Trade notes division

The total payable amount can be divided into multiple trade notes of smaller denominations. Instead of issuing one trade note for the entire amount, companies issue multiple trade notes that together cover the amount.

Trade notes can be divided for two reasons:

• To create trade notes of smaller amounts that can be endorsed or discounted. The denomination of such trade notes depends on the agreement between the company and the business partner.
• To minimize the amount of stamp tax to be paid. Instead of issuing one trade note for the entire amount, multiple trade notes are issued that together cover the amount.

For each business partner, you can indicate the trade notes division data in the Pay-by Business Partner (tccom4114s000) session, for the following:

• Predetermined values supplied by the business partner

  To divide the trade notes amount, select the Predetermined Values option, in the Trade Note Division Method field.

• Stamp tax tariffs

  If you must pay stamp tax on trade notes, you can set up stamp tax as described in Stamp tax.