Managing Drafts

This chapter provides an overview of processing drafts, lists prerequisites, and discusses how to:

Enter drafts into Receivables.
Use worksheets to approve or reject drafts.
Identify drafts used as collateral.
Endorse drafts to another party.
Remit drafts to the bank.
Dishonor drafts.
Void drafts.
Cancel draft remittances.
Reconcile drafts on a bank statement.
Unpost drafts.
Review and correct draft accounting entries.
Review draft information.

Understanding Draft Processing

There are several tasks that you perform for a draft during the draft lifecycle. The tasks that you perform depend on if you are using vendor-initiated drafts, customer-initiated drafts, or customer electronic funds transfer (EFT) drafts.

This section discuses:

Vendor-initiated draft process flow.
Customer-initiated process flow.
EFT draft process flow.

See Also

Dishonoring Drafts

Voiding Drafts

Understanding the Draft Life Cycle

Vendor-Initiated Draft Process Flow

You perform the following tasks for vendor-initiated drafts:

Run the Create Drafts Application Engine process (AR_DRAFTS) to create the vendor draft and a draft worksheet.

The status of a draft that you create is either Identified or Pending Acceptance.
Send the draft to the customer for approval unless the draft is preapproved, and print the Draft Document report to provide the customer a list of items on the draft.

If the draft is preapproved, the system automatically approves the draft when you create it and you skip the next step. The status of an approved draft is Accepted.
Make any necessary modifications to the draft data on the draft worksheet and approve the draft.

If the customer did not approve the draft, use the draft worksheet to reject the draft. The items will be available for selection on another draft worksheet.

Note. To approve multiple drafts without changing item information, use the draft approval worksheet. Also use draft approval worksheets if a different person in your organization approves drafts than the individuals who apply drafts to items on the draft worksheet.
Run the Receivable Update process to post the group, update the draft status, and update draft activity.
(Optional) Identify drafts that are being used as collateral and endorse drafts to another party as required.

Once a draft is no longer being used as collateral or is endorsed, you can remit the drafts to the bank.
Select the drafts that you want to submit to the bank, specify remittance details for each draft, and mark the drafts complete using the draft remittance worksheet.

The status of a remitted draft is Remitted.
Run the Receivable Update process to post the remittance group, update the draft status, update draft activity, and change the draft remittance status to Complete.

The monies will either be collected at the due date or at the discount date after you run the Receivable Update process.
(Optional) Cancel a remittance.

This changes the draft status to Accepted after you run the Receivable Update process.
Run the Format EFT Files SQR process (FIN2025) to create the file that you send to the bank.
(Optional) Create an EFT file cover sheet.
(Optional) Run the AR_DRAFT_BNK Application Engine process to receive the bank EFT file that indicates whether the payments were collected.
(Optional) Correct payment records from a bank EFT file that did not match drafts on the system to enable them to match existing drafts.
(Optional) Run the EFT Draft Inbound Exception report to obtain a list of drafts in the bank EFT file that failed collection due to incorrect bank details.

You can only run this report if you received a bank EFT file.

You correct the bank details for the customer on the MICR Information - Customer Bank page and then approve and remit the draft again.
(Optional) Cancel the EFT file if you need to reformat the remittance or if you lost the original.
Reconcile the draft by matching the amount of the draft received with the amount that was submitted to the bank when you receive a bank statement.

You can also choose to perform the following tasks at various points in the draft lifecycle.

Void a draft.
Dishonor a draft.

The section that describes each task indicates when you can perform these tasks.

Customer-Initiated Process Flow

You perform the following tasks for customer-initiated drafts:

Enter the information from the customer's draft document into Receivables.

Because you must enter a customer ID, the draft status is Identified.
Build a draft worksheet, select the items to include in the draft payment.

When you save the worksheet, the draft status changes to Pending Acceptance. When the value in the Difference field on the worksheet is zero, the user can mark the draft approved. When this occurs, the draft status becomes Accepted.

Note. To approve multiple drafts simultaneously after selecting the items, use the draft approval worksheet.
Run Receivable Update to post the group and update draft activity.

The draft status remains Accepted. However, the posted date and group ID on the Draft Control inquiry page for the Draft Approval line is now populated.
(Optional) Identify drafts that are being used as collateral and endorse drafts to another party as required.

Once a draft is no longer being used as collateral or is endorsed, you can remit the drafts to the bank.
Select the drafts you want to submit to the bank, specify remittance details for each draft, and mark the drafts complete using the draft remittance worksheet.

The status of a remitted draft is Remitted.
Run the Receivable Update process to post the remittance group and update draft activity.

The draft status remains Remitted. However, the posted date and group ID on the Draft Control inquiry page for the Draft Remitted line is now populated.

The monies will either be collected at the due date or at the discount date after you run the Receivable Update process again. At this point the draft status becomes Complete, and if you open the Draft Control inquiry page, the posted date and group ID for the Draft at Due Date line is now populated.
(Optional) Cancel a remittance.

This changes the draft status to Accepted after you run the Receivable Update process.
Run the Format EFT Files process (FIN2025) to create the file that you send to the bank.
(Optional) Create an EFT file cover sheet.
(Optional) Run the AR_DRAFT_BNK process to receive the bank EFT file that indicates whether the payments were collected.
(Optional) Correct payment records from a bank EFT file that did not match drafts on the system to enable them to match existing drafts.
(Optional) Run the EFT Draft Inbound Exception report to obtain a list of drafts in the bank EFT file that failed collection due to incorrect bank details.

You can run this report only if you received a bank EFT file.

You correct the bank details for the customer on the MICR Information - Customer Bank page and then approve and remit the draft again.
(Optional) Cancel the EFT file if you need to reformat the remittance or if you lost the original.
Reconcile the draft by matching the amount of the draft received with the amount that was submitted to the bank when you receive a bank statement.

You can also choose to perform the following tasks at various points in the draft lifecycle.

Void a draft.
Dishonor a draft.

The section that describes each task indicates when you can perform these tasks.

EFT Draft Process Flow

In some countries, drafts are sent electronically from a customer using an electronic funds transfer (EFT) file. The bank already holds the drafts so there is no need to remit the drafts to the bank.

You perform the following tasks for EFT drafts:

Run the AR_DRAFT_EFT process to load the EFT file into the draft tables on the database.

Draft payments (known as kijitsu in Japan) are extracted from the file if the creation date is not equal to the accounting date (that is the due date). The extracted data is loaded into the AR Draft Staging table (PS_DR_STAGE_EFT). If the customer name and bank account cannot be resolved to a customer ID and bank code the record is marked as an Error. If the review option on the run control record is set to errors only, the system converts staged drafts that are not in error into real drafts (DRAFT_CONTROL). The system also creates a customer reference record (DRAFT_ID_CUST).

The AR_DRAFT_EFT process uses the Kijitsu file layout. There are two Zengin data record formats for the file layout; Zengin Format A and Format B. You must use Zengin Format B. Format B allows for payment amounts of up to 13 digits. Do not use Zengin Format A.

Note. Regular payments are extracted from the file if the creation date equals the accounting date (or due date). The extracted data is loaded into the AR Payment staging table (AR_PAYMENT_EC). These payments can then be converted to regular deposits using the Payment Loader Application Engine process (AR_PAYLOAD).

See Receiving Payments Electronically.
Correct errors in the drafts on the Draft Staging table and create draft control records.
Make any necessary modifications to the draft data on the draft worksheet and approve the draft.

Note. To approve multiple drafts without changing item information, use the draft approval worksheet. Also use draft approval worksheets if a different person in your organization approves drafts than the individuals who apply drafts to items on the draft worksheet.
Run the Receivable Update process to post the group, update the draft status, and update draft activity.
When you receive a bank statement, you reconcile the draft by matching the amount of the draft received with the amount that was submitted to the bank.

