You arranged a bill of exchange payment request with a customer. Concerning an invoice of 10,000 USD, you send the customer a bill of exchange payment request for acceptance.

The procedure for posting the bill of exchange payment request is as follows for this example.

1. You create an outgoing invoice in the customer account. The system posts to the reconciliation account for receivables from goods and services.
2. As you and your customer have agreed to payment by bill of exchange, the payment program prints the bill of exchange payment request and records it in an index table for the customer account and special G/L account.

After the customer sends back the bill of exchange with the necessary acceptance, you post the payment by bill of exchange. To do this you select the corresponding bill of exchange payment request. (Transaction FBW2)



The following postings are generated:

3. The system posts the bill of exchange payment to the customer account. The system takes the cash discount terms from the invoice into account. In this way, only the reduced bill of exchange amount caused by cash discount, (9700 USD), is posted. The cash discount expenses (300 USD) are posted to the appropriate expense account.
4. The old receivables from goods and services are cleared with the offsetting entry generated by the system.
5. The system also resets the bill of exchange payment request on the customer account and the special G/L account.

The posting of bill of exchange payment and bill of exchange usage is no different from all other bills of exchange receivable. Further information can be found in the appropriate topics on bills of exchange receivable.