Dynamics 365 Finance
Category
Mar 20, 2024
Published date
Text
Article Type
AI Summary
- The article discusses the continued popularity of check payments, particularly post-dated checks, despite the rise of electronic payment methods.
- Dynamics 365 Finance offers a simple process to create and account for post-dated checks.
- Post-dated checks are not directly accounted for in the bank account but instead stored temporarily in a bridging account until the maturity date.
- The accounting process for post-dated checks involves debiting the bridging account and crediting the vendor or customer account before maturity, and then debiting the bridging account and crediting the bank account after maturity.
- To set up and use post-dated checks in Dynamics 365 Finance, the "Enable Postdated checks" and "Post journal entries for postdated checks" options must be activated in the Cash & Bank Management Parameters.
- The bridging account for issued and received checks should be specified in the parameters, and the same account can be used for both vendor and customer payments.
- A new payment method needs to be created in the Accounts Payable and Accounts Receivable modules, with the bridging posting and post-dated check clearing posting parameters enabled.
- The process for using post-dated checks involves creating a payment journal, selecting the method of payment as PDC, entering the maturity date, and posting the entry. The settlement of the post-dated check occurs when the maturity date is reached, and a general journal entry is generated to credit the bank account and settle the bridging account. This process is the same for both vendors and customers.
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