Your vendor calculates the costs arising from making payment by bill of exchange and sends you a statement of bill of exchange charges. You post and process this invoice in the same way as any other invoice. Bill of exchange charges (discount and collection charges) must be posted according to the settlement. The vendor calculates the taxes on sales/purchases due on the charges. You enter this tax when you create the invoice.

You must make the following postings for the statement of bill of exchange charges:

1. You post the invoice for the charges arising from the bill of exchange payment (324.90 USD) to the vendor account.
2. You make the offsetting entries to the corresponding G/L accounts. The amounts are shown on the invoice.