You can also choose to perform the following tasks at various points in the draft lifecycle.

Void a draft.
Dishonor a draft.

The section that describes each task indicates when you can perform these tasks.

Note. You should not endorse, cancel, or unpost an EFT draft, because the draft has already been remitted.

Prerequisites

Before you can process drafts, you must perform the following tasks:

Review business events and subevents.
Define distribution codes and assign them to a business unit.
Create entry types, entry reasons, and automatic entry types.
Define draft transaction types for customized reports.
Define draft types that determine how drafts are processed.
Designate where draft documents are stored.
Define document types.
Assign account ChartFields to a bank account for the Cash and Cash Control accounts for both discounted and nondiscounted drafts.
Define draft collection methods for a bank account.
Link the customer's bank account to a remit from customer if you plan to remit drafts using an EFT file on the Customer Bank page.
Select the draft payment method and processing rules for bill to customers.
Assign customers to draft groups.
Create reason codes for rejecting drafts using the Reject Draft reason type.
Set up automatic numbering.
Set up item reference qualifiers.
Set up draft reference qualifiers.
Set up EFT reason codes and EFT file layouts.
Associate the customer IDs with the customer names in the EFT files on the Customer EFT Name page for EFT drafts.

See Also

Setting Up Draft Processing

Setting Up Reference Qualifiers

Defining Document Types

Defining External Account Information

Defining MICR IDs

Assigning Individual Customers to Customer Groups

Entering Additional Billing, Purchasing, Payment, and Write-Off Options for Bill To Customers

Setting Up Automatic Numbering

Selecting EFT Layouts

Associating EFT Payment File Names With Customer IDs

Common Elements Used in This Chapter

Draft Ref (draft reference)	Draft reference number supplied by the customer.
Draft Type	Determines how the draft is processed and how accounting entries are created.
Entry Event or Event	If you use the Entry Event feature, enter the entry event code used to create supplemental accounting entries for the activity.

Entering Drafts into Receivables

This section provides an overview of the Create Drafts process and discusses how to:

Create vendor-initiated drafts.
Enter one customer-initiated draft.
Enter multiple customer-initiated drafts.
Load drafts using an EFT file.
Correct errors in EFT drafts.

Understanding the Create Drafts Process

The Create Drafts process creates vendor-initiated drafts and creates a draft worksheet. The process looks for open items that match the vendor draft payment method that you selected and does the following:

Marks each draft as Identified.
If the draft is preapproved, approves the draft.
Creates a draft worksheet.
Places all items with the same letter of credit number in a single draft.
Places all items with the same approval method, entry currency, due date, and document printing instructions in a single vendor-initiated draft.

If you selected the One Item per Draft? check box when entering pending items, the process places only one item in a draft.
If the draft type has automatic numbering enabled, assigns the next available draft reference number to the drafts.

If the draft type does not have automatic numbering enabled, the system uses the draft ID number for the draft reference number.

Note. If the settlement date falls on a holiday, the process uses the bank holiday rules assigned to the customer to adjust the estimated settlement date.

The process also does the following for credit items that have the draft payment method:

Adds credit items to the draft worksheet if the due date and amount of the credit item is the same as or less than the due date or amount of the debit items.

The process continues to add credit items to the draft worksheet whose due dates are the same as or less than the due dates of the debit items in the draft worksheet until the amount of the credit items becomes larger than the total of the debit item. The process never allows the draft amount to become a negative amount.

If there are still remaining credit memos that meet the due date criteria but exceed the total amount of the draft, these items are available for inclusion in a draft worksheet the next time you run the process.
Changes the draft due date for the credit items to the same date as the debit items.
Clears the One Item per Draft? check box for the credit items, if it is selected.
Creates a message in the message log that lists the credit items that were not processed in the current draft run, because they have a due date or amount that is greater than the debit items.

Common Elements in This Section

Link MICR (link magnetic ink character recognition)	Select to open a page where you can associate a new MICR ID with a customer.
MICR ID (magnetic ink character recognition ID)	Enter the MICR ID of the customer's bank account used for drawing the draft.
Qual Code (qualifier code)	Enter the type of reference values that you are entering, such as item ID or document number. The default qualifier code is the reference qualifier code of the remit from customer for the customer you selected on this page. If the customer does not have a qualifier code, the system uses the code assigned to the business unit.

Pages Used to Enter Drafts

Page Name	Object Name	Navigation	Usage
Draft Request	DRAFT_REQUEST	Accounts Receivable, Drafts, Create Drafts, Vendor Drafts, Draft Request	Runs the Create Drafts process.
Draft Documents	RUN_AR32101	Accounts Receivable, Drafts, Reports, Draft Documents, Draft Documents	For vendor-initiated drafts, define the run parameters for the Draft Document report (AR32101). Customers can use this report to decide if the draft should be accepted or rejected.
Draft Entry	DRAFT_ENTRY	Accounts Receivable, Drafts, Create Drafts, Customer Drafts, Draft Entry	Enter a single customer-initiated draft, indicating the items that the draft will pay.
Draft Mass Entry	DRAFT_MASS_ENTRY	Accounts Receivable, Drafts, Create Drafts, Multiple Customer Drafts, Draft Mass Entry	Enter multiple customer-initiated drafts.
Draft Details	DR_MASS_ENTRY_SEC	Click the References link on the Draft Mass Entry page.	Enter detail reference information for draft selection.
Load EFT Payments	DR_EFT_REQUEST	Accounts Receivable, Drafts, Create Drafts, Receive Draft Payments, Load EFT Payments	Use to load draft payments from an EFT file.
Draft EFT Load and Review	DR_EFT_STAGE	Accounts Receivable, Drafts, Create Drafts, Electronic Drafts, Draft EFT Load and Review	Correct errors in drafts that you receive in EFT files.

Creating Vendor-Initiated Drafts

Access the Draft Request page.

Due Date Range

From Date and To Date

Enter a range for the due dates of items to include. To include items due on a specific day, enter the same date in both fields.

Item Date Range

From Date and To Date

Enter the date range for item creation. To include items created on a specific day, enter the same date in both fields.

Options

Pre-Approved Only	Select to process only items that are preapproved on the draft and that do not require customer approval.
Customer Criteria and Customer Group	These fields work together to limit the customers for whom you will create drafts. If you decide to select items based on customer criteria, select one of these options: Customer, Corporate, or Remit From. Then select the customer group assigned to the customers. For example, suppose you select a customer group containing customers FRA01 and FRA04 and you select Remit From. The customers in the remit from customer group for customer FRA01 are FRA01 and FRA03. Customer FRA04 is the only customer in the remit from customer group for customer FRA04. In this case, the system selects items for customers FRA01, FRA03, and FRA04. If you had selected Customer as the customer criteria, the system selects items for only customers FRA01 and FRA04.
Due Date Option	Select a value that determines the due date for the items in the draft. Options are: Default: Use the item due date. If you use item due dates, the process creates a separate draft for items with different due dates. Specified: Use the date that you entered in the Due Date field for the items.
Draft Type	Select a draft type. (The draft types are defined on the Draft Type - Receivables page.)

See Also

Defining Draft Types

Entering One Customer-Initiated Draft

Access the Draft Entry page.

Due Date

Enter the due date for the draft.

Creation Date and Accounting Date

Override the dates, if needed. The default creation date and accounting date for the draft is the current date.

Amount

Enter the total amount of the draft.

Est Settlement Date (estimated settlement date)

The system populates this value when you save. It uses the bank holiday rules defined for the bank account that you assigned to the customer for the draft if it falls on a holiday.

