8 Set Up Discounted Drafts

This chapter contains the topic:

• Section 8.1, "Setting Up Discounted Drafts."

8.1 Setting Up Discounted Drafts

When you process discounted drafts, you need to debit a Drafts Remitted for Discount account and credit the Drafts Receivable account. When cash is recognized, the Drafts Remitted for Discount account is credited. (You can override this default account by specifying another account in the processing of options during draft remittance.)

You set up AAIs to identify the accounts you want the system to debit and credit when you process drafts. The RD3x AAI defines the Drafts Remitted for Discount account that the system automatically debits when you remit drafts.

You must also define a special user defined code (system 00, code PY) for the payment instrument that you want to use for discounted drafts. The system uses the special payment instrument in conjunction with the RD3x AAI to create the contingent liability transactions.

See Also:

• Setting Up AAIs for A/R Drafts in the JD Edwards World Accounts Receivable Guide,

• Setting Up User Defined Codes for A/R in the JD Edwards World Accounts Receivable Guide.