This post dated cheque management software enables users to manage PDCs in one screen. It automates the process of getting detailed reports and reminders for due cheques with the help of automated alerts, which helps decision making at each stage of PDC lifecycle. The software also provides multiple reports such as list of bounced cheques, current outstanding amount etc., which helps decision making at each stage of PDC lifecycle.
In this guide, we review the aspects of Post Dated Cheque Management Software Free, how to write a cheque post dated, what is the entry for post dated cheque, and Can post-dated cheque be discounted?
Post Dated Cheque Management Software Free
PDC Management Software is a free download for all banks and other financial institutions. PDC management software is an easy-to-use solution to manage post dated cheques (PDCs) in one screen using the bank’s existing database infrastructure. The software allows users to track PDCs in one screen, get detailed reports and reminders for due cheques with the help of automated alerts. The software also provides multiple reports such as list of bounced cheques, current outstanding amount etc., which helps decision making at each stage of PDC lifecycle.
PDC Management Software
This is a simple and easy to use application that helps you to manage PDCs. It has been designed in such a way that it can be easily used by any person who wants to manage their payments and dues. You can download this software from the link given below:
Download PDC Management Software
If you want to know more about this software then read this article below where I have explained some of its features in details.
Manage PDCs with ease
There are a number of reasons why you should use this software for managing your cheques. Here are some of the top ones:
- Free download to manage your PDCs with ease
- Track PDCs in one screen
- Get detailed reports and reminders for due cheques with the PDC management software.
Track PDCs in one screen, get detailed reports and reminders for due cheques with the PDC management software.
The software allows you to track your PDCs in one screen, get detailed reports and reminders for due cheques. It also generates a report for quick reference.
This software enables users to manage their PDCs more effectively by allowing them to do the following:
- Track PDCs in one screen
- Get detailed reports and reminders for due cheques
- Generate reports for quick reference
Easily manage PDCs and track due dates in a single dashboard.
Easily manage PDCs and track due dates in a single dashboard.
With this free software, you can get your accounts payable process under control by easily managing your post-dated cheques. If you have a lot of PDCs, then this is the program for you. This software will allow you to see all of your PDCs right on one screen, including their due dates and amounts. You can even generate reports to show who owes money to whom. It also comes with reminders that alert you when payments are late or bounced checks so that nothing falls through the cracks!
Receive reminders for bounced cheques.
Besides importing your bank account transactions, one of the most important features of this software is that it allows you to receive reminders for bounced cheques.
These reminders help you save yourself from any embarrassment or losses because when a cheque gets bounced, it may result in several problems including delays in payment, additional charges etc., which can be avoided if you get alerted before making the transaction using this software. So how do you get these alerts?
To receive alerts and reminders: Go to Settings >> Notifications >> Add Notification and select Cheque Management as your category. On doing so, Dated Cheque Management will create an email notification for every new event related to cheques such as issuing/cancelling/receiving & deposits/withdrawals
Generate reports for quick reference.
Reports can be generated for PDCs, cheques and also for cheques that have been returned/paid. These reports are very handy to have at hand and help you keep track of your finances in a better way.
how to write a cheque post dated
Definition and Examples of a Postdated Check
Postdated checks are normal checks, but the person writing the check chooses to write a later date on it. This date can be tomorrow, next week, or even years from now. If it’s later than the current date, then it’s a postdated check.
For example, assume that today is January 1, and you’re writing a check. In general, you’d put the current date of January 1 on the check, but you could just as easily postdate it a week and write January 8 on the check, instead.
How Does a Postdated Check Work?
People usually postdate checks when they want the recipient (the person or business receiving the payment, also known as the payee) to wait before depositing the check. Two potential reasons for this include:
No Fraud Allowed
Postdated checks are legal. However, it is illegal to write a check when you know you don’t have the funds to cover it, even if you hope to have the funds later. It is also illegal to pretend to pay someone without actually intending to do so.
Not a Guarantee for Check Writer
Just because it’s legal to write a postdated check doesn’t mean things will work out the way you intended. The date you choose to use is not part of a legally binding agreement between you and the payee. In most cases, the recipient can deposit the check at any time, and the bank is free to pay funds out of your account before the date shown on your check.
While postdating a check won’t guarantee a delay, you can specifically instruct your bank not to cash a certain check until a certain day. Banks have different policies for how long they will continue to monitor to prevent premature payment.
You may have to pay a fee for this service, as well.
Tips for Receiving a Postdated Check
In most cases, when you receive a postdated check, you can deposit or cash a postdated check at any time. Debt collectors may be prohibited from processing a check before the date on the check, but most individuals are free to take postdated checks to the bank immediately. That said, if you agreed to wait, cashing the check prematurely might be considered in violation of an oral agreement, and that could be illegal in some jurisdictions.
