We occasionally use handwritten blank checks (e.g. for permits where you don't know the amount until you're in the permit office) and I'm looking for best practices, info on how others keep track of blank checks, and if there are pros / cons to our current process.
Our current process:
- Pull physical check from the printer and write in payee information, date, and check number matching stock check number
- AP > Tasks > Record Manual/Print Quick Checks...
- Enter check number of blank check and leave amount blank / enter $0, create invoice with coding for check
- Send positive pay info to bank with check as $0
- Once check is used, void check, delete invoice, and delete the check
- AP > Tasks > Record Manual/Print Quick Check...
- Enter all the same info for check and invoice, but with correct amount
- Send positive pay info to the bank with updated check amount
Specifically wondering if since we have positive pay set up with our bank, is it necessary to do steps 2 through 5? Is there a downside to doing these steps? We also seem to be having some issues with manually recorded checks not updating the accounts payable balance in GL so am wondering if something in our process sounds incorrect.
Or does someone have a different process?