AP Checks with due date

In some countries, checks are issued with a due date. The due date is the validation date when the check is cashed by the bank. The suppliers are remitting checks to their banks before the due date. The checks are cashed by the bank on the due date. The due date is not a 'waiting' date before remittance, but a fixed 'cash' date that is directly handled by bank. In some countries, this is the standard bank handling. This is the standard bank handling in some countries. When waiting for the cashing due date, the check issued is not accounted on the bank account.

Process overview

  • Checks are issued with the payment date of the invoice.
  • The bank informs the company about the checks that are paid.
  • Check is cashed only on the due date.

Payment type in (CRS078)

The parameter for 'Due date AP checks' is on the payment class 2 (AP checks) in 'Payment type. Open' (CRS078).

If you select the Due date AP checks check box, then the due date is requested for AP checks. You must set up payment methods with this payment type.

If the Due date AP checks check box is cleared, then the due date is not requested for AP checks.

Accounting rule setup in (CRS395)

The accounting event AP60 (Single check) is used in 'Check. Print Single' (APS147) and type 1='Payment posted to GL'.

The accounting type 398 (Suspended GL Bank account) in 'Accounting Rule. Set' (CRS395) is used on accounting events AP20 (Manual payments), AP30 (Payment Check), and AP60 (Single check GL type). You must use F14='Standard' in 'Field Group. Display Permitted Fields' (CRS109) (CRACC), 'Accounting Event. Open' (CRS375), 'Accounting Type. Open' (CRS385), and (CRS395).

The Suspended GL bank account is set up in 'Accounting Identity. Open' (CRS630) as bank account, suspense account, and with reconciliation.

FAM function in (CRS405)

The FAM function AP40 (Cash due date checks) is in'FAM function. Open' (CRS405). This FAM function is used when confirming check proposals for checks to be cashed in 'Due Date AP Checks. Create Proposal' (APS305). You must use F14='Standard'. You can only use automatic voucher number series.

The 'Split bank transaction' parameter indicates how the bank transactions are created when the checks are cashed in (APS305), whether the bank transaction is split per check or not.

These are the alternatives:
  • 0 = One bank transaction per check proposal number. The total of all selected checks in the proposal are used on the bank transaction. This means that one bank transaction for the total amount is created.
  • 1 = One bank transaction per check within the proposal. A bank transaction is created per check. This means that several bank transactions are created.

GL Additional information numbers in (GLS950)

The additional information number 060 (Check proposal number) and additional information number 061 (Payee no) must exist in 'General ledger. Update additional info' (GLS950). These additional information numbers are used when confirming in (APS305). You must use F14='Standard' in (GLS950).

AP Checkbook in (APS300)

Payment method and Due date AP checks are in 'Check. Open Checkbook' (APS300).

AP Check payments in (APS130), (APS120), and (APS147)

When performing check payments in 'Supplier Payment Proposal. Open' (APS130), 'Supplier Payment. Enter Manual' (APS120), and 'Check. Print Single' (APS147) and the due date is required for the payment type, you must specify the due date and this date is automatically updated in the AP check book. You must use a payment method with this payment type that requires due date when paying. The due date must not be before the accounting date. The bank transaction is created on a Suspend bank account.

When confirming check payment with related option 9='Confirm' in (APS130), the check due date is set as the payment date, which is the due date or the cash discount date. This is done per payment document number because a check is created per payment document number in (APS130). The suspend bank account is fetched from AP30-398 in (CRS395).

When performing check payments in (APS120), you must use a FAM function that has a payment method that is connected to a payment type, which requires AP checks with a due date. The Suspend bank account is fetched from AP20-398 in (CRS395). You must specify the due date AP checks.

When performing check payments in (APS147) and type 2='Payment posted to AP', you must connect a payment method to a payment type that requires to use AP checks with due date. You must specify due date AP checks and the Suspend bank account is fetched from AP20-398 in (CRS395).

When performing check payments in (APS147) and type 1='Payment posted to GL', you must connect a payment method to a payment type that requires to use AP checks with due date. You must specify the due date AP checks and the Suspend bank account is fetched from AP60-398 in (CRS395).

When confirming the payments in (APS130), (APS120), (APS147), due date, FAM function, bank account, and status 1='Sent' are updated on the checks in the AP Check book that is in the FAPCHK table in (APS300). Bank accountings are done on the Suspend bank account.

Due date AP checks in (APS305)

In 'Due Date AP Checks. Create Proposal' (APS305), the checks are cashed and accounted for on the ordinary bank account.

To cash the checks on the due date, these selections are done:

  • Bank
  • Payment method
  • Currency code
  • Due date AP check from-to
A proposal is created and the selected checks are displayed.

You can delete the checks from the proposal. The checks that are included in the proposal are displayed in 'Due Date AP Checks. Display Details' (APS306).

When confirming the check proposal, the ordinary bank account is used, and the Suspend bank account is reversed.

The checks are updated with check status 2='Cashed', voucher number, bank account, cashed date, and used FAM function in the FAPCHK table in the checkbook. Reconciliation code (RECO) is set to 9 on all related transactions for Suspend bank GL account, with reconciliation date (REDE) that is set to the accounting date.

These are additional information in FGLEDX table in (GLS950) that are added on the GL accountings:
  • If the bank transaction is split per check, then the additional information number 002 (Check number) is added on the bank accountings. 'Split bank transaction'=1 is selected in (CRS405) on FAM function AP40. The additional information number 002 is always added on the Suspend bank accounts.
  • The additional information number 060 (Check proposal number).
  • The additional information number 061 (Payee no) is used on the cash proposal voucher on the final bank account and only when the bank transaction is split per check. 'Split bank transaction'=1 is selected in (CRS405) on the FAM function AP40.

These are the voucher text:

  • Standard voucher text
  • Manual voucher text
If the voucher text is blank, the Bank acc id and Check proposal name are moved to the voucher text.

GLS900 Reverse cashing voucher in (APS305)

When reversing a cashing voucher in (APS305) in 'Voucher. Reversed' (GLS900), the status is set back to 1='Sent' on the check and reversal accountings are created to ensure that the check is accounted on the Suspend Bank GL account again. The reconciliation code (RECO) on the suspend bank accountings are set to =0 on the payment voucher, so it is unreconciled again. The concerned fields are reset in the checkbook in the FAPCHK table in (APS300).

Note: You cannot do reversal of a reversal. If a cashing voucher exists, then you cannot reverse the payment voucher. You must first reverse the cashing voucher.

APS141PF Check printout

Due date AP checks (DDCH) is added in the XML file for APS141PF Check printout, but not printed.

MI transactions

These are the MI transactions:
  • The API CRS078MI (Payment Type) has the Due date AP checks field at the end of the Output fields on MI trans 'GetBasicData'.
  • The API APS305MI (Due date check proposal) and APS306MI (Due date check proposal detail) are the APIs for (APS305) and (APS306).

Functional limitations

In 'Settings. Accounts Payable' (APS905), you must select the parameter 210-'Update the checkbook' so that the checks are updated in 'Check. Open Checkbook' (APS300). Otherwise, the checks with due date are not selected in (APS305). The checks are selected from the FAPCHK table in the AP checkbook.

The FAM functions for payment AP checks AP20, AP30, and AP60 must have the 'Cashed/sent status' set to 1='Sent' in 'FAM function. Open' (CRS405). Otherwise, the checks with due date are not selected in (APS305). Only the checks with status 1='Sent' are selected in the proposal.

The cashed confirmation of check with due date from electronic Bank Statement (ABS) is not considered.

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