DMBM209130 - Payment processing and accounting: irregular payments: payments held overnight

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Payments held overnight

Occasionally it may not be possible to process a payment on the day of receipt, for example where post-dated cheques have been accepted. If so, you should:

• keep the payments in a ’32 folder’ B/F system with folders numbered from 0 to 31 inclusive.
• keep post-dated cheques in the folder relating to the day in the month on which they will be forwarded to DMB Banking
• keep a series of two or more post-dated cheques from the same payer in the folder corresponding to the earliest dated cheque
• move the batch from folder to folder whenever a cheque is dealt with
• review the folders daily
• send cheques to DMB Banking as soon as it is viable.

Remember that a post-dated cheque should be sent to DMB Banking three working days before its date.

Keep folders and contents in the office safe or security cabinet when not in use.

The ‘0’ Folder

In the folder marked ‘0’ you should keep any irregular documentary payment that cannot be cleared on the day of receipt. You should:

• attach a brief note to each payment explaining why it is being held
• review the folder each day to ensure that payments are processed at the earliest possible opportunity.

Where a payment cannot be cleared after three successive working days ask the cashier’s supervisor whether it should be processed and if so, how.