Zero Dollar Cheques in Microsoft Dynamics GP Are Important To Process
I have recently been asked several times about zero dollar cheques during a cheque printing process in Microsoft Dynamics GP. Please be assured that a zero dollar cheque is normal.
Zero dollar cheques may be created when during a Select Cheques process, you choose to include existing unapplied Payments, Credit Notes or Returns. The default setting for the Select Cheques window as seen below, is to include these amounts in the cheque run.
The process of selecting documents for payment will automatically apply any unapplied Payments, Credit Memos or Returns. The documents will apply according to the setup in Payables to either the oldest dated document or the document with the oldest due date.
Note: If you do not want to take any credits in the Select Cheques Batch, then be sure to unmark the boxes in the Select Payables Cheques window.
If the unapplied Payments, Credit Memos or Returns are greater than the open invoices for the current cheque selection, the result will be the creation of a zero dollar cheque, indicating that you have applied the Payments, Credits Notes or Returns and currently do not owe the Vendor an amount.
The following is an example of the steps for printing cheques:
Select Payables Cheques
I have selected to run this process for one Vendor that has an unapplied payment in the amount of $1,132.53. The Vendor also has an open invoice for the same amount.
I have also selected to automatically apply existing unapplied Payments, Credit Notes and Returns in the Select Cheques window.
After building the batch, an Edit List will clearly indicate that the transaction has a zero balance, however, you will also be able to see that it is the result of a previous payment being applied to an invoice.
Edit Cheque Batch
The Edit Cheque Batch indicates that a credit has been applied to the first line, leaving the amount remaining at $0.00 and the amount paid at $0.00. You can see the applied amount by double clicking on the Amount Paid field.
Note: if you unmark the Vendor ID to remove the Vendor from the Cheque Batch, the Payment, Credit Note or Return will become unapplied.
If you reselect the Vendor and Voucher Number, the Payment, Credit Note or Return will not re-apply.
Also note, that if you begin the cheque processing from the Edit Payables Cheque Batch rather than the Select Payables Cheques, the Payments, Credit Notes and Returns will not be available to select and will not automatically apply. Unapplied documents are only applied during the Select Cheques process.
However, if Payments, Credit Notes or Returns have been previously applied, you cannot un-apply at this point.
The Print Cheques process will only print cheques with dollar values. Zero dollar cheques will only print as Remittances and will be assigned a Remittance Number, not a cheque number and will not be posted to the Chequebook.
Post Cheques & Remittances
Once the posting of the cheque batch is selected, the Remittance window will automatically appear.
Often times, users question why this window appears at this point because they do not realize that a zero dollar cheque has been created. (This window also appears if the list of invoices on the cheque stub overflows to the remittance form).
The best practice is to print the Remittance Form. This may be information you want to file with other Vendor activity, or even mail out to the Vendor.
Once the Remittance Forms have been printed, then select Post and Process.
The process of cheque payments and applying documents such as Payments, Credit Notes and Returns, is a unique way of keeping the Accounts Payable sub-ledger tidy and making sure that all outstanding documents are “fully applied”. Remember that you always have the option of manually applying Payments, Credit Notes and Returns when the documents are created, or in the Apply Payables Documents window.
For more information on managing Zero Dollar Cheques, contact Customer Care at firstname.lastname@example.org.
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