Escheatment Process in SAP

Question

Hi Experts,
I am starting this discussion for getting more insight to how to get your escheatment process mapped in SAP.
Those who dont know about Escheatment let me give some brief summary about it: Escheatment process is US centric process. As per law company has to pay the unencashed checks issued to vendor or to customer(Credit memo) to state liability account. This involve void of checks, Reversal of payment made, then clearing the Invoice issued with the state liability posting.
Now I have to map this process in SAP so if any one of you have any idea or ever implemented this process in SAP please share your thoughts and knowledge on the same. It will be highly appreciated.
Regards,
Amit

Answer 1

Dear Amit,
For the escheatment of non-cashed checks please check the following process:
(A) Check Management
0. Customizing (preparation)
Create a void reason code for "escheated" checks in transaction FCHV.
1. Get the list of those checks with report RFCHKN10 (transaction FCHN) where you can select all outstanding checks that have a specific age (and other properties if necessary).
2. Start transaction FCH9 to void each check of the list, that has to be paid to the state. Use the void reason code created above.
Remark: Voiding checks with transaction FCH9 does not influence payroll or finance, it only sets the status of the check to "escheated" and updates the date (void date = escheatment date) and the user. Detailed information of the check and the link to the application is not lost, only the status has changed to "escheated".
(B) Financial Accounting
0. Master Data (preparation)
Create a vendor "State" to be used for the payment to the state.
1. The above check usually has created an open amount on the outgoing check's account. This amount will never be cleared against the bank account, thus we post a document that will reduce this open amount and create an open item on the vendor "state":
    Posting Key / Account / Amount
    40 / Outgoing checks / Old Check's amount
    31 / State / Old Check's amount
2. Start the payment program F110 to transfer the money to the state (via ACH or check, following the rules and laws).
Regards,
Ildikó