It’s wise to communicate first with whoever wrote the check—there’s probably a reason it’s postdated. If the account does not have sufficient funds, the check might bounce, and you might have to pay insufficient funds or overdraft fees to your bank. You can try to get those fees reimbursed by the check writer, but collecting from somebody who’s already low on funds can be time-consuming, and if legal action is required, it could be expensive.
When you have a postdated check, find out if the check was intentionally postdated and figure out a solution.
Cashing a postdated check might be more difficult than depositing it. Depositing allows your bank to place a hold on the funds while the check clears, but cashing a check requires an immediate transaction. If you really want to cash a postdated check for the full amount, take it to the bank that issued the check (where the check writer has a checking account).
Who Pays if There’s a Problem?
In some cases, postdated checks get deposited, and nobody ever notices (they don’t look closely at the date). Unless there’s a problem or complaint, those checks are processed and forgotten about.
However, a rejected payment (or an unexpected withdrawal from your checking account) can cause numerous problems. If you properly provided instructions to your bank and they pay funds from your account anyway, your bank should be required to cover any overdraft charges that result. You may have further recourse against your bank for any other expenses you face.
Alternatives to Postdated Checks
If you have the option, it is best to avoid writing postdated checks. The only way to guarantee they’ll actually work is to pay extra fees to your bank. If you’re unwilling or unable to pay your bank to monitor your account, you’re at the mercy of whoever you give the check to. Even if your payee is honest, they may make the honest mistake of forgetting (potentially leaving you with bad check fees).
what is the entry for post dated cheque
What is a Post Dated Check?
A post dated check is a check on which the issuer has stated a date later than the current date. It is used when the issuer wants to delay payment to the recipient, while the recipient may accept it simply because the check represents a firm date on which it will be able to deposit the check. This situation represents a risk to the check recipient, since the passage of time may result in there being no cash left in the issuer’s bank account to be used to pay the amount listed on the check when it is eventually presented to the bank for payment. A post dated check is also used when the recipient requires the issuer to hand over a set of post dated checks to cover a series of future payments, which the recipient agrees to cash on the specified dates. This approach is used to improve the odds of being paid, especially when the issuer has little credit.
Accounting for a Post Dated Check
From the perspective of the check issuer, there should be no journal entry to record the reduction in cash until the date listed on the check. From the perspective of the recipient, there should be no entry to record the increase in cash until the date listed on the check. Thus, the date on the check effectively postpones the underlying accounting transaction.
Example of a Post Dated Check
ABC International receives a $500 check payment from a customer for an unpaid invoice on April 30. The check is post dated to May 15. ABC should not record the cash receipt until May 15, nor should it reduce the related accounts receivable balance until May 15. Thus, the post dated check has no impact on the financial statements of ABC International until the date listed on the check.
Practical Use of a Post Dated Check
Realistically, the recipient of a post dated check may never notice that the check has been post dated, and so will record and deposit it at once. The bank is also unlikely to notice the date on the check, and in any case may have a policy of honoring all checks at once, irrespective of the check date. In this situation, the check is considered a negotiable instrument, irrespective of the date, and it is likely that the recipient will receive cash from the bank prior to the date on the check. In such a situation, it is allowable for the check recipient to record a post dated check upon receipt of the check.
From the perspective of the payer, the best way to ensure that funds are not released early is to notify the bank not to release funds against this check any earlier than the date stated on the check.
Auditor Treatment of Post Dated Checks
Auditors do not like to see post dated checks, since it implies that the payer is short on cash, and is attempting to pay bills later than it should. If an auditor sees an ongoing pattern of check post dating, there would be an inclination to delve more deeply into company finances, and perhaps state a going concern issue in the auditor’s opinion that accompanies the financial statements.
Can post-dated cheque be discounted?
Do you need to boost your liquidity for sustained operations in your business?
Cheque discounting solution enables you to access cash for your business requirements while you wait for your cheque(s) to clear.
In today’s business environment, high liquidity is particularly important for the viability of any business. Companies that trade in cash have a distinctive advantage over their competitors. Cheque Discounting ensure continuous flow of your business working capital which would otherwise be affected awaiting the cheque to complete the clearing cycle.
Cheque Discounting also called Cheque Cashing helps access immediate cash from lenders against current or postdated cheques. The cash obtained is normally lower than the cheque face value. The deducted amount acts as commission.
In the simplest form of check discounting, the financial institution allows you to take funds against a check without waiting for that check to clear. More sophisticated discounting scenarios use post-dated checks, creating the equivalent of a short-term loan for the amount and time frame of the check. The lending institution typically charges interest on the amount that’s withdrawn, as well as a range of service fees that vary between institutions and countries.
For availing the cheque discounting facility, one needs to check whether they are eligible and meeting criteria /requirements set out by the financial institution.
A cheque discounting facility is a more flexible and affordable form of corporate finance and company can access to following benefits.