Enter Supplier Bill of Exchange Information

Explanation

This activity is used to enter information about Bills of Exchange sent to suppliers. General Bill information to be entered includes supplier, currency, amount, and due date. You also specify the cash account from which the Bill should be cashed. You can also specify a bill type when entering the bill of exchange information. The bill type selected will determine the features that will be used when entering supplier bill of exchange payments. Features relevant for each bill type is defined by selecting the relevant parameters for the Supplier Bill of Exchange document type, in the Payment Documents window. If the Allow Stamp Duty check box is selected for the bill type, it will be required to apply stamp duty for the supplier bill of exchange. The stamp duty applicable for the supplier bill of exchange will be calculated based on the basic data specified in the Stamp Duty window.

If stamp duty is to be applied for the bill type and if the bill of exchange amount is more than the minimum division amount specified in the Stamp Duty window, the bill will be divided into several bills to decrease the stamp duty amount applied for the bill. Otherwise, (i.e. if the bill of exchange amount is less than the minimum division amount, but more than the minimum BoE amount) no division will be made for the bill of exchange, but stamp duty will be applied based on the information in the Stamp Duty window.  

Before saving the Bill you can match it with supplier invoices. See further the Enter Matched Supplier Invoices activity. When the Bill is saved, the matched invoices are paid and the supplier debt from the invoices (IP1) is removed. However a new supplier debt appears (PP26) which is represented by the entered open Bill of Exchange. If the Bill is not completely matched with invoices, the remaining unmatched part is stored as a payment on account, which can later be matched with invoices in the Supplier Offset function. After entry, the status of the Bill is Created, and the open Bill is found in the AP ledger with its Series ID and number.

Supplier Bills can be specified in the accounting currency, or in EUR if the accounting currency is an EMU currency. When matching a Bill with invoices, you can mix EMU currencies. A Bill in EUR can for example cover invoices in DEM or FRF.

Prerequisites

General basic data and supplier must exist.

System Effects

• When a Supplier Bill of  Exchange has been entered and saved, all matched invoices are paid, and an Open Supplier Bill of Exchange ledger item is created with the full Bill of Exchange amount.
• If the Bill of Exchange is not fully matched, the remaining part will create a new Payment on Account with the unmatched amount. A voucher will be created in the hold table in IFS Accounting Rules.
• If stamp duty is applied to the bill of exchange, the stamp duty amount will be posted using the posting type PP58. (Stamp Duty) 

Window

Supplier Bills of Exchange

Related Window Descriptions

Supplier Bills of Exchange

Procedure

1. Open the Supplier Bills of Exchange window.
2. Create a new record.
3. If the Supplier Bill of Exchange document type in the company is connected to the bill types, the default bill type and the default series ID for the bill type will be retrieved to the Bill Type field and the Series ID field.  You can change the bill type used for the payment, as long as it is connected to any Supplier Bill of Exchange series ID in the Payment Documents window.  
4. Enter the ID of the supplier in the Supplier field. The currency rate information will be automatically populated based on the selected supplier. You can modify the currency information if required.
5. The default series ID that is connected to the selected bill type will be displayed in the Series ID field. You can select a different series ID connected to the same bill type. 
6. The number to be used with the bill of exchange payment is specified in the No field. If the number is set to be automatically generated by the system, then the number will be assigned when saving the bill of exchange, according to the information specified in the Payment Document Number Series window. (This window can be reached by selecting the Payment Document Number Series right mouse button option in the Payment Documents window.)
7. Enter the amount of the bill of exchange in the Amount field. The stamp duty applicable for the supplier bill of exchange will be calculated based on the basic data specified in the Stamp Duty window, and will be placed in the Stamp Duty Amount field.
8. When you save the information, a message will appear stating that the Bill of Exchange is not fully matched. Click OK in the message box if you want to create a payment on account for the Bill of Exchange. Click Cancel to proceed with the Enter Matched Supplier Invoices activity.