Report Supplier Draft as Collected

Outcome

Supplier payments by draft are recorded as collected and the bank account is credited. An accounting journal is printed.

Use the information recorded to analyze your costs and your vendor relationship.

The reported drafts have remittance status 90. One voucher is created. Accounts payable and the general ledger are updated with the following basic account entries, apart from any account entries for VAT, inter-division claims, cash discount and withheld tax:

Accepted Drafts (Draft Confirmation = 0 or 1)

Acc. Rule	Description	Debit	Credit
AP33-295	Accepted draft	x
–	Bank account		x

Drafts without Acceptance (Draft Confirmation = 2)

Acc. Rule	Description	Debit	Credit
AP72-295	Drafts accepted	x
–	Bank account		x

One bank transaction is created for either the entire set of drafts per bank account and due date or one bank transaction per draft, depending on the setup of the FAM function. See below. If one bank transaction is created per draft, a separate account entry for any exchange rate gain or loss is also created for each draft in foreign currency. Any remaining difference on the voucher level is automatically rounded off and posted.

Before you start

• The drafts must have a payment method belonging to payment class 4 in 'AP Payment Method. Open' (CRS071). The 'Grouped payment' field determines whether one draft payment is created per invoice or a group of invoices when you confirm a supplier payment proposal in 'Supplier Proposal. Open' (APS130). The 'Draft confirmation' field determines which remittance status is automatically assigned to the draft, 10 = 'Draft in portfolio pending remittance' or 20 = 'Draft remitted'. Since only drafts with status 20 in 'Draft. Reconcile Confirmations' (APS175) will update the ledgers, the status of any status 10 drafts must be raised manually to 20 in the subprogram (APS176).

• Alternative 0: Drafts created at payment in (APS130) or 'Supplier Payment. Enter Manual' (APS120) directly receive status 20.
• Alternative 1: Drafts created in these programs receive status 10.
• Alternative 2: This alternative is reserved for drafts without acceptance where the draft is created and sent to the bank by the supplier. When draft records are created for this type of payment in 'Draft without Acceptance. Open Payment', they receive status 10.

• FAM function AP34 must be defined in 'FAM Function. Open' (CRS405). The FAM function determines how the ledgers are updated, among other things whether one account entry for the bank account is created for the entire set of drafts per bank account and due date or per draft. The latter is a requirement in Spain as of 2008.
• Accounting rules must be defined for accounting event AP34 in 'Accounting Rule. Set' (CRS395). For a description of the accounting rules, see Accounting Rules for AP - Accounts Payable.
• An accounting string for accounting option 99 must be defined in 'AP Accounting Option. Open' (APS020). This accounting option will automatically be applied to generate a separate rounding account entry for any remaining difference on the voucher.
• Accepted drafts must be remitted to the bank for collection using a confirmed supplier payment proposal in (APS130). Or, drafts without acceptance must be created in 'Draft without Acceptance. Open Payment' (APS380).

Follow These Steps

1. Start 'Draft. Reconcile Confirmations' (APS175), where draft transactions are displayed per company bank account and due date.

   • The 'Total amount' column displays the total draft amount whereas the 'Tick-off amount' column displays the total of drafts with status 20. Only drafts with status 20 will update the ledgers.

2. Select option 11 = Transactions for the matching combination of bank account and due date.

3. In (APS176/B), verify that the drafts displayed are the same as those included in the bank confirmation.

4. If any of the drafts that are included in the bank confirmation have status 10, select the applicable drafts and then option 'Select/unselect'. Press F3 to return to (APS175/B).

   If you raised the status by mistake, you can lower the status to 10 again by using the same option for the draft.

5. To update the general ledger and accounts payable with drafts with status 20, select option Update for the combination of bank account and due date.

6. On the E panel, adjust the proposed account and accounting date, if required, a voucher text (optional), bank operation code (optional depending on the setup) and value date, as specified by the bank. You can change the default selection for whether to create one bank transaction for all drafts or one per draft. Press Enter.

   The bank account on the E panel applies to all drafts included. The drafts automatically receive status 90 when the ledgers are updated.