All Things Checks

Back Office Section Heading All Things Checks

This document provides a comprehensive guide to handling checks within the FLEX system, covering both incoming and outgoing check processes. Understanding these processes is crucial for effective troubleshooting and system management.

1. Workflow Essentials: Key Information to Gather

When troubleshooting or investigating check-related issues, always gather the following information:

  • Process Origin: Determine where the check was generated (e.g., Loans, Accounts Payable, Teller).
  • Account/GL Number: Identify the associated Member Account-Suffix or General Ledger (GL) Number.
  • Date and Time: Note the exact date and time the check was generated.
  • Printer ID: For physical checks, check the printer status using WRKWTR in the green screen.
    • Is the printer in an “END” status?
    • Is it in a “Message Wait” status?
    • Are there checks in the printer queue?

2. Check Generation and Management Processes

The FLEX system supports various methods for generating and managing checks.

2.1. Print Check Download (Juice)

This process handles checks generated through Audio Response, Certificate Check Posting, Internet Banking, or Transaction Entry.

  • Queue Location: Checks can be found in the Print Checks Queue.
  • Printing:
    • Credit Unions (CUs) may need to manually print checks if not scripted.
    • Verify if the CU has Print Checks scripted.
    • Check if the script has already run.
    • If the check is still in the queue, it may be scheduled for a later job run.
  • Check Management:
    • Checks cannot be deleted directly from this queue; they must be printed.
    • After printing, CUs can redeposit the check into the Member account or void it.

2.2. Loans Check

For checks related to loans:

  • Non-Printed Checks: If a loan check did not print:
    • The loan needs to be reversed and reposted.
    • The check must be voided in the Check Register.
  • Paper Trail: Always maintain a paper trail for loan checks.

2.3. Accounts Payable Imaging

This module manages vendor and invoice information, document attachment, and bill payments.

  • Non-Printed Checks: If a check from Accounts Payable does not print:
    • The imaging invoice must be voided in the Accounts Payable module.
    • The process must be redone.
  • Integration: This module directly communicates with the Check Register and handles associated General Ledgers.
  • Configuration: What is displayed on checks is configured within Accounts Payable Configuration.

2.4. Check Register

The Check Register primarily serves as an informational record.

  • Voiding Checks:
    • If a check is voided through the AP Imaging Module, it will automatically be voided in the Check Register.
    • Otherwise, if a check is voided, it must also be voided in the Check Register manually.
  • Stop Payments:
    • A stop payment flag in the Check Register will not stop the check.
    • Stop payments must be added in Stop Payment Maintenance.
  • Reconciliation:
    • Used by CUs to match cleared checks against the active check register.
    • Recommended to reconcile one day at a time, working forward from the last balanced date.
    • If the CU issues checks from an outside financial institution, a file may be uploaded to FLEX for reconciliation (contact FLEX support for setup).
    • For CUs writing checks off themselves through a checking account, the program can compare account history to mark checks as cleared.
  • Viewing Check Images: Right-click on a check and select “View Check In Document Manager.”
  • Editing Checks: Checks can be edited in the Check Register for informational purposes only. This does not affect the Member Side; corrections to the member account must be made separately.

2.5. GL Disbursement

This is considered a last resort for check processes due to the lack of a paper trail.

  • Recommendation: If a transaction or process can be reversed and redone to generate a check, this approach should be prioritized over GL Disbursement.

2.6. Cashier/Money Orders

  • Issuance: These are written on the credit union.
  • Balancing: Balanced through the Check Register.
  • Setup: Money Orders are configured within Op Code Configuration (refer to FLEX Academy for detailed setup).

3. Key System Locations and Processes Involving Checks

3.1. WRKWTR (Work with All Printers)

  • Purpose: The primary tool for checking printer status if a check did not print.
  • Access: Dial into the green screen and go to WRKWTR.
  • IBM i Main Menu Path:
    1. Select 90. Sign off to access the command line.
    2. Type WRKWTR and press Enter.

