The Customer Check Payment process is used to handle Checks received from customers. The process starts in Customer Check page with the entry of the Check, and then matching it with the invoices it covers. When the Check is saved, a payment is created, as well as a voucher in the hold table of IFS Accounting Rules. The matched invoices are paid and the customer claim from the invoices (IP2) is removed, a new customer claim appears (PP28), represented by the entered open Check. The matched invoices and the payment will share a unique ID and a matching date. Invoices from other companies can also be matched, and deduction used, if the customer is defined in the other companies. If the Check is not completely matched with invoices, the remaining unmatched part is stored as a payment on account (PP32) or as a payment in advance (PP36). This remaining unmatched part can later be matched with invoices in the Customer Offset function. You can also create Difference Items for the remaining unpaid parts of invoices when matching the check with invoices. The difference items will be created as difference item invoices. When the Tax Type is Payment then 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 check will be in Created status, and the open Check will be found in the AR ledger with its Series ID and number.
The next step is to select Customer Checks to send to a payment institute for cashing, and this is done in Check Cashing Proposals page. This starts with generating a New Check Cashing Proposal based on for example, date interval, currency, cash account and payment method. You then Acknowledge and Print the proposal via the Print Check Cashing Report function, wherein the printed report is sent together with the selected Checks to a payment institute for Cashing. The included Checks are all cased, i.e., a payment and voucher are created. The customer claim (PP28) is removed and posted either to the cash account (PP1) or to a transit (interim cash) account (PP35) depending on the setup for each Customer Check Series. The transit account is a temporary account used for pending cashing by the bank. The status of the Check is now either "Sent for Cashing" (if interim cash account is used) or "Cashed" (if cash account is used).
If an interim cash account was used when sending the Checks to the payment institute, the last procedure is to confirm that the Checks were cashed which is done in Mixed Payment page, posting from the transit account (PP35) to the cash account (PP1). After this, the Check will be in Cashed status.
Before you start entering customer payment information, check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Accounts Payable process.