Draft and portfolio

Requirement

A draft, or letter of credit, is a customer payment method. A draft is a commitment to pay at a future due date. The draft is sent for acceptance to the customer by the company, directly sent after acceptance by the customer, or directly accepted under an agreement.

The draft can be printed with the invoice or sent at the end of the month for a group of invoices.

Drafts can be remitted to the bank before the due date. If drafts are remitted several months before the due date, fees are paid to the bank.

Even if the invoice has been paid, drafts are part of the customer risk until the due date is overdue, plus several days. Drafts are managed into a portfolio per due date.

In Italy, the main payment method is RIBA (Recevute Bancarie). This draft payment method allows delaying the payment term from 30 to 120 days. Draft payments are included in the customer risk until the due date is overdue.

M3 solution

For Italy, the draft payment requirement is supported by M3 from registration to electronic bank remittance.

SEPA direct debiting for advance credits is handled using the draft payment remittance method. The bank remittance electronic file is included in this country version. This message has been adapted, as made available in Infor Localization Services GEMS, ‘Customer Direct Debits - 100019’: ‘IT – Debit Transfer pain008 – CBI’.

The RIBA is handled by M3 using the draft payment remittance method.

You must create several payment types according to the different draft payment rules.