Once you have passed on the bill of exchange to a bank for discounting, you post the bill of exchange usage (once the payment is shown on your bank statement). You make the offsetting entry to a bank subaccount, specifying the due date as you do so. This account now shows the current bill of exchange liability at the bank. This allows you to monitor when a bill of exchange is paid by your bank. This information is particularly important for cash management and forecasting purposes, with regard to ensuring your bank account has sufficient funds available.

The following example shows the postings that are necessary for bill of exchange usage:

1. You post the cash receipt to the bank account. Since the bank subtracts the discount interest and the bank charges, the cash receipt is only 11,195.50 DM. You post the bill of exchange charges (204.50 DM) to the corresponding expense accounts.
2. You make the offsetting entry on a bank subaccount for current bill of exchange payables.

Your bank debits the bill of exchange amount from your bank account on the day it is due for payment, and displays the payment via an account statement (payment of a bill of exchange).

The above figure shows an example of the postings that are necessary when paying a bill of exchange:

1. You post the outgoing payment to the bank account and clear the bank subaccount for bill of exchange payables.
2. If you have posted the bill of exchange payable from the bill of exchange to the vendor account, a special G/L account and a clearing account, you must cancel these postings. However, the payable is generally not posted.