Exercise - Set up a postdated check

  • 20 minutes

The person that would perform this procedure is the Treasurer.

Before you begin

To get the most benefit from this and other exercises in this module, we recommend that you have the standard sample data available in Finance that is installed by using Lifecycle Services.

This procedure uses the USMF demo company.

  1. Go to Cash and bank management > Setup > Cash and bank management parameters.
  2. Select the Postdated checks tab.
  3. Select the Enable postdated checks option.
  4. Enable the Post journal entries for postdated checks option.
  5. In the Clearing account for issued checks field, enter or select the clearing account number for issued checks.
  6. In the Clearing account for received checks field, enter or select the clearing account for received checks.
  7. In the General journal for clearing entries field, select or enter the general journal associated with clearing entries.
  8. In the Transfer postdated checks to this vendor payment journal field, choose the vendor the postdated checks are to be transferred.
  9. In the Withholding tax clearing account field, select the appropriate withholding tax clearing account.
  10. Select Save.
  11. Close the page.
  12. Go to Accounts payable > Payment setup > Methods of payment.
  13. Select New.
  14. In the Method of payment field, type the name for the method of payment.
  15. Under the General section, select the Postdated check clearing posting option to indicate that the check amount is posted to a clearing account.
  16. In the Account type field, select Bank. The offset account of the payment method will be a bank.
  17. In the Payment account field, select the bank account that is used to deduct the invoice amount.
  18. Click Save.
  19. Close the page.
  20. Go to Accounts receivable > Payments setup > Methods of payment.
  21. Select New.
  22. In the Method of payment field, type the name of the method of payment.
  23. Under the General section, select the Postdated check clearing posting option to indicate that the check amount is posted to a clearing account.
  24. In the Account type field, select Bank. The offset account of the payment method will be a bank.
  25. In the Payment account field, select the bank account that is used to deduct the invoice amount.
  26. Click Save.
  27. Close the page.