Cheque Tracking Log Template (Incoming, Outgoing, Postdated)

The cheque remains a primary payment instrument in the Saudi market, especially in B2B deals between suppliers, contractors, and trading shops. A merchant might receive a cheque worth SAR 45,000 from a customer in Riyadh, write another cheque for SAR 18,000 to a supplier in Jeddah, and keep three postdated cheques in the office drawer. The painful question: who tracks these cheques day by day so nothing slips through?

The problem is not the cheque itself, but the absence of an organised log that tracks its number, issuing bank, due date, and current status. Many business owners discover too late that a cheque matured a week ago and was never deposited, that a returned cheque had no legal action taken on it, or that a cheque to a supplier was drawn from the account without being recorded in the journal. The result: a gap between the actual bank balance and the book balance, and lost entitlements.

This template is ready to manage every type of cheque: incoming from customers, outgoing to suppliers, postdated, and returned. Every column is designed for a real scenario the Saudi merchant faces, and it aligns with monthly bank reconciliation requirements and with the regulatory procedures of the commercial courts and the Saudi Central Bank (SAMA).

Why track cheques in a log separate from the journal

The journal records accounting entries at the moment they occur: debit, credit, date, description. But a cheque is not a single entry, it is a full life cycle that starts at issuance or receipt, passes through deposit, and ends with actual collection or return. Each of these stages needs different data, and the cycle may extend over weeks or months when the cheque is postdated.

A separate cheque log solves three problems the journal alone cannot. First: status tracking. A single cheque can be “issued, not deposited, deposited for collection, collected, returned”. These statuses do not appear in a normal accounting entry. Second: maturity reminders. The cheque log orders cheques by due date, so you know what matures this week and what matures next week. Third: bank reconciliation. When comparing the bank statement with your books, the log tells you which cheque has actually cleared the account and which is still in the collection cycle.

The accountant who relies on the journal alone finds themselves facing a bank balance that differs from the book balance by large amounts at month end, and spends hours chasing variances. Whoever keeps a live, updated cheque log finishes the monthly reconciliation in less than an hour.

• The journal records value: the log records status and the timeline of the cheque.
• The journal ends with the entry: the log stays alive until the last riyal is collected or the cheque bounces.
• The journal does not remind you: the log orders cheques by due date for advance alerts.

The risks of managing cheques without an organised log

Every cheque without precise follow-up is a potential financial and legal risk. These are the main hazards business owners in Saudi Arabia fall into:

A returned cheque with no legal action

When a cheque bounces from the bank for insufficient funds, the beneficiary has the right to file a complaint with the Saudi Central Bank (SAMA) and initiate a commercial lawsuit. But procedures have specific legal deadlines. If more than six months pass without documentation and follow-up, proving the right becomes harder and sometimes certain procedural rights lapse.

Forgetting the due date

The postdated cheque you forget in the drawer is a potential loss. If it is an incoming cheque, you may delay depositing it and lose the speed of collection. If it is an outgoing cheque, the supplier may try to cash it before you have funded the account, so it bounces against you and your name is recorded in SAMA’s warning list.

Late deposit of incoming cheques

Every day of delay in depositing an incoming cheque is a day of lost liquidity. Companies that receive cheques regularly and postpone depositing them by a week or two lose part of their ability to pay suppliers and employee wages.

Physical loss of the cheque

Paper goes missing. A paper cheque, if lost without its number, bank, and amount on record, becomes almost impossible to prove existed. An organised log preserves all cheque data even if the paper copy is lost.

• Legal loss: missing the deadlines for reporting a returned cheque.
• Liquidity loss: delaying the deposit and delaying collection.
• Reputation loss: an outgoing cheque bouncing because you forgot its due date.
• Loss of evidence: a missing cheque with no copy or record.

Types of cheques used in the Saudi market

Before designing the log, you need to know the types of cheques you will be handling. Each type requires different accounting treatment.

The cash cheque (payable on sight)

This is the ordinary cheque that is cashed as soon as it is presented to the bank, as long as funds are available. The due date is the same as the issuance date or close to it. It is recorded in the books as soon as it is received or issued.

The postdated cheque

It carries a future due date, often 30, 60, or 90 days out. Very common in B2B deals in Saudi Arabia, especially with contractors and material suppliers. It needs special accounting treatment as a receivable or a future liability until its due date.

