Returned & Post Date Checks

Objective ：

It is important that any returned or post-dated checks are being properly recorded and follow up action needs to take to recover the loss or possible loss.

Procedure ：

Returned Check 

1. If a check has been returned by the Bank for one reason or another, the General Cashier must record it into a “returned check log book”.

2. The Credit Manager and the Director of Finance & Business Support must be notified immediately, who will jointly acknowledge onto the log book.

3. The Credit Manager takes a photocopy of the check for follow-up actions.

4. Immediately, the credit of that particular client or company will have to be suspended until such time that the check is replaced or paid by cash.

5. Verbally the client should be contacted by phone of the check being returned by the Bank for whatever the reason as given by our Banker.  It must be stressed upon the client that their cash check or cash or direct transfer to our bank account to settle the issue.  Also inform the client that their credit will be suspended until the matter is resolved.  Meanwhile a registered letter to the client enclosing copy of returned check and bank’s notification.

6. Journal entries will have to be raised by the General Ledger debiting back the returned check and crediting the Bank for the returned check.

7. Once the money or replacement check has been received, and until the check is cleared, then a journal to debit Bank and credit returned check will be passed.  

8. The General Cashier will then acknowledge the clearance of the check onto the log book.  The Credit Manager will then resume the credit facility of the client or company.

9. If the returned check is not resolved within a week of its return, the client or company will have to be advised to pay all outstanding amount owing to the Hotel or face legal action.  

10. In case if legal action needs to be taken, the matter should be done through close liaison with the regional office.

Post-dated Checks 

1. Whenever the Credit Manager receives a post-dated check, it has to be given to the General Cashier to record it onto “post-dated check log book” according to its due date.  The General Cashier will have to keep-in-view on the maturity date.

2. No official receipt will be issued until the due date is reached and the check bank-in and subsequently cleared.

3. This check, when due, will be treated as the days check received, and bank-in accordingly.

4. If this check is returned by the Bank, then returned check procedure will follow.

The above policy will be reviewed periodically and may be revised, amended or changed accordingly.