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.