We have a procedure on the books that states that states that when a cashier's check is purchased that we should stamp the check used to purchase it and indicate the serial number of the cashier's check purchased.

Is anyone else doing this and why? We can't seem to find anyone who remembers why this was put in the procedure manual.

Depending on how your bank processes its transactions, it may be difficult to "match" the check used for purchase with the cashier's check in question. The annotation also provides an answer to the question (whether raised by the customer or by auditors), "What was this check used for?" Paticularly with checks payable to the bank, that can be an important question.

As someone who works with return checks on a daily basis, I can see where this would make a HUGE difference. We would know right away that this returned item was for a cashier's check and be able to go the right direction. We can usually find out anyway by researching the credit offset... but I can tell you that documentation will make a difference.

Thanks guys for the feedback!