Supplier-Initiated Draft Process Flow

You perform the following tasks for supplier-initiated drafts:

1. Run the Create Drafts Application Engine process (AR_DRAFTS) to create the supplier draft and a draft worksheet.

   The status of a draft that you create is either Identified or Pending Acceptance.

2. Send the draft to the customer for approval unless the draft is preapproved, and print the Draft Document BI Publisher report (ARX32101) to provide the customer a list of items on the draft.

   If the draft is preapproved, the system automatically approves the draft when you create it, and you skip the next step. The status of an approved draft is Accepted.

3. Make any necessary modifications to the draft data on the draft worksheet and approve the draft.

   If the customer did not approve the draft, use the draft worksheet to reject the draft. The items will be available for selection on another draft worksheet.

   Note:

   To approve multiple drafts without changing item information, use the draft approval worksheet. Also, use draft approval worksheets if the person in your organization who approves drafts is not the same as the individuals who apply drafts to items on the draft worksheet.

4. Run the Receivables Update process to post the group, update the draft status, and update draft activity.

5. (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.

6. Select the drafts that 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.

7. Run the Receivables Update process to post the remittance group, update the draft status, update draft activity, and change the draft remittance status to Complete.

   The monies will either be collected at the due date or at the discount date after you run the Receivables Update process.

8. (Optional) Cancel a remittance.

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

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

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

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

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

13. (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 only run this report 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.

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

15. 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.