Customer-Initiated Process Flow

You perform the following tasks for customer-initiated drafts:

1. Enter the information from the customer's draft document into PeopleSoft Receivables.

   Because you must enter a customer ID, the draft status is Identified.

2. Build a draft worksheet, and select the items to include in the draft payment.

   When you save the worksheet, the draft status changes to Pending Acceptance. When the value in the Difference field on the worksheet is zero, the user can mark the draft approved. When this occurs, the draft status becomes Accepted.

   Note:

   To approve multiple drafts simultaneously after selecting the items, use the draft approval worksheet.

3. Run Receivables Update to post the group and update draft activity.

   The draft status remains Accepted. However, the posted date and group ID on the Draft Control inquiry page for the Draft Approval line is now populated.

4. (Optional) Identify drafts that are being used as collateral and endorse drafts to another party as required.

   Once a draft is no longer being used as collateral or is endorsed, you can remit the drafts to the bank.

5. Select the drafts you want to submit to the bank, specify remittance details for each draft, and mark the drafts complete using the draft remittance worksheet.

   The status of a remitted draft is Remitted.

6. Run the Receivables Update process to post the remittance group and update draft activity.

   The draft status remains Remitted. However, the posted date and group ID on the Draft Control inquiry page for the Draft Remitted line is now populated.

   The monies will either be collected at the due date or at the discount date after you run the Receivables Update process again. At this point, the draft status becomes Complete, and, if you open the Draft Control inquiry page, the posted date and group ID for the Draft at Due Date line is now populated.

7. (Optional) Cancel a remittance.

   This step changes the draft status to Accepted after you run the Receivables Update process.

8. Run the Format EFT Files process (FIN2025) to create the file that you send to the bank.

9. (Optional) Create an EFT file cover sheet.

10. (Optional) Run the AR_DRAFT_BNK process to receive the bank EFT file that indicates whether the payments were collected.

11. (Optional) Correct payment records from a bank EFT file that did not match drafts on the system to enable them to match existing drafts.

12. (Optional) Run the EFT Draft Inbound Exception report to obtain a list of drafts in the bank EFT file that failed collection due to incorrect bank details.

    You can run this report only if you received a bank EFT file.

    You correct the bank details for the customer on the MICR Information - Customer Bank page and then approve and remit the draft again.

13. (Optional) Cancel the EFT file if you need to reformat the remittance or if you lost the original.

14. Reconcile the draft by matching the amount of the draft received with the amount that was submitted to the bank when you receive a bank statement.

You can also choose to perform the following tasks at various points in the draft life cycle.

• Void a draft.

• Dishonor a draft.

The section that describes each of these tasks indicates when you can perform these tasks.