Cheques & Notes
Where each cheque is, whether it is collateral, whether it cleared — never mixed up.
Cheques you receive and cheques you issue are tracked separately, with drawer, bank and branch on record. The key distinction: a cheque taken as collateral does not clear the customer's debt — it waits in your portfolio and converts to a payment in one action when needed.
You also see where the paper physically is: with you, at the bank for collection, or pledged. You can endorse it, cancel an endorsement, and if it bounces, correct both your side and the endorsee's side.