Checks are payment instruments that are used to pay vendors. Microsoft Dynamics 365 for Finance and Operations provides check design and generation. The checks are assigned to bank accounts and then used in the vendor payment journal. The following diagram illustrates the check elements:
In order to create and design checks, navigate to Cash and bank management | Bank accounts | Bank accounts and then move to the Setup tab and Layout. In the Check layout form, identify the following:
- Check number method (fixed or free): The fixed check number represents predefined check numbers that are created then get used in vendor payment. The free check number represents the manual entry of check numbers in the vendor payment.
- Layout: This represents the design of the printed check, and helps identify the paper length and margins.
The following screenshot illustrates the Check layout form:
In the vendor method of payment, identify the payment type and export file format as Check. Navigate to Accounts payable | Payment setup | Methods of payment, as shown in the following screenshot:
Move to Setup to select Check under File format for methods of payment, as shown in the following screenshot:
To execute the vendor payment transaction, navigate to Accounts payable | Payments | Payment journal, select a vendor account, and enter the amount in the debit side, and the method of payment as CHECK, as shown in the following screenshot:
Then, generate the payment from the bank account, as shown in the following screenshot:
Assigning a check number will be done automatically in the Payment by check dialog, as shown in the following screenshot:
After posting the vendor payment, go to Cash and bank management | Bank accounts | Bank accounts to check the bank transactions as shown the following screenshot:
