Process a postdated check

  • 15 minutes

This unit explains how to register and post a postdated check for a customer and a vendor. If your original check to a vendor is lost or damaged, you can issue a replacement postdated check. When you register the check details, provide a reference to the original check, and then indicate that the new check is a replacement for the original. You can also post the replacement check.

Register and post

When the payment is posted, the vendor liability is recognized, but the bank account isn’t yet credited. Instead, a clearing account is used for this purpose. You need to register the details of a postdated check that you issue to a vendor.

Register the details of a postdated check that you receive from a customer. When the payment is posted, the customer's receivable is credited, but the bank account isn’t yet debited. Instead, a clearing account is used for this purpose.

You can register details of a postdated check that are received from a customer. You can also post the postdated check and generate financial transactions.

Follow these steps to register the details of a postdated check for a customer:

  1. Go to Accounts receivable > Payments > Customer payment journal.
  2. Select New.
  3. In the Name field, type a value.
  4. Select Lines from the menu at the top.
  5. In the Account field, specify the desired values.
  6. In the Credit field, enter the amount specified on the postdated check.
  7. Select the Payment tab.
  8. In the Method of payment field, select the method of payment for the postdated check.
  9. Select the Postdated checks tab.
  10. In the Maturity date field, enter the date when the postdated check is due for payment.
  11. In the Issuing bank branch field, enter the bank details of the postdated check.
  12. In the check number field, type a value.
  13. In the Issuing bank name field, enter the bank details of the postdated check.
  14. Select Post.
  15. Close the page.

Transfer a customer postdated check to a vendor

When you receive a postdated check from a customer, you can transfer that check to a vendor as a payment.

You can register the details of a postdated check before you issue the check to a vendor by using the journal voucher. You can also post the postdated check and generate financial transactions. Follow these steps to register the details of a postdated check for a vendor.

  1. Go to Accounts payable > Payments > Payment journal.
  2. Select New.
  3. In the Name field, select a journal.
  4. Select Lines.
  5. In the Account field, specify the desired values.
  6. In the Debit field, enter a number.
  7. In the Method of payment field, select the method of payment for the postdated check.
  8. In the list, find and select the desired record.
  9. Select the Postdated checks tab.
  10. In the Check number field, enter or modify the number of the postdated check.
  11. In the Issuing bank name field, enter the bank details for the issuing bank.
  12. Select the List tab.
  13. Select Post.
  14. Close the page.

Settle a postdated check for a customer and a vendor

You can settle a postdated check after the check has been cleared by the bank. This financial transaction also clears the bridge account transaction for the postdated check.

Settle a postdated check that is posted to a bridging account for a customer or a vendor when the check finally matures. When the check is settled, the bank is finally debited or credited against the clearing account that was used earlier.

Follow these steps to settle a postdated check for a customer:

  1. Go to Credit and collections > Inquiries and reports > Payments > Customer postdated checks.
  2. Select Settle.
  3. Select Settle clearing entries, and then settle the customer account for the check transaction.
  4. Close the page.
  5. Go to General ledger > Journal entries > General journals.
  6. In the Show field, select an option.
  7. Enable or disable the Show user-created only option.
  8. In the list, find and select the desired record.
  9. Select Lines.
  10. Select Voucher.
  11. Close the page.

Settle a postdated check that was issued to a vendor when the bank has cleared the check transaction after the check has been overdue and cleared by the bank.

Follow these steps to settle a postdated check for a vendor:

  1. Go to Accounts payable > Payments > Vendor postdated checks.
  2. Select Settle.
  3. Select Settle clearing entries. Settle the vendor account for the check transaction.
  4. Close the page.
  5. Go to General ledger > Journal entries > General journals.
  6. In the Show field, select All.
  7. Enable or disable the Show user-created only option.
  8. Select Lines.
  9. Select Voucher.
  10. Close the page.

Cancel a postdated check for a vendor

You can cancel a posted postdated check in these situations:

  • The check is returned by the bank.
  • The check is applied to an incorrect invoice.
  • A cash payment is made against the check.

Stop payment for a postdated check

You can stop payment on a postdated check that was issued to a vendor for reasons such as not enough funds, changes in the terms of the agreement with the vendor, supply of defective goods by the vendor, or return of goods to the vendor. You can stop payment only on checks that haven’t cleared.