Lesson 7 — Reinstate, redeposit, and endorsing to a supplier
A returned cheque has three futures, and the module names all three.
The practice this answers. A bounced cheque is a commercial decision before it is an accounting one. Sometimes the customer says present it again next week; sometimes the paper is replaced; sometimes you never want to see it again and you chase the debt instead. Meanwhile a good cheque in your drawer can settle your own supplier, which is a normal GCC way to pay when the dates line up.
Reinstate, then redeposit. From a bounced state you can Reinstate the cheque back into your wallet and Redeposit it. Reinstate is the custody step, returning the paper to In Wallet. Redeposit is the banking step, and it re-presents the cheque for its remaining balance rather than its original face value. The two are separate because the decisions are separate — you can hold a reinstated cheque for a week before you bank it.
Endorsement, and its one hard condition. A received cheque still In Wallet can be endorsed to a supplier to settle what you owe them. Use the Endorse action, choose the supplier, and the module records the transfer, moves the cheque to the Endorsed state and posts the matching interim entry. The condition is absolute: endorsement is only possible while the cheque is In Wallet. Once it has gone to the bank it is no longer yours to hand over, and the module will not pretend otherwise.
The click path. From a bounced cheque, press Reinstate, then Deposit when you are ready to bank it again. From a cheque In Wallet, press Endorse and pick the supplier. Every one of these actions leaves a trace in the chatter, which is what you will read later when someone asks what happened to this cheque.
The whole journey on one table. Here is cheque 004512 end to end, with the interim balances after each step. Bank movement is cumulative.
| Step | Date | Cheque state | PDC Receivable | Under Collection | Bank movement | Al Reem still owes |
|---|---|---|---|---|---|---|
| Invoice INV/2026/0417 raised | 18 August 2026 | — | 0.00 | 0.00 | 0.00 | 120,000.00 |
| Cheque 004512 received | 18 August 2026 | In Wallet | 120,000.00 | 0.00 | 0.00 | 0.00 |
| Deposited on its due date | 15 October 2026 | Under Collection | 0.00 | 120,000.00 | 0.00 | 0.00 |
| Partly honoured, remainder returned | 19 October 2026 | Bounced | 0.00 | 0.00 | 75,000.00 | 45,000.00 |
| Reinstated to your wallet | 20 October 2026 | In Wallet | 0.00 | 0.00 | 75,000.00 | 45,000.00 |
| Redeposited for the remaining balance | 22 October 2026 | Under Collection | 0.00 | 45,000.00 | 75,000.00 | 0.00 |
| Cleared | 26 October 2026 | Cleared | 0.00 | 0.00 | 120,000.00 | 0.00 |
How to read that table honestly. The module guide prints the debits and credits in full for one step only, the manual clearing entry of Dr Bank and Cr Cheques Under Collection. For every other step what it states is the model — the value parks in an interim account and is released to the bank only on clearing — so the columns above show where the money sits rather than a line-by-line entry the guide does not publish. Check the balances against your own database on the first cheque you run, and you will have both the model and the proof of it.
Three things that table is worth reading for. The bank column moves twice and never by a figure the customer did not actually pay. The interim columns are empty on the last row, which is what a completed cheque looks like. And the last column returns to zero only when the remaining AED 45,000.00 clears, not when the cheque is reinstated — reinstating paper does not collect money.
The failure mode. The endorsement request that arrives too late is the classic one: the cheque is already at the bank, a supplier wants it, and someone asks how to endorse from Under Collection. You cannot, and that is correct. If the cheque has not yet cleared, wait for the outcome; if it bounces, reinstate it and the endorsement option is available again from In Wallet.