How do I handle a situation where the grantee cashed the original check and the reissue?
- 02 Jun 2023
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How do I handle a situation where the grantee cashed the original check and the reissue?
- Updated on 02 Jun 2023
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If a grantee loses a check and receives a new check in its place, how do I account for it when they find and cash the original check as well as the replacement? I have now paid them twice for the same grant.
Answer:
This situation frequently occurs when a grantee indicates that they never received a check and the foundation voids the first check in Accounts Payable and cuts and mails a replacement check. Frequently the original check is found and processed and paid by the bank. The Grantee then sends (or should send) back the overpayment. Rarely is the original check from FIMS sent back.
To process the reissue you would have voided the original payment and processed a new check.
If the original check is found, not cashed, and sent back, then you need to do nothing because you already voided the check.
If the original check is not returned, but a check from the grantee is send back to you
1. Unvoid the original check by going to the payment tab in Accounts Payable and clicking unvoid payment.
2. In the Scholarship or Grants Module, find the grant in the Application History Tab and process an amount adjustment to increase the grant by the amount of the grantee check. This will create a debit memo that should be posted in AP and should remove the voucher from Open Items.
3. Process a Grant Refund for the amount of the check sent back by the recipient organization.
To process the reissue you would have voided the original payment and processed a new check.
If the original check is found, not cashed, and sent back, then you need to do nothing because you already voided the check.
If the original check is not returned, but a check from the grantee is send back to you
1. Unvoid the original check by going to the payment tab in Accounts Payable and clicking unvoid payment.
2. In the Scholarship or Grants Module, find the grant in the Application History Tab and process an amount adjustment to increase the grant by the amount of the grantee check. This will create a debit memo that should be posted in AP and should remove the voucher from Open Items.
3. Process a Grant Refund for the amount of the check sent back by the recipient organization.
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