To endorse a trade note

Endorsing can be made with recourse and without recourse. When a trade note is endorsed with recourse and if the customer fails to pay, the company has a liability to pay the supplier. The company has no liability to pay to the supplier if the trade note is endorsed without recourse.

Note: Before you execute the endorsement process, select the Discount/Endorse with Recourse check box in the Trade Note Types (tfcmg0516m000) session and the Document Endorsed step in the Payment/Receipt Method (tfcmg0140s000) session.

After you create a direct debit advice and generate the trade note receivable, you can review the trade note receivable and process the initial trade note steps.

To endorse a trade note, complete the following steps:

  1. Process Trade Notes Receivable (tfcmg4226m000)

    Select the receipt method and set the Old Step (the step which is already processed) and Next Step fields. For example, you can select Document Received in the Old Step and Document Endorsed in the Next Step fields. Click Process button. The Selected Trade Notes Receivable for Processing (tfcmg4526m000) session opens.

  2. Selected Trade Notes Receivable for Processing (tfcmg4526m000)

    Select the Update Status check box and on the appropriate menu, click the Endorse option to endorse the trade note to a supplier. The Endorse to Invoice From Business Partner (tfcmg4528m000) starts.

  3. Endorse to Invoice From Business Partner (tfcmg4528m000)

    Select the Invoice from business partner. Click OK button, the Posting Data (tfcmg1258m000) session opens.

  4. Posting Data (tfcmg1258m000)

    Click Post to create ledger postings for the trade note step. The Purchase Invoices for Endorsing (tfcmg4529m000) session opens.

  5. Purchase Invoices for Endorsing (tfcmg4529m000)

    Review the purchase invoices that can be endorsed for the specified invoice-from business partner.

    On the appropriate menu,

    • Click the Assign Automatic option to assign the trade note receipt amount to the selected invoices or
    • Click the Process Assignments(s) option to process the assigned amount.
    You must specify the payment method to continue the process. After the completion of process review the status in the Trade Notes Receivable (tfcmg4525m000) session.

  6. Trade Notes Receivable (tfcmg4525m000)

    Review the status of trade note set to Endorsed. If the trade notes are endorsed without recourse, that status will be updated as Settled. On the appropriate menu, select Details of Payment Advice Lines Endorsed to TNR option the Details of Payment Advice Lines Endorsed to TNR (tfcmg4525m200) session opens.

  7. Details of Payment Advice Lines Endorsed to TNR (tfcmg4525m200)

    Review the purchase invoices assigned to the trade note receivable.

The Endorsement Details can be viewed in the Processing Details - 1 tab of the Trade Note Receivable (tfcmg4125s000) session.