Posting Returned Bills of Exchange (SAP Library

Posting Returned Bills of Exchange

Use

This function enables you to have the system process returned bills of exchange payable automatically. We are concerned here with the processing of bills of exchange payable that a business partner or his or her bank submits to your house banks for cashing. There are two different procedures here:

Payment advice note to the house bank:
Before the due date of the bill of exchange payable, a letter (or DME file in France) is generated to advise the bank

Which bill of exchange is expected to be submitted, and
How the bank should go about processing the bill.

The house bank then processes the bill according to the payment advice note and debits the account of the drawee. Not all bills of exchange are paid or settled in full. In such cases, the house bank notifies either the bank where the bill was presented, or the bank from which the bill was presented to the drawee’s bank for payment.

Payment advice note to the house bank:
The house bank informs the drawee which bills of exchange were presented for payment, either in the form of written confirmation or by data medium exchange, (DME). The payee checks the details supplied by the house bank and decides whether the bills of exchange are to be

Paid in full,
Refused,
Or only part-paid.

The payee then informs the house bank of his / her decision regarding payment, (either in writing or using DME). The house bank then proceeds as is described under point 1, (listed below).

Further processing then takes place using the "Returned Bills of Exchange Payable" function.

Bill of exchange selection:
Depending on whether the payment advice note at the bank is in the form of a DME file, the bills of exchange can be selected either

By means of the bill of exchange liability account or
Or with a DME file.

When you select by means of the DME file, the payment advice note from the bank is imported and checked against the bill holdings.

Processing of selected bill of exchange:
You start by selecting those bills of exchange that you want the bank to act upon. Those bills of exchange selected with DME are automatically flagged because the system assumes that they are to appear in the payment advice note at the bank. Decisions regarding payment can now be made.

Procedure

Proceed as follows for returned bills of exchange:

From the Banking Menu choose Input ® Returned bills of exchange ® Administration.

The system displays the "Returned Bills of Exchange Payable: Selection" screen.

Enter the selection options as follows:

Selection by means of Bill of exchange liability accounts or

Via DME file.

If you do not select any bill of exchange liability accounts, the system searches for the accounts that exist in the Customizing table.

To select from DME files, enter the House bank ID, the Input file type, and the name of the UNIX input file for inputting payment advice data.

House bank ID
Enter the house bank from where the DME file originated: (for example DB for Deutsche Bank).

Input file type
Enter the type of file FRI1 (French DME format for returned bills of exchange) that is to be read.

Choose Edit ® Select bill of exchange

The system displays the Returned Bills of Exchange: Bill of Exchange List for Account Selection screen.

Select the relevant bills of exchange for further processing and enter the reason for refusal to pay the bill of exchange in the Reason field.

Example

Possible cases for refusal to pay a bill of exchange.

AA

Refusal text

13

Bill of exchange payable does not exist

75

Apply for renewal of bill of exchange

90

Partial payment

etc.

The statuses indicate the following:

Amber light: Not selected, not imported
Green light: Selected, imported, and not posted
Red light: Posted or no account defined for returned bills of exchange

You define an account for returned bills of exchange in the Implementation Guide (IMG) for Financial Accounting under Bank Accounting ® Business Transactions ® Bill of Exchange Transactions ® Bill of Exchange Payable ® Returned Bills of Exchange ® Define Forms for Returned Bills of Exchange Payable.

Choose the tab Post.

Enter specifications for the posting of the bill of exchange.
Create a DME output file so that the bill of exchange can be forwarded to the bank.
Make sure that a SAPScript letter is created for the bank.

To post the returned bill of exchange, save your entries.

According to the field you select, the system either posts the bill of exchange immediately or creates a batch input session.

AA	Refusal text
13	Bill of exchange payable does not exist
75	Apply for renewal of bill of exchange
90	Partial payment
etc.