Cheque Cancellation (AP80)

The Check Cancellation (AP80) program can be used to cancel computer checks (from AP42) and manual checks, bank transfers or bank drafts (from AP50). AP80 writes the cancelled check details (check information as well as details of Invoices paid by the check) into the Cancelled checks transaction file, which is subsequently processed by the Cancelled Checks Register (AP81).

The net result of the Check Cancellation cycle is:

• Invoice balance is reinstated.

• Check is cleared from the Outstanding Checks master file.

• Bank control account is debited; AP is credited in the GL.

• Cancelled Checks Register is printed.

The check being cancelled must still exist in the Outstanding Checks file. Note: If you wish to obtain a list of the outstanding checks you can run Print Outstanding Cheques (AP85). If the Check is already purged, then the Invoice must be re-entered in AP30 (which builds a credit to A/P) with the GL distribution posted to the Bank control account (which builds a debit to that account). The AP sub-ledger and the GL control accounts now reflect the effects of a cancelled Check.

The following list defines every field on AP80:

When you open AP80, the GL Posting Date window automatically opens.

If this is a new batch, the following message displays: "GL Posting Date dd/mm/yyyy. OK/Cancel". Enter or select from the query the GL Posting Date. The date is validated to be within the current/next fiscal period for accounts payable (as updated by AP89).

If AP80 has entries in it (which means AP81 has not been printed/accepted yet), the following message displays: "Current AP Posting Date is dd/mm/yyyy. Do you wish to continue? Yes/No". Select Yes to continue cancelling more checks using this date. Select No to cancel the request and close AP80. You cannot change the Batch date until AP81 has been printed and accepted.

Note: The GL Posting Date is also the date of the Check Cancellation detail record in the Vendor's account.

• Bank Code - enter or select from the query the Bank Code from which the Check was issued. Check Numbers are issued against a specific Bank Code. Once the Bank Code is entered, the Bank's Name displays to the right of the field.

• Check Number - enter the Check number you want to cancel. If you are cancelling a Manual Check, remember to prefix the Check number with 'M'. The Check being cancelled must still exist in the Outstanding Checks file. If the Check has already been purged, then the Invoice must be re-entered in Enter Invoices (AP30) (which builds a credit to AP) with the GL distribution posted to the Bank control account (which builds the debit to that account). The AP sub-ledger and the GL control accounts then reflect the effects of a cancelled Check.

  When a valid Check is located in the Outstanding Checks file, the Check's details are retrieved and displayed in the fields on the AP80 screen. The list box displays the transactions paid by the Check, including discounts and amounts. You must verify that the correct Check is entered for cancellation before proceeding.

• Comment - enter a description of the conditions under which the Check is being cancelled. You can enter a maximum of 50 alpha-numeric characters in this field. This information is reported on the Cancelled Checks Register (AP81).

  Once you enter a comment, the system automatically displays the Check stub details (i.e. the Invoices that were paid by this Check) and writes these details to the Cancelled Checks transaction file.

The following table outlines the functionality of each button in AP80:

Button Label	Icon	Functionality
Update		Updates the current Check Number to the Check Cancellation file.
Delete		Deletes the information currently entered on the screen. The following message displays: "Delete Header and all its details? Yes/No". Select Yes to delete the Check Number from the Check Cancellation file; select No to cancel the delete request.
New		Clears the fields in AP80 allowing you to enter a new Bank Code and Check Number.

^{Check Cancellation (AP80)}