Types of Checks Created by CU*BASE (Including Void Procedures)

Helpful Resources

How to Place a Stop Pay on an ACH Distribution

Overview

There are three different types of credit union checks which can be issued through the CU*BASE system.

Teller/Member Checks

Miscellaneous CU Checks

Accounts Payable Checks (G/L "Quick" Checks)

Although similar, they are different when it comes to how they interface with the general ledger. Below is a summary of the characteristics of each check type, including tips on how to properly void each type.

Teller/Member Checks

Characteristics

  • Checks are cut through Teller Posting, Phone Operator, or the Disburse Member Loan Funds feature.

  • The Change Fund account (usually 739.00) is temporarily credited and then “sweeps” to the G/L during end-of-day processing.

  • Bank ID can be selected at the time the check is created.

  • These checks do not affect the balance sheet until end-of-day.

  • The journal entry includes the following details:

J/E ID

TR

G/L Account #

739.00 (change fund)

Description

C/U CHECK

To Void a Teller/Member Check

If it is still the same day as the check was printed...

  1. Mark the check as Void using the Check Reconciliation feature (Tool #324 CU Check/Bank Reconciliation).

  2. If printed through teller posting, reverse the member's transaction using the Reverse Transaction/Adjust Teller Drawer feature (Tool #31 Reverse/Tran Adjust Drawer (Same Day) (Shortcut: revtlr)).
    OR
    If printed through phone or loan disbursement software, reverse the member's transaction using the Member Transaction Reversal feature (Tool #869Transaction Reversal).

If it is the next day after the check was printed...

  1. Mark the check as Void using the Check Reconciliation feature (Tool #324 CU Check/Bank Reconciliation).

  2. Reverse the member's transaction using the Member Account Adjustment feature Tool #492 Member Account Adjustment (Full) (Shortcut: adjust). The offset G/L will be either the bank account or your corporate check reconciliation account (if your credit union has Auto Check Reconciliation).

If the member transaction was reversed the same day the check was printed, but the check is not voided until the next day, your change fund account (73900) will be off. After voiding the check you will also need to use the Create/Post Journal Entries feature (Tool #61 Create/Post GL Journal Entries (Shortcut glpost) to make a manual journal entry that reverses the check amount between the change fund and the bank or check reconciliation account.

 

Miscellaneous CU Checks

Characteristics

  • Checks are cut using the Print Miscellaneous Checks feature (Tool #667 Print Miscellaneous Checks (Shortcut: chk)).

  • Each check appears as a separate item in the “TR” report.

  • Bank ID can be selected at the time the check is created.

  • Does not affect balance sheet until end-of-day processing. Direct credit to the bank G/L and direct debit to the expense G/L during EOD.

  • The journal entry includes the following details:

J/E ID

TR

G/L Account #

For credits, the bank GL

For debits, the expense GL

Description

CU CK

To Void a Miscellaneous CU Check

If it is still the same day as the check was printed...

  1. Mark the check as Void using the Check Reconciliation feature (Tool #324 CU Check/Bank Reconciliation).

If it is the next day after the check was printed...

  1. Mark the check as Void using the Check Reconciliation feature (Tool #324 CU Check/Bank Reconciliation).

  2. Use the Create/Post Journal Entries Tool #61 Create/Post GL Journal Entries (Shortcut glpost) to make a manual reversing G/L journal entry for both the expense and the bank or corporate check reconciliation account (if your credit union has Auto Check Reconciliation).

 

Accounts Payable Checks (G/L “Quick” Checks)

Characteristics

  • Checks are cut either from an invoice record or by using the Print CU Checks feature (Tool #667 Print Miscellaneous Checks(Shortcut: chk)) to create a voucher and cut a check.

  • Can have multiple debits (up to 10) for each credit.

  • Independent G/L entries; affects the balance sheet immediately. Direct credit to the bank G/L and direct debit to the expense G/L.

  • Bank ID is taken from the Chart of Accounts for the corporation and cannot be changed when checks are printed.

  • The journal entry includes the following details:

J/E ID

CD

G/L Account #

For credits, the bank GL
For debits, the expense GL

Description

Either vendor name or invoice description

To Void an Accounts Payable “Smart” Check

  1. Mark the check as Void using the Check Reconciliation feature (Tool #324 CU Check/Bank Reconciliation). Be sure to check the Generate Reversing A/P J/E flag to automatically generate a journal entry which reverses the debit and credit entries produced by the original check.

  2. Use the Create/Post Journal Entries feature (Tool #61 Create/Post GLJournal Entries (Shortcut glpost)) to post the journal entry created in the first step.
    OR
    If the Generate Reversing A/P J/E flag was not checked at the time the check is voided, a reversing entry must be created and posted manually.

  3. Use Work With AP Vendors (Tool #990 Work with Accounts Payable Vendors (Shortcut: achdist)) to update the transaction history for the vendor to which the check was written (use A/P Hist Maint (F5) from the main vendor maintenance screen).

  • Remember in all cases that if a check needs to be reprinted because the pay to information is incorrect or the check itself was damaged, use the Reprint CU Checks feature (Tool #760: Reprint Corporate Checks (Shortcut: reprint)) to mark the original check as spoiled and print another check for the same amount. (This creates a new check in the check register but does not produce another withdrawal from the member's account.