Contingent Liability (RD4x)

The RD4x AAI item defines the draft contingent liability account to credit when you remit drafts for a discount if you are required to recognize a contingent liability until the maturity date of the draft. During draft remittance, you use a processing option to select the draft contingent liability account. The system debits the draft remitted for discount account (RD3x), and credits the drafts receivable account (RD1x). The system also debits the bank account of the remittance, based on a processing option, or the bank account used during the preregister, and credits the draft contingent liability account (RD4x) unless you override it in the processing options.

When you collect drafts, the system debits the draft contingent liability account (RD4x) and credits the drafts remitted for discount account (RD3x).