Update the Financial System with Preliminary Postdated Checks

This document explains how you create account entries for preliminary postdated checks. You do this for postdated checks that were previously entered without updating the financial system.

Outcome

The postdated checks are changed from preliminary to definite. The following reports are printed: A list of updated checks, a customer payment journal and an accounting journal.

Since the checks now are regular checks, from an accounting point of view, deposit them on or after the date specified on each check.

Accounts receivable and the general ledger are updated.

Account Entries Created: Checks Belonging to Payment Class 1

For checks allocated to invoice and with bank remittance:

Accounting Rule Account (with Transaction Code) Debit Credit
* Customer (20)   x
AR05–371 Checks not allocated (21)   x
AR05–372 Checks not cashed (21) x  
AR05–371 Checks not allocated (21) x  

* Account entry based on the original invoice.

For checks allocated to invoice and with no bank remittance:

Accounting Rule Account (with Transaction Code) Debit Credit
* Customer (20)   x
AR05–371 Checks not allocated (21)   x
AR05–370 Bank (21) x  
AR05–371 Checks not allocated (21) x  

For checks not allocated to invoice and with bank remittance:

Accounting Rule Account (with Transaction Code) Debit Credit
AR05–371 Checks not allocated (21)   x
AR05–372 Checks not cashed (21) x  

For checks not allocated to invoice and with no bank remittance:

Accounting Rule Account (with Transaction Code) Debit Credit
AR05–371 Checks not allocated 21   x
AR05–370 Bank (21) x  

Account Entries Created: Checks Belonging to Payment Class 1

For checks with bank remittance:

Accounting Rule Account (with Transaction Code) Debit Credit
* Customer (20)   x
AR30–195 Drafts not remitted (21) x  

For checks with no bank remittance:

Accounting Rule Account (with Transaction Code) Debit Credit
* Customer (20)   x
  Bank (from FAM function) (21) x  

Checkbook Updated

Status 20, indicating that the check is only preliminarily allocated to invoice, is removed from the check in 'Customer Check. Display' (ARS430).

Before you start

The starting conditions listed in Recording Customer Payments must be met.

Follow These Steps

Create Proposal

  1. Start 'Postdated Check. Create Account Entries' (ARS320/B) and click New.

  2. On the E panel, enter any of the following selection criteria (optional): Up to seven payment methods; ranges of check numbers, bank accounts, currencies and payers.

  3. Enter the oldest valid deposit date to be considered (optional) and the latest (required).

  4. Enter a report name (required) and an optional report text. Press Enter to review the proposal in (ARS320/B).

    The proposal contains the following information: Payer, check number, invoice number, invoice date, due date, currency and invoice amount. The proposal statuses used are: 0 = Can be processed; 1 = Being created; 4 = Being deleted; 9 = Updating accounts receivable.

Review Proposal

  1. In (ARS320/B), select option Open for the proposal when it has status 0.

  2. In 'Postdated Check. Open Proposal' (ARS325/B), select one of the following alternatives and then return to (ARS320/B):

    • To block a check from being included in the update and give it status 3 = Blocked, select option Hold
    • To release a blocked check and give it status 0 = Not blocked, select option Release
    • To remove a check from the proposal altogether, select option Delete
    • To review the invoices to which a check is allocated, select option 11 = Invoices to activate 'Postdated Check. Open Invoice' (ARS326/B)

      From (ARS326) you can activate 'Customer Invoice. Display Separate' (ARS215) for invoice details.

Create Account Entries

  1. In (ARS320/B), select option 9 = 'Update accounts receivable' for the proposal.

  2. Review the reports printed.

Related topics