Depositing with the Bank

The procedure for postdated checks differs from that for a normal check lot, where you deposit all checks in the lot with the bank immediately after posting, and you make a total posting, if you wish. Postdated checks, on the other hand, are held in assets and are not deposited with the bank until the date of the check is reached. The check deposit is therefore a manual process in which you select and deposit all "due" checks (from multiple check lots) by date. When the deposit is posted, a transfer is posted, debiting the "Checks Deposited" account and crediting "Checks Received".

You handle the deposit in the monitor for postdated checks (transaction FPPDC_MON). You manage the deposit using a run ID. The system proposes this ID, but you can overwrite it. The system enters this run ID in the deposited check.

Using the run ID, you can create a check deposit list that you can print to accompany the deposit with the bank.

Check Encashment

You receive the bank's answer to the check deposit in your account statement. If the deposit with the bank was successful, the result is a business transaction type 5 (= check deposit of incoming postdated checks). You make the necessary settings for this in Customizing for Contract Accounts Receivable and Payable under  Business Transactions Payments Processing Incoming and Outgoing Payments Define Transactions for Electronic Bank Statement Transfer ). This leads to an appropriate posting from the account statement (debiting the "Checks Cashed" account and crediting "Checks Deposited") and to a change of the check's status.

Bounced Checks and Returns

If the bank cannot cash a check, then a return is created in a returns lot by means of the account statement. The return reason is of the type “check return” (incoming checks). The posting of the return causes the original, cleared receivables to be open again. The system posts a debit to the "Returns" account and a credit to "Checks Deposited", and the status of the check is updated.

All status changes are displayed in transaction FPPDC3 (postdated check display).