Escheating Checks
In the United States, each state has different rules regarding checks that have been issued but which have not cleared. In most cases, the organization that issued the check is required to remit the funds (escheat) to a state tax authority. You can use the following method to create payments for the tax authority.
Prerequisite
Complete the due diligence required by the state. For example, try to notify the supplier.
To pay escheated checks to the state tax authority:
1. For each supplier for which you will escheat payments, create a new supplier site. Use the tax authority's name and address for the pay site.
2. Void each payment. You may want to add a note in the description of the invoice that it was escheated to the relevant tax authority.Change the invoice pay site to the new tax authority site. Optionally assign a unique Payment Priority or Pay Group.
3. Pay the invoices and provide the necessary documentation to the tax authority.
