COM91020 - Payments: payments returned by the bank - banking operations

The Book 18 section in Banking Operations deals with all returned payments in accordance with instructions in AO Manual Section P. This involves

• Suspending the amount of the cheque using Function RSUS (Record / Amend Suspension)
• Asking the company to provide an acceptable substitute payment (cash, banker's draft, postal order) for the returned cheque

Note: Although these payments are known as ‘Returned Cheques’ care should be taken when corresponding with the company as there are many different reasons why a cheque could be returned. You should therefore refer to these cheques as ‘Unpaid’ to avoid any complaints being made

• Using Function REAO (Direct Reallocation Out Of COTAX) to transfer the returned payment to OAS (Word 28KB) for cancellation

Note: These include returned payments processed by the Debt Management Office and notified as minus amounts using IVT INP201 (Word 28KB)

You must refer any correspondence relating to a re-presented or returned payment to the Book 18 section immediately.

Function VPPD (View Payment and Postings Details) does not show that a cheque has been returned. You can identify a returned payment by suspension type ‘12’ on Function DSUS (Display Suspension History).

For a list of functions to use in particular situations, see COM91012.