Endorse Customer Bill of Exchange
Explanation
This activity is used to endorse a bill of exchange (BoE) received from a
customer. Endorsing is done when the company wants to use the bill of exchange
that is received from a customer to settle the debts to its suppliers. Endorsing
cannot be done on a supplier invoice with an amount that is less than the received
amount of the customer bill of exchange.
Prerequisites
- Allow Endorsing option should be selected for Customer Bill of
Exchange in the Payment Documents page.
- A customer bill of exchange must exist which should be in the Created
state.
System Effects
- The customer bill of exchange will receive the Endorsed status. The
Endorsed option will be selected in the
Customer Bills of Exchange page for the
endorsed bill.
- A liability will be created for the company (PP64) until the company's
customer (i.e. the issuer of the bill of exchange) pays the company's supplier
(i.e. the supplier to whom the bill was endorsed) When the bill is endorsed,
(matched with supplier invoices) all the matched invoices will be marked
as paid.
-
Endorsed customer BoE will be less than or equal to the value of supplier
invoices being matched. During endorsing, on account payments will not be
created for the supplier.