Payment by Bill of Exchange - SAP Documentation

This process describes how you record the presentation of a bill of exchange receivable to a vendor by means of payment.

You have already entered the bill of exchange receivable, and the system has created the following payment document:

You send the bill of exchange to the vendor and record the transaction in the system (see Presenting a Bill of Exchange to a Vendor ).

The system creates two accounting documents, to reduce your accounts payable and open a new contingent liability for the bill of exchange:

The system also prints out a transaction record, which you file away for future reference.

When the vendor receives the bill, it puts it in safekeeping. On the due date, it clears the bill, and the bank transfers the money to its account (but see also When a Bill Bounces at a Vendor ). The vendor does not, however, notify you.
When the bill's protest period elapses, you record the bill as cleared in the system (see Clearing a Bill of Exchange Presented to a Vendor ). To find out which bills are due for clearing, you use the Bill of Exchange List .

The system creates an accounting document to clear the bill:

You have paid the vendor invoice using the bill of exchange, and the money has been transferred to the vendor's bank account.