I wanted to introduce functionality of AX 2012 to your knowledge , and I am sure this is a a widely accepted and used practice in business.
Post-dated checks are checks which are delivered now with a date in the future, so that it cannot be cashed until that date.
Checks are one of the primary ways to make and receive payments and issuing of PDC is a very widely used practice across many businesses today. A post dated check is one which has a future date on it Microsoft dynamics AX 2012 brings the PDC functionality in both AR and AP modules with the financial dimensions, check printing, banking functionality and the settlements functionality.
In today’s post, we will take a look at the setup and processing of the PDC in AX 2012.
- First step is Enable PDC in Cash and Bank management parameter form.
Post journal entries for postdated checks: If this check box is marked, then financial transactions will be posted to the clearing accounts for vendor/customer using the account.
General journal for clearing entries: Select the journal which will be used to settle postdated transactions.
Transfer postdated checks to this payment journal: This vendor payment journal will be used to record the postdated transactions.
Now that we have done the required setups to enable PDC in AX 2012, let us take a examine at the transactions and other impacts by a PDC from a vendor.
Step 1: Create a new method of payment under AP module and Mark the Bridging posting for this
Note** when you select the Postdated check clearing posting checkbox, the bridge posting gets automatically checked and the bridging account defaults from the cash and bank Management > Setup > Clearing account for issued checks
Step 2: Create an AP payment journal and select the PDC method of payment
Notice that when you select PDC as the method of payment, the offset account automatically defaults which is the clearing account for issued checks.
Also see that the postdated check tab is enabled, when you click on it, you can enter other additional information related to the Check such as the maturity date, received date, check number, issuing bank and branch
After you post this journal, below is the financial voucher.
Users can view and track all the Vendor Post dated checks in the AP > Common > Post Dated Checks form. When the check maturity date reaches, you can click Settle clearing entries button, and system automatically posts the general journal for this clearing entry. Screenshot below.
Note * – You can also click the Checks to send to bank button and system will automatically filter all the checks which have reached the maturity dates and needs to be sent to the bank.
You can also process and verify this in the AR module.
If you have questions, be sure to leave me a comment!