Accepting Drafts Processing Accounts Receivable Drafts by Ayman Refat - March 20, 2018March 22, 20180 Accepting Drafts Concept Regardless of whether you or the customer originates the draft, you must enter it into the Accounts Receivable system before you can process it. You enter a draft after your customer accepts it. The draft has no legal force until the customer accepts it. When a draft is accepted, the status of the invoice changes. In some countries this has legal ramifications. For manual drafts, your customer can accept the draft by: • Signing the draft that you originated and returning it to you. • Changing the draft that you originated (date, amount, bank, and so on), and then signing and returning it to you. • Originating, signing, and sending the draft to you. For automatic drafts, the draft is accepted by prior agreement, so each draft does not require customer acceptance. Use one of these programs to enter a draft manually, depending on whether you or the customer originate the draft: • Enter Our Drafts (P03B602): Use this program when the company originates a draft for the customer to sign and return. • Enter Customer Drafts (P03B602): Use this program when the customer originates and accepts a draft, and then sends it to the company to be entered. Prerequisites Before you complete this task, you must: • Verify that the appropriate accounts are specified for these AAI items: • RKD for discounts taken. • RCxxxx, where xxxx is the chargeback G/L offset code for the chargeback A/R trade account. • RAxx, where xx is the Write-off-off reason code. • RN, for the deduction suspense account. • Verify that the appropriate offset account is set up for the AAI RCxxxx, where xxxx is the unapplied G/L offset (for unapplied drafts) or the chargeback G/L offset (for drafts that generate a chargeback). If you enter unapplied drafts, the system uses the default RCUC unless you specify a different unapplied G/L offset value or set a processing option to use the value from the customer record. • Verify that these UDC tables are set up to specify the reason codes: • 00/DE for discount reason codes. • 03B/CB for chargeback reason codes. • 03B/RC for write-off-off reason codes. • 03B/CR for deduction reason codes. • Verify that the processing options are set up appropriately for discounts, chargebacks, write-offs, and deductions, or for the type input codes that you allow. Procedure In this task, you will enter and accept a manual draft. Step Action Navigate to the Enter Our Drafts program (P03B602) on the Draft Daily Operations menu (G03B161). Click the Draft Daily Operations menu. Click the Enter Our Drafts menu. Use the Work With Drafts form to locate drafts. Step Action Click the Add button. Use the Draft Entry form to enter header information when creating a draft. Step Action Click in the Payor field. Enter the desired information into the Payor field. Enter “473875“. Click in the Draft Number field. Use the Draft Number field to enter an alphanumeric code that identifies a check or receipt. Enter the desired information into the Draft Number field. Enter “622“. Click in the Draft Date field. Use the Draft Date field to enter the date on the check or the date that you enter the receipt into the system. The receipt date is used for information and reporting purposes only. Enter the desired information into the Draft Date field. Enter “01052016“. Click in the Draft Due Date field. Step Action Use the Draft Due Date field to enter the date that the payment amount was debited or credited to the bank account. The value date is not the date the bank reconciled the payment. Automatic payments populate this field automatically. If you are making manual payments and have set a processing option to display the value date field, you can manually enter the value date here. Enter the desired information into the Draft Due Date field. Enter “01302016“. Step Action Click in the Draft Amount field. Use the Draft Amount field to enter the actual amount of the receipt or payment. Enter the desired information into the Draft Amount field. Enter “15000“. Click in the Company field. Enter the desired information into the Company field. Enter “47140“. Click in the G/L Date field. Enter the desired information into the G/L Date field. Enter “01152016“. Click the Form object. Click the Select menu. Use the Select Invoices form to select specific open invoices for a customer. Step Action Click the Find button. Step Action Click the 95 option. Step Action Click the Select button. Notice that when you select the invoice, the system displays a check mark next to your selection. Click the Close button. Notice the system loads the invoice into the detail area of the Draft Entry form. Verify that the TI (Type Input) field is 10 (Simple Invoice Match). Also, verify the default value in the Payment Amount field. Verify that the Amount Unapplied field is zero. Step Action Click the OK button. Click the Cancel button. Step Action Refresh the page and locate your draft. Click the Find button. Click in the Payor Number field. Step Action Enter the desired information into the Payor Number field. Enter “473875“. Click the Find button. Step Action Click the 473875 option. Verify that the draft status is 4 (Draft Accepted). Step Action Click the Form link. Click the Customer Ledger .. menu. Use the Work with Customer Ledger Inquiry form to locate, review, and delete invoices. Before you enter an invoice for a customer, you might want to verify that the invoice has not been entered previously. You locate invoices before you enter them to prevent duplication, so you can revise, delete, or void them, if necessary. Step Action Click in the Customer field. Enter the desired information into the Customer field. Enter “473875“. Click the Find button. Verify that the system created a new line for the draft record (R1). Click the Close button. Step Action Click the Close button. You have successfully entered and accepted a manual draft. End of Procedure.