Bill of exchange transaction
These examples show the general ledger transactions created from a base currency invoice that is paid with a base currency bill of exchange. Assume this information about the sample invoice:
| Invoice amount | 100.00 |
| Bill of exchange amount | 100.00 |
Invoice Distribution Closing (AP175) Transactions
This program creates general ledger entries for accruing the invoice liability.
| Account Description | Debit | Credit |
|---|---|---|
| Expense Account | 100.00 | |
| Accounts Payable | 100.00 |
Bill of Exchange Distribution Posting (AP185) Transactions
If the pay group makes bill of exchange acceptance accounting entries to the general ledger, this program creates general ledger entries for the bill of exchange when the bill of exchange is accepted. This is true only if the pay group is define for acceptance.
| Account Description | Debit | Credit |
|---|---|---|
| Accounts Payable | 100.00 | |
| Bill of Exchange | 100.00 |
This program creates general ledger entries for the bill of exchange payment when the bill of exchange is cashed.
| Account Description | Debit | Credit |
|---|---|---|
| Bill of Exchange | 100.00 | |
| Cash | 100.00 |
If the pay group is not defined to make bill of exchange acceptance accounting entries, this program creates entries when the bill of exchange is cashed.