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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).
See Also
18 dates that made the history of paymentsA Short History of Payment Methods - Alternative Payments BlogWaave | Traditional Payment Systems Are Outdated – Here’s WhyOFX BrandVoice: The Past, Present And Future Of Global Money TransferPayables uses two kinds of future dated payments. One is initiated by you, and one is initiated by your supplier:
- Future Dated. You generate and send to your supplier a payment that includes instructions your bank to transfer funds to your supplier's bank on the maturity date you specify. A Bill of Exchange is an example of a future dated payment document. When you create a payment batch, create a Quick payment, or record a manual payment, you select a payment document that uses a future dated payment format.
- 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.
See Also
Automatic Clearing for Future Dated Payments Utility and ReportAutomatic Offsets and Future Dated Payments
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