Settings for Bills of Exchange Payable Prior to Due Date (SAP Library

Settings for Bills of Exchange Payable Prior to Due Date

Use

Bill of Exchange Limit

In the customer or vendor master record, you can specify a bill of exchange limit that determines the maximum amount for which a bill of exchange may be issued. If the amount to be cleared is over this maximum, the payment program splits the amount and issues further bills of exchange.

This makes sense if your vendor has an agreement with his house bank that bills of exchange are only cashed up to a certain amount. Limits for bills of exchange are used in Spain, for example.

Grouping Together Several Open Items

You specify whether certain open items should be grouped together for payment by bill of exchange via the specifications for the paying company code. See the topic Specifications for the Paying Company Code (2). You can specify that a single bill of exchange should be created

For all invoices within a certain due date interval. The intervals are to be specified during the payment run.

For all invoices which are due the same day.

For every invoice.

Issue Date and Due Date

The issue date and the due date are entered into the bill of exchange by the payment program. You can specify both dates manually during the payment run. This is necessary for the date of issue once per payment run. You can select from the following alternatives for the due date:

Specify before the payment run if invoices should be grouped together by due date interval. You should specify a due date for each bill of exchange in each interval.

Do not specify a date if you want the due date to be taken from the paid invoices. All invoices that have the same due date are paid with a single bill of exchange.

Due Date Interval for Open Item Selection

To ensure that the payment program only issues a bill of exchange if this can be used for refinancing, you can specify for an item the minimum and maximum period (in days) before the due date for payment. See the figure Specifications for the Paying Company Code (3) Only items that fulfill this condition are paid with a bill of exchange. This should ensure that the bill of exchange has a life which allows the vendor to deposit it at the bank for refinancing.

Charges

Charges can be designed as country-dependent or related to a specific house bank. You can calculate charges at the presentation of a bill of exchange, in order to:

Check the bank settlement
Print the charges on the bill of exchange form. This is required in Spain, for example.

This graphic is explained in the accompanying text