Understanding Accounts Payable Drafts in a Foreign Currency

A draft is a promise to pay a debt. When a voucher is processed for draft payment, the draft document that you submit to the payee notifies them that the bank processes the draft and transfer the funds on a specified date.

You can process drafts in a foreign currency if the transaction currency of the voucher is the same currency as the draft. The transaction currency of a voucher determines the currency that is used throughout the draft process. For this reason, you cannot process drafts in an alternate currency.

To process accounts payable drafts, you can use either the manual or automatic payment program.