Range of References

Select to enter a range of items.

Customer Information

Payer Name

Displays the customer's name on the draft by default. You can change the payer name as needed.

Item Reference

(Optional) Use to indicate the item or range of items that are applied to the draft. You can also enter this information when you build a draft worksheet.

Reference and To Reference

Enter one reference number unless you selected Range of References. Then you must enter a beginning and ending reference number.

Entering Multiple Customer-Initiated Drafts

Access the Draft Mass Entry page.

To enter several customer-initiated drafts:

Enter information about the drafts.

Due Date

Enter the due date for the draft.

Amount

Enter the total amount for the draft.

Creation

Override the draft creation date as needed. The default is the current date.

When you save the page, the system updates the estimated settlement date using the bank holiday rules assigned to the customer.
(Optional) Click the References link to access the Draft Details page where you specify the items to apply to the draft.

Note. You can also enter this information when you build a draft worksheet.

References

Select to enter a range of items.

See Also

Defining Draft Types

Loading Drafts Using an EFT File

Access the Load EFT Payments page.

Process

Indicate whether to process Drafts, regular Payments, or Both in the EFT file.

Review

Select a review option. Options are:

All: Creates draft control records for all records in the EFT file even if they do not have a matching customer or bank account on the system.

Errors: Select if you want to review and correct errors for drafts before the system updates the Draft Control table.

This option is available only if you are processing drafts.

File Name

Enter a name for the EFT file. The name of the EFT file must be unique. The file must be loaded into the directory on the application server defined by %PS_SERVDIR%\FILES, where %PS_SERVDIR% is the directory where the application server domain is defined. If you process the EFT file using Process Scheduler, then you need to load the file into %PS_HOME%\appserv\prcs\ <database name>\files.

After the system has processed the file, it updates a table (DR_FILE_NAME) on the database with the name of the flat file that has been loaded. Using a unique file name prevents drafts or payments from being entered into the system twice. Only the file name is stored, not the path.

Correcting Errors in EFT Drafts

Access the Draft EFT Load and Review page.

The Select Drafts grid displays the drafts in the EFT files that meet your search criteria.

To correct the errors and create drafts:

Select the drafts for which you want to create a Draft Control record (DRAFT_CONTROL).
Change the values for the business unit, customer ID, or MICR ID so that they match values on the system.
Change the accounting date if needed.
Save the page to create the drafts and Draft Control record.

Using Worksheets to Approve or Reject Drafts

This section provides an overview of draft approval worksheets and discusses how to:

Build a draft worksheet.
Use a draft worksheet to approve one draft.
Distribute multiple revenue lines.
View item details.
Build a draft approval worksheet for approving multiple drafts.
Use a draft approval worksheet to approve multiple drafts.

Understanding Draft Approval Worksheets

Use worksheets to record the customer's approval and make any necessary modifications to the draft. Worksheets are cumulative. As long as you do not clear the worksheet, you can continue to expand it by selecting additional criteria. Each time you build a worksheet, the items you previously selected remain and the system adds items that meet the new criteria.

Use the draft worksheet to select items to be paid by the draft and approve drafts. You can also create deductions, advance payments, write-offs, and adjustments using the draft worksheet.

Use the draft approval worksheet if you want to approve multiple drafts at once. This worksheet is useful for organizations where the approver is not the individual that applies the drafts to individual items.

Pages Used to Approve or Reject Drafts

Page Name	Object Name	Navigation	Usage
Draft Worksheet Selection	DRAFT_IDENTIFY_IC	Accounts Receivable, Drafts, Apply Drafts, Create Worksheet, Draft Worksheet Selection	Select items to be paid by a customer-initiated draft and build a draft worksheet that you use to approve a single draft.
Draft Worksheet Application	DRAFT_WORKSHEET_IC	Accounts Receivable, Drafts, Apply Drafts, Update Worksheet, Draft Worksheet Application	Select items to include in the draft and approve one draft at a time.
Currency Conversion	EU_CUR_CNV_WS_SEC	Click the Currency Conversion Panel button on the Draft Worksheet Application page.	Select the currency code, rate, and date of conversion for the display currency on the worksheet.
Multiple Revenue Line Distribution	AR_MRL_SEC	Click the Revenue Distribution link on the Draft Worksheet Application page.	View or update multiple revenue line entries. If you change an amount on this page, the change overrides the amount on the worksheet.
Activity	DRAFT_STATS_IC	Click the Activity link on the Draft Worksheet Application page.	View a list of all activities for the draft, including the activity date and posting status.
Draft Notes	DRAFT_NOTES_SEC	Click the Notes link on the Draft Worksheet Application page or the Draft Control page.	View or add notes about a draft. Assign the draft to a physical location.
Document Sequence	AR_DOC_SEQ_SEC	Click the Document Sequencing link on the Draft Worksheet Application page.	Enter a document sequence number if the document type is set up for manual numbering. Also, change the document type for document sequencing.
Draft Detail View	DRAFT_WS_IC_DTL	Click the View Detail button on the Draft Worksheet Application page.	Change due date and the bank account from which you will draw the funds. View bank account details, bank statement reconciliation information, and information about bank fees.
Currency Exchange Aid	DR_CURR_EXCHG_SEC	Click the Currency Exchange Aid link on the Draft Detail View page.	Use as an aid in converting the payment amount to the currency of a selected item making a partial payment.
VAT Header	DRAFT_ITEM_VAT_HDR	Click the Add VAT Information link on the Draft Detail View page.	View VAT header defaults. Manually override values if applicable.
VAT Detail	DRAFT_ITEM_VAT_LN	Click the VAT Detail Page link on the VAT Header page.	View VAT line defaults including the VAT amounts. Manually override values if applicable.
Item Activity Detail	ITEM_ACTIVITY_DRILL	Click the Item Activity link on the Draft Detail View page.	View all activities for an item.
Item in Other Groups	ITEM_DGROUP_SEC	Click the Item in Other Groups link on the Draft Detail View page.	View other worksheet groups that have the selected item or any pending item groups that are not posted that have the item.
Additional Customer Information	CUST_INFO_SEC	Click the Additional Cust Information link on the Draft Detail View page.	View additional customer information.
Draft Approval Selection	DR_APROV_SEL_IC	Accounts Receivable, Drafts, Approve Drafts, Create Worksheet, Draft Approval Selection	Build a draft approval worksheet used to approve multiple drafts.
Draft Approval Worksheet	DR_APROV_WORKS_IC	Accounts Receivable, Drafts, Approve Drafts, Update Worksheet, Draft Approval Worksheet	Approve multiple drafts.
Draft Details	DR_APROV_ITEM_SEC	Click the Details link on the Draft Approval Worksheet page.	View details about items in a draft.

Building a Draft Worksheet

Access the Draft Worksheet Selection page.

If you are working with a vendor-initiated draft, the Create Drafts process creates the worksheet, you do not need to build it.

The draft Status is Identified until you build the worksheet. If you have already built a worksheet for the draft, the status is Pending Acceptance.

The information that you enter about customers and items determines what appears on the worksheet. The more information you provide, the more focused your worksheet will be.

Note. If you enter no customer or item information, the system creates a blank worksheet.

Customer Criteria

Customer Criteria

Indicates the type of customer that you want to include in the worksheet: Corporate Items, Customer Items, or Remit From Items. If you select None, the system creates a worksheet based on your other selection criteria and does not limit items to specific customers. If you select None, the Customer Reference fields are not available.

Cust ID (customer ID) and Business Unit

Enter a customer ID and business unit.

