A postdated check is simply a check that has been written with a future date. It’s a way to ask the payee not to cash the check until the indicated date. This is commonly done to help ensure that the check amount is not withdrawn from the account until additional funds can be deposited.

To handle uncleared cheques without impacting your financial statements, enable the Off-Balance-Sheet Accounting of Cheques option in the Administration > Settings > Money form. 

The main types of documents used for handling cheques are cheques Received, Cheques Issued, and Cheque Cancellations.

For example, let's create a new Cheque Received document.

In the payment details tab, the user can review the GL accounts that will be applied once the document is posted.

But, the cash account GL will be added in the additional information tab

The entry will be - DR Cash Assets (OBS)

                              CR Prepayments from Customer (OBS)

You can view the cheque details in the Cheque Analysis report within the Money module.

When you need to clear a cheque, select the clear option in the cheque document. A dialog box will appear where you should enter the bank details and then click on clear.

The following entry will be generated, and the transaction will subsequently be added to the bank account balance in the report.


Thanks for being a Firstbit Customer!                                                       #PDC #Off-Balance sheet #Post dated cheque

  • No labels