Drafts Payable (PD)

AAIs define rules for programs that automatically generate journal entries. You should set up draft AAIs for each company if you use a different account number for it. That is, you do not need to set up an AAI for each company if the companies use the same account. If the system cannot find an AAI for a specific company, it uses the AAI from company 00000.

A draft is a promise to pay a debt. Draft processing is a variation of automatic payment processing and uses the same setup.

Draft processing uses a single AAI that defines the drafts payable account. This account acts as a holding or clearing account until you pay the draft. When you create a draft, the system:

• Debits AP trade

• Credits drafts payable

When you pay the draft, the system:

• Debits drafts payable

• Credits your bank account

You set up a single AAI for the drafts payable account (item PD), which the system uses as the default value. You can also set up one AAI for each payment instrument (item PDx, where x equals the UDC for a payment instrument).