Customer Bill of Exchange Payment—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company and with your own customer to maintain your data integrity. If you work with any other objects, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data must be isolated in your own company.

Basic Data Setup


Payment Document Basic Data

Purpose: The purpose of this exercise is to set up the payment document information that is used in the customer bill of exchange payment process. In the following exercise, the BoE document number series to be used should be set up to use an interim cash (clearing) account. If an interim account is used, postings will be made to an interim cash account when the customer bills are sent to the financial institution, or payment institute, for cashing. If not used, postings will be made directly to the cash account when the bills are sent for cashing.

Windows:
Payment Documents
Bill Types

  1. Open the Payment Documents window.
  2. Select the Customer Bill of Exchange document type from the list.
  3. Verify that the existing payment document for customer bills of exchange has the Use Interim Cash Account check boxes selected.
  4. Connect a bill type if required, by entering a bill type in the Bill Type field.
  5. Save any changes.


Customer Basic Data

Purpose: The purpose of this exercise is to to set up the customer to use bill of exchange payment method.

Windows:
Customer

  1. Open the Customer window, and query for your customer.
  2. Click the Payment tab.
  3. Verify that the bill of exchange payment method (LCRBOE) is one of those allowed for the customer.
  4. Also verify that the customer has a payment address defined for the payment method.

Required Data


Enter and Post a Customer Invoice

Purpose: The purpose of this exercise is to enter the data required for the Create Payment Document Proposal functionality.

  1. Enter three invoices, two of which are for the same customer and have the same due date.

General exercise for Manual Customer Invoices 

Main Exercises


Payment Document Proposal

Purpose: The purpose of this exercise is to create a payment document proposal, which can later be used to enter and match BoE.

Windows:
Payment Document Proposals

  1. Open the Payment Document Proposals window.
  2. Right-click and then click Load New Proposal.
  3. Make sure that the invoice date interval covers your invoices.
  4. Enter the ID of your customer on the two invoices/installments with the same due date, or select a customer from the List of Values.
  5. Click OK to load the proposal.
  6. Select your proposal, right-click, and then click Details.
  7. Make sure that your invoices/installments are included in the proposal. If other invoices/installments are included, remove them. Keep only the two invoices/installments with the same due date.
  8. Save your entries (F12), and close the window.
  9. Select your proposal, right-click, and then click Acknowledge. The status of the bill changes to Acknowledge.
  10. Select your proposal, right-click, and then click Print Proposal. A new print window appears.
  11. Click OK. A bill that includes your invoices/installments is printed, and the status of the proposal changes to Printed.


Enter and Match Customer Bill of Exchange Using Payment Document Proposal

Purpose: The purpose of this exercise is to show you how to enter a customer bill of exchange that you originally created and sent to your customer, and the customer accepted, signed, and sent back.

Windows:
Customer Bills of Exchange

  1. Open the Customer Bills of Exchange window.
  2. Add a new record (F5).
  3. Enter the bill ID, i.e., the payment doc ID, or select one from the List of Values. All bill information is copied to this window, including all matched invoices.
  4. Enter the number of the bill. You can choose any number.
  5. Save the bill (F12). The entered bill is now an open ledger item, and the matched invoices are closed.

Enter and Match Customer Bill of Exchange

Purpose: The purpose of this exercise is to show you how to enter a bill of exchange sent by a customer and match it with invoices/installments.

Windows:
Customer Bills of Exchange

  1. Open the Customer Bills of Exchange window.
  2. Add a new record (F5).
  3. Enter the customer ID, or select your customer from the List of Values.
  4. Enter the number of the bill. You can choose any number.
  5. Enter an amount that will match one of the previously entered invoices/installments.
  6. Highlight the row, right-click, and then click Match/View Invoices.
  7. Select your previously entered invoice/installment in the Select Batch of Invoices window, and click OK. The invoice/installment appears in the Matching window, and the remaining amount is 0 (zero).
  8. Click OK.
  9. Save the bill (F12). The entered bill is now an open ledger item, and the matched invoice/installment is closed.


Create Bill of Exchange Transfer File

Purpose: The purpose of this exercise is to create an electronic file containing bills of exchange to send to the financial institution, or payment institute. You will also view the results.