The cheque drawn on a specific bank

Every cheque is issued by a particular bank. At deposit time, if your cheque is drawn on the same bank you deal with, it usually clears the same day. If it is from another bank, it enters the clearing cycle through SARIE and may take a working day or two.

The certified cheque

A cheque guaranteed by the bank by holding its value from the drawer’s account. Used in large deals when the seller wants a strong guarantee. It cannot bounce because the bank has reserved the amount in advance. Its cost is higher, but it is safe for the recipient.

The cashier’s cheque

Issued by the bank itself on behalf of the customer. It is drawn directly from the bank’s account, so it is even safer than the certified cheque. Used in major deals such as buying real estate and fixed assets.

• Cash: payable on sight.
• Postdated: future due date, needs different accounting treatment.
• Certified: guaranteed by holding the value from the drawer’s account.
• Cashier’s: issued by the bank from its own account, the strongest guarantee.

The mandatory columns in the cheque log

A good log is not just a table of amounts. These are the core columns that must be available for every cheque, whether incoming or outgoing.

These columns are shared between the incoming log and the outgoing log. The difference comes in an extra column that identifies whether you are the beneficiary or the drawer, and in the accounting treatment. A unified log of this design makes the monthly review faster, because the accountant knows where every data point lives without searching across multiple sheets.

The incoming cheques log (from customers)

This log tracks every cheque you receive from your customers, from the moment of receipt until the value is collected or the cheque is returned. It is the first reference for knowing the upcoming receivables in cheque form.

How to use this log day to day

Open the log every morning and sort cheques by due date, ascending. Any cheque maturing today or tomorrow, take it straight to the bank and deposit it. Any cheque that has returned, update its status immediately and start the reporting procedures. Any cheque with a distant due date, keep it in a separate envelope and write the row number from the log on the envelope for easy reference.

Accounting treatment of an incoming cheque

On receipt: debit cheques under collection, credit the customer (reducing accounts receivable). On deposit: debit bank, credit cheques under collection. On return: reverse the first entry and restore the amount to the customer’s balance, while booking the bank charges.

The outgoing cheques log (to suppliers and expenses)

This log mirrors the incoming log, but tracks the cheques you issue yourself. The biggest risk here: a cheque is cashed before you have funded sufficient balance, so it bounces and your name is logged in SAMA’s warning lists.

The golden rule: do not issue a cheque without incoming funds

A bounced cheque is a legal and financial disaster. Before issuing any cheque with a future date, make sure you have confirmed income sources at least a week before the due date. Tie every outgoing cheque to a customer invoice expected to be collected before maturity, or to a draw on a documented credit line.

Alerts one week before maturity

Set a firm rule: seven days before any outgoing cheque matures, review the bank balance. If the balance is below the cheque value, take immediate action: collect from customers, transfer from another account, or contact the beneficiary to reschedule the payment.

Postdated cheques and their accounting treatment

The postdated cheque is a promise to pay on a future date. From an accounting standpoint, it is not cash now, and it should not be treated as cash. It is a receivable (for an incoming cheque) or a future liability (for an outgoing cheque).

The incoming postdated cheque

If you receive a cheque worth SAR 50,000 maturing in 90 days, do not record it as cash in the account. Record it in a “deferred cheques receivable” account within current assets (if maturity is within the year) or long-term assets (if further out). On the due date, move it to cheques under collection and deposit it in the bank.

The outgoing postdated cheque

If you issue a postdated cheque to a supplier, record it as a future liability. Debit the expense account or supplier, credit “outgoing postdated cheques”. On the due date, shift the entry to credit bank and debit outgoing postdated cheques. This treatment gives you an accurate picture of the real cash obligations on your company.

The impact of postdated cheques on cash flow

Postdated cheques are the biggest enemy of cash flow if not managed carefully. Your sales may look excellent on paper, but the actual cash arrives two or three months later. Build a weekly schedule that shows how much money will land in the bank each week from postdated cheques, and how much will leave. The gap is your real available liquidity.

• Incoming postdated: not treated as cash until its due date.
• Outgoing postdated: a future liability shown on the balance sheet.
• Cash flow: a weekly schedule linking incoming and outgoing postdated cheques.

Handling a returned cheque: legal and regulatory procedures

A returned cheque is the nightmare every merchant fears. The first step when you learn of a bounce is to document everything in the log: return date, reason for return (insufficient funds, mismatched signature, closed account), and the bank’s return notice number.

