DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Accounting PDC Cheques


#1

Sometimes we work on issuing post dated cheques ,which gets paid much later, how do you think this can be accounted on the manager.

Will there be an option which could show amounts that will be issued at a future date.


#2

First, depending on your jurisdiction, post-dated cheques may be illegal. You should find out by asking your banker. A check is a promise to pay, backed by assets in your account, and your banking laws may require that it be negotiable immediately. In that case, you may need to use some other form of promissory note, contract, or agreement.

Second, Manager is intended as an accrual accounting system (although there are options for cash accounting reporting). Under an accrual system, all transactions are recorded as soon as the underlying events occur. For example, revenue is recognized when the service or product is delivered, not when the invoice is paid. A loan liability is recognized when the loan is created, not period by period as it is paid off. A credit card purchase is recorded when the purchase is made, not when the monthly statement is received or paid. And a check is recorded when issued, not at some future date or when presented to the recipient’s bank for payment, no matter how far in the future that may be. So in that sense, a post-dated cheque is no different than one issued to someone who simply takes a long time to deposit it.