Windows:
Customer BoE Transfer Proposals

  1. Open the Customer BoE Transfer Proposals window.
  2. Right-click and then click Create Proposal.
  3. In the Create BoE Transfer Proposal window, enter the information from the table below.
First Due Date Last Due Date Cash Date Cash Type Cash Account Currency Payment Method
About one month back At least one month after today Tomorrow Before Due Date Your payment institute (use the List of Values) The currency of your bills (use the List of Values) Your BoE payment method (use the List of Values)
  1. Click OK to confirm.
  2. Select the proposal line, right-click, and then click Details to view the included bills.
  3. Close the Details window.
  4. Select the proposal line, right-click, and then click Acknowledge. The status of the proposal is changed to Acknowledged.
  5. Select the proposal line, right-click, and then click Create BoE Transfer File. 
  6. Click OK. A message appears indicating that a transfer file has been created.
  7. Click OK. You are prompted to indicate whether you want to print this proposal.
  8. Click either Yes or No, as appropriate. The status of the proposal is changed to Transferred. 
  9. Select the proposal line, right-click, and then click Accept File Transfer. A window opens with payment voucher and discounting fee information.
  10. Enter a discounting fee if applicable. The discount fee will be deducted from the received amount of the bill. Note: A discounting fee can be entered only if one BoE is selected for the proposal, and if the cash type is Before Due Date. 
  11. Click OK. A new window appears in which you can see the payment and voucher number that were created.
  12. The status of the proposal is changed to Accepted. The status of the included bills depends on whether an interim cash account is used. If so, the status is BeforeDueDate. If not, the status will be Settled.


Acknowledge Customer Bill of Exchange Transfer

Purpose: The purpose of this exercise is to show you how to acknowledge a BoE transfer, i.e., confirm that all included bills were cashed. This step is performed only if an interim cash account is used. The result of the process is that the bills included in the transfer receive the Settled status. A payment voucher is created with postings from the Clearing/Interim Cash Account to the Cash Account.

Windows:
Mixed Payment

  1. Open the Mixed Payment window.
  2. Create a new record (F5).
  3. Select the cash account where the cash was received and select a balance method.
  4. Click the Transactions tab, and create a new record (F5). This tab includes many columns that are used for various transaction types, but only a few are used for entering an acknowledgement of a customer BoE transfer.
  5. Enter the information shown in the table below.
Transaction Type Proposal ID Amount
Acknowledge Customer BoE Transfer Enter the number of the BoE transfer proposal The total amount from the BoE transfer proposal is automatically displayed
  1. Save the record (F12).
  2. By selecting the transaction line, right-clicking, and clicking Match Payment, you can see what bills were included in the transfer.
  3. In the header portion of the Mixed Payment window, right-click and then click Approve. A window appears with payment voucher information.
  4. Click OK. A window appears showing the payment and voucher number that were created.
  5. Click OK to close the window. All bills included in the transfer now have the status Settled.

 

Required Data


Enter Difference Template

Purpose: The purpose of this exercise is to show you how to enter difference templates to be used in the exercises below.

Windows:
Difference Notice Templates

  1. Open the Difference Notice Templates window.
  2. Create a new record (F5).
  3. Enter a template ID, description, the header, main text, and the footer. 
  4. Save the record (F12). 


Enter Difference Codes

Purpose: The purpose of this exercise is to show you how to enter difference codes to be used in the exercises below.

Windows:
Difference Codes

  1. Open the Difference Codes window.
  2. Create a new record (F5).
  3. Enter a difference code and description. Check the generated difference notice and connect the difference template, which was created above. 
  4. Save the record (F12).

Main Exercises


Reverse Cashing of BoE 

Purpose: The purpose of this exercise is to show you how to reverse-cash a bill of exchange when a customer has failed to pay, after the bill has been settled by the payment institute before its due date.

Windows:
Customer Bills of Exchange /Reverse Cashing of BoE
Customer Analysis

  1. Open the Customer Bills of Exchange window.
  2. Query for a settled bill of exchange (F3).
  3. Highlight the row, right-click and then click Reverse Cashing of BoE. The Reverse Cashing of BoE dialog box opens.
  4. Enter a tax code, payment term, and a difference code.  
  5. Click OK to confirm. The Matching window opens with the BoE and difference item information.
  6. Click OK to close the window. The customer bill will now will have the UnpaidSettled status. A new difference item with an amount equal to the bill will be created. 
  7. You can view information on the created difference item in the Customer Analysis window.

Basic Data Setup


Allow Endorsement for Customer Bill of Exchange

Purpose: The purpose of this exercise is to show you how to allow endorsing to be used for a customer bill of exchange.

