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 check box should be selected for Customer Bill of Exchange in the Payment Documents window.
• 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 check box will be selected in the Customer Bills of Exchange window 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. 

Window

Customer Bills of Exchange

Related Window Descriptions

Customer Bills of Exchange

Procedure

1. Open the Customer Bills of Exchange window.
2. Populate or query for the bill of exchange you want to endorse.
3. Select the record, right-click and then click Endorse/View Supplier Invoices.
4. In the Matching dialog box, create a new record in the table area and enter information about the supplier bill of exchange that has to be endorsed. 
5. Save the record.