Set up postdated checks
Postdated checks are issued to help you make and receive payments on a future date. You can specify whether the check must be reflected in the accounting books before its maturity date.
You need to make sure that you set up a new payment method and specify the payment routine for clearing accounts for issued checks, received checks, and withholding tax.
You can also specify clearing accounts for issued checks, received checks, and withholding tax.
Watch this video to learn how to set up postdated checks in Finance:
To set up postdated checks, follow this procedure:
Go to Cash and bank management > Setup > Cash and bank management parameters.
Select the Postdated checks tab.
Select the Enable postdated checks option.
Enable the Post journal entries for postdated checks option.
In the Clearing account for issued checks field, specify the desired values.
In the Clearing account for received checks field, select or type the desired values.
In the General journal for clearing entries field, select or type the journal for clearing entries.
In the Transfer postdated checks to this vendor payment journal field, select or type the vendor payment journal this is assigned to.
In the Withholding tax clearing account field, select or type the account withholding clearing account this will be assigned to.
Select Save.
Close the page.
Go to Accounts payable > Payment setup > Methods of payment.
Select New.
In the Method of payment field, type the name of the method of payment. You'll notice it appears in the menu at the left.
Under the General section, select the Postdated check clearing posting option to indicate that the check amount is posted to a clearing account.
In the Account type field, select Bank. The offset account of the payment method will be a bank.
In the Payment account field, specify the bank account that is used to deduct the invoice amount.
Click Save.
Close the page.
Go to Accounts receivable > Payments setup > Methods of payment.
Select New.
In the Method of payment field, type the name of the method of payment. You'll notice it appears in the menu at the left.
Under the General section, select the Postdated check clearing posting option to indicate that the check amount is posted to a clearing account.
In the Account type field, select Bank. The offset account of the payment method will be a bank.
In the Payment account field, select the bank account that is used to deposit the invoice amount.
Click Save.
Close the page.
