Cheque Issue Management
Short Description
Cheque Issue Management...
Description
How to Issue Cheque and it’s management?
T24 provides functionality for banks that have requirements to manage the issuing and registration of cheques and bank drafts issued to their clients. Banks can record requests for chequebooks ordered by customers and when these cheques are received from the vendors, issue them to the appropriate customer. When a chequebook is issued to the client, the range of the cheque numbers will be recorded into a cheque register. register. Furthermore, when cheques are stopped or returned, this can also be recorded in the cheque register. When cheques are presented, this is stored in a CHEQUES.PRESENTED le. There is also the functionality functionality to charge charge the client for the issuing issuing of cheque books, for charges to be applied on the usage of cheques by the customers, and also a periodic charge for possession of a cheque book. n the presentation of a cheque, the cheque register is consulted to conrm that!
The "heque number number is valid valid for the account account on which it is is drawn# The "heque ha has s not been stopped stopped by the client client
Furthermore, the CHEQUES.PRESENTED le is also consulted to conrm that the cheque has not already been presented elsewhere. When a cheque does not conform to the above rules, an override is requested. $f the override is accepted the cheque may still be used. n completion of the above transaction the cheque register and CHEQUES.PRESENTED le is updated with the last status on the cheque. Banks can issue cheques and drafts drawn on them. %etails for these are stored in a similar manner to customer cheques. Further details regarding the following could be obtained from the system if required.
The The The The
name of the the client to whom whom the cheque&draft cheque&draft was was issued. issued. beneciary of the cheque. beneciary cheque. amount and and currency currency of the cheque. cheque. date and and place of issue. issue.
The cheque number number..
Processing Initial Set up There are are ' parameter parameter les which which can be used used for cheque processing# CQ.PARAMETER and and ACCOUNT ACCOUNT.P .PARAMETER ARAMETER.. The system will rst check the CQ.PARAMETER record, if the system does not nd the required setting here it will check the ACCOUNT the ACCOUNT.PA .PARAMETER RAMETER record. (owever, not all of the functionality available on CQ.PARAMETER is available on ACCOUNT on ACCOUNT.PAR .PARAMETER AMETER..
Figure 1 – Example CQ.PAR CQ.PARAMETER AMETER recor
Figure ! – ACCOUNT.PAR ACCOUNT.PARAMETER AMETER "or c#e$ue proce%%i&g
To enable cheque)pr To cheque)processing, ocessing, the "(*+*.-* "(*+*.-*$/T*$/T*- eld on the CQ.PARAMAETER or or ACCOUNT ACCOUNT.PA .PARAMETER RAMETER application needs to be set to a value of 01*/2. CHEQUE.TYE The rst step step towards towards issuing cheques cheques on accounts accounts is to set set up a CHEQUE.T'PE record. This record will allow you to specify certain default parameters associated with a class of cheques.
Figure ( – CHEQUE.T'PE
CHEQUE.ST!TUS The CHEQUE.STATUS record 0342 is delivered and is the default record. 5dditional CHEQUE.STATUS records should be created within the range 46)33. 7arious cheque status like "heque request received, "heque sent for printing, $ssued etc can be maintained. This will then be used to track the request in the CHEQUE.)SSUE application.
Figure * – Example o" po+e&+ial CHEQUE.STATUS recor%
Figure , – CHEQUE.STATUS recor
Setting up a "ha#ging st#u"tu#e $o# the issuing o$ "heques The user can set up the charging rules in the CHEQUE.CHAR-E application to levy charges on cheques issued, cheques used, and also a periodic charge for having the cheque facility. FT.CHAR-E.T'PE and FT.COMM)SS)ON.T'PE can be used in this application in eld "(5-*."%*, the value in the eld "(5-*."%* must be a valid entry on either FT.CHAR-E.T'PE or FT.COMM)SS)ON.T'PE table and this has been linked to CHEQUE.)SSUE application.
Figure – CHEQUE.CHAR-E
%in&ing a t#ansa"tion "ode to a "heque t'pe $n order to invoke the processing that will validate cheques issued to a client account, a TRANSACT)ON record will need to be linked to the CHEQUE.T'PE. The transaction code used in the accounting entry raised for the cheque transaction must be linked into a CHEQUE.T'PE record for the system to perform the e8tra validation associated with cheque issue and management. 5n e8ample of this has been illustrated as under!
Figure / – 0i&i&g c#e$ue proce%%i&g +o TRANSACT)ON coe
Issuing ( )egiste#ing o$ Cheques "heques are issued to clients through the CHEQUE.)SSUE application. This application has been linked to soft delivery by triggering delivery messages on cheque status change.
Figure 2 – )%%ui&g c#e$ue% CHEQUE.STATUS REQUEST RECE)3ED
$n the e8ample above the client account 141/2 has requested an issue of "heques, of the cheque type 0"--2. The eld "(*+*./T5T/ is used to keep track of cheque issue status. When entering "(*+*./T5T/ in CHEQUE.)SSUE the system will not allow a status less than the e8isting status for the record. $nput of a new record is allowed for the account only when the cheque status is more than 0342 9i.e. issued:. $n the above e8ample a status of ;4 is -*+*/T.-*"$*7*%. nce the cheques have been issued
Figure 5 –CHEQUE.)SSUE %+a+u% 6547 i%%ue
The CHEQUE.RE-)STER is updated as shown below!
