Zero Dollar Checks and Dynamics GP—Why?

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:

Vendor ABC

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.

Print 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.

Remittance Form

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

7 thoughts on “Zero Dollar Checks and Dynamics GP—Why?

  1. avatarDenie

    Hi Christina,

    I would like to ask u about payment number after we post select check.
    Before, my last payment number was 131.
    I run select check to pay only to 1 vendor with 8 invoices and then when i post the check, system show me payment number for that transaction is 138.
    So, i check the payment number (Manual payment) for the missing number between 131 to 138, system show me that the number still can be use.
    The question is how that can be ?
    Can u show me, how GP work for the payment number ?

    Thank you.

  2. avatarGie Magana

    Hi Christina,

    Would you know what is causing the problem when a single check is paying multiple invoices for a vendor but it prints multiple remittance form per invoice instead of just one page?

  3. avatarLisa Williams

    ow can I print the remittance for the zero check if I am not printing any other checks. I juts want to apply the credits to clear the invoices an print a remittance at this time so it doesn’t show up on the next check to the vendor. Mostly because I do some credits to correct errors on my side and I don’t want the vendor to see these.

    1. avatarChristina Phillips

      It should prompt and print automatically (you should see a zero dollar check in the check run, and then the remittance will print).

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