Reporting to the Saudi Central Bank (SAMA)

When a cheque is returned for insufficient funds, you have the right to file a report against the drawer with the Saudi Central Bank. The drawer enters the list of defaulters, and after a set number of returned cheques may be barred from issuing chequebooks for a period. This mechanism protects the market broadly.

The commercial lawsuit

If the cheque value exceeds a certain threshold or the bounce is repeated, you can file a commercial lawsuit before the commercial court to recover the amount. The returned cheque is an executive instrument under the Enforcement Law, and in many cases you can obtain a direct execution order without needing a full substantive lawsuit.

Anti-forgery regulation

If you discover that the cheque is forged or altered (a change in the amount or date), this is forgery punishable by law. Notify the bank immediately and keep the original cheque as evidence, then file a report with the competent authorities.

Amicable settlement

Before resorting to court, an amicable settlement is faster and less costly. Contact the drawer, find out why the cheque bounced, and sign a written repayment agreement with specific dates. Document everything in writing so you retain your right to resort to court if the agreement is breached.

The link between the cheque log and the monthly bank reconciliation

The monthly bank reconciliation compares the bank statement with your accounting books to arrive at a unified balance. Cheques are the main cause of variances between the two balances, because a cheque may be recorded in your book yet not yet cleared from the bank (or the other way around).

Outstanding cheques

These are cheques you have issued and recorded in your book, but the beneficiary has not yet presented them to the bank. They will appear in your book as an expense, but will not appear on the bank statement. The outgoing cheques log gives you the full list of these cheques at the click of a button.

Cheques under collection

Cheques you have deposited at the bank but the bank has not yet collected. You recorded them in your book as an increase in the balance, but the bank has not yet posted them because they are in the clearing cycle. The incoming cheques log highlights these cheques with the “deposited” status.

Reconciliation steps using the cheque log

Open the bank statement and the cheque log. Match every cheque in the log with a movement on the statement. If a cheque is in the log with no movement on the statement, it is outstanding or under collection. If there is a movement on the statement with no matching cheque in the log, check whether you forgot to record a cheque or there is an error.

• Outstanding cheques: in your book, not yet on the statement.
• Cheques under collection: deposited, not yet collected by the bank.
• Other variances: bank charges, interest, transfers not recorded.

The shift from paper cheques to electronic transfers

The Saudi market is moving strongly toward electronic payments. Mada for daily payments, SARIE for funds transfer between banks, SADAD for paying government bills and services. Paper cheques are declining, but they have not disappeared completely, especially in large deals and deferred payments.

When to prefer the electronic transfer

For amounts that need immediate collection, use SARIE. For small recurring amounts, use Mada or instant transfers via apps. For government and utility bills (electricity, water, GOSI), use SADAD.

When the cheque is still useful

The postdated cheque is still a strong instrument in B2B deals because it provides paper evidence that can be taken to court. Also in major asset deals (real estate, commercial vehicles), the certified or cashier’s cheque is a trusted payment method. The cheque is not the enemy, it is a tool with its right place.

A hybrid log for cheques and transfers

Smart companies keep two logs: a cheque log with its details, and an electronic transfer log with its details (transaction number, date, reference, party). Every SARIE transfer has a reference number that must be recorded, and every SADAD transfer has an invoice number.

The most common mistakes in cheque management

Keeping cheques in the office drawer

A cheque in the drawer generates no liquidity. Deposit every cheque within 24 hours of receipt, even if it is postdated (deposit it exactly on its due date). Keep a postdated cheque in a separate envelope inside a secure safe, and record its location in the log.

Not photographing the cheque before deposit

Before depositing any cheque at the bank, photograph both sides and save the copies in a digital file linked to the log. If the cheque is lost at the bank or rejected for any reason, the photograph is conclusive evidence of its existence and contents.

Writing the cheque in a way that can be tampered with

When issuing an outgoing cheque, write the amount in figures and in words clearly and without blanks where digits could be inserted. For example: SAR 12,500 is written in words as “twelve thousand five hundred Saudi riyals only”. Any blank in the amount field opens the door to forgery.

Not tracking bank charges on returned cheques

For every bounced cheque the bank charges a fee (varies by bank, typically SAR 100 to 300). These charges should be recorded as a bank expense, and you should attempt to recover them from the defaulting drawer. The log should contain a column for return charges.

Ignoring small cheques

A cheque worth SAR 500 deserves the same follow-up as a cheque worth SAR 50,000. Accumulation is what creates problems. Ten forgotten small cheques equal one big problem. Record every cheque, however small.

