por The check policy it is simply a characteristic document of a financial value that reveals that money withdrew from an own bank account, making the withdrawal of that money through the issuance of a check.
It is the sample of an accounting instrument that is used in the field of banks and finance. This document represents a withdrawal of an amount from the bank account through a check.
The company is the one that issues the check, while at the same time attaching a carbon copy of that check to the policy for accounting purposes, in such a way that it can have information about the amount of the check and why it was issued, that is, What was your concept?
It even has the function of serving as a check receipt, since it leaves a record that the check has already been delivered.
In accounting there are different kinds of policies, such as income, journal and check policies, the latter being the record that refers to the withdrawal of money from the bank account based on the issuance of a check.
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What is a check policy and what is it for?
In the check policy, the receipts of the transactions of the company where a check has been made as a means of payment must be attached and recorded. Therefore, as its name indicates, the check policy is the one that is carried out when the operation involves a withdrawal of money from the bank by means of a check.
Likewise, it is important to know that in addition to the requirements for its correct completion, the document that gives rise to that payment with the check must always be attached.
What is it for?
For example, the transactions that should be recorded and the receipts that should be attached to a check policy could be the following:
– The purchase of tools for the company, for which a check is written and an invoice is received.
– The acquisition of raw materials, when a check is paid to the supplier and an invoice is received in return.
– When the company taxes are paid with a check and the tax payment form is duly filled out, stamped and signed by the bank.
– When a check is exchanged for cash at the bank to pay the wages of the workers, with the corresponding receipt signed by them.
Data to be noted in the check policy
From the information contained in a check policy, when the company performs an operation where a check must be made, the following spaces must be filled in:
copy of check
If possible, a copy of the check to be drawn up should be placed in this area, making sure that the data remains visibly on the date, amount, check number and beneficiary.
In the event that a copy of the check cannot be obtained, the data mentioned above must be clearly written, either by hand or preferably by typewriter.
Payment concept
In this area, the motivation for the payment should be briefly but clearly specified, referring as much as possible to the receipt that must be attached.
Received check signature
In this area, the person to whom the check is paid should be asked to sign as a sign of receipt, because with the signature you will have the security that the transaction that includes the policy that is being carried out has already been paid.
Other data
It is important to indicate that the policies must have the same successive number as the checks.
Therefore, if a check has been cancelled, a check policy must also be made, attaching the canceled check and indicating the invalid check in the space corresponding to the concept of payment.
In relation to filling in the remaining areas, the accountant will be responsible for recording the transaction, according to accounting principles.
How to fill out a check policy?
The check policy provides the convenience of being able to certify that the data written on the check are the same as those that are copied on the policy (see sample examples).
In the «Concept of payment» box, write the reason for which the check is issued. The next step is to deliver the check to the person authorized by the company to receive this payment document, which could be the manager, owner or legal representative.
The person in charge of depositing the check receives it and signs it in the «Sign check received» box. This formal signature turns out to be very important, since it confirms that the check was delivered to the depository, thereby establishing responsibilities.
column filling
The following part of the policy is presented by columns, where the following information appears:
In the first and second columns, respectively called «account» and «subaccount», the corresponding assignments of the chart of accounts used by the company will be placed.
In the third column will be placed the description of the credits and charges that correspond to the operation carried out.
For the fourth column, called «must», the amounts that make up the charges are recorded.
In the fifth column, called «to have», the amounts that make up the fertilizers are recorded.
The set of data that is required to be able to record the operations is made up of debits and credits and is called a journal entry.
In the «equal sums» box, the equality of the total amounts that make up these two columns must be shown. Every payment corresponds to a charge.
lower segment
In the lower segment of the check policy are the lines of headings, of which these three are essential:
The first belongs to the person who prepared the check policy, who is responsible for filling out the policies, and may be the accounting assistant, the secretary, etc.
The second heading is for the person who reviews or supervises the policy data and who could be the controller or accountant.
The third signature corresponds to the person who authorizes the policy, which could be the administrator, manager or controller.
To finish filling out the check policy, you must write down the successive number that corresponds to it.
Examples of check policies
The company Sytec 2000 CA is dedicated to buying and selling computer merchandise. This company makes its records through check policies to control payments. Below is the model used by this company, with a check attached to the policy:
There are various models of check policies, such as the empty model shown below:
References
Stu Document (2020). Expenditure Policy or Check. Taken from: studocu.com.
Meanings (2020). Policy meaning. Taken from: meanings.com.
Isis Cervera (2018). Example of check policy. Thousand Examples. Taken from: thousandexamples.com.
IPN (2020). Check Policy – IPN. Taken from: ipn.mx.
+ Business Ideas (2020). How to make and fill out a check policy. Taken from: masideasdenegocio.com.