Arishy said:
Can you please guide me on the mechanics of recording a post dated
check for an existing invoice. What account should I use to offset the
reduction on Accounts Recievables.
Also, for the owner of the business how do I instruct him to consider (
look at) when he/she looks at customer payements/account
recievables/cash in banks.
This is really more of an accounting question than a QB question, so I'll
take a stab at it. I see three options:
(1) record it in the customary manner, same as if the check was not post
dated.
(2) don't record it at all, until the date of the check arrives and it is no
longer post dated. The theory here is that your customer has really not paid
you anything, you have merely received a promise of payment. You would not
'record' a promise until the actual payment arrived.
(3) Record it as if you have received a promissory note in payment. In such
a case, you would record the debit to Notes Receivable instead of cash, and
when you receive the cash (or in this case, when you deposit the check) you
would credit Notes Receivable
Of the three possibilities, I would be inclined to use #2. The most
realistic analysis is that your customer has paid you nothing until the post
dated period ends.