Check - Note

Checks and promissory notes are two different types of deferred payment instruments. The difference is determined by law. The check is issued to the bank customer under a bank account, which is issued by the banks and registered with special numbers. The promissory note, on the other hand, is drawn up directly between two persons or institutions. A real or legal person gives a note to the other by writing the payment term and amount.

You can store the checks and notes you receive from customers in a cash account, give them to the bank for collection, use them as collateral for your loans, and give them to your suppliers by endorsing them in order to pay off your debt. Checks and notes have maturity dates on them. Checks and promissory notes that are not paid on the due date are followed as unpaid. It is returned to the debtor, replaced, and even execution processes are initiated.

Businesses make payments by writing their own checks and notes or by the endorsement of checks and notes they receive for collection.

Checks and promissory notes are received and given by issuing payrolls. Check and promissory notes payroll transactions are done separately. There is more than one promissory note or check on a payroll. Checks and promissory notes are listed separately and appear in the payment/collection columns of the cash flow statement according to their maturities.

The following definitions will be helpful to better understand Check and Note Transactions.

Register: A document that is drawn up when processing checks and notes.
 

Check Registers:

Notes Registers:

Check and Note Status: These are the status tags that show the stage and where the checks and notes are.

In Portfolio: Indicates that the check or note is in the cash account.

At Bank: Indicates that the check or note is at the bank for collection.

Pledged: Indicates that the check or note is in collateral at the bank.

Collected: Indicates that the check and note have been collected.

Endorsed: Indicates that the check has been given to the creditor account.

Unpaid: Indicates that the check and note that we are the drawee has not been paid.

Paid: Indicates that the check and note that we are the drawee has been paid.

Cancellation: Indicates that the check and note that we are the drawer have been canceled.

Return: Indicates that the check and the note have been returned.

NSF – In Portfolio: Indicates that NSF checks and notes are kept in the cash account.

Protested: Indicates that unpaid notes are protested against the drawers and endorsers.

Execution: Indicates that execution has been initiated for unpaid checks and notes.

Tip

Checks and promissory notes are followed on the cash flow statement and debt receivables statements, apart from their own lists, according to their status. Checks and promissory notes can be grouped according to projects by selecting projects.

Warning

Checks and promissory notes are recorded in accounting accounts according to their register transaction types and status. Accounting definitions for checks and promissory notes are defined for cash and bank accounts.

Before Use
Before making check and promissory notes in W3, you should make the following definitions.

• Transaction Types and Authorizations
• Bank Account Definitions (Check and Promissory Notes accounting codes)
• Cash Account Definitions (Check and Promissory Notes accounting codes)

Module Functions

• Check Transactions
• Check List    
• Check Exit Register-Endorsement
• Check Exit Register -Bank
• Check Exit Register-Bank Guarantee   
• Check Exit Register - Collection       
• Check Entry Register       
• Check Exit Register - Return
• Check Entry Register - Return
• Check Entry Register -Bank Return
• Check Transfer
• Note Transactions  
• Note List
• Note Exit Register
• Notes Exit Register -Bank
• Note Exit Register - Bank Guarantee
• Note Exit Register - Collection
• Note Entry Register
• Note Return Exit Register
• Returned Notes Entry Register
• Returned Notes Entry Register -Bank         
• Note Collection     
• Note Transfer

Associated Functions in Other Modules

• Current /Current Transactions
• Current / Current Account Statement
• Cash Account / Cash Account Transactions (For those collected and paid to Cash Account)
• Debt Management / Debt/Credit Breakdown
• Debt Management / Closing and Aging
• Bank / Bank Transactions (For those charged and paid to the bank account)
• Cash Management / Cash Flow Statement
• Accounting / Accounting Transactions
• BI / Standard Reports / Collection / Payment Report