53 Enter Drafts

This chapter contains these topics:

Section 53.1, "Entering Drafts"
Section 53.2, "Entering Manual Drafts"
Section 53.3, "Creating Automatic Drafts"

53.1 Entering Drafts

Navigation

From Customer & Invoice Entry (G0311), choose Other Invoice Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose Daily Draft Operations

From A/R Drafts Daily Operations (G031111), choose an option under the Draft Acceptance heading

Whether you originate the draft or your customer does, you must enter it into the Accounts Receivable system before you can process it. Entering a draft is equivalent to accepting it. You can enter drafts in one of the following ways:

Entering Manual Drafts
Creating Automatic Drafts

When you enter drafts, the system processes them in the same way as receipts except that the system:

Applies draft receipts to open customer invoices.
Uses matching document type R1 to close invoices (one per pay item).
Records the total draft amount in the A/R Ledger table (F0311) as a new original document type R1.
Uses batch type * (asterisk).
Validates the draft number against the draft number created if you used Invoice Print with Draft or Statement Print with Draft. This only applies to entering manual drafts originated by your customer.
Uses AAI item RD1x (where x is the payment instrument) to determine the drafts receivable account.
Sets the payment status to D (draft accepted).

53.2 Entering Manual Drafts

You use one of the following forms to enter a draft manually, depending on whether you originate the draft or your customer does:

Form	Description
Enter Our Drafts	Use this form when your company originates drafts for the customer to sign and return.
Enter Customer Drafts	Use this form when the customer originates the draft and sends it to your company to be accepted.

The fields you complete on Enter Our Drafts and Enter Customer Drafts are the same. The programs are two different versions of P03103 with the difference being how the Drafts Processing processing options are set.

To enter manual drafts

On Enter Our Drafts or Enter Customer Drafts

Figure 53-1 Enter Our Drafts screen

Description of ''Figure 53-1 Enter Our Drafts screen''

Complete the following fields:
- Draft Number
- Company
- Draft Amount
- Customer Bank Account Number
- Draft Date
- Deposit Date (G/L)
- Due Date
- Remark (optional)
- Reference (optional)
Complete the following fields for each pay item:
- Amount Applied
- Account (Customer) Number
- Invoice Number (optional)
- Pay Item
Access the detail area (optional).

Figure 53-2 Enter Our Drafts (Detail) screen

Description of ''Figure 53-2 Enter Our Drafts (Detail) screen''
Complete the following optional fields:
- Remark
- Offset
Press Enter.

Field	Explanation
Invoice Number/Draft Number	The number of the document, such as a receipt, an adjustment, or a credit that you apply against an original document, such as an invoice. For example: Original (DOC)-Matching Rec/Item (DOCM) A/R Original Invoice - Invoice Receipt - Invoice - Receipt Credit Memo/Adjustment - Invoice - Credit Memo A customer's document number on a receipt. This number must be unique within the batch. It can also be an item number used for spreads, adjustments, or other types of receipts.
Invoice Amount / Draft Amount	The amount of the receipt from the customer. This amount must balance to the detail of the amount applied to the open invoices.
Reference	An alphanumeric value used as a cross-reference or secondary reference number. Typically, this is the customer number, supplier number, or job number. Form-specific information This field is commonly used to identify the original invoice number because the system does not identify it when it creates an R1 original draft document.

Field

Explanation

Invoice Number/Draft Number

The number of the document, such as a receipt, an adjustment, or a credit that you apply against an original document, such as an invoice. For example:

Original (DOC)-Matching Rec/Item (DOCM)

A/R Original Invoice - Invoice

Receipt - Invoice - Receipt

Credit Memo/Adjustment - Invoice - Credit Memo

A customer's document number on a receipt. This number must be unique within the batch. It can also be an item number used for spreads, adjustments, or other types of receipts.

Invoice Amount / Draft Amount

The amount of the receipt from the customer. This amount must balance to the detail of the amount applied to the open invoices.

Reference

An alphanumeric value used as a cross-reference or secondary reference number. Typically, this is the customer number, supplier number, or job number.

Form-specific information

This field is commonly used to identify the original invoice number because the system does not identify it when it creates an R1 original draft document.

53.2.1 What You Should Know About

Topic	Description
Including a reference number during draft entry	When entering a draft, you might want to include a reference number on it. French clients commonly do this so that the reference number appears: In the magnetic draft file On the paper draft Although French clients do not generally enter more than a 10-character reference number, the Reference Number on Enter Drafts can handle up to 25 characters. This makes the reference number useful for other countries. This number is for informational purposes only.

Topic

Description

Including a reference number during draft entry

When entering a draft, you might want to include a reference number on it. French clients commonly do this so that the reference number appears:

In the magnetic draft file
On the paper draft

Although French clients do not generally enter more than a 10-character reference number, the Reference Number on Enter Drafts can handle up to 25 characters. This makes the reference number useful for other countries. This number is for informational purposes only.

53.2.2 Processing Options

See Section 103.2, "Receipts Entry (P03103)" for more information.

53.3 Creating Automatic Drafts

Navigation

From Customer & Invoice Entry (G0311), choose Other Invoice Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose Daily Draft Operations

From A/R Drafts Daily Operations (G031111), choose Pre-authorized Drafts

In some cases, the supplier and customer might agree in advance that the customer pays with a draft. The supplier does not print and send a draft to the customer, but instead sends the draft to the supplier's bank for collection. The supplier's bank collects funds from the customer's bank. This process is called automatic or pre-authorized draft processing.

You create automatic drafts by running Pre-authorized Drafts (P03571). You can run this program in either proof or final mode.

Proof mode	Final mode
You can choose to print a detailed or summarized list of transactions: Detail - prints a list of each invoice to be paid by draft. Summary - prints a summary of all invoices by customer, due date, and payment instrument to be paid by draft	You can make the same selections as in proof mode. In final mode, the system: Creates drafts Creates the journal entries that debit the drafts receivable account and credit the accounts receivable account Changes the pay status to D (draft accepted) Generates a report Creates a table you can copy to tape

Proof mode

Final mode

You can choose to print a detailed or summarized list of transactions:

Detail - prints a list of each invoice to be paid by draft.

Summary - prints a summary of all invoices by customer, due date, and payment instrument to be paid by draft

You can make the same selections as in proof mode. In final mode, the system:

Creates drafts
Creates the journal entries that debit the drafts receivable account and credit the accounts receivable account
Changes the pay status to D (draft accepted)
Generates a report

Creates a table you can copy to tape

Whichever mode you choose, you can review the information and make necessary changes. You can use the Standard Invoice Entry form or the Speed Status Change form to change the pay status.

Figure 53-3 A/R Batch Draft Creation report

Description of ''Figure 53-3 A/R Batch Draft Creation report''

53.3.1 What You Should Know About

Topic	Description
Abbreviated column headings	PI indicates Payment Instrument

53.3.2 Processing Options

See Section 108.3, "A/R Batch Draft Creation (P03571)" for more information.