Update the Financial System with Account Entries for Drafts without Acceptance

Outcome

Customer invoices with an appropriate payment method are recorded as paid, even if they have been grouped in 'Customer Invoice. Group' (ARS190) or manually split in 'Accounts Receivable. Display' (ARS200). A customer payment journal and a supplier payment journal are printed. Drafts without acceptance are created. Each draft is assigned the original invoice number as the drawee reference number and has the status Not remitted. The following documents are printed: a printed proposal, a statement listing the drafts included in the confirmed proposal (ARS379PF), a customer payment journal, a customer invoice journal, an accounting journal and, depending on the configuration of the payment method, the draft itself.

Remit the drafts to bank for collection in 'Bank Remittance. Open' (ARS300).

The sales ledger table (FSLEDG), the draft master table (FDRFMA), and the general ledger are updated.

The account entries that can be created are:

Accounting Rule	Account	Debit	Credit
AR10–100	Accounts receivable		x
AR72–195	Drafts not remitted	x
AR72–301	Realized exchange gain		x
AR72–302	Realized exchange loss	x

Before you start

• You must have an agreement for using drafts without acceptance with your payer.
• FAM function AR72 must be defined in 'FAM Function. Open' (CRS405).
• A payment method belonging to payment class 4 must be defined in 'AR Payment Method. Open' (CRS076). Alternative 0 = 'Not accepted' must be selected in the 'Acceptance code' field. For the draft to be printed in the procedure described in this instruction, alternative 2 = 'Print draft' in (ARS370) must be selected in the 'Print draft document' field.
• The 'Group invoice' check box may not be selected for the payer in 'Customer. Open' (CRS610/H). This check box overrules the value selected for the respective customers connected to the payer.
• The customer invoices recorded with the payment method and which you use as a basis for the update must not be partially paid.

Follow These Steps

Create Proposal

1. Start 'Draft without Acceptance. Open Payment' (ARS370/B).

2. On the E panel, enter the last accounting date of the invoices to be considered for the selection.

3. Optional: Enter an end invoice date, due date, or both.

4. Optional: To define the selection further, enter any or the following ranges: Accounting dimension 2, sales person, customer group, district, country, postal code, payer, customer, invoice number, and invoice year.

5. Enter the currency.

6. Enter the payment method of the invoices to be included and a detail record under FAM function AR72.

7. End by entering a report name. Press Enter to create the proposal and return to (ARS370/B).

   When the proposal is listed with status 0 it is ready to be processed. The following statuses are used: 0 = Can be processed; 2 = In use by another user; 4 = Being deleted; 6 = Being printed; 9 = Updating the financial system.

   The printed proposal contains the following information: Payer, customer, invoice number, invoice date, due date, and amounts.

Review and Adjust Proposal

1. In (ARS370/B), select the option Change for the proposal.

2. In (ARS375/B), review the listed payers and the information presented on the number of drafts created per payer and the respective payer status.

   The following statuses are used: 0 = Not blocked; 3 = Blocked.

3. If you want to block the payer from being included in the run, select option 3 = Hold.

   You can also control the payer status using the open status field in (ARS375/E).

4. To review the invoices for each payer, select option 11 = Invoices.

5. In (ARS376/B), review the list of invoices and the information presented: customer, invoice number, currency, invoice date, amount due, and status.

6. If you want to block the invoice from being included in the run, select option 3 = Hold.

   You can also control the invoice status using the open status field in (ARS376/E).

7. To adjust the dates, select option Change for an invoice.

8. In (ARS376/E), change the proposed invoice date and due date. Press F3 to return to the start panel.

   Any changes affect the proposal files only. The original invoices in the accounts receivable file are not updated.

Update the Financial System

1. In (ARS370/B), select option 9 = Confirm for the proposal to create the drafts and update accounts receivable and the general ledger.

   The confirmed proposal is automatically removed from (ARS370).