This document explains the procedure for creating Supplier Draft Payments and applying those payments to Vouchers payable via Supplier Draft.
The key topics involved in the Accounts Payable Supplier Draft Processing process are:
Topic 1: Create a Voucher for Draft Payment
Topic 2: Creating & Applying Supplier Draft Payments
Topic 3: Approve Supplier Draft (Controller’s office)
Topic 4: Cancel Supplier Draft (Controller’s office)
The topic will explain the process for creating a voucher that is to be paid via Draft, creating the Supplier Draft and will review the process for applying the Supplier Draft Payment to the outstanding Vouchers for the Supplier. This application will then record the Payment of the Supplier Draft.
Note: A draft cannot be posted unless approved.
Supplier-initiated drafts, which are prepared by the supplier, are sometimes called bills of exchange. The supplier specifies the due date, whether the draft is to be discounted, and the remittance procedure (paper, EFT, or Electronic Data Interchange (EDI)). Typically, the supplier's bank submits the draft to the customer's bank for processing.