Making payments by draft is a common banking practice in Japan. A draft is a representation of a promise to pay a debt, and its existence changes the legal nature of the underlying liabilities or assets.
In Japan, businesses are obligated to meet special requirements regarding accounts receivable drafts. These requirements include:
Maintaining the bank-assigned number for drafts
Accounting for discounted drafts
Reporting draft receivables
J.D. Edwards solutions for banking requirements in Japan consist of the following tasks:
Working with payment terms
Working with automatic payments
Working with accounts receivable drafts
Processing accounts payable bank transfers
Working with accounts payable drafts