Note. If you select Corporate Items or Remit From Items from the Customer Criteria drop-down list box, you must enter a business unit. The system needs a business unit to determine the setID of corporate and remit from customers. The resulting worksheet displays all open items having the specified corporate or remit from customer across all business units, not just the business unit that you selected.

Reference Criteria

Reference Criteria	Specify whether you will use Detailed References, Specific Value, None, or a Range of References. If you select either Range of References or Specific Value, you work with the Item Reference fields. Note. The only instance in which you can use reference criteria independently of customer criteria is when the value in the Restrict To field is All Customers.
Restrict to	Qualify items by customer by selecting All Customers, Corporate Cust Only, Customer Only, or Remit Cust Only.
Match Rule	If you selected Specific Value in the Reference Criteria field, specify whether the item information is an Exact Match or a Like Match. A Like Match enables you to use a percent (%) wildcard to identify the reference, as long as you provide the beginning letters or numbers. For example, if you enter a PO number of 24% and select Like Match, the worksheet will contain all items having PO numbers beginning with 24xx, but will not catch a PO number of x24x.
Qual Code (qualifier code)	Enter the type of reference, such as documents, items, purchase orders, or any other criteria that you set up on the Reference Qualifier page. Note. When you enter a reference number, the default qualifier code appears.
Reference and To Reference	Do one of the following: If you selected Specific Value in the Reference Criteria field, enter the specific item reference. If you selected Range of References, enter the starting and ending values for the range of references. The values that you enter are case-sensitive.

Item Inclusion Options

All Items, Deduction Items Only, or Items in Dispute Only

Select one of these options to indicate what type of items to include in the worksheet. If you select All Items, you can select one or more of these check boxes to exclude those item types from the worksheet: Exclude Deduction Items, Exclude Collection Items, and Exclude Dispute Items.

Worksheet Action

Build	Click to create a new worksheet or to add items meeting your selection criteria to an existing worksheet.
Clear	Click to remove all items from an existing worksheet.

Using a Draft Worksheet to Approve One Draft

Access the Draft Worksheet Application page.

Using the draft worksheet consists of these basic tasks:

Use the item display or sort controls to adjust the view.
Select the items to pay.
Handle underpayments, overpayments, and discounts.
Approve, hold, or reject the draft.

You cannot approve a draft until the entire amount of the draft is accounted for, either applied to an item, deemed a prepayment, held on account, deducted from the customer's balance, or considered an adjustment.

Selecting Items and Item Actions

The item selection controls enable you to work with all items in the worksheet at once or a specified range of items.

Entry Type and Reason

Select the entry type for the activity that you want to perform for the selected items. You must enter a valid entry reason in the field if you have entry reasons set up for the write-off entry type. Valid entry types are:

Create A Deduction: Select to create a deduction item for the selected items.

Pay an Item: Select to apply the draft to all the selected items.

Write-off an Item: Select to write off selected items. The system issues a message if you try to write off more than the write-off tolerances permit.

Note. If you select an item that is in use, you will get an error message. A setting on the Installation Options - Receivables page—No Mult Pending Item Selection—determines whether the system checks groups to see if an unposted pending item exists for the item that you selected or if the item has been selected in another group. To see where the item is in use, select Items in Other Groups on the Draft Detail View page for the item.

Choice and Range

Select an option to select or clear multiple items at a time. Valid values are: Select All, De-Select All, Select Range, De-Select Range, and none.

If you select Select Range or De-Select Range, enter the range in the Range field. For example, enter (4-7).

Click to apply your selections to the items in the grid and to update the worksheet balances.

Using Item Display Information

Use the fields in the Item Display Control group box to adjust the view and contents of the Item List grid.

Display	Specify which items to display in the grid, such as All Items, New Items, Unselected Items or Selected Items.
Go	Click to refresh the list of items in the grid.
	Click the Currency Conversion Panel button to access the Currency Conversion page where you select a display currency for the Conversion Amount - Currency column and specify whether to use today's date, the accounting date for the item, or a date that you specify to determine which exchange rate to use.
Sort All	Select a value to sort all items in the worksheet, not just the items that are displayed in the scroll area. This field is not available if the number of rows does not exceed the maximum chunk size. Options are: Due Date or Item. Then click Go to resort all items in the worksheet.
Item Display Set Control	Use the arrows to view different chunks of data. For better performance, you can limit the number of rows that appear in the scroll area on the Installation Options - Receivables page. We recommend a maximum chunk size of 100 rows, although larger chunks may perform satisfactorily.

Reviewing Item Summary Information

Use the Customize link to sort by column, reorder, hide, and freeze columns. This enables you to put the key fields that you want to review on the Detail 1 tab and sort your data.

	Click the View Detail button to view or update details for a selected item on the worksheet and to copy, write off, or edit items.
Remit Seq (sequence number)	This sequence number relates to the order in which the items were entered on the Worksheet Selection page. Initially the items appear in this order. If you sort the worksheet based on the value in another column, this number stays with the item, but the displayed order of the grid changes. Sort the worksheet using this column to return the list of items to the original order.
Amount	This field initially displays the open amount for the item. Change the amount to make a partial payment.
Type and Reason	Enter the entry type and reason for the item. For preexisting items, valid entry types are Payment, Write-off, or Deduction. For new items, all entry types except Payment and Write-off are valid. Note. If you are applying a payment to a vendor rebate claim or claimback item interfaced from Purchasing or Order Management and the business unit for the item requires VAT, then you must split the item by entering the base amount of the item in the Amount field for one row and the VAT amount for the item in the Amount field for the other row. Use the DM - 01 (Pay an Item) entry type for each item. You must enter the appropriate entry reason for each row to indicate whether the amount is the base amount or the VAT amount. You also must enter the reference number for the claim item in the Document field on the Draft Detail View page.
Add with Detail	Click to add an item to handle overpayments, underpayments, and write-offs. If a new item was created in error, clear the item by clearing the Sel (select) column.
Revenue Distribution	Click to manually distribute amounts for control budgets across multiple revenue lines if you are making a partial payment. This link is available only if you have enabled commitment control processing and you have enabled the input of multiple revenue lines for the business unit.

Handling Exact Payments

The draft payment usually matches the total of the items. Select items that match the payment. If a customer has no items in the worksheet, you can still put a payment on account or treat it as a prepayment.

Handling Underpayments

To apply an underpayment, do one of the following:

Treat the entire amount as a partial payment against an item.

Change the Amount field for the item to the amount of the draft.
Pay off an item and create an adjustment or a deduction item for the remainder of the item amount.

Create a new item, enter a positive amount for the remainder of the item amount, and enter an entry type and reason.
Place the entire amount on account or create a prepayment without referencing any items.

Create a new item, enter a negative amount for the amount of the draft amount, and enter an entry type and reason.
Partially pay for an item and write off the remaining item balance.

When you partially pay an item, the item splits and a new line with that item ID appears with the remaining balance for the item. Select the write-off entry type and reason for the split item.

Handling Overpayments

To apply an overpayment, do one of the following:

Pay off the item and create a new on account, adjustment, or prepay item with the remainder.

Create a new item, enter a negative amount for the overpayment payment amount, and enter an entry type and reason.
Pay off one or more items entirely and treat the remainder as a partial payment on another item.

Change the Amount field for the item to the remaining amount of the draft.
Place the entire amount on account, without referencing any items.

Create a new item, enter a negative amount for the remaining amount of the draft, and enter an entry type and reason.
Pay off one or more items and write off the remaining balance.

Create a new item, enter a negative amount for the overpayment payment amount, and enter an entry type and reason.

Handling Remaining Draft Amounts

If you do not see an open item to apply the draft to, add an item to the worksheet, and enter a negative value equal to the remaining draft amount. Select an entry type such as Adjust Overpayment, Write-off Overpayment, Prepayment, or On Account.

