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    Farooq Haider Syed, PMP
    Issuance of Post dated Checks (PDC)Answered
    Topic posted February 17, 2018 by Farooq Haider Syed, PMPBlack Diamond: 60,000+ Points, last edited January 30, 2019, tagged Payables 
    189 Views, 4 Comments
    Title:
    Issuance of Post dated Checks (PDC)
    Summary:
    Issuance of Post dated Checks (PDC)
    Content:

    Hi,

    We have business scenarios that we are giving Post dated Checks (PDC) to our some customers while the time of receiving items as part of the agreement and contact.

    Now How can we deal with Post dated cheques (checks ) in Oracle without booking liability.

    PDC Checks  End of Each Month for 12 Month like from Jan-18 to Dec-18

    We are doing agreement with Supplier and we are providing them 12 PDC Checks will be cleared end of each month. But at the time of printing of checks there is no accounting impact.

    • We can't create prepayment as this is not prepayment
    • We can't create post dated checks as we dont have invoices
    • We are receiving invoices on month basis and our check cleared for payment on monthly basis.
    • So how can we deal in this case.

    Second if we print these checks (PDCs) outside system and book the invoice end of each month and then make the payment our physical check number is not matching with system check number as we are issuing may PDC to many suppliers.

    Thanks

    Farooq

    Best Comment

    Rohan Kamat

    Hi Farooq

    You can try the below process . 

    If you are using Cash management , use the ad-hoc payment feature to send PDC for every period from Jan to Dec , the ad-hoc payment do not require invoices and you would retain the system generated payment number  . 

    At the time of entering the ad-hoc payment , use the offset account same as the Cash Account , by this it nets in itself . Then when you get the actual invoice just do a dummy payment such that the invoice is marked as paid and invoice and payment are both accounted 

    This is a just a thought processes . Let me know if that works :)

    Thanks

    Rohan

     

     

     

     

     

    Comment

     

    • Rohan Kamat

      Hi Farooq

      You can try the below process . 

      If you are using Cash management , use the ad-hoc payment feature to send PDC for every period from Jan to Dec , the ad-hoc payment do not require invoices and you would retain the system generated payment number  . 

      At the time of entering the ad-hoc payment , use the offset account same as the Cash Account , by this it nets in itself . Then when you get the actual invoice just do a dummy payment such that the invoice is marked as paid and invoice and payment are both accounted 

      This is a just a thought processes . Let me know if that works :)

      Thanks

      Rohan

       

       

       

       

       

    • Farooq Haider Syed, PMP

      Dear Rohan,

      Thank you very much, Its great idea and it can be work.

       

      Thanks 

      Farooq

    • Becky Alvarez

      There is also a feature called Deferred Expenses or Mulitperiod Accounting that might also help.  You do enter an invoice and then accrue the expenses across multiple periods.  I would read up on that and see if that would also work for you.

    • Shivmohan Purohit

      Also you can give a thought on this note as well : 

      Fusion: How to Enable Future Dated Payments / Bills Payable (Doc ID 2041138.1)

     

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