What Setup is Required for Bills of Exchange?
The following table overviews what setup is required prior to processing Bills of Exchange. These items have been detailed in previous chapters.
| To | Use |
|---|---|
| Define banking institutions | Bank (CB00.1). Defining a Bank |
| Define credit lines for each bank. Credit lines are used for bank risk processing (discounting or remittances) | Credit Risk (CB01.1). Defining a Bank |
| Define a bill of exchange payment format for each company that uses the bill of exchange payment transaction codes | BOE Payment Formats (CB01.2). Defining a Bank |
| Define cash codes for each bank account | Cash Code (CB00.2). Defining Cash Codes (Bank Accounts) |
| Create a relationship between cash codes, each company and associated GL account | Company - Cash Code Relationships (CB00.3). Defining company - cash code relationships |
| Define GL accounts associated with BOE processing | BOE Accounts (CB00.6) Defining company - cash code relationships |
| Define a BOE payment code | Bank Transaction Definition (CB00.4). Defining Bank Transaction Codes |
| Define BOE payment options such as transaction origin, output option, acceptance, and acceptance accounting | BOE Payments (CB00.8). Defining Bank Transaction Codes |
| Define a customer group that allows bills of exchange processing by select Yes in the BOE field | Customer Group (AR00.1). Defining customer groups |
| Using the Apply tab, select the option to include Bills of Exchange in the open balance | Company (AR01.1). Defining Cash Application Options |
| Using the GL tab, define an accounts receivable processing code | Company (AR01.1). Defining General Ledger Codes |
| Using the BOE tab, enter options for processing bills of exchange, such as, acceptance accounting option, remittance control, BOE acceptance code, financial revenue and expense code, and dishonored code | Company (AR01.1). Defining BOE Options |
| Select BOE codes for the company/process level, such as, BOE acceptance, financial revenue/expense code, and dishonored code | Bills of Exchange (AR02.2). Defining BOE Options |
| Using the Main tab, set up a default BOE type code for BOE customer. Select "I"ndividual or "S"ummary processing | Customer Defaults (AR08.1). Defining customer default codes |
| Select a bank account type. Indicates whether the bank account is used for bills of exchange or EFT processing | Banks (AR09.2). EFT & BOE options for defining a customer group address |
| Using the Processing tab, override BOE type from Customer Defaults (AR08.1) for a customer | Customer (AR10.1). Defining a customer |