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Former Member
Jan 19, 2014 at 08:15 PM

Post Dated Cheques Cycle


Hello Gurus,

I have done some searching and I couldn't find a PDC Cycle that meets my requirement, it would be nice to have some suggestions.

Our PDC Cycle begins by receiving the cheque from the customer into the cashbox, an accounting entry needs to be made here as PDCs are accounted for as part of the weekly/monthly inventory of the cashbox, this is particularly important if the check is received after the banks are closed and is kept overnight in the cashbox.

Later the cheque is deposited into a PDC Account in the bank where cheques are kept until their maturity date, that is when they are either cashed (collected from the customer's account into our current account), or bounced/rejected in case the customer's account does not have sufficient funds, in which case it is returned to the accountant to either be escalated to the legal department or, if agreed by the customer, to be replacedwith a cash payment.

Any thoughts?

Thank you in advance.