the check is then updated in check management.

If the data for a cashed check does not exist in check management yet, the system temporarily saves the encashment data separately after the posting, instead of transferring it to check management. However, the encashment is posted to the relevant bank or bank clearing account. If the issue data of the check is transferred to the system later, check management is also updated.

If you have selected Contract Accounts Receivable and Payable as the component for the reconciliation of check encashments in Customizing, the system does not post a document in the general ledger for each check issued; instead, it creates totals postings.

If the check encashment was posted another way (for example, manually), you can enter the encashment manually in Check Management. To do this, choose Start of the navigation path Check Next navigation step Change Next navigation step Redeem End of the navigation path in the Cash Management menu.