You can write off an amount only up to the user's authorized limit. Check these amounts on the User Preferences - Receivable Data Entry 2 page. The system compares the item amount to the user's write-off limit in the format currency selected on the Receivables Data Entry 2 page.

Note. If you selected the Partial Payment Disabled option on the Receivables Options - Payment Options page, no partial payments can be processed.

Approving, Holding, or Rejecting a Draft

As you select open items, you need to check the balance information. The system updates the amounts whenever you click the Refresh button. If the Difference is not zero, you need to adjust the payment amounts or select additional items before you approve a draft.

Hold	Click to place the entire draft on hold so that it cannot be processed by any other activity. The items in the draft are available for selection in other worksheets.
Reject	Click to cancel the draft. The items selected for payment in the draft become available for selection in another draft.
Approve	Click to approve the draft and change the status to Accepted. This button is available only if the worksheet is balanced.

Distributing Multiple Revenue Lines

Access the Multiple Revenue Line Distribution page.

See Distributing Amounts for Multiple Revenue Lines for Control Budgets.

Viewing Item Details

Access the Draft Detail View page.

View item details to help you identify the item or change the details as needed.

Document	If you are applying the payment to a vendor rebate claim or claimback item that you interfaced from Purchasing or Order Management, you must enter a reference ID. When you run the Rebate Notification process, the process sends the reference ID to Purchasing and Order Management so that you can reconcile the claims on the claims management workbench. This field is available only if you enter entry reasons on the AR Integration page.
Deduction Reason	If you are creating a new deduction, enter the reason why the customer took the deduction. You define reason codes on the Deduction Reason page.
AR Specialist (receivables specialist)	The system populates the AR Specialist field for deduction items based on the default specialist that you assigned to the business unit. If you overrode the default specialist for the deduction reason or customer, the system uses that value.
Promotion Code and Merch Type (merchandising type)	If you are creating a new deduction that the customer took for a promotional deal and you use Promotions Management, enter the code associated with the promotion and the merchandising type. If the promotion is associated with more than one merchandising type, you must create a separate deduction for each merchandising type. When you apply a credit memo for the promotion to the deduction, the system uses this information to update the funds for the promotions in Promotions Management.
Location	Enter the address sequence number for new items. You must enter a value in this field to include the item in correspondence if you selected the Item Address option for the correspondence customer on the Correspondence Options page.
Copy	Click to copy the item and add a new row to the worksheet. You must add the amount and entry type to the new row.
Write Off	Click for a new item to write off an overpayment or underpayment amount.
Currency Exchange Aid	Click to open a page that aids you in converting the draft amount to the currency of a selected item to make a partial payment.

Building a Draft Approval Worksheet for Approving Multiple Drafts

Access the Draft Approval Selection page.

Note. Before you can build a draft approval worksheet, apply the drafts to items using a draft worksheet.

From Date and To Date	Enter dates to select drafts using specific dates.
Draft Type	Enter a draft type to limit the worksheet to drafts of a specific type.
Customer Options	Indicate the type of customer that you want to include in the worksheet. Options are: Customer Drafts or None. Select None to create a blank worksheet. This saves time if you merely need to place the draft payment on account, or if the reference information that you entered is almost complete, and you don't need to include all the customer account information.
Cust ID (customer ID)	Displays the customer's ID or business unit.
User Options and User	Select ID for the user option and enter the user ID. Use to limit the worksheet to drafts applied to items by a specific user.
Build	Click to build the worksheet.
Clear	Click to remove all drafts from the worksheet.

Using a Draft Approval Worksheet to Approve Multiple Drafts

Access the Draft Approval Worksheet page.

The system automatically selects the check boxes next to each draft. If you do not want to approve a draft, clear its check box.

Details	Click to access the Draft Details page where you can view a list of the items included in a particular draft.
Complete	Click to approve the selected drafts and change the status to Accepted.
Cancel	Click to cancel the selected drafts. The items selected for payment in the drafts become available for selection in another draft.
Amount and Count	Displays the total amount and number of the drafts that you have selected.

Identifying Drafts Used as Collateral

You can use drafts that have an Accepted status as collateral. When you identify a draft as being used for collateral, its status changes from Accepted to Collateral and you cannot remit the draft to the bank. When a draft is no longer being used for collateral, change its status back to Accepted so that it can be remitted to the bank.

This section discusses how to use drafts as collateral.

Page Used for Identifying Drafts Used as Collateral

Page Name	Object Name	Navigation	Usage
Draft Collateral	DRAFT_TRANSFER	Accounts Receivable, Drafts, Transfer Drafts, Draft Collateral, Draft Collateral	Identify drafts that are being used or are no longer being use as collateral.

Using Drafts as Collateral

Access the Draft Collateral page.

Transaction Date	Enter the date when the draft is first used as collateral.
Name	Enter the name of the collateral holder.
Undo	Click if the draft is no longer being used as collateral to change the status to Accepted.

History

Records each change to the draft's status.

Transaction Type

Displays the draft's collateral status.

Collateral indicates that the draft is being used as collateral. Undo indicates that the draft is no longer being used as collateral.

Endorsing Drafts to Another Party

Drafts that have an Accepted status can be endorsed to another party. When you endorse a draft, its status changes from Accepted to Endorse and you cannot remit the draft to the bank. If the draft is no longer endorsed to another party, change its status back to Accepted so that it can be remitted to the bank.

This section discusses how to endorse drafts.

Page Used for Endorsing Drafts

Page Name	Object Name	Navigation	Usage
Endorse Draft	DRAFT_TRANSFER	Accounts Receivable, Drafts, Transfer Drafts, Endorse Drafts, Endorse Draft	Endorse drafts to another party.

Endorsing Drafts

Access the Endorse Draft page.

This page is similar to the Draft Collateral page.

Transaction Type

Displays the draft's endorsement status:

Endorse indicates that the draft is endorsed to another party. Undo indicates that the draft is no longer endorsed.

See Also

Identifying Drafts Used as Collateral

Remitting Drafts to the Bank

When you remit drafts to the bank, you indicate when you want to receive funds for the draft; either before the due date for a discounted amount or on the due date for the full amount.

This sections discusses how to:

Build a draft remittance worksheet.
Use a draft remittance worksheet to select drafts.
(Optional) Change remittance details.
(Optional) Enter bank fees for discounted drafts.
Create the EFT file for remitted drafts.
(Optional) Create an EFT file cover sheet.
(Optional) Cancel an EFT file for draft remittances.
(Optional) Receive confirmation from the bank.
(Optional) Correct drafts not matched in bank EFT file.
(Optional) Run the EFT Draft Inbound Exception report.

