Discounting (SAP Library - Cash Management (TR-CM))

Discounting

If a bill of exchange is transferred for refinancing, you have to post the use of the bill of exchange. The types of bill of exchange usage include:

Discounting

Collection

Forfaiting

You can post the use of a bill of exchange in various ways:

You can post it manually if the bill amount recorded on the bank statement has been credited to your bank account.

You can use the program to create a presentation list for your bank. The system can determine the usage type and the bank automatically, or you can enter this information manually. You can also choose whether the program posts the bill of exchange amount to the bank account and posts the bill of exchange liability to the bank clearing account. The program is used for bills of exchange that are issued before an invoice is due. This procedure is necessary, for example, in Italy.

The following describes manual posting.

Entering and Posting Bill of Exchange Usage

You post the use of a bill of exchange if the bill amount has been credited to your bank account. The cash received is posted to the bank account and the bill of exchange charges are posted to the appropriate expense account. The system automatically generates the offsetting entry by posting to the bill of exchange liability account (bank subaccount).

If the drawee does not pay the bill of exchange on the date of maturity, it is protested. The bill holder uses the right of recourse and presents the bill for payment to one of the parties involved in the transaction. All parties who have issued, accepted or endorsed a bill of exchange are jointly and severally liable to the holder. This risk of recourse in a bill of exchange protest is managed as a bill of exchange liability in the system and is recorded in a separate account (bill of exchange liabilities account). The account is automatically posted to when the bill of exchange usage is posted. You can manage a separate liabilities account for each type of usage and for each bank in the system. The different types of usage are differentiated by usage codes.

The bill of exchange liability is canceled only if the maturity date including the presentation period for protesting the bill has expired and your exposure to recourse no longer exists.

The posting procedure is the same for all the uses of a bill of exchange. First, you enter the header data and posting details on the initial screen. Then you choose the bill of exchange whose usage you are to post. If no other line items have to be entered, post the document.

To post the use of a bill of exchange, proceed as follows:

Choose Input ® Bill/ex presentation ® Discounting (Collection, Forfaiting).

The system displays the screen on which you enter all information necessary for posting the bill of exchange usage.

Enter the information required in the document header.

In addition to the Bank account and Amount fields, the following fields are important:

Usage

Bill of exchange liability accounts (bank subaccounts) can be differentiated using the usage code. You can use the usage code later as selection criteria when clearing the bill of exchange liability. In the standard system, D is used for discounting, F for forfaiting and I for collection.

Charges

In this field enter the fees charged by the bank for accepting the bill of exchange. The system uses the usage code to determine the appropriate expense account and post the charges.

Choose Edit ® Select bill of exch. or click the button Select bill of exch.

On the next screen, you have to enter the document numbers of the bills of exchange that were given to the bank. If you know the line items that were used for posting the bills of exchange, you can enter the bills of exchange.

Enter the document numbers of the required bills of exchange.

If several bill of exchange items exist in the document, the system will display them for selection.

If this is the case, select the required bills of exchange by marking the items you require and choosing Edit ® Continue editing.

The system displays the selection screen for bills of exchange again.

Post the bill of exchange usage.

The system then posts the incoming payment to the bank account, the bill of exchange charges to the appropriate G/L accounts, and the bill of exchange liability to the bank subaccount.