Friday, July 22, 2011

Zero Dollar Checks and Mekorma MICR

I recently had an interesting experience with zero dollar checks and Mekorma MICR.  But, let's start with a wee bit of background.  Dynamics GP generates zero dollar "checks" when an invoice is fully paid by a credit memo, manual payment, or other type of open credit.  This can occur in advance of a check run, or as the result of choosing to "automatically apply existing unapplied" documents during a check run (Transactions-Purchasing-Select Checks).

These zero dollar checks appear on the edit list after a check batch has been built, and serve as "placeholders" so a remittance can be printed as part of the check run as a record that the invoice was paid off using these credits.

So, consider the following scenario:
  1. Invoice entered and posted for $100 for Vendor ABC
  2. Manual payment entered and posted for $100, and applied to Invoice for Vendor ABC
  3. Transactions-Purchasing-Select Checks used to build check batch
  4. Regular checks picked up to be paid, as well as a zero dollar check for Vendor ABC
It is usually at this point in the process that you might panic, thinking, why is there a zero dollar check?  Keep in mind, it is merely a placeholder.  So if you continued with the process and chose to go to Transactions-Purchasing-Print Checks, this is where it gets interesting....

If you are using standard Dynamics GP, here is what happens:
  1. Transactions-Purchasing-Print Checks
  2. Only regular checks are printed, zero dollar check is ignored
  3. Post Payables Checks window appears
  4. Choose Post Checks, click Process
  5. Process Payables Remittance window appears so you can print the remittance for the zero dollar checks
  6. Choose Print Remittance Form, click Process
  7. Print the remittance
  8. Process Payables Remittance window reappears
  9. Choose Post, click Process
  10. Posting journals print
Pretty easy, right?  But guess what?  If you are using Mekorma MICR, the zero dollar check actually PRINTS with the regular checks.  Now the good news is, it is assigned a "REMIT" check number which means it will not post to bank reconciliation.  But it does confuse some folks when they see it print with the regular checks since it does not work that way with standard Microsoft Dynamics GP.

I just submitted a blog post to our new BKD GP Team Blog,, with more detail on zero dollar checks and Dynamics GP-- so watch for it!

Christina Phillips is a Microsoft Certified Trainer and Dynamics GP Certified Professional. She is a supervising consultant with BKD Technologies, providing training, support, and project management services to new and existing Microsoft Dynamics customers. This blog represents her views only, not those of her employer.

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