Processing Postdated Cheques in NEOSYS

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
• 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:

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

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
• 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)
Debit:                 Postdated Cheques Issued A/c (maybe one a/c or one per supplier/payee)
Credit:                A/P or Supplier A/c (may be allocated to invoices)

Recording the Clearing

When postdated cheque is cleared/reconciled:

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