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The Check Reconciliation system in CIM GOLD > GOLD Services provides a central place for checks originated by your institution via the GOLDTeller, Deposit, Accounts Payable, and Loan systems to be stored and monitored. GOLDPoint Systems sometimes refers to the Check Reconciliation system as "Check Recon" in help and other documentation.

 

As checks are created, basic information, such as check amount, issue date, source of check, payee name, etc., is sent to the Check Recon system for storage. Once the check information is in Check Recon, your institution can monitor the check for items such as the cleared date and amount, voided checks, and the replacement checks and new check numbers assigned to voided checks. Checks can be monitored through the Check Detail screen, reports, GOLDWriter, and afterhours reports.

 

In addition, check information, such as cleared date and amount, can be updated either manually by someone at your institution or by an afterhours function in which GOLDPoint Systems uses the inclearing transmissions from the inclearing processor.

 

Checks can be voided by the various other systems (e.g., GOLDTeller, GOLDTrak PC, etc.) that update Check Recon. However, these systems are prevented from voiding checks with a "cleared" status in Check Recon.

 

An additional service is available where GOLDPoint Systems will forward Check Reconciliation information via a transmission to a third party who reconciles the checks for your institution. Contact your GOLDPoint Systems account manager if you would like this service. See the Reconciling Checks section below.

 

Check Reconciliation is generally used for your bank's internal checking accounts. However, your institution can provide Check Reconciliation services to your customers who have checking accounts within your institution. As the inclearings for your customers' checks are received from the inclearing processor and posted to the checking account, they can also be sent to the Check Recon system. (See the the Deposit External Accounts Check Recon section for more information.) Note: It may be easier to reconcile checks using the Positive Pay product rather than using Check Recon. See the Deposits > Account Information > Positive Pay Checklist for more information about Positive Pay.

 

 

Check Recon Basics

 

Check records are created from multiple different system based on institution options. The checks created from these systems usually have a description, a payee name, an amount, an issued date, an originating office number, and the source of where the check information came from. The following systems generate checks:

 

 

Source of Check

 

The Source field on the Check Detail screen contains a unique three-character code that defines from which system the check originated. Valid entries for this field are as follows:

 

•ADM - Administrative checks (manually entered)

•A/P - Accounts Payable originated checks

•CCK - Cashier's Checks

•CDT - Customer Directed Transfer checks (Bill Payer)

•CKW - CheckWriter

•EXT - External posting check reconciliation check (from Autopost)

•FUN - Funding checks from GOLD Loan Gateway

•GTP - Checks from GOLDTrak PC to CheckWriter

•IMM - Immediate (Check Printing from either the Deposits or Loans Systems)

•INT - Interest checks

•LIP - Loans-in-process disbursement checks, tran codes 430 or 431

•MAT - Maturing CD checks

•M/O - Money Orders

•RET - Retirement distribution checks

•RSD - Reserve disbursement checks, tran codes 440 or 640 (Loan System or GOLDTeller System)

•TLR - Online teller checks

•XCS - Excess Checks from Reserve Analysis

 

Within the same source code, checks can be created from multiple transaction codes. For example, tran codes 1130 (withdrawal), 1570 (vault cash from bank), and 1800 (General Ledger debit) processed through GOLDTeller all create a source code of TLR.

 

 

 

 

 

 

 

Options Available
 

To use Check Reconciliation, institution option OPT4-CKRC must be turned on. To have this option turned on, please notify your GOLDPoint Systems account manager or send in a work order. This sends CDT, INT, RET, Utility System, and MAT source records to Check Recon.

 

Institution option OPTO-ERDC keeps reserve disbursement records and reserve excess check records from going to Check Recon. (Reserve disbursements for deposit loans are set up on the Deposits > Check Printing > Deposit Checks screen, and reserve excess checks are set up on the Loans > Check Printing > Reserve Checks screen.) If you would like this option, please submit a work order with your request.

