When you post bills of exchange, different entry screen variants exist. These entry screen variants must be assigned to the company code in the maintenance of the global parameters of the company code. Because Korea is using the extended withholding tax which does not require a separate entry screen variant leave the field for the entry screen variant blank in the customizing. You find the entry screen variant in the IMG under the section for general settings for the company codes.

In Korea, bills of exchange are used for different purposes:

• Normal business transactions
• Borrowing
• Guaranty/Security

Bills of exchange used for normal business transactions are first posted as a payment document in the vendor sub-ledger creating a manual payment or using the automatic payment transaction. Afterwards, they can be printed out using the report RFFOUS_C.

Bills of exchange payable can be cleared using the SAP standard processes.

If you do not want to print out this bill of exchange, you have to create a manual check entry for the accounting document. To create the usage list for the bill of exchange forms purchased from the house bank, then update this payment document in the check register table. This update is performed by printing the bill of exchange or by creating a manual check entry.

However, to use the transaction Create manual check entry, it is necessary to add two lines to the document. The document makes a credit posting on a G/L account and this posting must be cleared by a posting on the same or a different account. Otherwise, the document is not recognized as payment document. The G/L account on which the credit posting is done must be customized as relevant to cash flow (skb1-xgkon must be marked).

Bills of exchange used for borrowing can be posted using a special general ledger indicator for bills of exchange issued for borrowing for example:

Post a received invoice

31 Vendor X 40 Expenses

Paying with BoE

25 Vendor X 39u Vendor X (BoE)

40 Bank 50 Bank

The amounts of the Bank line items must be same like the BoE amount. The system will print the amount of the Bank line item to the BoE media. The special G/L indicator ‘u’ in the above example must be created in the customizing first before it can be used. To create a posting like 2) of the example enter manually the 2^nd line (Bank line item) with posting keys 40 and 50 additionally.

Bills of exchange used as a guarantee can be posted as a noted item. In the reference document field of these noted items, the bill of exchange number of the bill of exchange form can be entered. The bill of exchange form used for this transaction must be marked with a void reason code (Environment ® Check Information ® Void ® Unused Check).

By assigning this void reason code, the bill of exchange form is marked as used, and it can be selected by the report, which creates the form usage list.

The user can create his own void reason codes using the standard customizing transaction for void reason codes (IMG: Accounts Receivable and Accounts Payable ® Business transactions ® Outgoing payments ®Automatic outgoing payments ® Print ® Check management ® Define void reason codes).

The report for the usage list of BOE and check forms classifies the forms according to the void reason codes assigned to the forms.

Use the report RFFOUS_C to print out the bills of exchange payable. The report must be assigned to the payment method used for bills of exchange.

For the clearing of bills of exchange, the transaction FBWD can be used. It is possible to select the bills of exchange to be cleared by the reference document number. The reference document number is filled with the bill of exchange number after the printout when executing the report RFCHKU00.

Enter the bank sub-account you assigned to the payment method for bills of exchange.

The bills of exchange posted on this account are now selected. By View ® Reference number, you can show the bill of exchange number of the bills of exchange. By Sorting ® Reference number, the bills of exchange selected can be sorted by the bill of exchange number.

The bill of exchange number is displayed as document number in the created log. In addition, the bill of exchange reference number is populated in the document reference field of the clearing document created. Execute the batch input session created to post the clearing documents.

The document reference number field can later be used as a matching criteria when the bank account statement is posted.