Future Dated Payment Method
You can use future dated payments to control the timing of your payments, and therefore control your cash flow. A future dated payment instructs your bank to disburse funds to your supplier's bank on a specific date (the maturity date).
Payables accounts for future dated payments differently than for other methods of payment. For future dated payments, Payables creates journal entries in two stages, the first to recognize the payment (reduction of liability), and the second to recognize the clearing of the payment (reduction of cash).
Payables uses two kinds of future dated payments. One is initiated by you, and one is initiated by your supplier:
- Manual Future Dated. This method is the same as the future dated payment method except that your supplier includes with an invoice a payment notice with a maturity date specified by the supplier. You approve the payment notice and return it to the supplier. Since you do not generate a payment document, you use a manual payment with a manual future dated payment document to record the payment.
This document includes the following topics:
See Also
Automatic Clearing for Future Dated Payments Utility and Report
Automatic Offsets and Future Dated Payments