Understanding Unapplied Drafts

You enter unapplied drafts when you do not know which invoice or group of invoices the draft pays. Until you collect the draft, an unapplied draft does not reduce a customer's balance. When you enter an unapplied draft, the system creates records in these tables:

Table	Records Created
F03B11	The system creates these two records: A record for the unapplied draft invoice (document type RU). The system creates an unapplied draft record as a placeholder until the draft is applied to invoices. If you do not post this record before you apply it to invoices, the system deletes it when invoices are paid. A record for the draft invoice (document type R1). The draft invoice records (RU and R1) have these characteristics: They establish an audit trail for the draft payment ID. They have a batch type of DB. They have a posting status of D (posted). The posted codes for the draft records in the F03B13 table and the F03B14 table remain blank until the draft is posted.
F03B13	The system creates a draft payment record.
F03B14	The system creates these two records: A record for the unapplied draft invoice. A record for the draft invoice. These invoice records generated by the draft application also have a corresponding detail record (F03B14) that is used for posting purposes: Drafts (R1) Unapplied drafts (RU) Deductions (R5) The system uses a posting status of D when it creates the invoice records in the F03B11 table. To update the general ledger, you must post the receipt records in the F03B14 table.

Table

Records Created

F03B11

The system creates these two records:

A record for the unapplied draft invoice (document type RU). The system creates an unapplied draft record as a placeholder until the draft is applied to invoices. If you do not post this record before you apply it to invoices, the system deletes it when invoices are paid.
A record for the draft invoice (document type R1). The draft invoice records (RU and R1) have these characteristics:
They establish an audit trail for the draft payment ID.
They have a batch type of DB.
They have a posting status of D (posted). The posted codes for the draft records in the F03B13 table and the F03B14 table remain blank until the draft is posted.

F03B13

The system creates a draft payment record.

F03B14

The system creates these two records:

A record for the unapplied draft invoice.
A record for the draft invoice.

These invoice records generated by the draft application also have a corresponding detail record (F03B14) that is used for posting purposes:

Drafts (R1)
Unapplied drafts (RU)
Deductions (R5)

The system uses a posting status of D when it creates the invoice records in the F03B11 table. To update the general ledger, you must post the receipt records in the F03B14 table.

The unapplied draft remains open until you apply it to the appropriate invoices.

After you enter unapplied drafts, you must post them. When you post unapplied drafts, the system debits the draft receivables account and credits the A/R trade account that is associated with the AAI item RCUC, unless you override the Unapplied G/L Offset field on the draft or specify to use the G/L offset that is set up in the customer master record.

The process for applying unapplied drafts to invoices are very similar to the process for applying unapplied receipts to invoices.

See Applying an Unapplied Receipt to Invoices.