Exit or check policy


An exit policy or check is a financial document that is used to indicate that money left your own bank account. This policy can be a physical or digital document in which the company records an important outflow of money by means of a check.

Essentially, this policy is used to justify that money went out by check. The document allows to guarantee and verify a payment made by the company by means of a check. Generally, it is used when a payment is made or made and a check note or invoice has been issued. For that reason, it is important to add that note or invoice as proof of the origin of the check payment.

In addition, the company when issuing the check must attach a copy of the check to the policy. This, with the purpose of accounting for a record of the value of the check and the concept for which it was issued. The concept is the reason why the document was extended. The policy can serve as a receipt to guarantee that the check was delivered.

Exit or check policy

What notes or bills are added to the discharge or check policy?

The notes or invoices must accompany an exit policy or check when the company makes the following purchases or payments:

  • Purchases of inputs or raw materials: It is when the company receives an invoice from a supplier that sells inputs or raw materials. The policy is made by payment made by check.
  • Acquisition of capital goods: In this case, the company buys tools, machines or equipment, also receiving an invoice and making the corresponding payment with a check.
  • Payment of wages in cash: This happens when the company withdraws cash in a company account, to pay employee wages. In this case, the document that serves as proof instead of the invoice is the receipt of payment signed by the employee.
  • For the payment of tax obligations: It occurs when the company pays its taxes by check. The proof in this case is the proof of payment stamped and signed by the receiving bank.
Exit or check policy
What should you bring?

What does a check or discharge policy have to carry?

When preparing a check policy, you should bring the following:

1. Copy of the check

In the first place, when making a check policy, it is best to place a copy of the check issued. This, taking care that the details on the information of the check are perfectly legible.

The most important data are:

  • Amount for which it was issued.
  • Date of issue.
  • Name of the beneficiary person or company.
  • Check number.

Of course, if for some reason the document is not available, care must be taken that the aforementioned data is clearly noted.

2. Payment concept

Second, the payment concept must clearly and briefly describe the reason that generated the payment of the check. The best thing will be to add the proof of the payment made.

3. Signature of the check received

Third, there must be a signed check received. This section requires the signature of the person receiving the check to be affixed. This is very important because it ensures that the check has been paid and cashed.

4. Policy number

Additionally, the exit or check policy must bear an identification number. This should be the same number on the check that supports the policy. If for any reason a check is voided, the check policy must also be created explaining and reasoning that the check has been voided.

Finally, this information is what is delivered to the accountant responsible and then he will be in charge of making the accounting record of the document.

Example of an exit or check policy

Expenditure or check policy example

To conclude, we can affirm that the exit or check policy is a very important document for any company. Above all, when you want to check the money outflows of a company account by means of a check. The policy allows knowing to whom the check was issued, for what concept and for what amount it was issued, stating who cashed it and the corresponding note or invoice.

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