Prerequisites for Managing Drafts

Before you can process drafts, you must perform the following tasks:

• Review business events and subevents.

• Define distribution codes and assign them to a business unit.

• Create entry types, entry reasons, and automatic entry types.

• Define draft transaction types for customized reports.

• Define draft types that determine how drafts are processed.

• Designate where draft documents are stored.

• Define document types.

• Assign account ChartFields to a bank account for the Cash and Cash Control accounts for both discounted and nondiscounted drafts.

• Define draft collection methods for a bank account.

• Link the customer's bank account to a remit from customer if you plan to remit drafts using an EFT file on the Customer Bank page.

• Select the draft payment method and processing rules for bill to customers.

• Assign customers to draft groups.

• Create reason codes for rejecting drafts using the Reject Draft reason type.

• Set up automatic numbering.

• Set up item reference qualifiers.

• Set up draft reference qualifiers.

• Set up EFT reason codes and EFT file layouts.

• Associate the customer IDs with the customer names in the EFT files on the Customer EFT Name page for EFT drafts.

• (Optional) Setup approval workflow for write-off amounts.