Postdated check life cycle

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Hi All,

We do have the following scenario.

A customer is paying his balance with 2 postdated checks (the sum is the balance) (posting of incoming payment using checks as payment mean). We transfer the post dated checks to a vendor in order to decrease the balance (deposit to the vendor using checks as payment mean). However the 1 of the 2 postdated checks has not sufficient amount of money (on customer's account) the due date. So it is required to get back the respected postdated check of the customer (not both of them) and replace it with another check.

Can the above scenario being supported by AX? And if yes how. Moreover is it possible to characterize these checks as endorsable ?

Thanks,

Michalis

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Ludwig Reinhard Microsoft Employee on at

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Hi Michalis,

Can you explain in more detail why the post dated check is transferred to a vendor?

When you record the check that you received from your customer, you can settle this check for a part of the open balance for example by making use of the transaction reorganization functionality that is available in the settlement form. Have you tried to make use of this functionality to verify whether this satisfies your requirement?

Best regards,

Ludwig

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Dear Ludwig,

The functionality that you mention is useful for reconcile part of the opening balance of the customer. This covers the part of the customer settlement. In addition to that we actually have 2 questions.

Firstly, we want to use the checks issued from our customer to pay one of our vendors. So we want to post an outgoing payment or deposit to the vendor with this same check.

The second question is what happens if this check is actually from an empty bank account so the vendor is forced to return to us this check. How can we post the check return to AX?

Thank you in advance.

Kind Regards,

Michalis

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Ludwig Reinhard Microsoft Employee on at

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Hi Michalis,

You refer to a bearer check, right?

I would say that the first thing that should be done is to settle the open customer position as the customer gave you the check.

Once that is done you can give the check to your vendor to pay a part of your own outstanding amounts. This can't be realized by the standard check creating functionalities but you rather have to record the check number and additional details somewhere (e.g. by entering a descriptive posting text).

If the check bounces then you have to reverse the vendor and the customer settlement and approach your customer to get a new check payment.

I cannot see a single functionality that can handle this scenario through a single posting step. You rather have to process this transaction in multiple steps in the AP and AR module.

Hope this helps.

Best regards,

Ludwig

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Dear Ludwig,

Thank you for your reply. As we understand, we must use multiple posting steps for the described scenario. However is there a checks’ register module /functionality in AX that may help keep track of the transactions related to a specific check number and record the history and life cycle of each check?

Thank you in advance.

Kind Regards,

Michalis

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Ludwig Reinhard Microsoft Employee on at

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Hi Michalis,

in the bank module there is a check inquiry form that shows you the status, amount, etc. of your checks. This form requires that you make use of the standard check printing and posting functionalities, which you can't use in my opinion for the process that you describe above. So, there is a form but I would assume that you have to create a system modification to include the checks you receive from your customers and that you hand-on to your vendors for making payments.

Maybe it is possible for you to make use of reason codes to track this information because reason codes can be used in the Management Reporter, which allows you creating your own MR check report. That might be a workaround you can possibly look into to avoid a customization.

Best regards,

Ludwig

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guk1964 10,888 on at

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Would it not be simpler to just issue your own pdc cheque to the vendor and not try to link the two transactions other than by memo field or scanned attahcment?

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