Post Dated Cheques Cycle

[Former Member]

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.

[Former Member · Accepted solution]

Hi Rani,

Please check out this link.

http://help.sap.com/ERP2005_EHP_05/helpdata/EN/02/09f03e89934535a6827d2c26282246/frameset.htm

Above mentioned link covers up from configuration to data entry level

See if you get the correct direction.

Thanks

Naseem

[Former Member · Accepted solution]

Thank you for that, very helpful but unfortunately the customer is using ECC 6.0 with no EHPs installed so far, while the solution in the link you provided requires EHP 5.0.

[former_member408301]

SAP provides an option to handle post dated checks and clearing. When completing the section "Specification for posting items for check deposit and clearing" make sure that you tick the check box "No posting for check deposit". You have to set this indicator if you do not want the system to automatically create a posting to the check deposit account.The following rule will apply for postdated checks: This posting of the total amount is always made to the check deposit account at the time of the later check deposit, and not at the time of the posting of the check lot.

[Former Member]

Hi Rani,

It is against accounting conventions(Prudent or conservatism) to enter a journal entry for Post dated cheque.

So you shall create a noted item for post dated cheque to keep track of it.

Hope it is clear.

Regards,

G.Sethuraman

[Former Member]

Allow me to correct that, PDCs are not included in the Cash Cycle, they also have no Financial impact upon collection and while they are kept in the safe for deposit into the bank, but once they are deposited in the "Cheques Under Collection" bank account they do need to be posted into the books.

For the first part of my scenario (Collection of the cheque from the customer and keeping it in the safe for collection) it might be true that PDCs need to be treated as noted items, but once they are in the bank they need to be posted, and this is where I am looking for a scenario to handle this part of the cycle.

Thank you.

[former_member222241]

Hi,

Actually it is not advisable to give post dated checks from SAP as

1. It affects agewise reporting.

2. It affects vendor Open item list as you need to change the payment terms.

In case you want to give post dated checks, you can do following

1. You can give check manually and update the same through FCH5 (Create check information).

2. In case you want to give PDC through F110 then change the posting date to the PDC date.

Pre-requisites

1. Change payment terms in document.

2. Remove payment block from document.

Important note

Please be very careful in case you are giving this process to client and warn him about the consequences as on later date in case agewise goes wrong there can be a management issue.

Regards,

Tejas

[Former Member]

Hi Rani,

The Post dated cheque functionality is not supported by SAP.. however, workaround is possible. Noted items can be posted in SAP which is for information purpose only and does not create any accounting impact.

You can post noted item in customer account and this can be seen in FBL5N(YOu need to select noted item on the selection screen)

These noted items can also be cleared so you can also clear them when you account for customer collection in the books.

Regards,

Kavita

[former_member191939]

Hi Rani,

Please go through the links given below.

http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/80d73285-a7ab-2e10-9b86-9cf71960d...

http://scn.sap.com/thread/1811356

http://scn.sap.com/thread/1245319

Hope this helps you.

Regards

Eugene