 

Option OPT4-CKRC, listed above, is used to send checks created in Accounts Payable to Check Reconciliation and pull checks from all Accounts Payable clients less than 9800. The Originating Office field (CRBORG) on the Check Detail screen will be filled in with the Accounts Payable client number.

 

Option CKRD allows you to have up to 4 digits appear in front of the check number in Check Reconciliation when printing checks from either the Loan or Deposit systems (Loans > Check Printing and Deposits > Check Printing in CIM GOLD). OPT4-CKRC must be set to "Y," and OPTO-ERDC must be set to "N."

 

No option is required to send Customer Directed Transfers (Bill Payer) check records to Check Recon.

 

To set up an automatic system deletion of cleared Check Reconciliation records, have GOLDPoint Systems set option CRDY to the number of days GOLDPoint Systems should keep the record. If option OPTO-DCRI is set to "Y," GOLDPoint Systems will delete records by the issue date instead of the cleared date, typically on the 27th of each month.

 

Reconciling Checks

Reconciling checks, simply stated, is a matter of verifying that checks have cleared, the date they cleared, and the amount for which they cleared. If the check hasn’t cleared after a long period of time or if the check cleared for a different amount than you issued, there is a reconciliation problem.

 

Checks can be reconciled several different ways: manually by the institution performing file maintenance, by the inclearing process, or by using a third party.

 

Some institutions choose not to reconcile their checks inhouse and use a third party to perform this task. To assist with this, GOLDPoint Systems can transmit to the third party the information residing on the GOLD Services > Check Reconciliation > Check Detail screen. In addition, rather than sending all checks, it is possible for checks from specific sources to be sent to a third party. For example, you may only want interest and Accounts Payable checks to be transmitted. See the Source field help on the Check Detail screen.

 

Note: You can transmit all check types, one check type, or any combination of source types (e.g., you could transmit only A/P, or A/P, INT, and TLR).

 

At the time of transmission, GOLDPoint Systems will input the same amount found in the Issued Amount field into the Cleared Amount field. In addition, the date the transmission is sent will be entered into the Cleared Date field.

 

Transmitting to third parties requires special programming and testing on the part of both GOLDPoint Systems and the company who will be providing the reconciliation service. If you would like to use the transmission process, please contact your GOLDPoint Systems account manager for more details.

GOLDPoint Systems currently transmits to the following companies:

•Travelers Express

•Union Bank

•IPS

•American Express

•Sanwa Bank

Note: Transmissions cannot be sent directly to FHLB. FHLB no longer offers reconciliation services, but you can use other companies to facilitate this feature.

Inclearing Transmissions

Inclearings is the process where checks written on accounts within your institution are processed by a second party and routed to your institution for payment.

 

Example: Your institution has a checking account within your institution for office expenses. As you remit payments to the various companies for supplies, they, in turn, will deposit the check into their checking account at another bank. That bank then submits the check to a second party processor who, in turn, presents the check to your institution for payment. This presentation for payment, which is done electronically, is the inclearing process.

 

As the "presentation for payment" is done via transmissions, GOLDPoint Systems captures the data and debits the check account. At the same time, the inclearing information is sent to the Check Recon system to capture the amount the check cleared for, the date, etc.

 

In summary, the whole process is as follows:

 

1.Your institution creates a check. At that time, the information is sent to the Check Recon system to create a new Check Reconciliation detail record for that check number.

2.The check is given to the payee (in the above example, this is the office supply company). The payee receives and cashes the check by depositing it in their checking account at another bank.

3.The bank routes the check to their processor (this could be FHLB, FiServ, ADP, Federal Reserve, etc.).

4.The processor routes the check electronically to your institution (via GOLDPoint Systems) for payment.

5.GOLDPoint Systems debits the checking account and updates the Check Recon record (created in step 1). The updating consists of file maintaining the Cleared Amount and Date Cleared fields on the Check Detail screen.

 

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See also:

Check Detail Screen

Mass Void/Delete Screen