Post Dated Checks in Microsoft Dynamics AX 2012

Hello everyone,

I apologize for a long delay in replying to queries and coming up with my next posts. Work keeps all of us busy..and last few weeks have been crazy.

Anyways, I have found some time finally and I promise I will reply to each of the queries and comments which I have received in last weeks. Before I start looking at the comments, I wanted to bring yet another new functionality of AX 2012 to your notice, which is very promising and I am sure will be accepted and used widely.

The new Post dated checks (PDCs)  functionality. Checks are one of the primary ways to make and receive payments and issuing of PDC is a very widely used practice across many businesses today. Microsoft dynamics AX 2012 brings the PDC functionality in both AR and AP modules with full integrity with the financial dimensions, check printing, banking functionality and the settlements functionality.

In today’s post, we will take a look at the setup and processing of the PDC in AX 2012.

1. The PDC functionality can be enabled or disabled globally in license configuration option.

2. Enable PDC in general ledger parameter form.

Post journal entries for post dated checks : If this check box is selected, financial transactions will be posted to the clearing accounts for vendor/customer using the account and journal details provided in the subsequent fields in this form.

General journal for clearing entries : Select the journal which will be used to settle post dated transactions.

Transfer post dated checks to this payment journal : This vendor payment journal will be used to record the post dated transactions.

Make note that you can also have the withholding tax in a clearing account until the PDC is paid by specifying the account in the “Withholding tax clearing account” field.

Now that we have done the necessary setups required to enable PDS in AX 2012, let us take a look at the transactions and other impacts by receiving a PDC from a customer.

3. The next step is to setup a new method of payment under AR module and enable the PDC for this. Refer screen below. Note that, when you select the Postdated check clearing posting checkbox, the bridge posting gets automatically checked and the bridging account defaults from the GL > Setup > Clearing account for received checks.

4. Create a AR payment journal and select the PDC method of payment as shown in screen below.

Notice that when you select PDC as the method of payment, the offset account automatically defaults which is the clearing account for received checks .

Also see that the Postdated check tab is enabled and when you click on it, you can enter other additional details related to the PDC, such as the maturity date, received date, check number, issuing bank and branch etc.. as shown in screen below.

5. After you post this journal, below is the financial voucher.

6. Users can view and track all the customer PDCs in the AR > Common > Post Dated Checks form. When the check maturity date arrives, users can click Settle clearing entries button, and system automatically posts the general journal for this clearing entry. Screenshot below.

Note * – User can also click the Checks to send to bank button and system will automatically filter all the checks which have reached the maturity dates and needs to be sent to the bank.

Above were few functionalities which the new PDC function of AX 2012 allows. You can also process and verify this in the AP module.

To summarize, the PDC allows the below capabilities in AX 2012.

• Allows to setup separate clearing accounts for withholding taxes.
• Settlement of PDC against one or more transactions (Including intercompany).
• Cancel a PDC.
• One single screen to be aware of all maturing PDCs and taking actions on them.
• Most importantly, the PDC also facilitates installment schedules. I will probably discuss this little function in a separate post, as this would make this post really huge.

Please feel free to contact me if you need any clarifications in this regard.

Thanks

Keep DAXING