Draft Remittance (Optional)

Draft remittance consists of these steps:

1. You remit (deposit) the draft to the bank so that it can collect the funds from the customer's bank. You can remit the draft either electronically or on paper in the form of a bank register. When you remit the draft for payment, the system updates the pay status of the R1 draft invoice record to G.

   This table shows the result of draft remittance on the draft invoice record in the F03B11 table:

   Customer Number	Document Type	Document Number	Document Amount	Pay Status	Pay Instr
   7001	R1	10005	10,000	G	2

2. The system creates these journal entries, which you must post:

   • The system debits the drafts remitted account and credits the drafts receivable account.

   • If the draft is remitted with a discount, the system debits the drafts remitted with discount account and credits the drafts receivable account.

   • If the draft is remitted with contingent liability, the system debits the drafts remitted with discount account and credits the drafts receivable account. The system also debits the bank account and credits the contingent liability account.

3. You arrange to collect funds from the draft in one of these ways:

   • Wait until the funds become available on the due date specified by the draft.

   • Request an advance from the bank before the due date of the draft. Typically, banks charge a fee when they advance funds for a draft before its due date.

     Note: Draft remittance is optional in certain countries.