Draft Approval

Draft approval is performed for supplier-initiated drafts, customer-initiated drafts, and customer-initiated EFT drafts. You can review and approve draft payments either before or after payment creation. If you select the Preapprove check box on the Payment Selection Criteria - Draft Options page, the system sets the draft status to A (approved) after the payment is created. If you do not select the Preapprove check box, the system sets the draft status to C (created), and you must approve the draft manually.

Reviewing and Approving Drafts Before Payment Creation

During pay cycle, select the Payment Selection value on the Pay Cycle Manager page.

After payment selection, run the Draft Staging process to group drafts and to perform draft optimization and rounding.

After draft staging, go to the Draft Staging Approval page, where you can review the draft payments and approve them before payment creation.

Reviewing and Approving Drafts After Payment Creation

If your bank does not send you a bank file containing draft details, you can approve drafts in the following way:

  1. After you run the Pay Cycle process or create drafts manually, use the Draft Approval page to manually update the draft status from Created to Approved.

    Depending on the option that you select on the Payables Options - Payment Options page, the system may require a status of Approved before it can generate accounting entries in the Payment Posting process.

  2. Run the Payment Posting process to create accounting entries.

If your bank does send you a bank file containing draft details, you can approve drafts in the following way:

  1. When your bank transmits an electronic file to you that contains the draft detail, use the Draft Reconciliation and Approval - Draft Approval page to perform draft approval.

  2. Review draft payments that the automatic reconciliation process matches.

  3. Accept, reject, or partially pay payments.

    The approval process updates the status for all accepted drafts with the Approved status so that the Payment Posting process can generate accounting entries.

  4. Use the Prepare Bank Answer File page to create a bank answer file for those draft payments with exceptions, and send the bank answer file to your bank.

  5. Run the Payment Posting process to create accounting entries.

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