Posting A/R Draft Payments

You cannot post draft payments directly to a cash account as you would post a check or a wire payment. When you first post the draft payment, the draft status is changed to posted and the usual journal transactions are created. But, the transaction does not yet affect the cash account in the General Ledger, but instead it affects the Draft Receivable account found on the Accounts Receivable Parameters form.

Next, perform a draft remittance:

Open the A/R Posting Draft Remittance form.
Specify this information:
Starting/Ending Bank Code

Select the range of bank codes to include in the draft remittance.

Remittance Option
Select the types of draft you want to process:
- Remitted Drafts
- Discounted Drafts
- All Drafts
Display Report Header

Select this check box to include report headers in the output.
Select Print and click Process to print the results without saving.
Select Commit and click Process to save the results.
This information is displayed in the grid:

Bank Code

The bank code for the payment is displayed.

Customer

The customer number is displayed.

Draft (Number)

The draft number is displayed.

Message

If an error is detected when the system attempts to post the transaction, the error message is displayed.

Note: The bank charges an additional discount fee when you want to receive the cash before the due date.

After the draft remittance, post the draft. Posting the draft changes the status of the draft to Remitted and creates a journal entry from the Draft Receivable account to either the Draft Remitted account or the Draft Discounted account identified in the Bank Address form.

When the bank tells you it has given you the money, use the Bank Reconciliation form to perform a draft deposit. The deposit updates the draft status to its final value of Paid and creates the new journal entry that finally impacts the Cash account.