Postdated Cheques are posting our Customer/Vendor balances and Credit limit.
Since they are post dated, It shouldn't posted to the Customer / Supplier Ledgers when post dated journals are posted. Instead, It should post to the Customer/Vendor Clearing account and Bridging account
The impact when we use the Postdated Cheques(Bridging Account):
-Customer/Vendor reports shows as payment received. Actually they are Outstanding till the cheque is cleared.
-Credit Limits are utilities when the journals are posted
Since it is updating the customer ledger, we are registering them as Unposted journals and once it is setled, we are posting those
un posted journal. The Impact since we are using as unposted voucher :
1- We are unable to use the standard cash flow
2- Financially it is not registered in our books
3- Invoices are still showing as in collection reports
4- Credit limit is not utilized till we post the journal
Proposal / Suggestion:
1-When we register the Post-Dated Cheques - Received from Customer or Issued to the Vendor.
1.1 Vendor payment - the vendor liability is recognized, but the bank account isn’t yet credited. Instead, a clearing (PDC Received- Asset) account is credited.
Proposal: Since it post dated cheque, We don't want to recognize the vendor liability, instead a clearing account to be credited.
· Credit Vendor Clearing Account
· Debit Bank Clearing Account
1.2 When Customer payment is posted - the customer receivable is credited and , but the bank account isn’t yet debited. Instead, a clearing(PDC Issued - Asset) account debited.
Proposal: Since it post dated cheque , We don't want to credit the customer receivables, instead a clearing account to be credited.
· Debit the Customer Clearing account
· Credit the Bank Clearing account
2) Settle the Post-Dated Cheques - Received or Issued Post dated Cheques.
Proposal: When the check is settled, the bank is finally debited or credited against the clearing account that was used earlier.
2.1 Customer Payment Settlement
· Debit the Customer account and Credit the Customer Clearing account
· Credit the Bank account and Debit the Bank Clearing account
2.2 Vendor Payment Settlement
· Debit the Bank account and Credit the Bank Clearing account
· Credit the Supplier account and Debit the Vendor Clearing account
3) Credit Limit Usage
· The system should utilize the crredit limit while settling the post dated cheques
· Display un settled Postdated cheques in Customer statement, Ageing reports.