• Deposit within 24 hours: of receiving the cheque (or on its due date for postdated).
• Photograph the cheque: front and back, before deposit.
• Write clearly: no blanks in the amount field.
• Record return charges: as a bank expense.
• Do not dismiss any amount: every cheque is recorded.

How Qoyod manages the cheque log automatically

Managing cheques manually in an Excel file works for a limited number of cheques per month. When the count reaches tens of cheques per week, you need a full accounting system that links the cheque to the customer, the supplier, the journal entry, and the bank reconciliation.

Qoyod is a cloud accounting system designed for the Saudi market, managing incoming and outgoing cheques in a single module connected to the general ledger. Every cheque you receive from a customer is reflected automatically on the customer’s balance in the invoicing module. Every cheque you issue to a supplier is reflected on the supplier’s account in accounts payable.

Maturity alerts reach you days before any postdated cheque is due, so you never forget to deposit an incoming cheque and an outgoing one never surprises you by leaving the account. Real-time reports in the accounting module give you, at any moment, a list of cheques under collection, outstanding cheques, and returned cheques.

The monthly bank reconciliation in Qoyod connects directly to the bank statement and matches cheques automatically, so what used to take hours now takes minutes. Support is available 24 hours, 7 days a week to help with any accounting or technical query. Explore Qoyod’s plans on the pricing page, and start your free trial now.

Frequently asked questions

Is the postdated cheque legal in Saudi Arabia?

Yes, the postdated cheque is a common and recognised payment instrument in the Saudi market, especially in business-to-business deals. From a strict legal standpoint, however, a cheque is supposed to be payable on sight. The written due date is a commercial custom in practice, but the bank may cash the cheque before the due date if the beneficiary presents it. So commit to not issuing a postdated cheque unless you are certain funds will be available before its date.

What do I do immediately when a cheque I received bounces?

First: keep the bank’s return notice together with the original cheque. Second: contact the drawer immediately, notify them of the bounce, and ask for an explanation. Third: if they do not respond or refuse to pay within a week, file a report with the Saudi Central Bank against the drawer. Fourth: obtain an execution order from the commercial court relying on the cheque as an executive instrument. Fifth: record the details of the bounce and the report number in the cheque log.

What is the ideal deposit timeframe for incoming cheques?

The rule: deposit every cheque within 24 hours of receipt if it is a cash cheque or payable on sight. For postdated cheques, deposit them exactly on the due date or the next day. Avoid holding any cheque undeposited for more than one day after its maturity, because delayed liquidity costs you opportunities.

What is the difference between a certified cheque and a cashier’s cheque?

A certified cheque is issued by the customer from their own chequebook, and the bank certifies it by holding its value from the customer’s account. A cashier’s cheque is issued by the bank itself from its account on behalf of the customer, so the bank is the drawer. The cashier’s cheque carries a stronger guarantee because the bank is directly liable, but it costs more. Neither can bounce for insufficient funds.

Should I record a very small cheque in the log?

Yes, every cheque without exception. Even a cheque worth SAR 50 should be recorded with its number, bank, date, and status. Neglect starts with the small cheques. An organised log relies on completeness, not on the size of the amounts.

How are cheques treated in the tax report for the Zakat, Tax and Customs Authority (ZATCA)?

The cheque is not a standalone tax document. What matters to ZATCA is the tax invoice that proves the sale or purchase, and the 15 percent VAT recorded on it. The cheque is just a payment method. However, cheque records must be kept as part of the financial records that must be retained for 6 years, for use in case of a tax audit.

Does the second phase of e-invoicing affect cheque management?

The second phase of e-invoicing focuses on linking invoicing systems with ZATCA’s Fatoora platform, and on issuing electronic tax invoices in XML format. The cheque is not an invoice, but a payment method for the invoice. Cheque management remains separate from invoicing, but a good accounting system links the two so that every invoice shows its payment method (cheque, transfer, cash).

Can cheques be abandoned entirely in 2026?

In practice, in the Saudi market in 2026, total abandonment is difficult despite the spread of electronic transfers. Many suppliers, contractors, and family-owned companies still prefer the postdated cheque as a B2B payment instrument. The best approach: reduce your reliance on cheques to the maximum, and encourage your partners to transfer via SARIE, but keep the ability to manage cheques efficiently because the market still uses them.