A common support query concerns zero dollar checks in Dynamics GP. A user will create a payables check batch (Transactions | Purchasing | Select Checks) and notice a number of zero dollar checks in the batch. Why does this happen? Consider the following scenario:
Invoice 123 – $500
Credit Memo – ($500)
Net Amount – $0.00
The scenario above can occur with credit memos, manual payments and other credits applied to cause an invoice to be fully paid. These credits can be applied prior to the check run or as a result of the “Automatically Apply Existing Unapplied” setting specified in the Select Payables Checks window. If the options for Payments, Credit Memos and Returns are marked, any open credits will be applied to open invoices, which may result in zero dollar checks.
Select Payables Checks window
Transactions | Purchasing | Select Checks
In these cases, the system notes a remittance needs to be printed to notify you and the vendor the invoice has been fully paid or credited. These zero-dollar checks do not use a check number; they are assigned an incremental “remit” number and appear on the edit list for the check batch.
Payables Transaction Edit List
Select the Printer Icon in the upper right-hand corner of the Select Payables Checks window
So what happens when you go to print checks? Fortunately, these remittances don’t actually print when you print the checks.
Transactions | Purchasing | Print Checks
Notice that only the check with an actual amount prints. (Side note: Only EFT payments will print actual zero-dollar checks in Dynamics GP.) You will then see the normal Post Payables Checks window.
You can select Post Checks and click Process as normal, but then the process changes just a bit. Instead of posting journals, you will get the “Process Payables Remittance” window.
Process Payables Remittance window
Transactions | Purchasing | Process Remittance
Print the Remittance Form for the zero-dollar check and then click Process.
Printed from the Process Payables Remittance window
Notice the remittance prints for the zero-dollar check as a record that the credits applied paid the invoice in full. This could be printed for your records or sent to vendors so they know how the credit was applied. Note the check number begins with “Remit.” This ensures the check does not post to the bank reconciliation module, since there is no cash impact.
Check out this great Microsoft knowledge base article on managing the numbering sequence for zero dollar checks; it also includes additional links to information about zero-dollar checks (the link requires CustomerSource access):
For more information or for assistance with managing zero-dollar checks, contact our Dynamics GP support center at firstname.lastname@example.org.