Selecting Bills of Exchange for Remittance

Depending on how you filled in the Remittance Control field on the Processing tab of Company (AR01.1) will dictate how you select bills of exchange for remittance. There are two processes:

When selecting bills of exchange, you have the option of discounting them or encashing them. To discount a bill of exchange means to sell it before the due date at a discount. To encash a bill of exchange means to hold it until the due date.

To learn these procedures, see:

  1. With Remittance Control - the system creates remittances consisting of BOE's with the same maturity date. If you select Remittance Control, the system creates one journal entry for the entire remittance. This process parallels the way the banks process bills of exchange and makes bank reconciliation much easier.
  2. Without Remittance Control - with this method, you create a remittance form to present bills of exchange to your bank for cashing. If you do not select Remittance Control, the system creates one journal entry for each bill of exchange within the remittance.