Customer Check Payment—Key Exercises
IMPORTANT |
It is extremely important
that you set up and work within your own company and with your own customer to maintain your
data integrity. If you work with any other objects, your exercises will not
function as intended and the data of other students might be affected. Predictable exercise results require that your data
must be isolated in your own company. |
Basic Data Setup
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
- Open the Payment Documents window and populate (F2).
- Verify that the payment document for customer checks that exists has the Use
Interim Cash Account check box cleared.
- Enter a new payment document with the information shown in the table
below.
Document Type |
Document Series Id |
Series ID for Unmatched Payment on Account |
Use Interim Cash Account |
Default |
Customer Check |
CUCHECKI |
CUCHKPOAI |
Selected |
Not selected |
- Save your changes (F12).
Note: As the customer check number is always entered
manually, there is no need for defining any new number series.
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
- Open the Voucher Type window, and query for voucher type N.
- Make sure that the Single Function Group is not selected.
- Make sure that function group B, in payments received, is connected to voucher
type N, in mixed payment.
- Save any changes.
- In the upper portion of the window, right-click and then click Voucher Series per Voucher Type.
- Select your year, right-click, and then click User Group per Voucher
Series.
- Make sure that your user group is connected to both function group B and
N, and that both are selected as default type.
- Save any changes.
Required Data
Purpose: The purpose of this exercise is to enter the
data required for the Create Payment Document Proposal functionality.
- Enter a few Customer Invoices.
General exercise for Manual
Customer Invoices
Main Exercises
Cashed Check
Purpose: The purpose of this lesson is to show you how to
enter a check that was previously cashed.
Windows:
Mixed Payment
- Open the
Mixed Payment
window.
- Create a new record (F5).
- Select the cash account where the cash was received.
- Select a balance method.
- 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.
- Enter the following information shown in the table below.
Transaction Type |
Payment Document Series |
Payment Document No |
Customer/Supplier |
Amount |
Customer Payment |
Enter one of your customer check series |
Enter a check number |
Specify the customer number for the invoices that you
previously entered |
Specify a check amount that matches the invoices that you want to
designate as paid |
- Save the record (F12).
- 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.
- Select the
invoices/installments you want to match, and click OK. The
Matching
window appears.
- 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.
- In the header section of the
Mixed Payment/Transactions
window, right-click and then click Approve. A window appears with
payment voucher information.
- Click OK. A window appears showing the payment and voucher number
that were created. Write down the voucher number.
- Click OK to close
the window.
Handle Customer Checks without Using a Clearing Account
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
- Open the Customer Check window.
- Create a new record (F5).
- Enter check information as shown in the table below.
Customer ID |
Series ID |
No |
Amount |
Enter the customer number of the invoices that you previously
entered. |
The default series ID for customer checks is shown. Make sure this ID is
the one that is designated as not using an interim (clearing) account.
|
Enter a check number. |
Specify a check amount that matches the invoices you want to designate as paid. |
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.
- 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.
- 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.
- Click OK or save to close the window and return to the
Customer Check window.
- Create a new
record (F5) to enter a new check.
- Repeat steps 1–6 above.
- Once all checks have been entered and matched, save your changes. A window
appears with payment voucher information.
- Click OK
to close the window. The checks now have the Created status.
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
- Open the Customer Check window.
- Find your checks by performing a query (F3) or populating the window (F2).
- Select the check, right-click, and then click Cash Check.
- Enter the cash account to which the cash was received, and click OK.
A window appears with payment voucher information.
- Click OK
to close the window.
- The check now has the Cashed status.
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
- Open the Check Cashing Proposals
window.
- Right-click and then click Load New Check Cashing Proposal. A
window appears in which you can specify the selection criteria for
the proposal.
- Enter a date interval (payment date from the checks) that includes your
checks.
- Also enter the cash account to which the cash will be received, the currency
of the checks, and a check way of payment.
- Click OK. A check cashing proposal is created and displayed in the
Check Cashing Proposals window.
- 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.
- 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.
- Return to the Check Cashing Proposals window.
- Right click the proposal and then click Acknowledge.
- 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.
- Click OK. A window appears with payment voucher information.
- Click OK
to close the window. The checks now have the Cashed status.
Handle Customer Checks Using a Clearing Account
- Follow steps from previous Enter
Customer Check and Match with Invoices exercise, with the following
changes:
Customer ID |
Series ID |
No |
Amount |
Enter the customer number for the invoices that you previously
entered. |
The default series ID for customer checks is displayed. Make sure it is the series
ID that is designated as using the interim (clearing) account.
|
Enter a check number. |
Specify a check amount that matches the invoices you want to designate as paid. |
- Follow steps from previous Manual Cash of Customer Check exercise to cash
the check.
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
- Follow the steps in the Cash Checks
via Cashing Proposal exercise above.
- 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.
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
- Open the
Mixed Payment window.
- Create a new record (F5).
- Select the cash account where the cash was received and select a balance method.
- 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.
- Enter the information from the table below.
Transaction Type |
Proposal ID |
Amount |
Acknowledge Customer Check Cashing |
Enter the number of the cashing proposal. |
The total amount from the cashing proposal is automatically
displayed. |
- Save the record (F12).
- By selecting the transaction line, right-clicking, and then clicking Match Payment,
you can see which checks are included in the proposal.
- In the header portion of the
Mixed Payment window, right-click and
then click Approve. A window appears with payment voucher information.
- Click OK. A window appears in which you can see the payment and voucher
number that were created.
- Click OK to close
the window. All checks included in the proposal now have the status Cashed.
Offset Check
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.
- Follow steps 1.-3. from previous Enter
Customer Check and Match with Invoices exercise.
- Save this information without matching invoices/installments, a payment on account will be created, and the matching will be performed
as a separate step.
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
- Open the Customer Check window.
- 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.
- 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.
- Right-click and then click Select Batch.
- Populate the window (F2) to view the open items/installments.
- Select the open items/installments that you want to match with the payment on
account.
- 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.
- Save the transaction (F12). A window appears that displays the payment and
voucher number that were created.
- Click OK to close
the window.
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
- Open the Customer Check window.
- Populate the window (F2).
- 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.
- Click OK to confirm. A message appears with payment information.
- Click OK to
close this message. The cancelled check now has status Cancelled.
Purpose: The purpose of this lesson is to create a copy
of a check that has incorrectly been reported as canceled.
Windows:
Customer Check
- Open the Customer Check window.
- Populate the window (F2).
- 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.
- Verify the
data, and save your changes (F12). A message is displayed with payment information.
- Click OK to
close the window.