Check with Due Date
Requirement
In Israel, checks are issued with a specific due date, which serves as the maturity date when the check can be cashed by the bank. Banks in Israel typically hold checks until the due date arrives. From a procedural perspective, companies send their checks to the banks for remittance regardless of the due dates. During the interim period, between the remittance date and the due date, the company accounts for the checks in a suspended bank account. This suspended bank account is then reconciled with the actual bank account on the due date, based on the bank statement confirmation provided by the bank. On the due date, checks from various remittances are confirmed and processed accordingly.
M3 Solution
- The registered checks are held in a portfolio.
- Checks sent to the bank but still pending in the customer's account.
- The checks in the portfolio contribute to the customer's overall risk.
- Checks are cashed based on confirmation received from the bank's statement.
The ARS300 function is utilized to send checks to the bank before their due date for remittance. On the due date, the ARS355 function is used to confirm the checks that have been cashed. These checks are extracted from multiple remittance proposals.
Configuration guidelines
| Program ID | Program name | Description or Comment |
|---|---|---|
| CRS078 | Payment Type |
Payment Class 4 as Draft Bank confirmation type = 2 as per due date Remittance method = 2 as before due date |
| ARS105 | Payment document entry |
Register checks with due date. Check number registered into Draft number field. Checks created with status 10 not remitted. |
| ARS110 | Payment received entry |
Register checks with due date. Check number registered into Draft number field. Checks created with status 10 not remitted. |
| ARS300 | Bank remittance |
Checks are remitted prior due dates. AR80 Confirmation of remittance. Checks status is updated to 20 remitted. |
| ARS355 | Bank confirmation on due date |
Select due dates range. AR86 reconciliation of bank confirmation Checks status is updated to 30 confirmed. |
| CRS165 | Number series |
81-0 Remittance number 85-A Bank confirmation number |
| CRS395 |
AR80 Confirmation of remittance proposal AR86 reconciliation of bank confirmation |
|
| ARS950 | Additional information |
041 Bank confirmation number 296 Bank confirmation number |
| ARS015 | Bank fee type | Define up to 6 different bank fees to be entered during reconciliation of bank confirmation proposal in ARS355 |
| ARS280 | Drafts in portfolio | Display checks with due date |
| GLS900 | Voucher reversal | Reversal of bank confirmation voucher created by ARS355 |