With the 2108 release, the Bill of Exchange (BoE) process will be supported in yet another country. BoE Receivables Sole Bill can now also be used and processed for companies located in Japan. Let’s have a closer look into this functionality enabled for Japan and some other countries.
Just as a check, BoE is a means of payment quite commonly used throughout the world, but with a few specialties to keep in mind. BoEs are not a direct payment, but rather an unconditioned promise to pay at a later time. Hence, even when a BoE is booked as payment and the invoices are cleared with this payment, there is the contingent liability lurking in the background that only gets resolved with the full cashing of the BoE.
BoE Receivables Sole Bill is the easiest and most flexible BoE processing method within SAP Business ByDesign. When the customer sends the signed BoE document as means of payment, you can directly book it into the system from the Work of Center (WoC) view Payment Monitor either as an on-account payment or to directly reference existing invoice documents.
Create a new Bill of Exchange Receivables Sole Bill
To easily keep track of Bill of Exchange documents and their due dates, the personalization mode in the WoC view Payment Monitor allows you to blend in the field “Bill of Exchange Due Date” as filter criteria as well as in the result list:
Filter by Payment Method: Bill of Exchange Receivable Sole Bill
As the BoE due date approaches, you hand the due BoE documents over to your house bank for cashing in. For this, similar to check to process, in SAP Business ByDesign you assign them to a deposit and then release it.
Release the Bill of Exchange
With the release of the deposit, a payment file is automatically generated. For some countries, a country-specific file format gets created which can be used for direct bank processing.
And once these BoEs are cashed, when booking the bank statement, you select the BoE deposit handed over for cashing and thus clear these “in transfer” positions.
Create a bank statement
Remember that the very last step is clearing the contingent liability as the BoE debt is properly settled. This is done at the BoE deposit level—after this final step, the liability is fully cleared.
Remember to Reverse Contingent Liability as a final step
Interested in more details?
Watch the video, and check the recently reworked SAP Business ByDesign Online Library section on “Bill of Exchange” for more details on supported types and countries, prerequisites, detailed process steps, and much more.
Please visit the following pages for more information:
SAP Business ByDesign
Small and Midsize Business (SMB)
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