When “checks” are handled, both export and import checks are processed that are marked as 'Subject to Payment'. Checks that cannot be credited to the presenter straight away are processed in the sectors “Export Collection” - 'Clean Collection' or “Import Collection”.

Export checks:

The term 'export check' refers to checks presented by customers or banks to the bank using the application for collection from - usually foreign - collecting bank.

Import checks:

The term 'import check' refers to checks in the system currency or a foreign currency which are presented by foreign bank for domestic collection. During the process of creating remittances, the checks from the various presenters are collated and passed on to the relevant collecting banks.

In the standard product, check route control and the processing of import checks are implemented in the example of German banks. In this instance, check route control is via the clearing code of the drawee bank. Processing of import checks outside Germany will require a modification which must be implemented on an individual basis.

Checks are normally processed in two steps:

• Presentation of check
• Creation of remittance

Check presentations are differentiated according to their directional identifier (import/export) and recorded in a presentation contract.

Presentations group homogenous checks, i.e. checks that are in the same currency and which all have the same check route (see General Information). Checks are either presented directly by the customer or by banks, also as part of a cash-letter procedure. A separate contract is captured for each presentation, with the individual checks being stored in a check pool.

For the collection of import checks, one collecting bank can be recorded per check.

Remittances refer to the dispatch of the checks to the collecting bank. A remittance may include checks from various presentations, sent at the same time to the same collecting bank. A remittance may only contain checks that have the same check route.

Returned checks are dealt with under the presentation contract and processed using a special transaction.

The transactions Handling Check Presentation and Generate Remittance create a presentation contract and a remittance contract and also close it immediately after settlement. Should further processing be necessary under a contract, then it initially needs to be reopened via the transaction Re-Opening, to carry out a contract change, for instance. Next, the contract needs to be closed manually (via the transaction Closing). Via the batch transaction Automatic Closing of Contracts, the system can select all contracts 'capable of being closed' and prepare them for processing in the closing transaction.

If a remittance is returned, then the presentation contract is searched for via the check, and the contract can then be used to start the transaction Handling Returns to process the check return.