Check Management in SAP | Cheque Payment

In SAP a Vendors Payment or Customer refund can be booked in many ways, one such way is Pay via Checks. Check Management in SAP is one of the most widely used process.

In this blog, I have tried to cover the business process and transaction details related to Config and Daily operation in Cash Management in SAP.

Step 1: Check Lot Creation – FCHI

Using Transaction Code FCHI, create check lot number in sap. This check lot number can be used to make manual check payment via FCH5 transaction or via Automatic Payment Run F110.

Create Check Lot in SAP - Transaction Code FCHI

To use the check in F110 (Automatic payment Run), enter the Payment Method under “Pmnt meths List” input field. After execution of payment run, F110, check details will be updated in Table PAYR.

Step 2: Prepare Manual Check – FCH5

Transaction Code FCH5 helps create check manually in SAP. Pre-requisite for this step is Vendor Payment Document.

Enter the Payment Document Details and Check, and then continue. Next you will get the options to enter the Check details like issuing party details.

Create manual Check in SAP - Transaction Code FCH5

Details under “Issuing Amount” will be same as Payment Document Number entered in the initial Screen. You can change the Amount incase you are making part of the payment via current Check.

Step 3: Check Register – FCHN

Check Register (Transaction Code FCHN) is one of the most important and widely used step in Check Management. It helps generate report related to checks like List of “Outstanding Checks”, Checks with various Voided Reason, etc.

Check Register in SAP - Transaction Code FCHN

The Payment Document for which the check no is created stores the check details. to check the check details go to Environment>Check Information.

One of the most important Column in this report is Check Encashment date. Make sure to update this date as and when the checks are encashed at bank.

Step 4: Void Checks

Sometime, for some reason, the check gets damaged or is misplaced or remains unused from the current lot. In such cases, the damaged check will be cancelled and a new check is issued. To reissue a new Check, we can use TCode FCH5 by entering the payment document details, incase the payment document is not reversed.

Define reason code for Check Void: SPRO> Financial Accounting > AR and AP> Bus Transactions> Outgoing Payment> Automatic Outgoing Payment> Payment Media> Check Management> Define Void Reason Codes

There are 3 scenarios related to voiding of Checks:

  1. Void unused Checks – FCH3
    Void Checks in SAP - T4ransaction Code FCH3
  2. Void Check with Vendor document reversal – FCH8
    This step, will make the vendor invoice as open item.
    Void Check with Vendor document reversal - FCH8
  3. Void Check without Vendor document reversal – FCH9
    Void Check without Vendor document reversal - FCH9

Payment Document linked with the voided checks, stores the information of voided checks and in case new check is issues, then details of new check.

Business Scenario:

Assume a scenario where a vendor deposits the check and the because of insufficient balance the check is dishonored. In such case, the bank will charge penalty .

Let’s say Rs 50/- is charged as penalty, on our bank account and not on vendor. Now, this amount will be realised during Bank Reconciliation and will be recorded as expenditure under P&L account.

If the penalty is charged on vendor, then we are liable to make a payment of equivalent amount to Vendor. And this amount will be recorded as bank charges.

Tcode:OBXK – Automatic Posting of Bank Charges (BSP) and Bank Posting(BNK). Set GL accounts here for Bank Charges. This GL account will be used during manual postings

Step 5: Check Reconciliation via EBS – FF_5 Update Encashment Date and Clear Vendor Payment Document

SAP has created many Bank Statement interpretation algorithm for Check reconciliation in SAP. Below are list of the interpretation algorithm used:

  • 011: Outgoing Checks – Check number different from payment Doc Number
  • 012: Outgoing Checks – Check number same as payment Doc Number
  • 013: Outgoing Check – Check Number = or <> to payment doc number
  • 014: Outgoing Check – Check Management in Fi or HR

Table PAYR stores details of checks created in SAP.

Electronic Bank Statement(EBS) captures all the transaction that happens at bank portal. During bank statement reconciliation, SAP tried to match (exact match) the check number with check number in PAYR table. And only when there is an exact match it does the reconciliation automatically, which is the payment document is cleared with EBS.

Below is a sample EBS transaction from BAI bank statement file

88,CHECK NO=0000000010008

You an fine more about BAI bank statement file in this link.

In this example, the check number is present in both Note-to-Payee line which is line 88, and in transaction reference line which is line 16.

In case the check number present in Bank Statement has some leading zeros and the requirement arises to trim down the leading zeros so as to match the check number in PAYR table exactly, Use the BADI “FIEB_CHANGE_BS_DATA”


To access this BADI use transaction code : SE18. Implement this BADI with following program. the Program checks the condition on external transaction type for check and removes the leading zeros.

    IF C_FEBEP-VORGC = '475'
      SHIFT c_febep-chect LEFT DELETING LEADING  '0'.

In this case, as the check number in operation is in line 16 and not 88, we have not used the Search String. BADI “FIEB_CHANGE_BS_DATA” is called before the search string is executed. For more information on this check SAP Note: 494777. In this BADI, C_FEBKO & C_FEBEP are changing parameters

Various Other Transactions in Check Management are as follows:

  • Display Check Information – FCH1
  • Vendor and Customer Payment with Check Printout – F-58
  • Change Check Information : FBZ6
  • Renumber Checks – FCH4
  • Manual Check Update and Print: FBZ5

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