Description of the illustration ''%s''drft_proc_effect_on

When a draft is originated, either by you (the supplier) or the customer, the system creates unposted entries in the Draft Receivables Account (debit) and the A/R Trade (credit) for the draft amount. This is the first step in the draft process and while it updates the customer ledger with the draft number, it does not directly affect the general ledger. You can originate a draft by printing an invoice or a statement with the draft information.After draft origination, the customer must accept the draft. When a draft is accepted, the system updates the status of the invoice. The entries in the Draft Receivables Trade and A/R Trade accounts remain unchanged. After entering the draft, you must post it to update the entries in the Draft Receivables and AR Trade account and mark them as posted.Optionally, you can remit (deposit) drafts to the bank so that you can collect funds from the customer's bank. During Draft Remittance, the system updates the draft status on the invoice. You must then post the draft again to update the general ledger.The last step in the draft process is Draft Collection. Your bank collects the funds for the draft from the customer's bank account on or before the draft due date. This is when you can recognize the transfer of cash. When you run the R03B680 program to processes draft collections, the system updates the status of the draft invoice record to show that it has been collected. Then, you must post the draft to update the general ledger. During the post process, the system creates a debit in the A/R trade account and credits the Draft Receivables account for the amount collected.