Understanding Draft Setup

When you process drafts, the system uses unique user-defined codes (UDCs) and automatic accounting instructions (AAIs). Additionally, to avoid fees from the bank, most companies set up bank account information for their customers who process drafts. You use payment instruments to differentiate customers who process drafts from those who do not and to identify those customers for whom you originate the draft from those who originate the draft themselves. You can also use payment instruments to identify those customers for whom you have bank account information from those for whom you do not.