SOP for Cheque Issue – What are the Normal Steps involved as per Standards

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What the SOP of Finsys ?

1. Make Cheque as per Finsys system

2. Verify the payment as per Finsys System

3. Later after 2 days or even 2 weeks or 4 weeks, when the cheque is presented in bank, put a Cheque clearing date entry in the Bank reconciliation menu.

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Customer : “Allow me to make a Cheque and print it without verification”.  His Reason : “Double work, why waste time”

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Demerit of doing the above

1. Manual work of Cheques in Transit. You will make it in excel

2. This cheque will not hit the Bank account — Leading to unknown bank position. you will end up making a manual excel file for bank also

3. This cheque will not hit the Party account — Leading to unknown party position. you will end up making a manual excel file for Party also

4. Risk of Double payment to the Vendor . Since the cheque given is invisible in the books, you have a risk of same vendor being paid 2nd time , or 3rd time for the same bill … reason , The voucher is not verified and hence not reflecting and all vendor bill wise outstanding will appear as if no payment done to them till now

5. Due date of cheque is also unknown.

6. Risk of Bouncing of Cheque due to funds shortage

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What the SOP of Finsys ?

1. Make Cheque as per Finsys system

2. Verify the payment as per Finsys System (…called Voucher Approval system )

3. Later after 2 days or even 2 weeks or 4 weeks, when the cheque is presented in bank, put a Cheque clearing date entry in the Bank reconciliation menu.

This is a Good Standard Operating Instruction and Procedure. We suggest all to follow this