Checks and Payments

Publicado el
Published on
September 6, 2023
Actualizado en
Updated on
December 19, 2023

Payments are the transfer of money from one party to another with the intention of settling a debt or making a purchase. Payments can be made in many forms, including cash, checks, electronic transfers, credit and debit cards, and mobile or digital payment systems.

This help article will guide you through the essential processes of how to handle checks and payments in our platform. From recording a new check or payment, applying withholdings, canceling a check or payment, to importing checks and payments from another system, we will provide you with step-by-step instructions.

1. Record a Check or Payment

To record a new check or payment, follow these steps:

  1. Navigate to the main menu, select Bank, and then click on Checks & Payments.
  2. In the Payments list, click the (+) button, and then click on New Payment.
  3. Select the account, payee, payment method, date, and add a note. Depending on the payment method you choose, the system will display additional fields such as Number (No.) and Bank.
  4. In the Accounts Payable section, you will find two tabs: Payable (CxP) and Accounts. In the Payable (CxP) tab, you can select accounts payable documents, such as previously registered purchases in the system. In the Accounts tab, you can directly select the accounting accounts to affect.
  5. If you are going to settle an accounts payable, select the Payable (CxP) tab and click on the + Payable (CxP) button. In the window that opens, select the documents you are going to settle with this payment. Then, close the window to return to the Check or Payment.
  6. In the list of accounts payable that you chose in the previous step, you can define the amount to pay and any discounts.
  7. If you are going to settle an accounts payable in a foreign currency (EUR), in the Accounts Payable tab, select the currency in the Show In field and define or update the Exchange Rate if necessary.
  8. If you plan to make an expense or charge to an account, such as a vendor advance, select the Accounts tab. Here, choose the ledger account, description (Memo), tax type, quantity, and price. With this information, the system will complete the tax amount and total amount.
  9. To add more lines of accounts, click on the (+) button below the list and repeat the previous step.
  10. Finally, click on Save to save the document.
[4] Tabs: + Payables and Accounts

Payables Tab (AP)
The Payables (AP) tab allows you to select accounts payable documents, such as purchase invoices, that you have previously recorded in the system. This feature is primarily used to settle outstanding accounts payable.

Accounts Tab
The Accounts tab provides you with the option to select specific accounting accounts to record transactions in them. This function is useful when you are making an advance payment to a supplier, paying off a loan, receiving capital contributions from a partner, or need to record a transaction in a specific account.
[6] Multi-Currency
If you generate transactions in multiple currencies and you are going to settle accounts payable documents in a foreign currency, you must select the currency of the accounts payable you want to view in the Show field in the Accounts Payable (AP) tab, otherwise you will not be able to view these documents by clicking on + Payables (AP).

Note: Depending on the currency chosen in the Show In field, the accounts payable will be displayed in that currency when clicking on + Payables (AP).

2. Void a Check or Payment

There are occasions when it is necessary to void a check or payment. This can be due to an error or mistake. To void a payment, follow these steps:

  1. Navigate to the main menu, select Bank, and then click on Checks & Payments.
  2. In the Payments list, locate the payment you wish to void.
  3. Click on the actions menu (three horizontal dots) and click on Void.
  4. If you are voiding a check due to a typing mistake and wish to reuse its number, activate the option to Reuse check number in the confirmation window.
  5. Confirm the action by clicking Continue.
Void a Check or Payment
Checks and payments cannot be deleted, only canceled. This is because payments generate transactions that affect accounting. When you cancel a document, the system reverses the transaction and keeps a historical record in the accounting for audit purposes.

3. List of Payments and Options

The Checks & Payments module provides a list of all registered payment transactions and a set of options in the action menu (three horizontal dots) for each transaction. These options allow you to manage and track each transaction easily. The options in this menu are:

  1. Preview
    This option allows you to preview the document as it would appear when printed.
  2. History
    Allows you to view all transactions associated with this check or payment, such as paid purchase invoices, among others.
  3. Attach File
    Allows you to add files related to the payment, such as supporting documents or attached files.
  4. Audit
    The audit trail shows the changes made to the document, enabling detailed tracking of modifications.
  5. Void Payment
    If you need to void a payment, you can use this option. A voided document cannot be deleted and is kept in the system for record and auditing purposes.

