Procedure documentationReturned Bills of Exchange

 

This function facilitates automatic processing of returned bills of exchange payable. It deals with processing the bills of exchange payable presented to your house banks for payment. Basically, there are two different procedures:

  • Payment advice to house bank

    Prior to maturity of the bills of exchange payable, you write a letter or create a DME (data medium exchange) file notifying the bank of the following:

    • The bills of exchange you expect to be presented

    • How to proceed with the bills of exchange

      The house bank then processes the bills of exchange per payment advice and debits the account of the payer. When bills of exchange are not to be paid or only partially paid, the house bank informs the bank at which the bill of exchange was presented, or the bank which presented the bill of exchange for payment at the drawee bank.

  • Payment advice from the house bank

    The house bank notifies the drawee of which bills of exchange were presented for payment. This notice can occur in writing or by means of DME. The drawee checks the details from the house bank and decides whether the bills of exchange are:

    • Paid

    • Refused

    • Partially paid.

    The drawee informs the house bank of the decision on payment in writing or using DME. The house bank then proceeds as described in the first procedure above.

    The new function bills of exchange payable supports the actions necessary for this procedure.

  • Bill of exchange selection

    Depending on whether a payment advice from the bank is presented as a DME file, bills of exchange can be selected using either of the following:

    • Bill of exchange payable accounts

    • A DME file

      When you make a selection using the DME file, the system imports the payment advice from the bank and checks it against the bill holdings.

  • Processing the bills of exchange selected

    First, you select the bills of exchange to be reported to the bank. Bills of exchange selected using DME are already chosen, since the system assumes that these bills are to reappear on the payment advice to the bank. Then you must decide about the presentation.

Procedure

For returned bills of exchange, proceed as follows:

  1. Choose Start of the navigation path Incomings Next navigation step Payments Next navigation step Returned Bills of Exchange End of the navigation path and the option you require.

    You reach the initial screen.

  2. Specify the selection options for:

    • Selection Using G/L Accts

    • Selection via DME File.

      1. If you do not specify any details about the G/L accounts, the system will automatically search the existing G/L accounts using the tables in customizing.

      2. To have the program select the bills using the DME file, enter the house bank ID, the input file type, and the name of the UNIX file for inputting the payment advice data.

      3. House bank ID Enter the house bank (for example, DB for Deutsche Bank) that provides the DME file.

      4. Input File Type Enter the type of file (for example, FRI1) to be read

  3. Run the procedure. The system displays the screen Bills of Exchange List for Account Selection.

    Select the bills of exchange for further processing and enter in the field DC (decline code) the reason for refusing to pay the other bills of exchange.

    Example Example

    Examples of bill of exchange refusal:

    DC

    Refusal Text

    13

    Bill of exchange payable does not exist

    75

    Bill of exchange renewal applied for

    90

    Partial payment
    End of the example.

  4. Execute the program. The system displays the screen Specifications for Returned Bills of Exchange.

    1. Post the returned bills of exchange here.

    2. Create a list of the bills of exchange sorted by bank, account due date, and document number.

    3. Generate the DME output file to transmit the bills of exchange to the bank.

    4. Arrange to have a SAPScript letter created and sent to the bank.

  5. Execute the program. The system displays the window Process Returned Bills of Exchange.

    Enter the target computer for executing the job.

  6. Confirm your entries.