The Cheques Clearing from Bank process in SAP S/4 HANA manages the transfer of funds between banks when payments are made using checks. This process ensures the accurate recording of check payments by both the issuing and receiving parties. The steps cover the issuance, receipt, deposit, and clearing of checks, which leads to the update of the company’s accounts and reconciliation with the bank statement. This flow ensures that checks are properly accounted for, funds are transferred, and financial records are updated accordingly.

The attached flowchart outlines the end-to-end process for Cheques Clearing from Bank in SAP S/4 HANA with the steps described below:

• Customer Issues Check: The Customer issues a check as a payment for goods or services.
• Receives Check: The Accounts Receivable Accountant receives the check from the customer and records the incoming payment.
• Encash/Deposits Check: The Accounts Receivable Accountant deposits or encashes the check at the company’s bank.
• Post Incoming Receipt: Once the check is deposited, the Accounts Receivable Accountant posts the incoming receipt in SAP, updating the company’s accounts.
• Maintain Check Lot: The Accounts Payable Accountant maintains a record of the issued checks in the system.
• Post Outgoing Payment: The Accounts Payable Accountant posts the outgoing payment in SAP to record the check payment.
• Issue Check to Vendor: The Accounts Payable Accountant issues the check to the vendor as payment for the invoice.
• Credits Amount to Company: The bank credits the corresponding amount to the company’s account when the deposited check clears.
• Debits to Company’s Account: The bank debits the company’s account when an outgoing check is issued and processed.
• Sends Bank Statement: The Bank sends a bank statement to the company, which includes details of both incoming and outgoing check transactions.
• Receives Bank Statement: The Accounts Receivable Accountant receives the bank statement in the SAP system.
• Check for Acceptable Format
  The system checks if the bank statement is in an acceptable format for processing (e.g., MT940).
  Yes: If the format is correct, the bank statement is processed for reconciliation.
  No: If the format is incorrect, manual reconciliation is required.