Post Date
A post date refers to any date that is later than the current date. In finance and accounting, this term is commonly used in two contexts: checks and transaction processing.
- Post-dated checks: These are checks written by the drawer (payer) for a date in the future, rather than the actual date the check was written. This is typically done when the payer wants to schedule the payment for a later time. It’s important to note that the legality and acceptance of post-dated checks can vary by country and even by individual banks.
- Post-dated transactions: In accounting and financial systems, a post date may refer to the date a transaction is set to be processed or recorded in the system. For instance, an accountant might enter a bill into their system today, but post-date it for the end of the month when payment is due. This ensures that the bill is recorded in the correct accounting period.
Note: Always check with your bank or financial institution about their policies on post-dated checks or transactions to ensure that they are handled correctly.
Example of a Post Date
Here are examples for both post-dated checks and post-dated transactions:
- Post-dated checks: Let’s say today’s date is July 29, 2023. John borrows $500 from his friend Mark but he doesn’t have enough funds in his account to pay him back until his payday on August 5, 2023. To assure Mark that he will receive his money, John writes a check for $500 today, but dates it August 5, 2023. This is a post-dated check. Mark will deposit or cash the check on or after August 5.
- Post-dated transactions: Assume the same date, July 29, 2023. Sara is the accountant for a business. They receive a bill for services provided by a vendor that is due on August 15, 2023. Sara could enter the bill into the accounting system today but set it to be posted on August 15, 2023. This way, the expense will be recorded in the correct accounting period and it helps ensure that payments are made on time.