Windows:
Payment Documents
Bill Types

  1. Open the Payment Documents window. 
  2. Select the Customer Bill of Exchange document type from the list. 
  3. In the Document Series ID field, enter a document series ID and a series ID for the unmatched payment on account. 
  4. Connect a bill type if required, by entering a the bill type in the Bill Type field.
  5. Select the Allow Endorse check box.  
  6. Save the record.

Required Data


Enter and Authorize Supplier Invoices

Purpose: The purpose of this exercise is to show you how to enter supplier invoices to be used in the exercises below. The invoices and installments must also be authorized for payment.

  1. Enter a supplier invoices with an amount of 2000.

General exercise for Arrival Entry Supplier Invoice 
General exercise for Post Supplier Invoice
General exercise for Authorize Supplier Invoice for Payment    

Main Exercises


Enter and Match Customer Bill of Exchange for Endorsing

Purpose: The purpose of this exercise is to show you how to endorse a bill of exchange sent by a customer, and match it with the supplier invoices and installments.

Windows:
Customer Bills of Exchange
Voucher Entry

  1. Open the Customer Bills of Exchange window.
  2. Add a new record (F5).
  3. Enter the customer ID, or select a customer ID from the List of Values.
  4. Enter the series ID that has been allowed for endorsing.
  5. Enter the number of the bill. 
  6. Enter the amount as 2000 and save the record. The status of the bill is Created.  
  7. Highlight the row, right-click and then click Endorse/View Invoices.
  8. Select the supplier to which the supplier invoice was entered in the above exercise, under Required Data.  
  9. Select the previously entered invoice/installment in the Select Batch of Invoices window, and click OK. The invoice/installment appears in the Matching window, and the remaining amount is 0 (zero).
  10. Click OK.
  11. Save the bill (F12). 
    The customer bill is endorsed, an endorsed liability is created, and the matched supplier invoice/installment will be closed. Query for the created voucher number upon saving the bill in the Voucher Entry window, to view the postings created for the endorsing.   


Cash an Endorsed Customer Bill from the Customer Bill of Exchange 

Purpose: The purpose of this exercise is to show you how to cash an endorsed customer bill of exchange.

Windows:
Customer Bills of Exchange

  1. Open the Customer Bills of Exchange window.
  2. Query for an endorsed bill of exchange (F3).
  3. Highlight the row, right-click and then click Settle BoE. The Settle bill of exchange dialog box appears.
  4. Click OK to confirm. A message appears with the payment information.
  5. Click OK. The endorsed customer bill is now in the Settled status.


Rollback a Bill of Exchange 

Purpose: The purpose of this exercise is to show you how to rollback a bill of exchange that was settled, i.e., change the status from Settled to Endorse. In this process, the endorsed customer bill amount is posted from the Endorsed Customer Bill of Exchange account to the Open Customer BoE account.   

Windows:
Customer Bills of Exchange

  1. In the Customer Bills of Exchange window, select an endorsed bill that is in the Settled status
  2. Right-click and then click Rollback BoE. The Rollback Bill of Exchange dialog box opens. 
  3. Click OK to confirm. A message appears showing the change of status that occurred in the rollback.
  4. Click OK to confirm. A message appears with the payment information.
  5. Click OK.  


Cancel a Bill of Exchange

Purpose: The purpose of this lesson is to cancel a bill of exchange.

Windows:
Customer Bills of Exchange

  1. Open the Customer Bills of Exchange window. Populate or query for the bill that you want to cancel. 
  2. Select the line, right-click and then click Cancel BoE. A message appears with the payment information.
  3. Click OK.


View Bill of Exchange Details 

Purpose: The purpose of this lesson is to show you how to follow up on a bill of exchange.

Windows:
Customer Bills of Exchange
Customer Payment Documents Detail Analysis
Supplier Payment Documents Detail Analysis

  1. From the Customer Bills of Exchange window, select one or more bills of exchange you want to view, right-click and then click View Details. The Customer Payment Documents Detail Analysis and Supplier Payment Documents Detail Analysis window will be displayed.
  2. Click the History tab and view the status changes that the bill of exchange has gone through up to now. Click one or more lines, right click to  view information on the vouchers created for each status change.
  3. Click the Matched Items tab to view the customer invoices or payment on accounts matched with the bill.
  4. Click the Endorsed Items tab to view supplier invoices or payment on accounts matched with the bill.