Processing Postdated Cheques in NEOSYS: Difference between revisions

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There isn’t any automated way to record a PDC (Post Dated Cheque) payment in NEOSYS. For posting Post dated cheques into NEOSYS, you need to do the following :
== Processing Post-dated Cheques ==


*One-time PDC Account setup:
=== How do I process Post-dated Cheques RECEIVED in NEOSYS? ===


You need to setup a PDC Account under the Bank Ledger (code: BL). If you have a bank account already setup there – such as Bank of Sharjah, you need to create another account – Bank of Sharjah PDC issued with an appropriate ledger code (eg. PDC)
==== 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.


*Posting PDC payments:
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.


While creating Payment journals, you will then select the Bank of Sharjah PDC Issued a/c as the Bank A/c. And post the payment normally. In the description column, you can put the actual date of the Post-dated cheque (eg. PDC issued to X Supplier dated 12/12/2007)
Create an account “Postdated Cheques Received” in one of the following charts. You can create one a/c or one per client.


This way the supplier account is debited with the payment details and his account is clear.
*Accounts Receivable Chart
*Cash and Bank Chart (not advisable because cannot be open item and therefore cannot be allocated)
*Documents Receivable/PDC Received Chart


*Posting the PDC payment to the Bank A/c:
==== Recording the Receipt ====
When postdated cheque is in hand:


Next, you will go to the manual Journal, and post a manual entry for the actual date of the payment to the bank a/c as follows:
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)


Bank of Sharjah PDC Issued A/c          Dr
==== Recording the Deposit ====
When postdated cheque is deposited:


Bank of Sharjah A/c                     Cr
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)


This way you will get the payment information recorded into the bank a/c for the future date. So whenever you do a Ledger printout for a future period it will show the payment made to the supplier on that date.
=== How do I process Post-dated Cheques ISSUED in NEOSYS? ===


Also in the supplier a/c it will show the account is clear as of today.
==== Setting up for PDC Issued ====


For discounting cheques you can use the same procedure, but by creating a Bank of Sharjah Cheques Discounted A/c. And when you receive payments from clients which you will discount with the bank, you will make the receipt to the Bank of Sharjah Cheques Discounted A/c with the current date so that the client a/c is clear of today and pass another journal crediting the Bank of Sharjah Cheques Discounted A/c and debiting the Bank of Sharjah A/c for the future date.
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)

Latest revision as of 10:38, 25 February 2018

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)
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