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Post dated cheque in Tally.ERP 9

In banking, Post dated cheque in Tally.ERP 9 is a cheque written by the drawer (payer)[1] for a date in the future.

Here is a sample image of a general blank cheque
Post dated cheque in Tally.ERP 9

www.tallynine.com

Let’s understand this cheque.
This cheque belongs to the I Vision Info Tech and cheque belongs to Axis bank. It tell us that I Vision Info Tech is a customer of Axis bank and I i Vision Infotech is having an account with Axis bank. Now I Vision Infotech will issue such cheques to the parties.
The date field at the top-right side is the most important thin in the determination of the status of a cheque.
Let’ assume today is 30th September 2015. I Prepared this cheque in favor of M/s. Supriya Software and i write the date on the cheque as 31/12/2015 ( 31st December 2015) and I hand over the cheque to Supriya Chemicals then it is a PDC. You will see that here on this cheque I will nowhere write today’s date. But in my counterfeit of the cheque-book, I will mention today’s date for my record purpose so that at any point of time, I can find out on which date the cheque was given to Supriya Chemicals. Again I will also mention the instrument date in the counterfoil which is 31st December 2015.
In the above cheque, the date printed at the top-left  is the most important thing in a cheque.
We will expand this example ahead latter to see a complete demonstration of how it works in Tally.ERP 9.
Why People use Post-dated cheques in business?
Post-dated cheques are very important in business transactions and almost a part of day-to-day commercial transactions.
Suppose your company is buying goods from a party, but you don’t want to pay cash at this moment and want some credit period and so you offers a post-dated cheque of 3 Months  to your supplier. Now supplier agreed for the same and delivers you goods today while you issue him the Post-dated Cheques (PDC). This is a kind of easy credit facility.
Similarly when you avail a personal loan, most of the financial companies, collects Post-dated cheques from you in advance to cover the entire Loan along with the interest which is known as EMI cheques are also Post-dated cheques.
Like purchase you can sell goods to your customers against post-dated cheques and extend credits to your customer.
Problems in Managing Post-Dated Cheques.
Now, you understand the importance and nature of the post-dated cheques. The next big question is how to deal with post-dated cheques.
Before we see how to manage post-dated cheques, we need to understand the need to manage post-dated cheques. What will happen if we don’t manage post-dated cheques
Imagine,  You have taken a loan in April 2015 against 36  monthly EMI of PDC?
Imagine you are selling goods to around 10 or more clients frequently and they are giving you Post-dated cheques at regular interval.
Imagine you are purchasing materials against PDC and issue post dated cheques to different supplier drawn on different-different dates!
In all the above case the things go to mess up and it is very difficult to find the actual position, bank balance, details of post-dated cheques, as well as bank balance and party balances
So, there is definitely a need to manage the PDC in a systematic way else the business may ruin, or make force you to keep all those records manually or even your funds flow may get affect adversely and cheques may bounce or you forget to deposit the cheques on the due date!!!
I faced the  similar situation in past when I was working as manager-accounts with a company. We were dealing with Post-dated cheques very frequently and it was a difficult job to get the relevant information to save my time and skin. That time, I was keeping my records in excel but it was tedious, time-consuming and wasn’t automated which I hate very much.
and here is the solutions, how to manage post-dated cheques
Fortunately, Tally.ERP 9 comes with a very advanced tool in managing post-dated cheques with it’s latest release of 5.1 in September 2015. When I first look this feature, I was so amazed and couldn’t stop myself to experience this new features and I tested it before  writing this tutorial.
Let’s do some business transactions in Tally.ERP 9 with post-dated cheques and see how to manage them in Tally.ERP 9.
Assume you are writing books of accounts of www.tallynine.com and here are some of the business transactions which you need to account in TallyERP 9
01. Dated 15th September, 2015,tallynine.com purchase 10 Nos. of  anti-virus software from Supriya Softwares for Rs. 9800 vide it’s invoice number 45 Dated 15th September 2015 of the Supriya Software. 
02. On Date 15th September 2015 tallynine.com issued a cheque vide Cheque Number  2911 Dated 15th September 2015 for Rs. 5000 as part payment against invoice number 45 Dated 15th September  2015, to Supriya Software.
03.  On Date 20-9-2015,  tallynine.com issued 1 cheque vide cheque no. 2921  cheque Date (also known as instrument Date ) 31st December 2015 to Supriya Software for Rs. 4800 drawn on Axis Bank towards full and final payment.
Steps to Records the above PDC Transactions in Accounts using Tally.ERP 9
First of all, you create a company in Tally.ERP 9 using this link which will walk you through step by step how to create first company in Tally.ERP 9.
Now you need to create below ledgers
Ledger                   Group
Supriya Software  Sundry Creditors
Purchase Ledger   Purchase Group
Axis bank               Bank Accounts
If you do not know how to create ledgers in Tally.ERP 9, then go through below process.
Accounts Info
Ledgers
Create
Now type the name of Axis bank and select Bank Accounts as a group. Hit Enter and accept the form.
Create ledger in the same way for other 2 parties e.g. Supriya Software and Purchase Ledger. (Refer the Group as mentioned above for both the ledger)
Accept the Screen.
Congrats!. you have successfully created a bank ledger, Supriya Software and Purchase Ledger. For the purpose of this article, These 3 ledger master are enough.
Now, let’s move to F11 for a one time set up for the post-dated cheque.
F11 is used to configure Certain Company level features which are binding to a particular company.
Now, under F11, head over  to Accounting features and under banking option, you will see an option post-dated cheque as shown in the below screenshot.
Post dated cheque in Tally.ERP 9

www.tallynine.com

Set yes  and a sub-form will appear here as per the screen shot

post dated cheque in Tally.ERP 9

www.tallynine.com

Select Axis bank here and press enter.
Now. let’s pass the purchase entry in Tally.ERP 9  ( I assume you are familiar with passing a purchase entry.)
Assign the invoice number 45 while passing the purchase entry.
Now, let’s pass payment entry for transaction number 2 and 3 as mentioned above.
We are opting single entry mode in Tally.ERP 9 as it is very convenient 
Press F5 to make a payment entry.
Select Date as 15th September
Select the bank ledger as Axis Bank. In Single Entry mode for payment, the first ledger in Tally is the Credit ledger.
As per the basic accounting rules, credit the giver. Since Axis bank is giving money we are crediting Axis bank ledger in our payment entry.
Now, the second ledger here will be the debit ledger e.g. Supriya Software again as per accounting rules, debit the receiver.
Fill up the amount of Rs.5000 and in against reference, select the invoice number 45. press enter. After pressing ENTER 2 times, you will see a banking allocation details. Here you can set Instrument Details.
I will explain you the further features of post-dated cheque in Tally.ERP 9 in my next release.
If you like my tutorials then consider buying Tally.ERP 9 or renew your TSS through me. You can do it online

About the Author

Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site

Leave a Reply 2 comments

Muthu - 6 months ago Reply

I am maintaining Excel register for Cheques Received from customer, & monitoring for agreed cheque presenting date. ( Some times we may present the cheque, even after some days form date mentioned in cheque).
Also need to be careful on outdated cheques.

Some Times the customer may pay via NEFT / RTGS & we return the cheque to them via our branches.

Can we maintain such registers in Tally itself. If it is there means, can save lot of time & duplication of work.

Mahendra Rana - 6 months ago Reply

In Tally.ERP 9 Release 5, there is a complete check management solutions is being offered.

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