The MICR Encoding procedure is run after the cheques have been physically printed. The purpose of MICR Encoding is to update the cheque information with the physical or micro-encoded bank number. This procedure will tag the system generated cheque numbers with the MICR numbers. On-line cheques can also be encoded using this procedure.
MICR Encoding is a required step for the Electronic Cheque Reconciliation process. The Reconciliation process uses a file of returned cheques that is created by the bank. In this file, the cheques are listed with the MICR number. When the procedure is run, it identifies the cheques on the cheque file as returned by using the MICR number.
Note: MICR numbers are not replacing the system generated numbers. Both cheque numbers are maintained by the system.
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