Cancel and Replace Checks
Most checks and electronic funds transfer deposits produced by the system will be correctly produced and promptly redeemed. However, some checks and electronic funds transfer deposits may need to be canceled and/or replaced.
Replacement PoliciesReplacement Policies
Checks and electronic funds transfer deposits should always be replaced through online check processing or in a Supplemental Pay cycle. Check duplications cannot be processed online, but must be processed during an offline cycle.
The regular practice of replacing faulty checks and deposits with manual checks is strongly discouraged due to additional record keeping associated with this process. If there are less than 24 hours to replace a faulty check an online check should be issued. The replacement policy is determined once the site specifies the schedules of their supplemental pay cycles, or the circumstances under which online checks will be generated.
When canceling/redepositing a paycheck that uses multiple distributions, the disposition status for all of the paycheck’s distributions is changed. All distributions are cancelled out on the distributions table. It is not possible to recalculate a single distribution without recalculating the entire paycheck.
In the event of a problem with a deposit of a single distribution, the Deposit Reissue (DPRI) transaction can be used to issue a paper check to replace the deposit. The DPRI transaction does not perform any recalculations. After the transaction is submitted, the transaction processor creates a reissue trigger. The reissue trigger instructs the Check Print job to reprocess the distribution on a later job run, issuing a paper check that replaces the direct deposit attempt.
Replacing a Check
The Check Disposition (CHCK) transaction allows you to flag a check for replacement or duplication in the system.
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To create a Check Disposition transaction, use one of the following methods:
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Select the Create action on the Transaction Catalog, populate required fields (for example, enter CHCK in the Code field), then select Continue.
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Select the Create Check Disposition row-level action for the desired record on the Issued Checks/Advises tab of the Payroll Check Status inquiry page.
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Select the Create Check Disposition row-level action for the desired record on the Issued Checks/Advises tab of the Payroll Management (PAYM) activity folder.
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In the Employee Information section, enter the necessary information. Note: “ * ” denotes a required field.
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On the Check Information tab, enter the necessary information. Note: “ * ” denotes a required field.
Notes:
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If Check Status is Paycheck Cleared, then Check Status must be changed to Paycheck Outstanding.
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If Check Status is Paycheck Outstanding, then proceed with the cancellation procedures.
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If another Check Status code is displayed, then the check may already be canceled or a stop payment issued - the Check Status must be changed to Redeposited - Cancelled or Redeposited - Stopped.
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Update Balance Immediately should be No if the canceled check information is to be processed during the supplemental pay cycle.
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Update Balance Immediately should be Yes if the canceled check information is to be processed immediately and pay details are immediately backed out of the database during an online no-pay-calc cycle.
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Select Validate to make certain that your entries are correct.
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If there are no errors, then select Submit to record your entries in the system.
Note: When a replacement check for a canceled check is processed in a Supplemental Pay Cycle, the pay period end date of the original check is used in the calculation of the taxes for the replacement check.
Check Cancellation and Bank Reconciliation Processing
Examples of Check Cancellations
A warrant is generated for an employee; Check Status is Outstanding. The employee has lost a payroll warrant. The payroll department does not have possession of the original warrant and has determined that the warrant has not been cashed. A stop notice is sent to the bank to indicate that the warrant should not be accepted for cash. A CHCK transaction is submitted with Check Status of Redeposited - Stopped, Replace Check set to Replace, Updated Balance Immediately set to No.
When the Replace Check field on CHCK contains Replace, the check cancellation job puts any timesheet entry from the current check back on the pending pay table for processing. A replacement warrant can then be generated in a supplemental payroll cycle for the same gross-to-net pay and issue date of the original warrant and given to the employee. If a check needs to be replaced immediately, an Online Check (OCHK) transaction is created with the necessary information, and submitted for processing. The Supplemental Type field is set to Replacement. The following batch processes are run sequentially run to process the OCHK transactions based on the established schedules:
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Assign On-Demand GTN Run No.
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Process Pay Detail
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Process Ded Detail
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Process Pay Check
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Payroll Finalization
Since the check is replaced and Update Balance Immediately is set to No, the Net Pay or YTD reversal occurs when the batch job process completes. On all Bank Reconciliation files, the Redeposited - Stopped warrant is uniquely identified for the employee.
A warrant is generated for an employee, Check Status is Outstanding. The payroll department has possession of the original un-cashed warrant. The warrant will not be cashed so the warrant needs to be canceled. A cancellation notice is sent to the bank to indicate that the warrant should not be accepted for cash. A CHCK transaction is created and submitted with Check Status of Redeposited – Canceled, Replace Check set to Do Not Replace, Update Balance Immediately set to Yes.
When the Replace Check field on CHCK contains Do Not Replace, the check cancellation job only backs out the pay, deduction, and fringe details from the current check. All Positive Pay, Deduction and Fringe details are reversed from the original check and are not placed back on the pending tables. If a replacement check needs to be issued and needs to include timesheet entry, the timesheet entry must be re-entered for the supplemental payroll cycle.
Since the Update Balance Immediately is set to Yes, the system updates the appropriate Pay, Deduction, FICA and Fringe tables and details immediately. On all Bank Reconciliation files, the Redeposited -Canceled warrant is uniquely identified for the employee.
Example 3: Direct deposit transaction rejectedExample 3: Direct deposit transaction rejected
An employee has closed his direct deposit account, and the bank has rejected the Direct Deposit for the employee. Payroll has been notified of the rejection and the bank will move the monies back to the bank account. Payroll creates a check disposition with Check Status set to Redeposited - Canceled, Replace Check set to Replace, and Update Balance Immediately set to No.
When the Replace Check field on CHCK contains Replace, the check cancellation job puts any timesheet entry from the current check back on the pending pay table for processing. A replacement direct deposit or warrant can then be generated by the site in a supplemental payroll cycle for the same gross-to-net pay and issue date of the original warrant and given to the employee. On all Bank Reconciliation files, the Redeposited -Canceled is uniquely identified for the employee.
