Cheque Management

l Cheque Processing
l Voiding Cheques

ã SAP AG 1999

(C) SAP AG AC200 10-1

 Cheque Management: Objectives

At the conclusion of this unit, you will be able to:

l Explain the documents involved in cheque

processing
l Create a manual cheque
l View cheque information
l Void cheques
l Use void cheque reason codes

ã SAP AG 1999

(C) SAP AG AC200 10-2

 Cheque Management: Business Scenario

l Internal auditors have requested that

M a reason must be given for every cheque that
was voided
M every cheque must be accounted for
l Staff accountants want to be able to view
cheque information and determine when
cheques were cashed.

ã SAP AG 1999

(C) SAP AG AC200 10-3

 Cheque Management...

There are 3 “documents” involved in the payment process...

Invoice l Vendor invoices

Items
n entered directly into AP or generated
PK …
PK ... through the PO cycle

Payment
l Payment documents
document
Items n records the payment of the invoice and
PK …
PK ...
clears the open invoice

l Cheques
ca
rea
Isis
T. G
Is is T. G
rea
ca
n pre-printed cheque stock
n R/3 generated cheque number
ã SAP AG 1999

n In order to print a cheque in SAP, a liability, e.g. an invoice, has to reside on the system.
n The payment process creates a payment document which records the payment of the liability and clears
the open invoice.
n Creating the cheque is a separate step from creating the payment document. When the cheque is created,
both the payment document and the open invoice are updated with the cheque number, bank information
as well as the cheque recipient.
n When errors are made, users need to decide if the cheque needs to be re-printed or voided or both the
cheque and the payment document need to be voided and reversed, respectively.

(C) SAP AG AC200 10-4

 Payment Documents and Cheques

There are several methods to create payment documents and cheque

information...

Payment
document r ea
ca
Items T. G ca
Isis rea
T.G
Isis
PK …
PK ...

l Payment document: l Cheque information

n Created manually n Created manually
n Automatic payment n Created manually
program together with the
payment document
n Automatic payment
program; cheque
printing program

ã SAP AG 1999

n There are three ways to pay an invoice in R/3;

Ÿ the automatic payment program: creates payment documents and cheques automatically en masse.
This is used to pay multiple vendors at one time.
Ÿ “post and print forms”: creates individual payment documents and cheques. The user manually
selects invoices for payment. This is used to pay one vendor or one particular invoice, e.g. the vendor
arrived in person demanding a cheque.
Ÿ “post”: creates individual payment documents after the user manually selects invoices for payment. As
before, this is used to pay one vendor or one particular invoice using pre-printed cheques filled out
manually or typed on a typewriter, e.g. the cheque printer is down and the boss needs a cheque. In this
case, type the cheque on the typewriter. Later, go back into R/3 to create the payment document and
then assign it a cheque number since a cheque is not produced from R/3.

(C) SAP AG AC200 10-5

 Cheque Information

l Bank Details l Cheque Information

n House bank and bank n Cheque number
key
n Payment date
n Account ID and
n Currency and amount
number
paid
n Bank name and city
n Cash discount amount
l Cheque Recipient
n Encashment date
n Name
n City
ca
rea
n Country Isis
T. G
Isis
T.G
rea
ca

n Region

ã SAP AG 1999

n This is the information captured on the payment document and the invoice when a cheque is created.

(C) SAP AG AC200 10-6

 Voiding Cheques and Canceling Payments

Reason Business Scenario

Cheques only!
Void an issued cheque Made a cash payment
Void an unused cheque Stolen, accidentally damaged
Void and reprint cheque Cheque ripped during printing
Void cheque info. for payment run Ran out of cheque stock
Renumber cheques Printed on cheque stock incorrectly

Cheques and Payment Documents!

Void cheque & cancel payment doc. Paid incorrect invoice or vendor

ã SAP AG 1999

n Cheques can be voided before the print run:

Ÿ accidentally damaged
Ÿ stolen
Ÿ destroyed
n Cheques can be voided after the print run:
Ÿ not required due to a cash payment instead
Ÿ ripped during printing
Ÿ used for a test print
n In either case, determine whether the payment document needs to be reversed as well. In the system,
there is the option to:
Ÿ reverse the cheque
Ÿ reverse the cheque then separately reverse the payment document
Ÿ reverse the cheque and the payment document simultaneously

(C) SAP AG AC200 10-7

 Void Cheque Reason Codes

Void Cheque Reasons

Key Description Type

01 Test Printout Sample Printout

06 Stolen

07 Destroyed

l A reason code can be defined for each type of void

l System generated codes are used by the print program

ã SAP AG 1999

n A void reason code is required to void a cheque. R/3 delivers standard reason codes; however, users can
define additional reason codes as necessary. By specifying whether the reason code is used by the print
program or not.
n When voiding a cheque, the payment document, the original invoice and the cheque register are updated.
When reversing the payment document, a new reversal document is created.

