Draft and portfolio

Requirement

A draft, also known as a letter of credit, is a payment method used by customers. It represents a commitment to make a payment on a future due date. There are different ways in which drafts are handled:
  1. The company can send the draft to the customer for acceptance.
  2. After acceptance by the customer, the draft can be sent directly.
  3. Alternatively, drafts can be accepted directly under an agreement.

Drafts can either be printed together with the invoice or sent at the end of the month for a group of invoices.

You can remit drafts to the bank before the due date. However, if drafts are remitted several months in advance, fees may be incurred and paid to the bank.

Even if an invoice has been paid, drafts still contribute to the customer's risk until the due date has passed, along with an additional number of days. Drafts are managed within a portfolio based on their respective due dates.

M3 solution

For Israel, the draft payment requirement is managed manually.

Configuration guidelines

Program ID Program name Description or comment
ARS300 Bank Remittance. Open Create a proposal, confirm.
ARS350 Bank Remittance. Reconcile Payment Delete failed collections and send a standard letter. Reconcile the payment when it is correct and complete.