In UAE and GCC countries, cheques remain one of the major cashless payment instruments. This section of the Money chapter provides information on how you can handle cheques with FirstBIT ERP.

The functionality is available if the Cheque Accounting option is selected on the Administration > Settings > Money form.

Because post-dated cheques are commonly used in UAQ and GCC countries, you may need to record uncleared cheques to special accounts whose balances do not affect the financial statements of your company. For this, you can select the Off-Balance-Sheet Accounting of Cheques option on the Administration > Settings > Money form. Once the functionality is enabled, you can select the default off-balance sheet accounts to be used for registration of cheques of various types. The appropriate GL accounts (indicated by OBS in round brackets) become available for selection in supplier, customer, and employee master records as well as in master records of entities.

The main types of documents used for handling cheques: Cheques Received, Cheques Issued, and Cheque Cancellations.

Cheques Received

For each cheque received to your company as a payment from customer, refund, loan, loan repayment installment, you create a Cheque Received document where you can record the cheque number, clearing date, amount, and payer.

You can indicate when each cheque has been cleared; for this, you open the corresponding Cheque Received document, click the Clear button and enter the date of clearing. Also, you can specify how the cheque was cleared: cash received or a deposit made to the selected bank account. On cheque clearing, based on this selection, a Cash Receipt or Bank Receipt document is generated.

Cheques Issued

For each cheque issued by your company as a payment of salary to an employee, payment to supplier, refund to customer, loan, loan repayment installment, you create a Cheque Issued document where you can record the bank account, cheque number, clearing date, amount, and payee.

If the Enable Bank Charges option is selected on the Administration > Settings > Money form, you can apply bank charges to cheques issued if needed.

You can indicate when each cheque was cleared; for this, you open the corresponding Cheque Issued document, click the Clear button and enter the date of clearing. On cheque clearing, a Bank Payment document is generated.

Cheque Cancellations

For a voided or bounced cheque, you can create a Cheque Cancellation document where you can specify the date and the basis document, Cheque Received or Cheque Issued, with information about the cheque that must be cancelled.