T Code FCH3 / FCH8 / FCH9 : SAP FI USER MANUAL Check Cancellation/Voiding

Cancellation of Checks

FCH3, FCH9 & FCH8

Purpose

Cancellation of Unused Checks, Issued Checks and Cancellation of Payments

Trigger

Blank Checks in hand are not to be used henceforth eg. They get damaged before issuing. Checks are damaged after issuing or payments checks are damaged after issue or for some reason checks need to be cancelled. 

Prerequisites

·         Reason for Cancellation of Checks

Menu Path

Use the following menu path(s) to begin this transaction:

·         Select Accounting è Financial Accounting è Banks è Environment è Check Balance è Void

Transaction Code                                                                                  FCH3 – Unused Checks

FCH9 – Issued Checks

FCH8 – Cancel Payments                                                                       

                       

Helpful Hints

·         Press F1 for help

·         Press F4 for getting input values

·         R – Required

·         O – Optional

·         C – Conditional

Procedure

1.     Cancellation of Unused Checks

Checks damaged or for any other reason are not to be used for printing are to be voided in the system using the process explained below.

a.         Start the transaction using the menu path or transaction code FCH3

SAP Easy Access

b.        Double-click  (FCH3- Unissued Cheque) to start the transaction.

c.  Enter information in the fields as specified in the following table.

Field Name	Description	R/O/C	User action and values	Comments
Paying Company Code	Company Code for which you want to cancel the unused Check	R	Select the Company Code	Defaults from earlier screen
House Bank	House Bank in the Company Code	R	Select the house Bank	Defaults from earlier screen
Account ID	Account ID uniquely defines a bank account under a House Bank	R	System will list down the Account IDs under the House Bank. Select the Account ID for which you want to cancel the check	Defaults from earlier screen
Payroll Checks	Indicator for checks from Payroll Accounting	O	If you select this parameter, checks from Payroll Accounting are processed; else, checks from Financial Accounting are processed.
Checks to be Voided
Check number from - to	Pre-numbered Check number	R	Enter the unused check numbers to be voided
Void reason code	Code explaining reason  as to why the checks are not used as a means of payment	R	Select the respective code

Press Enter and Click on Void button

The system displays the message “Check nos….. have been voided”.

d.  End of the Process

2.     Cancellation of Issued Checks

Checks printed but not yet issued to the vendor are for any reasons required to be reprinted then the following process is to be followed.

For the same there are to methods:

Check issued manually

a.         Start the transaction using the menu path or transaction code FCH9.

SAP Easy Access

  b.         Double-click (FCH9 Issued Cheques)  to start the transaction.

c.         Enter information in the fields as specified in the following table.

Field Name	Description	R/O/C	User action and values	Comments
Paying Company Code	Company Code for which you want to cancel the unused Check	R	Select the Company Code	Defaults from the first screen
House Bank	House Bank in the Company Code	R	Select the house Bank	Defaults from the first screen
Account ID	Account ID uniquely defines a bank account under a House Bank	R	System will list down the Account IDs under the House Bank. Select the Account ID for which you want to cancel the check	Defaults from the first screen
Bank Key	Key under which Bank Data for respective country is maintained	O
Bank Account	Number under which account is managed at the Bank	O
Checks to be Voided

Press Enter and Click on Void button

The system displays the message “Check no….. Voided, payment document not reversed”. Double click on the message the system will display the document number against which the check was voided.

You can issue a fresh check using transaction code FCH5. By default the document number against which the check has been voided will be displayed. Enter a new check number and Save the entry. A new check has been issued against the above document number. Using transaction code FCHU create reference for Check from the payment document. If you view the open items in the Check Issue Clearing Account, the system will show the new check number in place of the earlier check number against the respective document number.

1.     Cancellation of Payments

This transaction is to be used in cases where the user wants to reverse the payment document in addition to the voiding of check. An e.g. maybe a time barred check lying in Bank reconciliation.

a.         Start the transaction using the menu path or transaction code FCH8

SAP Easy Access

    b. Double-click  (FCH8 - Cancel Payment)  to start the transaction.

c.         Enter information in the fields as specified in the following table.

Field Name	Description	R/O/C	User action and values	Comments
Paying Company Code	Company Code for which you want to cancel the unused Check	R	Select the Company Code	Defaults from the first screen
House Bank	House Bank in the Company Code	R	Select the house Bank	Defaults from the first screen
Account ID	Account ID uniquely defines a bank account under a House Bank	R	System will list down the Account IDs under the House Bank. Select the Account ID for which you want to cancel the check	Defaults from the first screen
Bank Key	Key under which Bank Data for respective country is maintained	O
Bank Account	Number under which account is managed at the Bank	O
Check Payment to be reversed
Check number	Pre-numbered Check number vide which the payment has been made	R	Enter the check number vide which the payment to be reversed has been used.
Void reason code	Code explaining reason  as to why the checks are not used as a means of payment	R	Select the respective code
Reversal data
Reversal reason	Reason for reversing a document	R	From the drill down menu Select the reason for cancellation of payment.
Posting date	Date used when entering a document for posting	O	Enter the date on which the reversal is to be posted	System will default the document  date
Posting period	Period within a fiscal year in which account transaction figures are updated.	O		System will default the current period

Press Enter. The system will flash a message whether reversal is possible or not. In case the payment has already been cleared from the Check Issue clearing Account, then the system will not allow you to reverse the payment.

Click on Cancel payment button.

The system will flash a message “Payment for check no….was cancelled, reverse document no….”. Double click on message to see the details.

d.         Check Accounting Entry

Transaction code : FB03

Enter the reversal document no. and press enter.

e.         End of Process

Result

Checks have been cancelled and entries have been posted for reversal of payments and the original document number against which the payment was cleared stands restored.

Comments

The above procedure ensures that the checks can be voided / cancelled only if there is a valid reason for voiding / canceling. Further the system ensures that the checks cannot be voided if the same has been cleared from the Check Issue Clearing Accounts. Thus a check for which payment has already been cleared from the bank cannot be cancelled in the system.