PROCEDURAL GUIDELINES

FOR THE
ISSUANCE OF POST-DATE CHECKS
PRIOR TO DELIVERY OF THE INVENTORY ITEMS

1. Creation of Purchase Order with a Payment Terms of 30 days PDC

1.1. After choosing the Vendor, encode the item to be ordered, the number of quantity and the unit cost exclusive of
VAT. Choose “VAT Input” under tax code column if the items order are subject to Value-added tax.

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1.2. Below is the relationship map after creating the Purchase Order

2. Creation of A/P Reserve Invoice for the order of the items with a term 30 day PDC. This means that the items will
be delivered upon the issuance and release of the post-dated check to the vendor.

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2.1. Below is the appearance of the blank A/P Reserve Invoice that will be created in paying the vendor a post-dated
check (future-dated check). This module could also be used for 100% advance payment as current-dated.

2.2 Choose the vendor name to whom the Purchase Order was created. Highlight the vendor’s name, then click
“Choose”.

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2.2. After clicking “Choose”, the vendor’s name will appear on the blank A/P Reserve Invoice.

2.3. Click “Copy From”. From the appearance of the drop down list, click “Purchase Order”.

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2.4. The List of Purchase Order will appear for the particular vendor. Click the appropriate PO Number by clicking
“Choose”. The Draw Document Wizard will appear.

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2.5. Click tab “Accounting” in the A/P Reserve Invoice, choose “AP 30day PDC” at the Payment Term portion.

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2.6. Choose the future date which is the 30th day after the delivery of the item.

2.7. The future dates in the creation of A/P Reserves Invoice include the posting date, due date and document date.

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2.8. On the top the tab, click the “right click” of the mouse in order to choose the “Wtax Table”.

2.9. Click the “Code” and choose the appropriate withholding tax rate.

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2.10. Since you intend to pay the vendor a posted-check, the message as shown below will appear on the A/P Reserve
Invoice.

2.11. The withholding tax will automatically calculated. See the lower right portion of the A/P Reserve Invoice the
amount of withholding tax.

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2.12. Below is the relationship map after creating the A/P Reserve Invoice.

2.13. See the journal entries below

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3. Payment of A/P Reserve Invoice
3.1. Go to the “Banking”Module

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3.2. Go to “Outgoing payments”

3.3. Click “Name” portion of the “Outgoing Payments”

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3.4. After choosing the name of the vendor, change the dates that will coincide to the date of the post-date check.

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3.5. Choose the appropriate A/P Reserve Invoice number.

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3.6. After clicking the “Add” in the “Outgoing payments”, the message will appear below:

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3.7. On the top of the tab, click the “right side” of the mouse in order to choose the “Payment Means”.

3.8. Fill in the necessary information: Amount net of withholding tax, bank name, branch and check number (click
“Manual check”).

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3.9. After clicking “Add” on the “Outgoing Payments”, the message will appear below.

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3.10. After clicking “Add” on System Message appearing above, a new message will appear below:

3.11. Click “Add” of the System Message above, see the message on extreme left below:

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3.12. Below is the journal entries for the Outgoing Payment of the A/P Reserve Invoice

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3.13. See the Relationship Map after the Outgoing Payments of A/P Reserve Invoice.

3.14. Go to the “Goods Receipt PO upon receipt the items after the delivery receipt and the issuance of the post-dated
check. The choose the appropriate vendor’s name.

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4. From the “Good Receipt PO” click the “Copy From” and choose the “Reserve Invoice” from the drop down list.

4.1. Choose the appropriate invoice from the list of A/P Invoice (AP Reserve Invoice).

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4.2. Below the journal entries after processing the “Goods Receipt PO” relative to A/P Reserve Invoice.

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4.3. Below is the Relationship Map after the processing the Goods Receipts PO

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