{"id":158052,"date":"2026-10-27T09:54:31","date_gmt":"2026-10-27T09:54:31","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/paid-cheque-cycle-concepts-workflow\/"},"modified":"2026-11-11T12:20:03","modified_gmt":"2026-11-11T12:20:03","slug":"paid-cheque-cycle-concepts-workflow","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/paid-cheque-cycle-concepts-workflow\/","title":{"rendered":"Paid Cheque Cycle: Concepts and Workflow"},"content":{"rendered":"
\n

A payable cheque is a cheque that your business issues from your bank account to a supplier or any other party. The Cheque Cycle<\/strong>\u00a0lets you track every cheque from the moment it is issued until the bank collects or rejects it, with journal entries created automatically at each stage.<\/p>\n

This guide explains the concept of payable cheques, the stages of the cheque cycle, the journal entries at each stage, how to enable the app, where to find the screens, and the permissions.<\/p>\n

\n
Required permissions<\/span>View Chequebook<\/strong> to view, Add Chequebook<\/strong> to issue cheques and change statuses, and Edit and Delete Chequebook<\/strong> to edit and delete.<\/span><\/div>\n
How to access<\/span>Direct link: Payable Cheques<\/strong><\/a>. Or from the main menu: Cheque Cycle<\/strong> \u2190 Payable Cheques<\/strong>.<\/span><\/div>\n<\/div>\n
\n

Article Contents<\/p>\n

    \n
  1. Enable the Cheque Cycle<\/strong><\/a><\/li>\n
  2. Components of Payable Cheques<\/strong><\/a><\/li>\n
  3. Stages of the Payable Cheque Cycle<\/strong><\/a><\/li>\n
  4. Journal Entries at Each Stage<\/strong><\/a><\/li>\n
  5. Accounts Used<\/strong><\/a><\/li>\n
  6. Where to Find the Screens<\/strong><\/a><\/li>\n
  7. Permissions<\/strong><\/a><\/li>\n
  8. Important Notes<\/strong><\/a><\/li>\n
  9. Frequently Asked Questions<\/strong><\/a><\/li>\n<\/ol>\n<\/div>\n

    Enable the Cheque Cycle<\/h2>\n
      \n
    1. Open Apps Manager<\/strong><\/a>.<\/li>\n
    2. Enable the Cheque Cycle<\/strong> app.<\/li>\n<\/ol>\n
      \n

      \ud83d\udec8<\/span><\/p>\n

      Note:<\/strong> The app requires the Accounting app to be enabled, because cheques create journal entries.<\/p>\n<\/div>\n

      Components of Payable Cheques<\/h2>\n\n\n\n\n\n\n\n
      Component<\/th>\nFunction<\/th>\n<\/tr>\n
      Chequebook<\/strong><\/td>\nA book linked to a bank account that contains the range of cheque numbers (from the first serial number to the last).<\/td>\n<\/tr>\n
      Payable Cheque<\/strong><\/td>\nA cheque from the chequebook, with an amount, an issue date, and a due date, made out to a recipient account.<\/td>\n<\/tr>\n
      Notes Payable<\/strong><\/td>\nAn intermediate account where the cheque is recorded after it is handed over, until the bank collects it.<\/td>\n<\/tr>\n
      Recipient Account<\/strong><\/td>\nThe account of the beneficiary in the Chart of Accounts, such as the supplier’s account.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Stages of the Payable Cheque Cycle<\/h2>\n\n\n\n\n\n\n\n\n
      Status<\/th>\nMeaning<\/th>\nAvailable Actions<\/th>\n<\/tr>\n
      Issued<\/strong><\/td>\nThe check has been written but not yet handed to the beneficiary.<\/td>\nDeliver<\/strong>, Cancel<\/strong>, Edit, Delete<\/td>\n<\/tr>\n
      Delivered<\/strong><\/td>\nThe check has been handed to the beneficiary and is waiting to be cashed.<\/td>\nCollect<\/strong>, Reject<\/strong>, Undo Delivery<\/strong><\/td>\n<\/tr>\n
      Collected<\/strong><\/td>\nThe bank has cashed the check and the amount has been deducted from the account.<\/td>\nUndo Collection<\/strong><\/td>\n<\/tr>\n
      Rejected<\/strong><\/td>\nThe bank has refused to cash the check (it bounced).<\/td>\nUndo Rejection<\/strong><\/td>\n<\/tr>\n
      Canceled<\/strong><\/td>\nThe check was canceled before it was delivered.<\/td>\nUndo Cancellation<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
      \n

      Example<\/p>\n

      You issue a check for 10,000 to a supplier with a due date one month later: the status is Issued<\/strong>. Then you hand it to the supplier, and the status becomes Delivered<\/strong>. When the bank cashes it on the due date, you record Collect<\/strong>, and the status becomes Collected<\/strong>.<\/div>\n<\/div>\n

      Journal Entries at Each Stage<\/h2>\n\n\n\n\n\n\n\n\n
      Stage<\/th>\nDebit<\/th>\nCredit<\/th>\nEntry Date<\/th>\n<\/tr>\n
      Issue<\/strong><\/td>\n\u2014<\/td>\n\u2014<\/td>\nNo entry is created.<\/td>\n<\/tr>\n
      Deliver<\/strong><\/td>\nThe receiving account<\/strong> (such as the supplier)<\/td>\nNotes Payable<\/strong><\/td>\nThe check issue date.<\/td>\n<\/tr>\n
      Collect<\/strong><\/td>\nNotes Payable<\/strong><\/td>\nThe bank account<\/td>\nThe collection date.<\/td>\n<\/tr>\n
      Reject<\/strong><\/td>\nNotes Payable<\/strong><\/td>\nThe receiving account<\/strong><\/td>\nThe rejection date.<\/td>\n<\/tr>\n
      Cancel<\/strong><\/td>\n\u2014<\/td>\n\u2014<\/td>\nNo entry is created.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      When you undo<\/strong> any stage, the entry for that stage is deleted.<\/p>\n

      Accounts Used<\/h2>\n