Understanding Draft Processing

This section discusses:

• Draft payment process flow.

• Sight codes.

• Supplier-initiated draft process.

• Customer-initiated draft process.

• Customer-initiated electronic fund transfer (EFT) draft process.

• Draft numbering.

• Draft maturity date calculation and processing.

• Draft staging process.

• Draft rounding calculation.

• Draft optimization (stamp tax minimization).

• Stamp tax calculation.

• Draft approval.

• Draft bank reconciliation and approval.

• Draft EFT bank files and EFT answer files.

• Draft statuses.

• Draft accounting entries.

• Draft accounting entries for value-added taxes (VAT).

• Draft write-offs.

• Draft processing limitations.