Cheques: the full life cycle
A cheque is not cash until it is collected. This article follows incoming and outgoing cheques event by event from the cheques screen and shows the effect of each step.
On this page
In Sahl a cheque is an entity with a life cycle, not a document posted once. It is born with a receipt or payment voucher, then you follow it from Documents, Cheques event by event. Every event is logged on the cheque and writes its entry when it has a financial effect.
The cheques screen
The screen shows Incoming and Outgoing cheques in two tabs, with quick filters: Due today, This week, Overdue. Each cheque shows its number, bank, drawer or payee, amount, due date and status. Selecting a cheque reveals the events available for it, and below it the event log with the journal entry each one produced.
Incoming cheque (from a customer)
Born when a receipt voucher with a "Cheque" line is posted. It starts On hand.
| Event | From | To | Meaning |
|---|---|---|---|
| Deposit | On hand / Returned | Deposited | You handed the cheque to the bank and named which bank. Several cheques can be deposited together from Bank deposits. |
| Collection | Deposited / On hand | Collected | The bank credited your account. Only here does the cheque become cash. |
| Return | Deposited / Collected | Returned | The cheque bounced. The debt goes back to the customer and bank fees are recorded if any. |
| Endorse | On hand | Endorsed | You handed the same cheque to a supplier. Done from a payment voucher by choosing "Cheque" and then the incoming cheque from the list. |
| Cancel | On hand / Returned | Cancelled | You no longer hold the cheque and it was never paid; the balance goes back to the customer. |
A returned cheque deposited again
Choose Deposit on the returned cheque. It goes back to cheques for collection, its amount is charged to cheques again instead of the customer balance, and you collect it as usual.
Outgoing cheque (to a supplier)
Born when a payment voucher with a "Cheque" line is posted with the New outgoing cheque details: number, drawn on bank, due date. It starts Issued.
| Event | To | Meaning |
|---|---|---|
| Presentation | Presented | The supplier presented the cheque to the bank. No entry. |
| Payment | Paid | The bank debited your account. The liability leaves cheques payable. |
| Return | Returned | The cheque was returned after presentation; if it was paid the money comes back to the bank and the liability returns. |
| Cancel | Cancelled | The cheque is void; the supplier balance (or the original purpose account) is restored. |
Daily steps
- Open Cheques and review the Due today tab every morning: these cheques have fallen due.
- For incoming cheques you deposited and the bank confirmed, choose Collection and name the bank.
- For a bounced cheque choose Return and enter Bank fees (optional); the message "The debt goes back to the customer and the fees are charged to the bank" confirms the effect.
- For outgoing cheques the bank has debited, choose Payment.
What happens in the books
Receipt (inside the receipt voucher entry): debit cheques for collection (1300) / credit customer receivables (1400). Deposit: no entry, the cheque is still for collection. Collection: debit bank / credit 1300. Return: debit the customer balance / credit 1300 (or credit the bank if it was collected), plus debit bank fees (5230) / credit bank for the fees. Endorsement (inside the payment voucher entry): debit supplier payables (2100) / credit 1300. Outgoing cheque: on issue debit supplier payables / credit cheques payable (2200); on payment debit 2200 / credit bank.
A fixed check
The balance of cheques for collection always equals the sum of incoming cheques whose status is "On hand" or "Deposited". If you see a gap in the cash liquidity report, look for a cheque whose movement was never recorded.
Do not cancel the voucher to fix a cheque that moved
A receipt voucher whose cheque was deposited or collected cannot be cancelled. Record the right event on the cheque itself (return or cancel) and leave the voucher as it is.
Frequently asked questions
Does an incoming cheque show in the bank balance as soon as it is deposited?
No. Deposit only names the bank and writes no entry. The money moves to the bank when you record a "Collection" event.
How do I pay a supplier with a cheque I received from a customer?
Create a payment voucher for the supplier and in the payment line choose "Cheque", then pick the incoming cheque from the list of cheques you hold. The cheque becomes "Endorsed" and the supplier balance is settled by its value.
Where do I see the cheques due this week?
In the cheques screen use the "This week" filter, or open the cash liquidity report where the due cheques tab lists them with days overdue.