Managing Check Lifecycles
The check lifecycle separates physical receipt or delivery from final bank settlement.
Issued checks
Create the check against a bank account, deliver it to the beneficiary, then record cashing.
- The due date cannot precede the issue date.
- A cashed check cannot be cancelled.
Received checks
Record receipt, deposit the check to a bank, then confirm collection.
- A check may be returned before deposit or while under collection.
- The bank account is assigned on deposit.
Accounting effect
The system creates an entry for each financial transition and reverses entries on cancellation or return.
- An issued check is editable only while new.
- A received check is editable only while received.
