Draft Accounting Entries

You run the Payment Posting process on the draft issue date to generate accounting entries for drafts with the Approved or Created status. If the draft issue date is earlier than or the same as the current date, then the Payment Posting process debits the AP liability account and credits the draft payable account. If the draft payment date (maturity date) is earlier than or the same as the current date, then the Payment Posting process debits the draft payable account and credits the cash account.

This table lists the accounting entries that are created as each accounting event occurs:

Draft Status	Accounting Entries
Approved or Created	DR AP Liability (APA) CR Draft Payable (DFC)
Cancellation entries	DR Draft Payable (DFC) CR AP Liability (APA)
Approved/Due	With cash clearing: DR Draft Payable (DFC) CR Cash Clearing (CAC)
N/A	No cash clearing: DR Draft Payable (DFC) CR Cash (CAS)
Cancellation entries	With cash clearing: DR Cash Clearing (CAC) CR AP Liability (APA)
N/A	No cash clearing: DR Cash (CAS) CR AP Liability (APA)
Due/Reconciled	DR Cash Clearing (CAC) CR Cash (CAS)