Figure 14 – C#e$ue regi%+er
5s seen in the gure above account number 141/2 now has cheque 644446) 6444'< issued to it. 5n additional request has been placed on the account 141/2, in this e8ample you can see that the client is being charged for the issue of these cheques.
Figure 11 – Ai+io&al re$ue%+ "or CHEQUE.)SSUE
The CHEQUE.RE-)STER is updated as below.
Figure 1! – CHEQUE.RE-)STER
The history of charges debited under various stages and the history of date of statuses will be stored in CHEQUE.CHAR-E.8A0 for reference by the Bank.
Figure 1( – Example CHEQUE.CHAR-E.8A0 "or i%%ue o" c#e$ue%
#esenting a Cheque
nce a cheque has been presented through FT , TE00ER or DATA.CAPTURE, 9the eld "(*+*.=>B*- in the application must be input: the le CHEQUES.PRESENTED is updated with the date that it was presented on. The key to this le is the account number and the cheque number.
Figure 1* – CHEQUES.PRESENTED
)E*+),E) )+CESS "heques can be reordered manually using the CHEQUE.)SSUE application as detailed previously or, during "B, the accounts that have reached the minimum holding level of cheques will be identied and new cheque issue records will be automatically created with status as dened by user. Banks can follow this record, for automatic delivery of chequebooks to customers as a re) order process. Issuing -an& ,#a$ts Bank drafts and cheques issued by the bank may be registered using the same procedure as that detailed above, with the di?erence of using a =ostro account instead of a client account. Thus a new cheque type for bank drafts would need to be set up 9with @=ostro accountsA as the category eld:, and a TRANSACT)ON record to be used when issuing drafts. The TRANSACT)ON record would have to have 0"-*%$T2 agged in the %*B$T&"-*%$T indicator 9as opposed to debit for client cheques:. =o CHEQUE.CHAR-E record would be required. $t should be noted that at present it is not possible to run a TE00ER or FUNDS.TRANSFER deal where both sides of the transaction refer to TRANSACT)ON records where the "(*+*.$=% eld is set to 1*/. $n other words, it is not possible for a client to buy a registered bank draft, using their own registered cheques.
#esenting a "heque p#esented ea#lie# The following screen shot depicts how the system responds when attempting to present a cheque already presented earlier to the system.
Figure 1, – C#e$ue alrea9 pre%e&+e
This is because in the CHEQUES.PRESENTED le there is already a record of this cheque having been used. $f we say 01es2 to the override# the CHEQUES.PRESENTED le gets updated, and the -*C-*/*=T*%."=T eld is updated.
Figure 1 – CHEQUES.PRESENTED
Stopped Cheques The PA'MENT.STOP.T'PE application is used to enter di?erent reasons for placing a stop. The following is an e8ample of a typical PA'MENT.STOP.T'PE
Figure 1/ – Example PA'MENT.STOP.T'PE
The PA'MENT.STOP table allows all payment stop instructions to be recorded. These are input against the account to which they relate. 5ll stop instructions for one ACCOUNT number is maintained on the same record. The DATA.CAPTURE, TE00ER and FUNDS.TRANSFER applications then use this record to validate against when processing a cheque. "harges and ta8es can now be collected for the stop payments recorded. "harges can be a valid charge or commission code
from FT.CHAR-E.T'PE or FT.COMM)SS)ON.T'PE and can be defaulted from the PA'MENT.STOP.T'PE or can be dened by the user for the particular stop payment. $f a ta8 is associated with these charges then the ta8 is also booked. When the W5$7*."(5-* eld is set to 0=2 or holds no value then the charges can be defaulted from the above PA'MENT.STOP.T'PE.
Figure 12 – S+oppi&g a c#e$ue
When the payment stop record is authorised the details of the charges and ta8es collected are moved to a live le PA'MENT.STOP.8A0ANCES whose id is the same as the PA'MENT.STOP le.
Figure 15 – PA'MENT.STOP.8A0ANCE recor
The eld >%.C/."(+.= in PA'MENT.STOP can be used to revoke either a single cheque or a range of cheque numbers can be entered
Figure !4 – Re:oi&g a PA'MENT.STOP
The details of the revoked PA'MENT.STOP are populated in PA'MENT.STOP.H)ST . The user will have the option to revoke the stop payment instructions for a particular cheque number or a range of cheque numbers at his discretion.
Figure '6 D (istory of stopped payment
The CHEQUES.STOPPED le as shown under!
Figure !! – CHEQUES.STOPPED recor "or c#e$ue &o. 44444,
=ow when an attempt is made to use a stopped cheque on a transaction the system responds with an override message that has been illustrated in the gure below!
