Report Customer Draft or Definite Postdated Check Rejected by Bank before Collection
This document explains how to use 'Bank Remittance. Reconcile Payment' (ARS350) to report a customer draft that has been returned from the bank without having been collected or discounted.
You can also use these instructions to report definite postdated checks (type 1) that have been rejected, since they are managed as payment class 4 documents in M3.
Outcome
Bank remitted drafts or definite postdated checks are reported as unpaid. An accounting journal and a customer payment journal are printed.
Revise and remit the payment documents to the bank again or include them in the customer debt routine.
Accounts receivable and the general ledger are updated. These account entries are created:
| Accounting Rule | Account | Debit | Credit |
|---|---|---|---|
| AR75-196/AR75–197 | Drafts (and postdated checks) remitted for collection on the due date or drafts remitted for discount | x | |
| AR30–195 | Drafts not remitted | x |
The remittance status is set to 11.
If cash register for payment receipts is used, the cash register status for the payment receipt document is set to 10 = Not remitted. See Cash Register for Customer Payment Receipts for a detailed description.
Before you start
- The starting conditions listed in Managing Customer Checks or Drafts Rejected by Bank must be met.
- FAM function AR87 must be defined in 'FAM Function. Open' (CRS405).
Follow these steps
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Start 'Bank Remittance. Reconcile Payment' (ARS350/B).
Panel B displays a list of bank remittances made, with information on remittance number, bank, payment type, currency, remittance date, remittance amount, and status. These statuses are used:
00 = The bank remittance proposal is in progress
01 = The proposal is created
02 = The proposal is being updated by another user
04 = The proposal is being deleted
05 = The proposal is being reviewed by another user
06 = The proposal is being printed
08 = The bank remittance is being confirmed
09 = The bank remittance is confirmed and a remittance statement has been printed
10 = The bank remittance is being reconciled
11 = The bank remittance is reconciled.
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Select option 11='Remitted payments' for the bank remittance in which the payment document is included.
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In 'Bank Remittance. Update Payment' (ARS351/B), review the payment documents listed per payer and due date.
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If you need further information, select option Display to activate 'Customer Invoice. Display Separate' (ARS215). Return by pressing F3.
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To remove the rejected payment document, select option Delete for it on (ARS351/B).
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On (ARS351/E), change the proposed accounting date, if necessary, and specify a voucher text for the removed draft (optional). Press Enter to create the voucher.