Post Dated Cheque
1) What is Post Dated Cheque?
A post dated cheque, as the name indicates is a cheque in which a future date is entered. This means that the cheque cannot be cashed until that day. Till the date of cheque, it remains bill of exchange and it becomes cheque only on the date written on the cheque. Its popular name is PDC.
2) Process flow of PDC
Step 1: Receive PDC from the customer
Step 2: Enter the PDC into the SAP system
Step 3: Convert the PDC to Payment on due date
3) Configuration Involved in PDC
Post Date Cheque will be treated as Bills of Exchange. And also, for that Alternative Reconciliation Acct will be created.
While posting bills of exchange/PDC, the system will post the entries to Alternative Reconciliation Acct instead of to the normal receivables account (reconciliation account). This way it is possible to keep bills of exchange/PDC separate from the normal receivables.
Special GL Indicator “W” is meant for bill of exchange and we need to maintain GL Acct in this Special GL Indicator. Special GL Indicator will be maintained at Chart of Account level so there is a need to specify the Chat of Account here.
Customer reconciliation account as well as the special GL account corresponding to the Reconciliation account will be specified.
Step 1: Receive PDC from the customer
Step 2: Enter the PDC into the SAP system
While posting PDC payment and linking the same to the appropriate open item for the customer (via Process open items), the system automatically credits the reconciliation account from the customer master record. However, instead of debiting the G/L account for "bank" or "cash in bank" as it would with a normal incoming payment, the system debits the special G/L account for PDCs.
Transaction code F-36 is used for posting below mentioned entry on the date of receiving of PDC. System by default take the posting Key as “09” and Special GL Indicator as “W”. Here company will specify the customer code against which we have received the PDC.
Accounting Entries: (While receiving PDC/Bills of Exchange)
PDC Receivable A/c Dr XXXX
Customer A/c Cr XXXX
Reports on bill of exchange
Status of PDCs can be monitored each day that have been received, and check if there are some cheques that mature on the particular day. In order to meet the above purpose, report with Transaction code S_ALR_87012208 & S_ALR_87012209 can be generated.
Step 3: Convert the PDC to Payment on due date
When mature cheque have been cashed, incoming payment will be executed (for individual PDC) to credit the PDC account and debit the cash, bank account, or bank clearing account – depending company's accounting procedure.
Transaction code F-28 is used for posting below mentioned entry on the date of maturity of PDC.
Accounting Entries: (On due date of PDC)
Bank A/c Dr XXXX
PDC Receivables A/c Cr XXXX