This topic illustrates the posting procedure for a bill of exchange receivable by means of an example. The subsequent topics describe the specifications that are necessary for posting.

1. You have a receivable amounting to 11,400 DM from your customer. This receivable is displayed on the customer account and on the reconciliation account for receivables from goods and services.

The customer settles the receivable on June 10th with a bill of exchange. When clearing the receivable, the following postings are made:

2. You post the bill of exchange to the customer account. In the general ledger, the receivable is posted automatically to the special G/L account for bill of exchange receivables. A bill of exchange receivable now exists which is recorded on the customer account. Since it is a special G/L transaction, the bill of exchange receivable is managed separately from the other receivables.
3. From the customer account you choose the receivable to be cleared by the bill payment. The system posts the clearing amount to the customer account and to the reconciliation account for receivables from goods and services. It also indicates the original receivable as cleared.

The bill charges are also entered when entering the bill of exchange receivable. They are then passed on to the customer.



In our example, the bill charges give rise to the following postings:

4. Five percent of the bill of exchange amount is calculated as the discount charge (570 DM). The tax on sales/purchases amounts to 14 percent. It is automatically calculated on the discount charges (79.80 DM). These amounts are posted to the corresponding revenue accounts.
5. The system automatically posts the bill charges (649.80 DM) to the customer account.