Payment drafts-AP

Invoices must be reported as open until post-dated checks reach maturity and clear the bank. Alternatively, reports can show the post-dated checks as open and the related invoices as cleared.

When an accounts payable draft is created, the GL postings are accounts payable (Dr) and draft payable (Cr). After maturity, the postings are draft payable (Dr) and cash (Cr).

Payment drafts - AP letters of credit

Bills of exchange usually accompany a letter of credit (LOC) for the purposes of collection.

A pro-forma invoice is usually generated to secure a LOC, with the goods that are released when the LOC has been received.

Bahrain specifics

None

How Infor meets this requirement

For setup information, see the Financials Setup and Administration Guide.

See Setting up cash suspense account and reconciliation account.

See Processing cash.

For processing post-dated checks, see Processing payables for payment drafts.

For processing bills of exchange, see the Payables User Guide.