Endorse Customer Bill of Exchange
Explanation
This activity is used to endorse a bill of
exchange (BoE) received from a customer. Endorsing is done when the company wants to use the bill of exchange that is received from a customer to settle the debts
to its suppliers. Endorsing cannot be done on a supplier invoice with an amount
that is less than the received amount of the customer bill of exchange.
Prerequisites
- Allow Endorsing check box should be selected for Customer Bill of
Exchange in the Payment Documents window.
- A customer bill of exchange must exist which should be
in the Created state.
System Effects
- The customer bill of exchange will receive the
Endorsed status. The Endorsed check box will be selected in the
Customer
Bills of Exchange window for the endorsed bill.
- A liability will be created for the company (PP64) until the
company's customer (i.e. the issuer of the bill of exchange) pays the
company's supplier
(i.e. the supplier to whom the bill was endorsed) When the bill is endorsed,
(matched with supplier invoices) all the matched invoices will be marked as paid.
- Endorsed
customer BoE will be less than or equal to the value of supplier invoices
being matched. During endorsing, on account payments will not be created for
the supplier.
Window
Customer Bills of
Exchange
Related Window Descriptions
Customer Bills of Exchange
Procedure
- Open the Customer Bills of Exchange
window.
- Populate or query for the bill of exchange you
want to endorse.
- Select the record, right-click and then click Endorse/View
Supplier Invoices.
- In the
Matching dialog box, create a
new record in the table area and enter
information about the supplier bill of exchange that has to be endorsed.
- Save the record.