3.2. Order Checks/Print Temporary Checks

These options are available when right-clicking on a draft suffix.

  • Order Checks
    • Provides direct access to the member’s check ordering file at the vendor.
    • Allows ordering checks within FLEX, eliminating the need for a separate browser session.
    • Requires purchase and configuration of the module.
  • Print Temporary Checks:
    • Allows printing temporary checks (four per page).
    • Requires input of a beginning check number and desired number of checks.
    • Allows verification and modification of name and address.
    • Requires purchase and configuration of the module.
    • Screen Completion: If printing temporary checks, a dedicated screen will display for completion (refer to Page 3 of the source document for an example).

3.3. G/L Check Disbursement

  • Purpose: Allows disbursement of checks from one or more general ledger accounts, external to the General Ledger. Useful for paying expenses or remitting funds.
  • Location: Found under Teller in the FLEX Main Menu.
  • Automatic Check Disbursement: Found in Auto Transfer/Check Maintenance (second portion of the screen). This is also where the CU runs worksheets and posts.

3.4. Club Disbursement

  • Purpose: Disburses funds from club accounts (e.g., Holiday Club) as checks and/or transfers, based on account coding.
  • Important Note: Posting Club Disbursements does not post dividends prior to disbursement.
  • Configuration (Share Type Configuration):
    • Defines how club disbursements are received.
    • Allows setting a Maximum Negative Amount.
    • Individual account settings in Share Maintenance override the default suffix number and check parameters in the Club Disbursement option.

3.5. Loan Disbursement

  • Purpose: Defines various methods for loan disbursement.
  • Distribution Selection: Use the tabs at the top of the screen to define multiple disbursement options for a given loan.
  • Tracking: Disbursement amount and remaining amount are tracked at the top of the screen. A loan cannot be posted until the full disbursement amount has been allocated.
  • Check Tab: Displays existing checks. Amounts listed are deducted from the remaining amount. New checks can be added.

3.6. Print Checks

  • Purpose: Works with spooled checks generated through Audio Response, Certificate Check Posting, Internet Banking, or Transaction Entry.
  • Location: Found under Operations or Teller in the FLEX Main Menu.
  • Automation: This process may be scripted at the Credit Union to print spooled checks automatically.

3.7. Check 21 Processing/Remote Deposit Capture (RDC) & More

This section covers various functionalities related to check scanning and processing.

  • Accessing Settings:
    1. Click the Tools button for the User Menu.
    2. Highlight Preferences.
    3. Select Check Scanning.
  • Batch Capture Tab:
    • Allows capturing drafts in a batch mode from a single, designated workstation after the point of transaction.
    • Creates a cash letter within FLEX for processing.
  • Cash Letter Tab (Teller Capture):
    • Allows capturing drafts at the time of transaction.
    • Creates a cash letter within FLEX for processing.
    • Requires a scanner and additional software installed on each workstation.
    • Accessed through the teller drawer within Transaction Entry.
  • Cash Letter History Tab:
    • Displays a historical record of all sent cash letters.
    • Allows obtaining detail records and resending cash letters.
  • Check History Tab:
    • Blank by default; requires using the filter to display processed checks.
    • Individual checks can be viewed, printed, or resubmitted for processing.
  • On-Us Tab:
    • If CU procedure dictates, a separate cash letter can be created for on-us checks.
    • On-us checks can be combined with other checks in a cash letter only if they have not been processed.
    • Displays current day’s unprocessed checks by default.
    • No balancing entries occur with this selection; primarily for image and balancing purposes.
  • Remote Deposit Capture (RDC) Tab:
    • Enables mobile banking members to make deposits by capturing check images via smartphone or tablet.
    • CUs can define the amount to be released until funds are verified.
    • Requirements:
      • FLEX Mobile App
      • Smartphone or tablet with a rear-facing camera
      • Ability to load an app from iTunes or Google Play.
  • RDC Rejection Inquiry:
    • A separate option under the Check 21 Menu.
    • Allows searching for rejected items history and reasons for rejection.

