You will normally use the payment program to post bills of exchange payable. All the subsequent postings, such as the payment of a bill of exchange by the bank and the cancellation of the bill of exchange payable and the bill of exchange liability, have to be made manually.

When posting a bill of exchange payable, the payment program clears the open items and posts a bill of exchange payable to the vendor account and to the special G/L account for the bill of exchange payable.

If you so wish, the program can also post to a bank subaccount that displays the bill liability for each bank. This enables you to monitor when bills of exchange are due at which bank. This posting is particularly useful for cash management and forecast.

The bill of exchange payable remains on the accounts until the bill of exchange is paid.

Your vendor calculates the costs arising from the bill of exchange charges and sends you an invoice. It is posted and processed in the same way as any other invoice. You only need special G/L accounts for the bill of exchange charges.