Enter a Postdated Cheque or Pre-Authorized Cheque

A post-dated cheque (PDC) is a cheque that a customer writes in advance, with a future date. The cheque cannot be cashed until that date.

A pre-authorized cheque (PAC) is a cheque written by the agency on behalf of a customer. When the cheque date arrives, the agency is authorized to transfer money from the client's account in order to cover the payment.

1. From Home Base, click the Clients & Files button.
2. Select Customers from the dropdown box.
3. Select the appropriate client in the list.
4. Click the Invoices button.
5. Click Options and select Enter Postdated Cheques. The Enter Post Dated Cheques screen displays.
6. Fill out the following information:
   • Type: Usually Monthly, unless the agency has payment plans installed.
   • Plan: Select PDC for postdated cheques, or PAC for pre-authorized cheques.
   • # of Chqs: Number of postdated or pre-authorized cheques in this lot.
   • Cheque Date: The date on the first cheque in the lot.
   • Description: Enter a description of what the PDCs are for, e.g., "payment of auto policy."
   • Check Number: This is the number on the first cheque the insured has given you.
   • First Cheque: This is the amount of the first cheque. You can leave this at 0.00 if the insured has given you cheques that are all for the same amount, as TAM will calculate an even split of the total amount of all the cheques. If you enter any amount other than 0.00, TAM splits the remaining amount evenly among the remaining cheques, but you may revise the amount of any cheque after entering the lot (see step 10).
   • Total Amount: This is the total amount of all the cheques, including any service charges.
   • Service Charge: The amount of the service charge.
7. Click OK.
   
   Note: If you left the Service Charge field as 0.00, the Service Charge window displays. You may select to Confirm no service charge, Use unapplied amt as service chg (where the unapplied amount is the Total Amount minus any amount applied to transactions), or Re-enter service charge. Click OK.
8. The Apply PDCs screen displays. Confirm the transactions you wish to apply the PDCs to using the transaction detail displayed down the right side of the window. Click either Full Payment or Partial Payment at the bottom of the window.
   
   Note: You can keep track of the amount remaining to be applied at the bottom of the window.
9. When you have finished applying payments, click OK. You are prompted, "Do you wish to make any changes?" Click Yes to undo your applyments and start over. Click No if there are no changes to be made.  
10. A Review Postdated Cheques window displays, showing all of the cheques in the lot. If the mode Monthly was chosen, the cheques will be divided monthly, the cheque number will be sequential, and the total amount will be divided equally. You can change any of these criteria by clicking on the cheque in the list and then changing the Effective Date, Cheque Number and/or Cheque Amount in the fields above the lot. Click the Accept button to accept the changes you made to the cheque.
    
    Note: The column at the far left indicates whether a cheque is open ("O") or has been processed ("P").

11. Click OK.

Related Topic:

 Processing Postdated Cheques or Pre-Authorized Cheques