Figure !( – A++emp+e pre%e&+a+io& o" a %+oppe c#e$ue
$f the answer to this override were 012 then the FUNDS.TRANSFER record would record this message into its 7*--$%* elds. SI/T 0T111 /W$FT message >T666 9-equest for /top Cayment of a "heque: can be produced from the application E8.MESSA-E.111. $ncoming /W$FT >T666 is processed using OFS.-0O8US.MANA-ER and a PA'MENT.STOP record is automatically created. SI/T 0T112 /W$FT >essage >T66' 9/tatus of a request for /top Cayment of a "heque: is produced from the PA'MENT.STOP application, via /oft %elivery. /etting the eld -5$/*.5"T$7$T1 to 01es2 will! 6.
5llow input to be made in the following elds) %5T*.F.$//* 5"T$=.%5T* -.-*F*-*="* >*//5*.-*" C51** 5=/W*-/ '. Copulate the following system %elivery elds D >T66'."(*+*.= >T66'.5>=T E. -aise a %elivery 5ctivity. $nward >T66' will be directed to print by the system. )etu#ned Cheques $f a cheque is to be returned, then, by entering 01*/2 in the -*T-=."(*+* eld on FUNDS.TRANSFER, it automatically returns a cheque, taking the payment from a return suspense account as set in either the CQ.PARAMETER or ACCOUNT.PARAMETER. The account that the transfer was originally to have been from is then stored in %-5W=.5""=T, which is found on both the FUNDS.TRANSFER and STMT.ENTR' applications. The ranges in CHEQUE.RE-)STER are maintained as normal.
Deposited Cheque Collection The system handles the collection of deposited cheques# this is in addition to the normal method of clearing cheques. The cheque clearing system takes cheques entered through TE00ER, FUNDS.TRANSFER or DATA.CAPTURE and creates a "heque "ollection -ecord for each cheque. The cheque collection record can be processed individually or through CHEQUE.8ATCH, that groups batches of cheques together for processing. The processing caters for cheques deposited into the T24 bank that clear in a certain or uncertain number of days. For e8ample foreign cheques may take an uncertain number of days to clear, with this functionality T24 can deal with this. While the cheques are waiting to be collected the funds are posted to a /uspense account. pon the successful collection, the funds are then credited to the customer. $f the cheque is returned then funds in suspense to are returned to a suspense account. Set*up The cheque collection functionality is triggered by TRANSACT)ON codes. =ew transaction codes are created to indicate whether processing is required or not. 5fter the new transaction codes have been created they are input onto the 5ccount parameter record. For every transaction created through FUNDS.TRANSFER, DATA.CAPTURE or TE00ER, the system checks the CQ.PARAMETER and ACCOUNT.PARAMETER record for the transaction code. $f the transaction code is not found on the either record, the "heque "ollection processing is by)passed. T#ansa"tion "odes =ew transaction codes must be created as a means of identifying the transaction to be processed through the cheque collection processing. There are three methods of deciding which suspense account the funds go to for clearing and returns, the suspense category is either dened on the 8C.SORT.CODE record, the CQ.PARAMETER or ACCOUNT.PARAMETER record with the transaction code. The transaction code decides where the funds should be posted, there are a minimum of three transaction codes required on the CQ.PARAMETER and ACCOUNT.PARAMETER record. 5 transaction code must be created for the "ollection of "heques, the "learing of "heques and the -eturn of "heques. >ultiple transaction codes can be set for each of the mentioned cheque actions. The CQ.PARAMETER and ACCOUNT.PARAMETER accepts
multiple TRANSACT)ON codes as a unique transaction code could be created for FUNDS.TRANSFER, DATA.CAPTURE and TE00ER. For e8ample a cheque is deposited using a TRANSACT)ON code that is on the ACCOUNT.PARAMETER record, the transaction is then posted to the collection suspense account 9as dened by the collection category code on the ACCOUNT.PARAMETER record: and a CHEQUE.CO00ECT)ON record is created.
Figure !* – C#e$ue epo%i+e %e&+ "or collec+io& +ra&%ac+io& coe
Figure !, – Example TRANSACT)ON recor
Figure ! – Example TRANSACT)ON recor
The above e8ample transaction codes will be used through the remainder of this manual. The transaction codes are entered onto the ACCOUNT.PARAMETER record and also used by the Teller Transaction codes. Catego#' Code =ew CATE-OR' codes will need to be created to enable the set up of the new suspense accounts. These category codes specify which suspense account the funds should be held in. The category codes can be dened on the CQ.PARAMETER, ACCOUNT.PARAMETER record and&or the Bank sort code record, the di?erences will be e8plained later on. There must be at least one category code for each transaction code. The category codes must be between the range of 64444 and 63333, thus dening them as internal accounts.
Figure !/ – C#e$ue collec+io& %u%pe&%e ca+egor9
Catego#' Codes and Inte#est !dustments $t is possible through elds on the ACCOUNT.PARAMETER application to congure the CATE-OR' codes used to book adustments to the previous year and month, for all types of interest 9%ebit, %ebit', "redit and "redit':. 5t correction time of a previous capitalisation the system will compare the capitalisation date against the last F$=5="$5G 1*5-.*=%. $n the COMPAN' record and if the correction date falls in the last year the CHG adustment will be posted to the last year category, if not it will be posted to this year. %ebit interest adustment categories must be in the range
View more...
Comments