(C) SAP AG AC200 10-8

 Cheque Register

Pandora’s Box Corp. Cheque Register Time 12.07.44 Date 08/19/99

Toledo, RFCHKN00 Paying company code 1000 RFCHKN00/CIESLA Page 1

Bank BANKH Dewey, Cheetham & Howe Bank, Toledo OH 60172

Bank Key 079993455
Acct Number CHECK 4370078

Cheque # Pmt. Doc Date Curr Cheque Amount Cheque Recipient/Void Reason City/State Date Cashed
1000 20000000 7/1/99 USD 100.00 Hasso Platner Youngstown, OH
1001 20000001 7/1/99 USD 100.00 Lisette Noel Mississippi, OH
1002 20000002 7/1/99 USD 100.00 Larry Craven Norwood, OH
1003 Voided by CIESLA on 07/01/99 Form closing
1004 20000003 7/1/99 USD 1,500,000.00 Eric’s Vacation Planner Toledo, OH
1005 20000004 7/1/99 USD 9,999,000,222.15 Kim’s Chocolates Richville, OH 7/2/99
1006 Voided by CIESLA on 07/01/99 Form closing
1007 20000005 7/1/99 USD 4,836.02 Isis the Wonder Vendor A Pond Near You, OH
1008 20000006 7/1/99 USD 2,311.96 Picasso, Psycho Kitty Toledo, OH
1009 20000007 7/1/99 USD 45,000.00 Nuffie ‘s Kinder Toys Walldorf, DE 7/28/99
1010 20000008 7/1/99 USD 100.00 Michael’s Disco Palace Sandusky, OH
1011 20000009 7/1/99 USD 100.00 Remit To Vendor Someplace Else, OH
1012 20000010 7/1/99 Voided by ENGELHARDT on 07/01/99 Printed incorrectly
1013 20000011 7/1/99 Voided by ENGELHARDT on 07/01/99 Printed incorrectly

The cheque register program can generate the following reports

All cheques Outstanding cheques
Cleared cheques Voided Cheques

ã SAP AG 1999

n The cheque register program, RFCHKN00, is a standard delivered ABAP program.

n This is a dynamic report that provides the following information:
Ÿ All cheques
Ÿ Outstanding cheques
Ÿ Cheques paid
Ÿ Voided Cheques
n The report can be run by:
Ÿ payment run
Ÿ issue/creation/cashing dates

(C) SAP AG AC200 10-9

 On Line Cashed Cheques

 Payment Program:
Account  Dr Vendor Account
Account
Account  Cr Cheque Clearing Account
[Pmt. program config]
10 10
... ...
 When the Cheque is Cashed:
 Dr Cheque Clearing Account
 Cr Cash [House bank config]

n The cheque is marked as “cashed” in the cheque register.

n A clearing document is created.
n Payment document and original invoice are updated with the
“encashment” date
n Cashed cheque data can be entered manually, or uploaded
automatically using program RFEBCK00.
ã SAP AG 1999

n The cashed cheques program is used to manually record cheques that have been cashed by the bank.
This process can be done automatically with data supplied from the users bank using program
RFEBCK00.
n Once notification is received that the cheque has been cashed, this program moves the cheque amount
from the cheque clearing account to the cash account.
n This updates the payment document, original invoice and the cheque register with the encashment date-
-the date the cheque was cashed.
n The cheque clearing account is configured in the payment program and the cash account is configured in
the house bank. The cheque clearing account must be open item managed.

(C) SAP AG AC200 10-10

 Cheque Management: Summary

l There are 3 “documents” involved in cheque

management:
n the vendor invoice
n the payment document
n the cheque
l Cheques can be created manually on an individual
basis or en masse through the payment program.
l Cheque information can be viewed on line and on
the cheque register.

ã SAP AG 1999

(C) SAP AG AC200 10-11

 Exercises

Unit: Cheque Management

Topic: Cheque Processing

At the conclusion of this exercise, you will be able to:

• Create a manual cheque,
• View cheque information on line and through the cheque register and
• Void cheques.
Internal auditors stated that a void reason code must be given for every
cheque that is voided and every cheque must be accounted for.
Staff accountants want to be able to view cheque information and
determine when cheques were cashed.

1-1 From time to time, vendors drop by the office and like to pick up their cheques. Post
an invoice to your vendor account so that you can immediately pay them by cheque.
1-1-1 Post an invoice to your vendor account using your car rental expense account as
the offset, AE02##.
1-1-2 Create a manual cheque to give to your vendor.

1-2 Analyze the cheque register to review all of your cheque transactions.

1-3 The cheque that you just printed jammed in the printer and was ripped during the
rescue attempt!
1-3-1 Void the original cheque (do not reverse the payment document).
1-3-2 Try it again: reissue a new cheque with a new cheque number.
1-3-3 Review the cheque register to see these new transactions.
1-3-4 Review your vendor line items to view the cheque information on line.

1-4 A long-time employee, who does forgery as a hobby, was passed over for a promotion.
In retaliation, the employee stole all of the cheques from the cheque run for an
extended vacation. Void the cheques from the automatic payment run.
1-4-1 Review the cheque register and note the cheque number(s) from payment run.
1-4-2 Create a new session to void and reprint new cheques for your vendors.
1-4-3 Return to the cheque register to see the new cheque activity.

(C) SAP AG AC200 10-12

 1-5 Name the 3 documents involved in the payment process:
1-5-1 __________________________
1-5-2 __________________________
1-5-3 __________________________

1-6 What are 2 ways to issue a cheque? Bonus points if you can name the cheque printing
program.
1-6-1 __________________________
1-6-2 __________________________

1-7 True/False
1-7-1 You can void a cheque without reversing the payment document.
1-7-2 You can void a cheque and reverse the payment document at the same time.
1-7-3 You can void a cheque, reverse the payment document and the vendor invoice
all at the same time.

(C) SAP AG AC200 10-13