Future dated payments from customer(In AR)

[benny]

Hi,

Can anyone elaborate on Future dated receipts that we receive from customers.

1. On a regular basis we receive future dated checks from our customers we would like to keep a track of these future dated checks to know to whcih customer they belong.

2. We would even like to know the customer balances after the maturity date of the Future dated check.

Can anyone tell me if there are any standard reports to achieve this and please explain the concept of Future dated checks in AR.

Thanks,
Al.[?]

[SIVAKUMAR_G]

Hi

The Process is called Post dated checks in AR and not future dated receipts

You need to set a receipt class with Confirmation acccount and Remittance account in Bank accounts and set and the Receipt class creation method Manual, remittance method as standard and clearance method by matching

when you create Receipt the Maturity date field needs to be entered with cheque date

You need to run the Receipts awaiting Remittance concurrent program on daily basis to know the cheques falling due for remittance

The sequence of accounting entries are as follows

When a Receipt is created and attached to Customer

Confirmation A/c Dr
To Unapplied A/c Cr

Status of the receipt will be confirmed

On Remittance

Remittance A/c Dr
To Confirmation A/c Cr

Status will be remitted

On Application of Receipt to Invoice

Unapplied A/c Dr
To Receivables A/c Cr

Status will be remitted and the receipts are shown as Receipts at Risk till the stage it is cleared in customer account Details

On clearing the Receipt in cash management

Cash A/c Dr
To Remittance A/c Cr

Status of receipt will be cleared

<u><b>NOTE:</b></u> The biggest drawback in Oracle is even the Post dated check will reduce customer outstanding balances in the forms in collections module and not in Reports like dunning and statements you have the choice to include or exclude them.

This is not acceptable to most of the customers and it is one of the biggest challenge in convincing the customers.

Hope this helps

Regards
Sivakumar

[benny]

Thank you Siva[:)]

[Dhananjay]

Hi

You can try following solution for your requirement .

You need to create a Receipt on current date and will apply the amount against outstanding invoices. In receipt, the maturity date will be recorded as future date on which date it will be deposited with Bank.

You need to run a Aging report for Customer outstanding Analysis. The sample format of Aging report is given below. In the following example the total outstanding from customer ?XYZ? was Rs.8,500 before the receipt of Rs.2,000.00 that is to mature in future. After the receipt, system is showing actual outstanding of Rs.6500 but simultaneously the amount to be cleared in future and amount outstanding including this receipt is also available for proper analysis.

Customer Outstanding 1-60 Days 61+ Days
Customer Name Number Amount Past Due Past Due
------------------------------------ -------- --------------- --------------- ---------------

XYZ Limited 01234 6,500.00 0.00 6,500.00
0.00% 100.00%
Customer Receipts At Risk: 2,000.00
Customer Balance: 8,500.00

Company Total: 8,500.00
--------------- --------------- ---------------
Total For All Customers : 8,500.00 0.00 8,500.00
0.00% 100.00%
=============== =============== ===============
Total Receipts At Risk: 2,000.00
Total Customer Balance: 8,500.00

Please let me know if this suits your requirement.

Dhananjay

[SIVAKUMAR_G]

Hi Dhananjay

If you go through my update, I have mentioned in the Reports, you have the choice to include or exclude them. But any Internal oracle user when they view the Customer balance through collections module forms it reduces the customer outstanding balances including post dated cheques.

This is not acceptable to many customers.

Regards
Sivakumar