Post-Dated Cheques Tutorial

Overview#

How banks deal with post-dated cheques is country specific. In some countries, like South Africa, cheques are discontinued but organisations can create future-dated electronic transactions.

💡These tutorials explain how to create, edit and view post-dated transactions for purchases linked to a Supplier and General Expenses.

How to Create Bank Accounts#

1. Navigate to Main Menu > Setup > Accounting > Accounts > Statement of Financial Position > Assets.
2. Right-click Bank and select Add.
   1. Create a Bank Account and name it Supplier PD Control.
   2. Create a Bank Account and name it Customer PD Control.

How to Link the Bank Accounts#

1. Navigate to Main Menu > Setup > Accounting and click the Settings tab.
   1. Click the arrow in the Value column next to Post-dated Cheque Bank (Customer) and select a Bank Account from the dropdown list.
   2. Click the arrow in the Value column next to Post-dated Cheque Bank (Supplier) and select a Bank Account from the dropdown list.

How to Create Entry Types#

1. Navigate to Setup > Accounting and click the Entry Types tab.
2. Click Add Entry Type (button) and create the entries below:

   Entry Type	Code	Dr Account	Cr Account	VAT Type	Enter
   Customer Post-Dated Cheque Receipts	CA_PDC	Customer PD Control	Customer	No VAT	Inc
   Supplier Post-Dated Cheque Payments	SA_PDC	Supplier	Supplier PD Control	No VAT	Inc
   Clear Customer Post-Dated Receipts	(Optional)	Bank Account	Customer PD Control	No VAT	Inc
   Clear Supplier Post-Dated Payments	(Optional)	Supplier PD Control	Bank Account	No VAT	Inc

Option A: Enter Future-dated Transactions on their Actual Dates#

How to Ensure Future-Dated Transactions are Recorded on the Right Dates#

1. Navigate to Main Menu > Accounting > Financial Close Off Date.
2. If there is a Date, use backspace to remove the date.
   • Note: Remember to set the date again once you enter the future-dated transactions.

How to Enter General Expenses#

1. Ensure that all periods are open.
2. Navigate to Main Menu > Accounting > Ledger.
3. Click New (button) > General Expenses.
4. Enter both the future Date and Period.
5. Dr. Account = Select an Expense Account.
6. Cr. Bank = Select a Bank Account from which the Expense was paid.
7. Total (Inc) = Enter the amount and select the appropriate VAT Type.
8. Enter the Reference and Note in the sections provided.
   • Note: Use the cheque number as the Reference.
9. Click View (button) > Items to see how the entry is posted.
10. Click Done (button).

How to Manually Create Supplier Payments#

1. Ensure that all periods are open.
2. Navigate to Main Menu > Accounting > Ledger.
3. Click New (button): mouse over Supplier Transactions and click Supplier Payments.
4. Enter both the Date and Period.
5. Dr. Supplier = Select the supplier.
6. Cr. Bank = Select the Bank Account.
7. Total (Inc) = Enter the amount paid, and select No VAT.
8. Enter a Reference and Note in the sections provided.
   • Note: Use the cheque number as the Reference.
9. Click View (button) and select Items to show a list of outstanding items.
10. Allocate the Payment to the applicable Invoices (see the Outstanding section on the bottom right):
    • Click Allocate (button) to automatically allocate the payment, or
    • Click Select to choose the invoices that were paid by checking the checkbox next to the applicable invoices.
11. If there was a previous Overpayment on the account, click Menu > Clear Overpayment to allocate the current payment to the Overpayment.
12. Click Done (button).

Option B: Enter Future-Dated Transactions into Control Accounts#

How to Set Up BOS Professional for Option B#

1. Navigate to Main Menu > Setup > Accounting > Accounts > Statement of Financial Position > Assets.
2. Right-click Bank and select Add.
   1. Create a Bank Account and name it Supplier PD Control.
   2. Create a Bank Account and name it Customer PD Control.
3. Navigate to Main Menu > Setup > Accounting > Settings (tab).
   • Note: Leave the fields not shown below blank.
   1. Select a Bank Account into which Customer Receipts are banked.
   2. Select a Bank Account from which Post-Dated Transactions are processed.
4. Navigate to Main Menu > Setup > Accounting > Click the Entry Types tab.
5. Click Add Entry Type (button) and create these entries:

How to Enter Post-Dated Supplier Payments#

1. Navigate to Main Menu > Accounting > Ledger.
2. Click New (button).
3. Select Supplier Post-Dated Cheque Payments.
4. Follow the procedure for Supplier Payments.
   • Note: Use the cheque number as the reference number, if applicable. The Bank Account that is credited is the Supplier PD Control Account.

How to Enter Post-Dated Customer Receipts#

1. Navigate to Main Menu > Accounting > Ledger.
2. Click New (button).
3. Select Customer Post-Dated Cheque Receipts.
4. Follow the procedure for Customer Receipts.
   • Note: The Bank Account that is debited is the Customer PD Control Account.

How to Clear Post-Dated Supplier Payments#

1. Navigate to the Main Menu > Accounting > Ledger.
2. Click New (button).
3. Select Clear Supplier Post-Dated Payments.
4. Enter the Cheques that are banked.
   • Note: You only need to enter the Date, Reference and the Amount. The Dr and Cr Accounts are prefilled using the accounts that were created when you created the Entry Types.

How to Clear Post-Dated Customer Receipts#

1. Navigate to the Main Menu > Accounting > Ledger.
2. Click New (button).
3. Select Clear Customer Post-Dated Receipts.
4. Enter the Receipts that are banked.
   • Note: You only need to enter the Date, Reference and the Amount. The Dr and Cr Accounts are prefilled using the accounts that were created when you created the Entry Types.

How to View a List of Post-Dated Payments#

1. Navigate to the Main Menu > Accounting > Ledger.
2. Select Filter = Transactions.
3. Select Entry Type = Supplier Post-Dated Cheque Payments.
4. Set the Date.
5. Click View (button).

How to View a List of Post-Dated Receipts#

1. Navigate to the Main Menu > Accounting > Ledger.
2. Select Filter = Transactions.
3. Select Entry Type = Customer Post-Dated Cheque Receipts.
4. Set the Date.
5. Click View (button).

If you use Option B, ensure that you reconcile the Supplier PD Control and Customer PD Control accounts monthly. These accounts must always have a zero balance for the previous month.