Pages Used to Remit Drafts

Page Name	Object Name	Navigation	Usage
Draft Remittance Selection	DR_REMIT_SEL_IC	Accounts Receivable, Drafts, Remit Drafts to Bank, Create Worksheet, Draft Remittance Selection	Build a draft remittance worksheet. When you build the worksheet, you have the option of discounting drafts for payment before the due date.
Available Credit	DR_REMIT_CRED_SEC	Click the Available Credit link on the Draft Remittance Application page or the Draft Remittance Application page.	Determine if credit is available at the bank to discount more drafts.
Draft Remittance Application	DR_REMIT_WORKS_IC	Accounts Receivable, Drafts, Remit Drafts to Bank, Update Worksheet, Draft Remittance Application	Select drafts that are ready for remittance.
Remittance Details	DR_REMIT_WS_SEC_IC	Click the Details link on the Draft Remittance Application page.	View or change remittance information for the drafts.
Bank Fees	DRAFT_FEE_SEC	Click the Bank Fees link on the Draft Remittance Application page.	Enter bank fees for discounted drafts.
Create EFT File	RUN_FIN2025_DR	Accounts Receivable, Drafts, Remit Drafts to Bank, Create EFT File, Create EFT File	Run the Format EFT Files process (FIN2025) that creates the remittance (EFT file) that is sent to the bank.
Create EFT File Cover Sheet	RUN_FIN2025	Accounts Receivable, Drafts, Remit Drafts to Bank, Create Cover Sheet, Create EFT File Cover Sheet	Define the run parameters for the EFT File Cover Sheet report (FIN2025). Use the report to create a cover letter for the EFT file if the bank requires one.
Cancel EFT File	DR_EFT_CANCEL	Accounts Receivable, Drafts, Remit Drafts to Bank, Cancel EFT File, Cancel EFT File	Cancel the EFT file before you transmit it to the bank, if you need to change a draft after creating an EFT file. After you cancel the EFT file and change the draft, you can then create a new one. This page is available only if you have generated an EFT file.
Inbound Bank EFT File	EFT_DR_INBOUND	Accounts Receivable, Drafts, Create Drafts, Inbound Bank EFT File, Inbound Bank EFT File	Run the AR_DRAFT_BNK process to load and process the bank EFT file.
Inbound Bank EFT File for Drafts	DR_IN_BANK_FILE	Accounts Receivable, Drafts, Remit Drafts to Bank, Receive Bank Confirmation, Inbound Bank EFT File for Drafts	Change details for a payment record in a bank EFT file so that the record matches an existing draft.
Detail	DR_IN_BANK_SEC	Click the Details link on the Inbound Bank EFT File for Drafts page.	View details about the issuer and customer's bank ID, branch, and account number.
Bank Remit Exception Report	EFT_DR_EXCEPT	Accounts Receivable, Drafts, Reports, Bank Remit Exception Report, Bank Remit Exception Report	Define the run parameters for the EFT Draft Inbound Exception report (AR3210X). Use this report to see a list of exceptions that were found in the bank EFT file for a specific reason.
Remittance/Discount Form	DRAFT_REMIT_FORMS	Accounts Receivable, Drafts, Reports, Remittance/Discount Form, Remittance/Discount Form	Define the run parameters for the Remittance/Discount Forms report (AR32103). Submit this report to a bank to inform the bank of the drafts that need to be collected from the customer's bank.

Building a Draft Remittance Worksheet

Access the Draft Remittance Selection page.

Worksheets are cumulative. As long as you do not clear the worksheet, you can keep expanding it by selecting additional criteria. Each time you build a worksheet, the drafts you previously selected remain and the system adds drafts that meet the new criteria to the worksheet.

Bank and Account	Enter a bank code and account number. The bank account must have a draft collection method defined on the External Accounts - Collection Method page.
Currency	Displays the default currency of the bank account. Change the currency as needed.
Draft Type	Select a draft type to limit the worksheet to specific types of drafts. If you leave this field blank, the worksheet includes only drafts that allow discounts. If you select a draft type that does not allow discounts, you cannot enter discount information in the other fields.
Discount?	Select to discount all drafts in the remittance for early payment.
Recourse?	Select if you are still responsible for the draft amount up until the original due date of the draft. In other words, the amount appears as a liability on your books until your bank receives the funds.
Discount Date	If you select the Discount? check box, you must enter a discount date.
Max Remit Amt (maximum remittance amount)	Enter the maximum remittance amount that you will send to the bank. If the total of the drafts exceeds this amount, you receive a warning message when you mark the worksheet Complete. The amount displays in the currency for the bank account.
Available Credit	Click to access the Available Credit page where you can determine if you have enough credit left with the bank to discount more drafts.

Customer Options

Use these options to create a worksheet with drafts for a particular customer ID. When you specify a customer, the name of the customer appears, and the Customer Options field changes to Customer Drafts. The system includes all the customer's drafts in the worksheet.

Date Options

Use these options to create a worksheet with drafts that have a specific date range.

Date Options

When you specify a date range, the Date Options field changes to Due Date Range. You can change the selection to Accounting Date Range.

Reference Options

Reference Qualifier Code

Enter the type of information used to identify the drafts. Then use the Reference and To Reference fields to fill in the details. Options are:

B - Customer Bank: Enter your customer's bank account and branch.

D - Draft ID: Enter a draft ID.

G - Customer Group: Enter a customer group code.

R - Draft Reference: Enter a draft document reference number.

Reference Options and Match Rule

Options are Specific Value (to match specific values) or None. If you select Specific Value, use the Match Rule field to select Exact Match or Like Match. Like Match compares the beginning characters. For example, a like match of 24% includes all items beginning with 24.

Restrict To

Select how reference information should be combined with other selection options to determine which drafts appear in the worksheet. Options are:

All: Builds a worksheet with only drafts that meet the reference criteria with no reference to the other options.

Customer Only: Builds a worksheet with drafts that match the reference criteria and belong to the specified customers.

Date Only: Builds a worksheet with drafts that match the reference criteria and are in the specified date range.

Customer and Date: Builds a worksheet with drafts that match the reference criteria, belong to the specified customers, and are in the specified date range.

Worksheet Action

Build	Click to build a draft remittance worksheet.
Clear	Click to remove all drafts from an existing worksheet.

See Also

Defining Collection Methods

Using a Draft Remittance Worksheet to Select Drafts

Access the Draft Remittance Application page.

By default, the check box next to each draft is selected. If you do not want to remit a draft, clear its check box.

Due Date	Displays the date that you expect the bank to receive payment. If the draft is a discounted draft, the bank deposits the funds in the account on the discount date.
Bank Fees	Click to open a page where you can enter bank fees for discounted drafts.
Complete	Click to approve all selected drafts for remittance and mark the worksheet as complete.
Cancel	Click to cancel the remittance. You can then include the drafts in a new worksheet.
Edit	After you click Complete (and before posting), click to edit drafts. Then click Complete again to mark the worksheet complete.
Amount and Count	Displays the total amount and count of the drafts that you have selected.
Max Remit Amt (maximum remittance amount)	Displays the maximum remittance amount that you can send to the bank. You indicate this number when you build the worksheet.
Difference	Displays the difference between the maximum remittance amount and the amount of the selected drafts.
Min Remit Amt (minimum remittance amount)	Displays the minimum amount the bank will let you remit if the drafts are discounted. You specify this amount on the Collection Methods page.
Difference	Displays the difference between the amount of the selected drafts and the minimum remittance amount.
Details	Click to change remittance details for a draft.

See Also

Defining Collection Methods

Changing Remittance Details

Access the Remittance Details page.

Remittance Date

Enter the date that you remit the draft to the bank for payment. Override today's date if needed.

Bank and Account

Change the bank account to which you submit the draft if needed.

Discount Draft

If this check box is selected, you can change the discount date for discounted drafts.

Allow Recourse

If selected, you are still responsible for the draft amount up until the original due date of the draft. In other words, the amount appears as a liability on your books until your bank receives the funds.

Entering Bank Fees for Discounted Drafts

Access the Bank Fees page.

Pay Amt (payment amount)	Enter the amount of each fee that the bank charges for discounted drafts. The default currency is the draft currency.
Entry Type and Reason	Displays the default entry type for fees come from the business unit. Enter an entry reason if needed.

When you post the remittance worksheet, the system adds an item for each bank fee and generates the accounting entries for the bank fees on the discount date.

Creating EFT Files for Remitting Drafts

Access the Create EFT File page.

To prevent funds from being collected more than one time, you can select a draft remittance for inclusion in an EFT file only once.

