Payment Instruments (00/PY)

To process discounted drafts in Japan, you must define a special payment instrument for discounted drafts. The system uses the special payment instrument with the RD3x automatic accounting instruction (AAI) to create the contingent liability transactions for discounted drafts.

For Japan, set up these values in UDC 00/PY:

• D - Draft by invoice (AR & AP)

• Q - Bank transfer - Japan

• $ - Densai Payment - Japan

You must also set up a payment instrument to calculate withholding for Japan.