Interest on Cheque Bouncing in AR Modude

[Former Member]

Hi Experts,

I have typical scenario regarding Cheque bouncing.

Issue:

Interest on cheque bouncing: whenever the cheque bounce will happen at the time of realization, my client will levy the interest on cheque bouncing and charges which should automatically post into system.

And client want to monitor the Cheque Deposit transaction on daily Basis.

The above both scenarios need to be captue in the system.

Thanks&Regards,

Dude

[Former Member]

Hi,

The problem in bounced check interest calculation is that system has to identify separatelt the line item of bounced check, which in normal entries seems very difficult. This is because we reverse the payment line item in customer , hence customer account does not contain any open entry for check.You can adopt one wokaround, but check the feasibilty of it in reporting tems.

When a check bounces you can use special gl account to reverse the entry. Thus instead of reversing it to normal customer account line item you will take it to special gl account. Effectively your customer balance will tally when you look at it including special gl. Also you can define interest terms for this special gl line item in configuration.

This workaround requires constant monitoring of the balances in special gl and its corresponding entries in main gl. To make it easy you can use assignment field to record customer code and check number.

Check deposit can be monitored on daily basis by checking the bank incoming account and check bounced report can be taken from the above customer special gl account.

Regards

Milind.

[Former Member]

Not resolved