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.