Report Customer Check/Draft Rejected by Bank

This instruction explains how you report a customer check or draft that remains unpaid. Usually you do this because the payment document has been rejected by the bank due to non-sufficient funds.


The outcome depends on which process method that is selected for the FAM function:

Use the result to:

Accounts receivable and the general ledger are updated. What account entries are created depend on the method used and whether the payment document was reconciled before reported as rejected.

For drafts remitted to be discounted, the draft accounting method for risk cancellation selected in 'Settings – General Ledger' (CRS750/F) also affects the result.

Value type 50 for unpaid checks and drafts is updated in 'Accounts Receivable. Display Balances' (ARS225).

Before you start

Follow These Steps

  1. Start 'Draft/Check. Open Unpaid or Rejected' (ARS340/B).

  2. Select option Open for a FAM function detail record matching the type of payment document.

  3. On the F panel, enter the payer and press Enter to see a list of checks or drafts.

  4. For more information on each payment document, select one of the display options and return by pressing F3.

  5. Select option Open for the payment document to report as unpaid.

  6. On the G panel, enter bank account, accounting date (proposed, but can be changed), and voucher text (optional).

  7. Press Enter to create the voucher and to reopen the invoice(s) that were paid with the rejected payment document.

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