Note. EFT file layouts differ from country to country. The organization that receives the EFT file from your customer should be able to furnish you with the appropriate layout specifications.

The location of the file when the process completes depends on the output destination options that you selected in the process definition for the Format EFT Files process.

If the output destination is User Defined, the location depends on the parameters you enter on the Process Scheduler Request page and can be one of the following:

Output Type Destination Options	Location
Output type: Web	The file is in the location that you defined for the {FILEPREFIX} variable for SETENV.SQC in %PS_HOME%\sqr\.
Output type: file Output destination: blank	The file is in the location that you defined for the {FILEPREFIX} variable for SETENV.SQC in %PS_HOME%\sqr\.
Output type: file Output destination: a folder path, such as C:\temp\EFT files\	The file is in the folder path that you specified, such as C:\temp\EFT files\.

If the output destination for the Format EFT Files process is Process Definition, the location is the folder that you define for the output definition for the process definition.

If the output destination for the process definition is Process Type Definition, the location is the folder that you define for the output definition for the SQR process type definition.

Creating an EFT File Cover Sheet

Access the EFT File Cover Sheet page.

Language Option	You specify whether the cover sheet is in a Specified Language or the Recipient's Language and then select the Language Code.
EFT Layout Code	Enter the code for the type of EFT file used to submit the draft.
Process Instance	Displays the number of the process instance that created the EFT file.

Canceling an EFT File for Draft Remittances

Access the Cancel EFT File page.

Click Cancel Draft EFT File.

Receiving Confirmation from the Bank

Access the Inbound Bank EFT File page.

EFT Layout Code and File Name

Enter the EFT layout code and the file name for the EFT file for which you are trying to determine whether the payment collection was successful.

If the payment collection was not successful, the AR_DRAFT_BANK process changes the status of the draft to Void on the Draft Control record (DRAFT_CONTROL). The next time you run the Receivable Update process, it generates the appropriate accounting entries to reverse the payment.

Correcting Drafts Not Matched in Bank EFT File

Access the Inbound Bank EFT File for Drafts page.

The EFT Transactions grid contains a list of payment records that were in the bank EFT file that the AR_DRAFT_BANK process could not match to drafts in the system. You need to determine which draft in the system matches a payment record and update the information so that it matches a draft. When you save the page, the system changes the status of the draft based on the reason code assigned to the payment record.

Unit or Draft ID	Enter the business unit or draft ID of the draft on the system that matches the payment record.
Reason Code	If the reason code on the payment record does not match a reason code on your system, change the code to match the appropriate code defined on your system.

Running the EFT Draft Inbound Exception Report

Access the Bank Remit Exception Report page.

EFT Layout Code	Enter the EFT file layout code for the EFT files that you submitted to the bank whose exceptions you want to include in the report.
Reason Code	Enter the code that identifies the reason why the collection failed.

Dishonoring Drafts

This section provides an overview of dishonored draft processing and discusses how to:

Build a dishonor draft worksheet.
Select drafts to dishonor.
Handle the outstanding debt on a dishonored draft.

Understanding Dishonored Draft Processing

You can dishonor a draft at any point in the draft lifecycle after you have approved it but before you reconcile it on a bank statement. You dishonor a draft after you remit it, and it is past due because a customer fails to pay the draft at the maturity date. You can dishonor a draft earlier in the draft lifecycle if you know that they will not be able to pay for it.

After you select drafts to be dishonored, run the Receivable Update process to:

Create accounting entries.
Update the activity table.
Change the draft status to Dishonored.

Pages Used to Dishonor Drafts

Page Name	Object Name	Navigation	Usage
Dishonor Draft Selection	DRAFT_DISH_SEL_IC	Accounts Receivable, Drafts, Dishonor Drafts, Create Worksheet, Dishonor Draft Selection	Build a dishonor draft worksheet.
Dishonor Draft Application	DRAFT_DISH_WORK_IC	Accounts Receivable, Drafts, Dishonor Drafts, Update Worksheet, Dishonor Draft Application	Select drafts that you want to dishonor.
Dishonor Activity	DRAFT_RUN_ARDISH01	Accounts Receivable, Drafts, Reports, Dishonor Activity, Dishonor Activity	Define the run parameters for the Dishonor Activity report (AR32104). Use the report to list all drafts that have a dishonored status.

Building a Dishonor Draft Worksheet

Access the Dishonor Draft Selection page.

Worksheets are cumulative. As long as you do not clear the worksheet, you can keep expanding it by selecting additional criteria. Each time you build a worksheet, the drafts you previously selected remain, and the system adds drafts that meet the new criteria to the worksheet.

The Restrict To field works basically the same for all selection criteria. They determine how reference information should be combined with other selection options to determine which drafts appear in the worksheet. The values vary based on the selection criteria you are entering. Values include:

All Drafts	Builds a worksheet with only drafts associated with the specified criteria for the current option, regardless of the other criteria that you entered.
Cust & Date (customer and date)	Builds a worksheet with drafts that are associated with the current option and that belong to the specified customers and fall within the specified date range.
Customer Only	Builds a worksheet with drafts that are associated with the current option and that belong to the specified customers.
Date Range Only	Builds a worksheet with drafts that are associated with a current option and that fall within the specified date range.
Draft & Cust (draft and customer)	Builds a worksheet with drafts that are associated with the current option and that belong to the specified customers and with the specified draft IDs.
Draft Only	Builds a worksheet with drafts associated with the current option and with the specified draft IDs.

Customer Options

You can use the customer options to build a worksheet for a specific customer ID.

Customer Options	Select None if you fill in the fields under Date Options, Draft Criteria, or Bank Criteria.
Cust ID (customer ID)	Enter the customer's ID or business unit. The customer's name automatically displays and the Customer Options field changes to Customer Drafts.

Date Options

Date Options	Select an option for selecting drafts by a date. Options are: None, Due Date Range, Due Date, and Accounting Date Range.
Restrict to	Options are: All Drafts,Customer Only, Draft & Cust, and Draft Only.
From Date and To Date	Enter a date range if you want to build a worksheet for drafts using specific due dates or accounting dates.

Draft Criteria

Draft Options	Select None if you fill in the fields under Customer Options, Date Options, or Bank Criteria.
Draft ID	Enter the draft ID if you want to build a worksheet for a specific draft. The Draft Options field changes to Draft Value.

Bank Criteria

Bank Code and Bank Account	Enter bank information if you want to build a worksheet for a specific bank account. The Bank Options field changes to Bank Account.
Bank Options	Options are: None and Bank Account.
Restrict to	Options are: All Drafts, Cust & Date (customer and date), Customer Only, Date Range Only, and Draft Only.

Worksheet Action

Build	Click to build the worksheet.
Clear	Click to remove all drafts from an existing worksheet.

Selecting Drafts to Dishonor

Access the Dishonor Draft Application page.

Select each draft that you want to dishonor.

Reason	Enter a reason code to display on the Draft Inquiry page. You can also use that code in custom reports. If the draft type does not require a reason, you can enter a reason for an audit trail.
Post	Click to set the group to post.
Cancel	Click to cancel the worksheet. You can then include the drafts in a new worksheet.
Edit	After you click Post (and before posting), click to select or deselect more drafts. If you want to edit the worksheet after it is posted, you must unpost the group first.

Handling the Outstanding Debt on a Dishonored Draft

After you dishonor a draft, you must handle the outstanding debt for the draft by performing one of the following tasks:

Pay for the items on the draft by check or another draft.

To do this, void the draft to reopen the items. Then either pay for the items on a different draft or change the items' payment method to check.
Present the draft to the bank at a later date.