4. Importing Checks and Payments

If you are migrating from another system, this feature allows you to upload a list of checks and payments from a spreadsheet file instead of adding each transaction individually. Here are the steps to import checks and payments:

  1. Go to the main menu, select Bank, and then click on Checks & Payments.
  2. In the list, you can click the (+) button and then choose Import.
  3. You can also do it by selecting Import from Excel, located below the list.
  4. Once you are on the import screen, in the Transaction Type field, choose Checks & Payments and in the Action field, choose Create.
  5. Click on Upload File, and in the window, click on Browse File to select your import file from your computer. You can download an import template by clicking on the Import Template option.
  6. Click on Upload File and select the file from your device.
  7. Once the file has been successfully uploaded, click on Continue.
  8. Now, you will need to match the fields. In the Match Fields window, for each field on the left, choose the corresponding column from your file in the dropdown menu.
  9. When you have finished matching the fields, click on Continue.
  10. Your data will be imported into the spreadsheet window. Here, you can review and make any necessary adjustments.
  11. When you have finished reviewing your data, click on Save and Upload.

Remember, it is always important to review the data after a mass import to ensure that everything has been imported correctly.

Import Processing
When you click "Save and Upload" for your file, the system will place it in an import queue. The import process typically takes less than a minute, but it may take much longer depending on the number of records you are importing.

Tips & Best Practices

Here are some tips and best practices for managing your checks and payments:

  1. Verify Information
    Always double-check the data entered in a check or payment before saving it. This will help avoid potential errors and the need to void payments.
  2. Transaction History
    Use the "History" function in the options menu of each transaction to track all associated transactions. This can be helpful for audit trails and issue resolution.
  3. Multi-Currency Usage
    If you work with multiple currencies, ensure you select the correct currency when creating a payment. Remember that the currency chosen determines the accounts payable to display.
  4. Voiding Outgoing Payments
    Only void a check or payment when absolutely necessary. Voiding a transaction leaves a trace in your accounting records and can complicate your books if done frequently. However, if a check or payment was recorded incorrectly, voiding the transaction ensures the accuracy of your financial records.
  5. Data Import
    If you are migrating from another system, use the import function to upload your transactions in bulk. This can save you time and ensure your records are complete.
  6. Supporting Documents
    Whenever possible, attach supporting documents. This may include physical checks, purchase invoices, contracts, etc. This practice helps maintain a comprehensive record of each transaction and can be useful in case of an audit.
  7. Conduct Audits
    Use the audit function to track changes made to your transactions. This tool can be valuable in detecting errors, irregularities, or fraudulent activities.

By following these best practices, you can ensure the efficiency and accuracy of your check and payment operations, making your accounting easier and less error-prone.

Common Issues

Here are some common problems and their solutions:

  1. I want to void a check but don't want to lose the number
    You can void a check and retain its number so that you can re-record it in case an error was made during the initial recording. For steps on how to do this, see the check voiding section in this article.
  2. Data Entry Errors
    Data entry errors are common when recording checks and payments. Be sure to double-check your entries to avoid any potential errors.
  3. I don't see the option to edit a payment
    Checks and payments cannot be edited. If you need to correct any payment details, you will need to void it and create it again.
  4. Selecting the Wrong Currency
    If you are working with multiple currencies, ensure you select the correct one when creating a payment. The selected currency determines the accounts payable to display in the list.
  5. Error in Transaction Currency
    If you encounter discrepancies in values after recording the transaction, it may be due to an error in the exchange rate. Verify the exchange rate if you are using a foreign currency in the transaction. Review and adjust the exchange rate to ensure accuracy. If necessary, void and recreate the transaction.
  6. I accidentally voided a payment
    If a check or payment is voided by mistake, it cannot be recovered. Make sure you genuinely need to void a payment before doing so. In the case of an error, you will need to create a new check or payment to replace the voided one.
  7. Data Import Issues
    If you encounter problems importing payment data, ensure that your file is in the correct format and that all columns are correctly assigned during the import process.
  8. Errors When Importing Data
    When importing data from a spreadsheet, you may encounter errors if the data does not match the formats and fields required by the system. Ensure you are using the correct format for each field and that all required fields are present in your import file. Use the provided import template to ensure the correct format.
  9. Import Takes Too Long
    The import processing time depends on the file size. If the file is large, it may take several hours to import all the data. Be patient and wait for the import to complete. If several hours pass and it has not completed, consider contacting customer support.
  10. Missing or Incorrect Data After Mass Import
    When you upload a file, the system matches the columns in your file to the fields in the Cashflow system. If the data does not appear correctly, review the field mapping to ensure that each field in Cashflow corresponds to the correct column in your file.

Remember that in case you cannot resolve the issue, it is always best to contact technical support for assistance and to avoid potential errors that could affect your accounting records.