Report Supplier Draft as Collected

This document describes how you report or tick off in M3 that supplier drafts remitted to the bank for collection are confirmed as collected. This procedure applies to accepted drafts as well as drafts without acceptance.

Outcome

Supplier payments by draft are recorded as collected and the bank account is credited. An accounting journal is printed.

Use the information recorded to analyze your costs and your vendor relationship.

The reported drafts have remittance status 90. One voucher is created. Accounts payable and the general ledger are updated with the following basic account entries, apart from any account entries for VAT, inter-division claims, cash discount and withheld tax:

Accepted Drafts (Draft Confirmation = 0 or 1)

Acc. Rule Description Debit Credit
AP33-295 Accepted draft x  
Bank account   x

Drafts without Acceptance (Draft Confirmation = 2)

Acc. Rule Description Debit Credit
AP72-295 Drafts accepted x  
Bank account   x

One bank transaction is created for either the entire set of drafts per bank account and due date or one bank transaction per draft, depending on the setup of the FAM function. See below. If one bank transaction is created per draft, a separate account entry for any exchange rate gain or loss is also created for each draft in foreign currency. Any remaining difference on the voucher level is automatically rounded off and posted.

Before you start

Follow These Steps

  1. Start 'Draft. Reconcile Confirmations' (APS175), where draft transactions are displayed per company bank account and due date.

    • The 'Total amount' column displays the total draft amount whereas the 'Tick-off amount' column displays the total of drafts with status 20. Only drafts with status 20 will update the ledgers.
  2. Select option 11 = Transactions for the matching combination of bank account and due date.

  3. In (APS176/B), verify that the drafts displayed are the same as those included in the bank confirmation.

  4. If any of the drafts that are included in the bank confirmation have status 10, select the applicable drafts and then option 'Select/unselect'. Press F3 to return to (APS175/B).

    If you raised the status by mistake, you can lower the status to 10 again by using the same option for the draft.

  5. To update the general ledger and accounts payable with drafts with status 20, select option Update for the combination of bank account and due date.

  6. On the E panel, adjust the proposed account and accounting date, if required, a voucher text (optional), bank operation code (optional depending on the setup) and value date, as specified by the bank. You can change the default selection for whether to create one bank transaction for all drafts or one per draft. Press Enter.

    The bank account on the E panel applies to all drafts included. The drafts automatically receive status 90 when the ledgers are updated.

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