3.8. Share Draft Processing

  • File Retrieval: The Share Draft file must be retrieved from the processor and placed in the appropriate folder (I:drive or flex drive).
    • This can be done manually or via scripting.
    • Typically, files are brought in the afternoon.
  • Exception and Return Processing:
    • All CUs must manually process their exceptions and returns.
    • This must be completed before the next file can be pulled in.
    • Scripted jobs for Third Parties are handled by regular support.
    • A different type of scripted job is set up for clients using FLEX for their Share Draft Files.

3.9. ACH Processing

  • File Retrieval: The ACH file must be retrieved from the processor and placed in the appropriate folder (I:drive or flex drive).
    • This can be done manually or via scripting.
    • Multiple ACH files may be received throughout the day, adding to postings, exceptions, and returns.
  • Exception and Return Processing:
    • All CUs must manually process their exceptions and returns.
    • Scripted jobs for Third Parties are handled by regular support.
    • A different type of scripted job is set up for clients using FLEX for their ACH Files.
  • Check Payments: Checks received as payment can be processed through an ACH file instead of a Share Draft file.
  • Stop Payments: Stop payments may need to be placed in both the Draft Stop Payment and ACH Stop Payment sections in Stop Payment Maintenance.

3.10. Accounts Payable Imaging Configuration

  • Role: Plays a significant role in determining what information will be displayed on checks.

3.11. Internet Banking User Maintenance

  • Check Withdrawals: Allows enabling check withdrawals at the user level.

3.12. Internet Control Parameters

  • Purpose: This “Juice” option leads to a Telnet screen where various global settings are configured.
  • Overrides: User-level settings can override these global settings.
  • Green Screen Access: Type GO FTELLER and select Option 13 to access the same screens. Use F6 for New User Defaults.
  • Key Parameters:
    • Require password change at next login
    • Enable Check Withdrawals
    • Take Reg D into Consideration
    • Email Options
    • Allow password to expire
    • Enable Auto Transfers
    • Minimum Loan Advance
    • Can Member Change Remit Address
    • Password expiration interval (days)
    • Active Billpay User
    • Maximum Transaction Amount
    • Email Statements Enabled
    • Default Suffix to charge
    • Maximum Loan Overpay Amount
    • Provide warning of expiration
    • Months of History Display/Request
    • FT Deposit Settings
    • Office Based Validation Security
    • Block New Suffixes if:
      • No valid ID
      • No valid Address
      • No valid Phone
      • No valid Email
    • Use Simple Loan Application
    • Paperless Member Enabled
    • Allow Transfers to Other Accounts:
      • To Accounts in Transfers file
      • To Accounts with matching
      • To Joint/Coborrower Accounts
      • To all Accounts
    • Enroll Web User
    • History Purge Parameters (Months):
      • Non-exception History Kept
      • Exception History Kept
      • Invalid Fraud Exceptions Kept
      • FlexTeller Audit History Kept
      • Secure Messaging History Kept
    • Update Last Correspondence Date
    • Allow ACH Origination
    • Activate Logging/Days to Retain
    • View Loans? Charged Off/Bankruptcy.
    • Constraint on Logon Attempts
    • Disable Account For Invalid Attempts
    • Invalid Attempts Allowed per Day
    • Disable IP Address For Inv. Attempts
    • Reactivate User with temp password
    • Valid Log-Ins Allowed Per Day
    • Allow Deposits
    • Auto Accept Amount
    • Offset Account
    • Unreceived Fee (GL Acct)
    • Unreceived Deposit Fee
    • Outstanding Deposit Count
    • Daily Deposit Count
    • Monthly Deposit Count
    • Billpay Authorization Settings
    • Back Charge Invalid Transactions
    • Back Transaction Fee GL Acct
    • Fee Per Back Transaction
    • GL Acct
    • Individual Check Limit
    • Outstanding Deposit Limit
    • Daily Deposit Limit
    • Monthly Deposit Limit