Post-dated cheques
Record cheques dated in the future, received from customers or given to suppliers, and follow each one until the bank clears it, returns it or it is replaced.
In the UAE many payments are made by cheques dated weeks or months ahead. Verasol records such a cheque in two steps. On the day the cheque changes hands, the customer or supplier is settled: the invoice or bill is paid. Your bank is touched only when the cheque clears. In between, the cheque waits in the post-dated cheques register and on its own account in your books.
Record a post-dated cheque#
A post-dated cheque is a payment by cheque whose cheque date is later than the payment date. Record it where you record any payment: Record Payment on the invoice, the payment on the bill, or New Payment under Payments.
- Choose Cheque as the mode.
- Enter the cheque number and the Cheque date written on the cheque.
- Keep the payment date as the day you received or gave the cheque.
- Save and post the payment.
As soon as the cheque date is later than the payment date, the form shows that this is a post-dated cheque and what will happen. A cheque can be dated at most a year after the payment date. A refund can't be post-dated: record it on the day the cheque clears.
The register#
Open Banking › Post-dated cheques.
- 1 Received lists the cheques from customers and 2 Issued the cheques you gave to suppliers.
- 3 Waiting for the bank adds up the cheques not cleared yet. Next to it, the cheques due in the next seven days, and the balance of the post-dated cheques account in your books, which should agree with the register.
- 4 The buttons on each cheque are the steps that fit it now. The step that is due is in blue.
Choose Waiting, Due this week or All, and search by cheque number, customer, supplier or invoice. Each cheque shows its status, cheque date, the day it was received or given, the bank, and links to its payment and to the invoice or bill it pays.
| Status | Meaning |
|---|---|
| In hand | Received from a customer, not deposited yet. |
| Deposited | Handed to the bank, not cleared yet. |
| Issued | Given to a supplier, not presented yet. |
| Cleared | The bank paid it. The money is in (or out of) your bank. |
| Bounced | The bank returned it unpaid. |
| Cancelled | Returned to the customer, or stopped, before it cleared. |
| Replaced | Replaced by another cheque or payment. |
What you can do with a cheque#
Click the step on the cheque, check the date and click Confirm.
| Step | When | What it does |
|---|---|---|
| Deposit | A customer's cheque in hand | Records the day you handed it to the bank, and the Bank account. Nothing is booked. |
| Cleared | A cheque waiting for the bank | Books the bank on the day it cleared, which can't be before the cheque date or after today. |
| Bounced | A cheque waiting for the bank | Reverses the receipt or payment on that day: the customer owes again, or the supplier is owed again, and the invoice or bill is open again. |
| Returned by bank | A cheque that already cleared | The same as Bounced, and the bank taking the money back is booked too. |
| Return to customer / Cancel cheque | A customer's cheque still in hand, or a cheque you issued that has not cleared | Reverses the receipt or payment on that day. |
| Replace | A cheque waiting, or one that bounced | Cancels it and records the new payment for the same customer or supplier and the same invoice or bill: a new cheque, a bank transfer or cash. |
| Present again | A customer's cheque that bounced | Records the same cheque again and deposits it: the customer is settled again until the bank clears or returns it. |
When a cheque bounces, enter the 1 Reason (for example, insufficient funds). If the bank charged you for the returned cheque, enter it in 2 Bank charge for the returned cheque (optional): Verasol books it to bank charges, without VAT. If the bank charged VAT on that fee, leave the field empty and book the fee from its bank statement line, so the VAT is recovered. Then click 3 Confirm.
For a cheque you issued: 1 Cleared when it appears on your bank statement, 2 Cancel cheque when you stopped it or the supplier handed it back, 3 Replace when you pay the supplier another way.
What Verasol books#
A customer's cheque of AED 19,950.00, received on 23 September and dated 28 October:
| Account | Debit | Credit |
|---|---|---|
| 1170 Post-dated Cheques Received | 19,950.00 | |
| 1100 Accounts Receivable | 19,950.00 |
When a customer's cheque clears, for example one of AED 37,773.75:
| Account | Debit | Credit |
|---|---|---|
| 1000-0001 Current Account (Emirates NBD) | 37,773.75 | |
| 1170 Post-dated Cheques Received | 37,773.75 |
A cheque you issue works the other way. Giving the supplier a cheque of AED 30,318.75 books:
| Account | Debit | Credit |
|---|---|---|
| 2100 Accounts Payable | 30,318.75 | |
| 2120 Post-dated Cheques Issued | 30,318.75 |
And when it clears, Verasol debits Post-dated Cheques Issued and credits the bank.
A bounced cheque reverses the receipt or payment entry on the day it bounced. In the documentation company, a customer's cheque of AED 37,773.75 cleared and came back two days later for insufficient funds. Verasol booked the bank taking the money back (debit 1170 Post-dated Cheques Received, credit the bank), reversed the receipt (debit Accounts Receivable, credit 1170), and booked the bank's charge of AED 50.00 (debit 6800 Bank Charges, credit the bank).
For a cheque in a foreign currency, the clearing books the bank at the rate of the day it cleared. The difference from the rate of the day the cheque was received or given is an exchange gain or loss.