Vendor Check Processing

The options available for vendor check processing enable you to define payments for check runs, print vendor checks, process electronic funds transfer (EFT) transactions, enter information for manual checks, void and clear checks, and generate bank files of check data.

Vendor Checks Menu Options

Fund Accounting > Entry & Processing > Vendor Checks > select an option

The Vendor Checks menu includes the following options:

Bank Transmission File	Creates a file showing check data meeting your selection criteria. The file is formatted based on a layout you select from the Bank Transmission File Format table.
Batch Manual Checks	Lets you enter manual checks into a batch file which can be reviewed before posting to Fund Accounting.
EFT Prenotes	Generates an ACH file containing prenote data for vendors in your database with an EFT prenote transaction code. This option allows you to create prenote information without processing a vendor check run.
Manual Checks	Lets you enter records for checks you wrote by hand. For manual checks, the system uses the fields and pages from payable entry, with additional check-related fields. You also can print your manual checks.
Post Cleared Vendor Checks	Records cleared vendor checks, using your selection criteria.
Reconcile Checks from File	Clears checks using a file from your bank. The system uses the appropriate Bank File Format record to read the bank file. It clears checks with matching numbers in the bank file and the Transaction Ledger.
Send EFT Email Notifications	Lets you send EFT email notifications to the vendors that you chose to delay sending during the vendor check process. You can also re-send notifications to the vendors that had been previously sent.
Unclear Vendor Checks	Lets you reverse erroneous posting of cleared checks.
Vendor Checks	Lets you define parameters for a vendor check run, such as payables to include, date to print on checks, check and voucher numbers to use, and EFT settings. You can line up check stock prior to printing. You can also restart printing if your printer jams and damages checks.
Void Checks	Lets you record void checks for checks issued in error or for which payment was canceled.

System Processing

When you use the Vendor Checks option to process a vendor check run, the system refers to the following settings to determine how to generate checks and EFT payments for the selected payables:

The Payment Type you select in the Vendor Checks option's Process Payables page. Choose C - Checks Only to process non-EFT payments. Choose E - EFT Only to process payment vouchers and the ACH file for EFT transactions. To process all payables meeting your criteria, select A - All.
For details on electronic funds transfer (EFT) transactions, refer to the following Electronic Funds Transfer section.
The Hold field for each payable record meeting your selection criteria. This field must be blank for a payable to be included in the check run.
The Hold field in the Vendor List for each vendor you are paying. This field must be blank for payments to be made to the vendor.
The Single Check field for each payable you selected. The system combines invoice payments sharing the same vendor into one vendor check as long as each record's Single Check field is blank.
For each invoice payment with a Single Check field that is selected, the system prints a separate check based on each unique combination of invoice and vendor numbers.
The disbursement fund for each accounting distribution line in each selected payable record. The system uses the disbursement funds from a payable's accounting distribution to determine when and how to include a payable in the check printing process.
For detailed explanation and an example of how the system uses disbursement funds when printing vendor checks, refer to the section below, Disbursement Funds and Vendor Checks.
If you use the Purchasing Card Interface system, all payments to the PCard vendor will be combined into a single check for each disbursement fund.
The Check Amount Format field in the Fund Accounting Profile. This setting determines whether the system prints check amounts numerically or as words.
The 1099 field setting for each accounting distribution line in each selected payable record. The system adds 1099 amounts to the appropriate vendor records when checks are printed and vouchers are generated.

Important

If your site uses an accounts payable approval process, the system will not include payables in your check run that are pending approval. If your selection criteria includes records awaiting approval, the system lists the appropriate payable items in the Cash Requirements in Check Format report.

Disbursement Funds and Vendor Checks

After you select payable records to include in a vendor check run, the system divides the check run into segments, one for each disbursement fund tied to the selected records.

Disbursement Funds

A disbursement fund is a fund that distributes money. In other words, when checks are written, actual cash is taken from the appropriate disbursement funds. Disbursement funds are defined in your Organization Chart as Level 1 records. An Organization Chart record represents a disbursement fund if it is (a) a Level 1 record and (b) its Disbursement Fund checkbox is blank.

If a Level 1 Organization Chart record's Disbursement Fund checkbox is selected, then it uses the default disbursement fund defined in your Fund Accounting Profile.

Disbursement Funds and Budget Units

When your Organization Chart is defined, Level 1 records are tied to budget units. Budget units are defined at the lowest level in your reporting structure. Expenditures are charged to budget units when you enter payable records. Using the budget units from a payable's accounting distribution, the system determines the disbursement funds that are part of a vendor check run.

Before printing vendor checks, the system refers to the accounting distribution for each payable included in the check run. It determines the disbursement fund for each budget unit in the accounting distribution by first looking at the Level 1 Organization Chart record tied to the budget unit and, second, referring to the Level 1 record's Disbursement Fund field setting.

For each disbursement fund identified, the system defines a separate phase in the printing process. The system stops the process after all checks and vouchers have printed for a single disbursement fund, at which point you can load the next disbursement fund's check stock, align the check stock in your printer, and enter the appropriate beginning check and voucher numbers.

Example

Suppose you are processing vendor checks for all payables with a Control Number of MIDSEPT. These are your mid-month vendor payments for September. In your Fund Accounting Profile, fund 100 is defined as the default disbursement fund.

Three payables are included in the check run. The Single Check field is unselected for each payable, meaning the system will group payments sharing the same vendor and invoice number.

Following is the remaining relevant data for the selected records with the MIDSEPT control number:

Payment #	Vendor	Line #	Budget Unit	Amount	Fund	Disbursement Fund Checkbox
1	Vendor A	1	100110230800107	75.00	100	Cleared
1	Vendor A	2	100230230900200	100.00	100	Cleared
1	Vendor A	3	400170481230101	25.00	400	Selected
2	Vendor B	1	400188482355700	175.00	400	Selected
3	Vendor A	1	200918485287500	1000.00	200	Cleared
3	Vendor A	2	400725006198800	550.00	400	Selected

The example shows that two vendors are included in the check run. The payables reference three funds, but only two disbursement funds are used:

Fund 100 is the default disbursement fund from the profile.
Fund 200 is also a disbursement fund since its Disbursement Fund checkbox is blank.
Fund 400 uses the default disbursement fund 100 since its Disbursement Fund checkbox is selected.

As a result, the system would divide the check run into two phases, the first for Fund 100, the second for Fund 200.