View source for Processing Postdated Cheques in NEOSYS

== Processing Post-dated Cheques ==

=== How do I process Post-dated Cheques RECEIVED in NEOSYS? ===

==== Setting up for PDC Received ====
Decide where the pdc assets are going to appear in the GL. Normally they will appear somewhere in current assets.

If you wish to age and list individual outstanding PDC then you need to create the account in an open item ledger like the Accounts Receivable or Documents Receivable.

Create an account “Postdated Cheques Received” in one of the following charts. You can create one a/c or one per client.

*Accounts Receivable Chart
*Cash and Bank Chart (not advisable because cannot be open item and therefore cannot be allocated)
*Documents Receivable/PDC Received Chart

==== Recording the Receipt ====
When postdated cheque is in hand:

 Journal:               Receipts
 Period:                Current
 Date:                  Actual Date on Cheque (future)
 Debit:                 Postdated Cheques Received A/c (maybe one a/c or per client)
 Credit:                A/R or Client A/c (may be allocated to invoices)

==== Recording the Deposit ====
When postdated cheque is deposited:

 Journal:               Receipts
 Period:                Current at time of deposit in bank
 Date:                  Date deposited in the bank
 Debit:                 Bank A/c
 Credit:                Postdated Cheques Received A/c (maybe one a/c or per client)

=== How do I process Post-dated Cheques ISSUED in NEOSYS? ===

==== Setting up for PDC Issued ====

Decide where the pdc liabilities are going to appear in the GL. Normally they will appear somewhere in current liabilities.

If you wish to age and list individual outstanding PDC then you need to create the account in an open item ledger like the Accounts Payable.

Create an account “Postdated Cheques Issued” in one of the following charts. You can create a single account for all PDC, or one per supplier/payee.

*Accounts Payable Chart
*Cash and Bank Chart (not advisable because cannot be open item and therefore cannot be allocated)
*Documents Payable/PDC Issued Chart

==== Recording the Receipt ====
When postdated cheque is delivered to recipient:

 Journal:              Payments
 Period:               Current
 Date:                 Actual Date on Cheque (future)
 Credit:               Postdated Cheques Issued A/c (maybe one a/c or one per supplier/payee)
 Debit:                A/P or Supplier A/c (may be allocated to invoices)

==== Recording the Clearing ====
When postdated cheque is cleared/reconciled:

 Journal:               Payments
 Period:                Current at time of clearing in bank
 Date:                  Date cleared in the bank
 Credit:                Bank A/c
 Debit:                 Postdated Cheques Issued A/c (maybe one a/c or one per supplier/payee)