Transaction code

A transaction code represents a type of payment or bank transaction. You must define a transaction code for each type of payment you plan to use, such as manual checks, system checks, electronic files, and bills of exchange. You can also define transaction codes for banking services you will require, such as deposits and withdrawals.

A transaction code will fall under one of these categories:

Table 1.

Category	Description
Cash Payment	This transaction code represents a kind of cash payment, such as a check. You will use cash payment transaction codes in the Accounts Payable application.
BOE (Bills of Exchange)	This transaction code represents a payment agreement that is similar to a letter of credit. The agreement can take the form of a draft issued against a bank account until the maturity date, or for cashing early at a discounted rate. France and Spain frequently use BOEs. You will use BOE transaction codes in the Accounts Payable and Accounts Receivable applications. See Defining payment formats.
Bank Service	This transaction code represents banking transactions that debit or credit your bank accounts. You will use bank service transaction codes in Accounts Receivable and Cash Management.