Abstract: An interactive and menu driven microcomputer-based system is disclosed which provides financial institution management and quality control personnel with a powerful tool to help manage and control MICR encoded document rejects to reduce the rate of such rejects to a minimum. The reject analysis system's dedicated microcomputer is linked to a bank's mainframe computer either directly or indirectly by utilizing a mainframe generated item processing magnetic tape file. The microcomputer-based system may, for example, include a PC having a keyboard and a CRT display, a tape drive, a hard disk, an extended RAM memory, and a printer for generating advisory letters and other hard copy documents. The microcomputer-based system also includes a MICR reader and analyzer which permits rejected checks to be analyzed for their MICR quality. The system displays a daily summary report showing the total document items processed, the number of rejected items, as well as the rejected percentage.