What is PDC ?
PDC stands for Post-Dated Cheque. It is a cheque written by a customer with a future date on it. The cheque cannot be cashed by the company until that specific date arrives. PDCs are often used by customers to guarantee future payments for goods or services they have already received.
Dishonoured Cheque or Bounced Cheque
When the date on the PDC arrives and the company tries to cash it, the bank might reject it due to valid reasons like (the customer doesn't have enough money in their account). When this happens, the cheque has "bounced" or been "dishonoured."
Bank Charge or Penalty:
When a cheque bounces, the bank usually charges a penalty fee to the company for the failed transaction.
What This System Does:
The PH PDC system is designed to manage the entire lifecycle of these cheques, especially when they bounce. In a normal workflow, a customer is billed via a Sales Invoice, they pay via a Payment Entry mode of payment as cheque, and if the cheque bounces, the system uses the Post Dated Cheques document to restore the customer's debt (including bank penalties)