Posting Requirements for Bills of Exchange Payable 

To post bills of exchange payable, you require:

Special G/L Accounts

For posting the bill of exchange payable, you need special G/L accounts. They must be indicated in the master records as reconciliation accounts for account type K (vendor). The accounts should be managed with line item display, so that you can retrieve a list of all the bill of exchange payables at any time using these accounts. You can determine a separate sort sequence for the display via the master record of the special G/L account. The standard system uses a sort by bill of exchange due date.

Since the posting is made to the special G/L accounts automatically, you must define the account numbers for the automatic account determination in the configuration of the system.

Bill of Exchange Charges Posting

You need G/L accounts for the bill of exchange charges posting. These accounts are posted manually, so you do not need to define the account numbers for the automatic account determination.

Bills of Exchange Payable: Preparations for the Payment Program

Bill of exchange payables are posted via the payment program. Some preconditions and specifications are to be considered for this. A short explanation follows below. You can find a more detailed description in FI Automatic Procedures.

A separate payment method was defined for posting bill of exchange payables with the payment program. This must be entered in the vendor master record.

The payment program needs some specifications to post the bill of exchange. These include:

You can specify company code-specific amount limits, up to which a bill of exchange should be posted for the payment method. If the amount is exceeded, the payment program does not create a bill of exchange.

Two further postings are also created automatically for the bill of exchange posting depending on the system configuration: a posting to a bank subaccount, which displays the bill of exchange payable for each bank, and an offsetting entry to a clearing account, so that the document balances to zero.

If the payment program is to create these postings, you must specify this during the configuration of the payment program. You also enter the numbers of the accounts for account determination during the configuration of the payment program. You can determine the accounts depending on company code, bank, payment method and currency.

Paying the Bill of Exchange

Generally, your bank pays the bill of exchange once the due date recorded on the bill is reached. The payment is displayed to you by a bank statement.

The payment is posted as follows:

  1. You post the payment of a bill of exchange to the bank account after receiving the bank statement.
  2. At the same time, you clear the bill payable to the vendor account. The system posts the bill payment to the special G/L account automatically.

When posting the bill of exchange payable, two postings can optionally be created for cash management and forecast. The existing bill of exchange liability for each bank is displayed by these postings. If these postings are created, they should be canceled manually after the payment of a bill of exchange.

The bill of exchange liability is displayed and canceled as follows:

  1. The bank subaccount for the current bill of exchange payables and the respective clearing account both display the bill of exchange liability.
  2. You clear the accounts. To do this, you post the bill of exchange amount to the opposite side of the accounts in each case.

No further preparations are necessary for posting the payment of a bill of exchange, since all the accounts have already been set up for the bill of exchange posting.