Escheated checks process

  • Escheated checks process

    Posted by DSC Communities on February 2, 2017 at 3:06 pm
    • Anthony Guanci


      February 2, 2017 at 3:06 PM

      Hi everyone,

      I am looking for some assistance with regards to how we can handle escheated checks.  We are on GP2013 R1, and we run the Bank Reconciliation module in addition to the A/P module.

      We have a number of checks to void in GP.  Once that happens, we will have a large number of vouchers that we will need to clear.  We have already sent the escheatment checks into the states.  The question is how do we track these escheated checks in GP in case someone comes back to us looking for their payment.

      My thought is to use a credit memo to apply against the opened vouchers.  If we do that, how is the best way to apply/clear the vouchers against the credit memos.  Do we have to prepare a dummy check run to clear all of these items?  Once these items are fully applied, I then want to inactivate the vendors.

      Any of your thoughts would be greatly appreciated.  Thank you.

      Anthony Guanci
      Sr. Manager, Accounting
      MorphoTrust USA
      Billerica MA

    • Bert Green


      February 2, 2017 at 4:29 PM


      I would put a note on the invoice, credit memo, or both as to why this was set up and applied together. That way if a call comes in you can let them know that they will need to go to the state for the money.

      Bert Green
      GP Developer/GP Administrator
      Berger Transfer & Storage, Inc.
      Saint Paul MN
      GP2015/MR CU11

    • Sheila Jefferson-Ross


      February 3, 2017 at 3:06 AM

      I agree with Bert that you should enter notes in the credit memo at least that references the escheated check.  The description in the transaction can be descriptive and might even be used to search out these transactions later.  Keep the description the same across all documents to help with that.  

      When you process the credit memo you will apply it to the invoice(s) at the same time which will fully apply the invoices.  No dummy check run will be needed.

      Good luck,

      Sheila Jefferson-Ross
      Socius – AASG
      Rocklin CA

    • Mark Polino


      February 3, 2017 at 7:24 AM


      For the application side, I think it needs to offset the check to the state. 

      Say you paid someone for tax help. Debit Tax Expense / Credit AP.

      They never cash  the check. 

      You said you cut the check to the state for Escheat: Debit ?/ Credit Cash

      You generate a credit memo for the original check. Debit AP / Credit ?

      Based on what you’ve described, you don’t want to undo the expense. If you booked the expense twice (vendor and the state) then you would undo one of those. 


      Mark Polino
      Director of Client Services
      Altamonte Springs FL

    • Amber Bell


      February 7, 2017 at 12:05 PM

      Hello Everyone,

      I came up with a really cool way to deal with these checks. I decided to make it into a GPUG Tech Tip. I am attaching.

      Basically, you can setup a “Credit Card” to move the balance from the Original Vendor to the Vendor used for the Escheated Checks. In my attachment you will see recommendations to use a special AP account for that vendor and to enable Separate Payment Distributions. Please don’t skip those steps.

      I’d love to get your thoughts!

      Amber Bell
      Training Dynamo LLC
      Derby CT

    DSC Communities replied 6 years, 7 months ago 1 Member · 0 Replies
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