Accounts Payable - Manual Check Procedure

Manual Checks

One person from each division is now responsible for tracking, logging and submitting paperwork to A/P.

Positive Pay A best-practice deterrent to check fraud, positive pay involves daily reconciliation of a company's issued checks to checks presented for payment to the company's bank. The company sends a daily data file of issued checks to the bank. The information in the data file includes check number, amount and date, bank and account information. Checks presented for payment are compared to the checks-issued file; those that fail to match are rejected.

Due to our new Positive Pay process, the daily check log (M:\Teams\AcctngShare\SB\Daily Register\New Entries) needs to be updated the same day that a check is used or spoiled (voided). At 2 p.m. each day the information is taken from this spreadsheet and provided to the bank. If a check is not logged, and the bank is not made aware the issued check, *funds will not be released by the bank (aka. ‘Positive Pay Exception’). The payment will be denied.

Manual Check Procedures

1) Type the manual check and fill in completely, including but not limited to:

a. List each invoice individually

b. Invoice or pay app number (exactly as entered in CMiC)

c. Dollar amount for each invoice being paid

d. Business Partner number (must match number used for entry in CMiC)

2) Immediately scan a copy of the manual check and back up to corporate A/P

3) Log check into the SB Manual Check Register (M:\Teams\AcctngShare\SB\Daily Register\New Entries)

4) Photocopy the entire package for your records

a. The Swinerton Subcontractor Payment Request Form (if applicable)

b. All invoice or pay app back up (from the vendor or subcontractor)

c. Conditional release (if applicable)

5) Forward the following originals to corporate A/P by the next business day:

a. Yellow copy of the manual check

b. Subcontractor Payment Request Form (if applicable)

c. The original invoice or pay app

d. Conditional release (if applicable)

6) Manual checks issued as NTE (Not To Exceed) need to be logged as such so usage of the physical check can be tracked. As soon as the dollar amount is identified, the check needs to be re-logged on the spreadsheet. This is the only way Corporate AP will be able to report the check to the bank and avoid Positive pay Exceptions, as listed above*.

Manual Check Tracking

Each day at 2 p.m. the daily register will be “refreshed” and cleared for new entries. The previously logged manual checks will then be found in the outstanding log (M: \Teams\AcctngShare\SB\Outstanding Checks\Current List).
The Outstanding listing will be broken down by division and will be updated as A/P receives the original back up, as the check is entered in the system and when the check has cleared the bank.
In this log, division accountants will have viewing access only and will not be able to update information. Only Corporate Accounting will be able to change the status of outstanding checks.
It is each division’s responsibility to review the log and to provide any missing paperwork or information to A/P in a timely manner.
Any spoiled or voided checks must also be accounted for. Original checks need to be forwarded to A/P where they will be logged and kept in a permanent file.

** PLEASE NOTE: Any manual check that is $50,000 or greater requires you to notify the A/R Manager or the A/R Staff Accountant prior to the check being released.

* * * Any manual check or Early Release of Payment that exceeds $500,000 must be approved by the Corporate Controller or the Operations Controller.

Subsidiaries/Affiliates – in both instances above, please notify your Controller