To do this, cancel the remittance. Then change the due date for the draft on the draft worksheet and remit the draft again. Use this option only if you already remitted the draft to the bank when you dishonor it.
Write off the items on the draft.

To do this, void the draft and then write off the items on the maintenance worksheet.
Transfer the items in the draft to a doubtful receivables account.

To do this, void the draft and then use a transfer worksheet to transfer the items.

Voiding Drafts

This section provides an overview of the draft void process and discusses how to:

Build a void draft worksheet.
Use a void draft worksheet to void drafts.

Understanding the Draft Void Process

You void a draft if the draft has been dishonored or was lost or stolen and you want to reopen all the items associated with the draft.

You can void a draft after it has been approved, but before you reconcile it on a bank statement. For example, you could void a discounted draft before the due date plus the risk days (the number of days that the bank waits before it notifies you that the customer failed to pay).

After you select drafts to be voided, run the Receivable Update process to:

Create accounting entries.
Update the activity table.
Change the draft status to Void.

See Also

Additional Draft Events

Pages Used to Void Drafts

Page Name	Object Name	Navigation	Usage
Void Draft Selection	DRAFT_DISH_SEL_IC	Accounts Receivable, Drafts, Void Drafts, Create Worksheet, Void Draft Selection	Build a void draft worksheet.
Void Draft Application	DRAFT_DISH_WORK_IC	Accounts Receivable, Drafts, Void Drafts, Update Worksheet, Void Draft Application	Select drafts that you want to void.

Building a Void Draft Worksheet

Access the Void Draft Selection page.

The fields on this page are similar to those on the Dishonor Draft Selection page.

Instead of entering bank criteria, you enter values in the Status Criteria group box.

Draft Status	Enter the status of the drafts to include in the worksheet. The Status Options field changes to Draft Status.
Status Options	Options are: None and Draft Status.
Restrict To	Options are: All Drafts, Cust & Date (customer and date), Customer Only, Date Range Only, and Draft Only.

See Also

Building a Dishonor Draft Worksheet

Using a Void Draft Worksheet to Void Drafts

Access Void Draft Application page.

The fields on this page are the same as those on the Dishonor Draft Application page.

See Also

Selecting Drafts to Dishonor

Canceling Draft Remittances

This section provides an overview of the cancel remittance process and discusses how to:

Build a cancel remittance worksheet.
Use a cancel remittance worksheet to cancel remittances.

Understanding the Cancel Remittance Process

You can cancel a draft remittance either before or after the draft due date, but before you reconcile it. For discounted drafts, you must cancel the remittance before the discount date or after you dishonor it. You can cancel a draft remittance if the customer failed to pay the draft, but promised that there would be sufficient funds to cover the amount of the draft.

After you select drafts remittances to be cancelled, run the Receivable Update process to:

Create accounting entries.
Update the activity table.
Change the draft status to Accepted.

The draft is still posted, so you can select it again for remittance. You cannot access the draft on the draft worksheet.

See Also

Additional Draft Events

Pages Used to Cancel Draft Remittances

Page Name	Object Name	Navigation	Usage
Cancel Remittance Selection	DRAFT_DISH_SEL_IC	Accounts Receivable, Drafts, Cancel Draft Remittance, Create Worksheet, Cancel Remittance Selection	Build a cancel remittance worksheet.
Cancel Remittance Application	DRAFT_DISH_WORK_IC	Accounts Receivable, Drafts, Cancel Draft Remittance, Update Worksheet, Cancel Remittance Application	Select draft remittances that you want to cancel.

Building a Cancel Remittance Worksheet

Access the Cancel Remittance Selection page.

The fields on this page are the same as those on the Dishonor Draft Selection page.

See Also

Building a Dishonor Draft Worksheet

Using a Cancel Remittance Worksheet to Cancel Remittances

Access the Cancel Remittance Application page.

The fields on this page are the same as those on the Dishonor Draft Application page.

See Also

Selecting Drafts to Dishonor

Reconciling Drafts on a Bank Statement

When you receive a bank statement, you must reconcile drafts by matching the amount of each draft received with the amount that was submitted to the bank. You can reconcile drafts manually, or use the Bank Reconciliation Application Engine process (FSPRECON) to reconcile them. Use the PS_BNK_RCN_DRAFT reconciliation rule to reconcile bank statements for drafts.

See Also

Setting Up Reconciliation

Reconciling Statements

Unposting Drafts

Unposting a draft reverses your last action on the draft. You can unpost a draft after you run Receivable Update at any point in the draft lifecycle. For example, you might unpost a draft because you want to change some details about the draft.

When you unpost a draft, the system restores the draft to its status before the last action and reverses the last accounting entries.

If you have not already run Receivable Update, it is not necessary to unpost the group. You can return to the appropriate worksheet page and cancel the group.

See Also

Unposting Groups

Reviewing and Correcting Draft Accounting Entries

For drafts, all the accounting entries are created when you run the Receivable Update process. You cannot create them online. The draft type determines how the accounting entries are created.

The system creates accounting entries for each event in the draft lifecycle even though it may not be an event that you initiate online. For example, it creates accounting entries at the draft due date. The next time that you run the Receivable Update process after the due date, the system creates accounting entries.

The draft process uses the Receivables core architecture for pending groups. For example, after you indicate that a draft was accepted by the customer, the Receivable Update process creates a group of pending items with the group type D and creates the accounting entries that are associated with the DM-01 (pay item) system function.

When you accept a draft, the Receivable Update process reduces the balance of open items and creates an accounting entry that debits the receivable account and credits drafts receivable. For subsequent draft events, it does not change the balance of the item; it simply creates the appropriate accounting entries for the draft event and changes the draft status.

Interunit Accounting Entries

The system also creates interunit accounting entries when the Receivables business units of the draft payment and the item are associated with different general ledger business units. The entries are the same as payments on the payment worksheet, except that the process debits the Draft Receivables account instead of the Cash account.

Error Correction

The Receivable Update process edits for ChartField combination errors if you enabled ChartField combination editing on the Receivables Options - General 2 page for the business unit. You cannot post the accounting entries until you fix the error if you selected Recycle in the ChartField Editing group box. You can edit the receivables (AR) lines for these types of new items that do not reference existing items:

Prepay an Item (DM-02)
Place an Amount on Account (DM-03)
Adjust Remaining Overpayment (DM-04)
Adjust Remaining Underpayment (DM-05)
Create a Deduction (DM-06)
Write-off an Overpayment (DM-08)
Write-off an Underpayment (DM-09)

Note. You cannot edit the AR lines when the system generates two transactions for the same new item ID, because the AR line must match for both transactions. This applies when a Write-off an Overpayment (DM-08) item automatically creates an Adjust Remaining Overpayment (DM-04) item, or when a Write-off an Underpayment (DM-09) item automatically creates an Adjust Remaining Underpayment (DM-05) item.

You can also edit entries in the user-defined line for these transactions:

Write-off an Item (DM-07)
Write-off an Overpayment (DM-08)
Write-off an Underpayment (DM-09)

For all other draft transactions perform these steps:

Delete the entries using the Draft Error Correction component (MAINT_DST_CORR2).
Modify the combination edit rules so the combination is valid or perform one of these steps as appropriate
- Modify the ChartField combination on the External Account page for the bank account if the error is on the Cash or Cash Control line.
- Modify the ChartField combination on the Distribution Code page if the error is on a line generated from one of the distribution codes.
Rerun the Receivable Update process.

Note. You cannot edit entries if you selected the Always Inherit or Inherit within BU inheritance option.

Use the Draft Error Correction component to correct any other errors that were discovered by the Receivable Update process. The draft error correction pages are accessible only if the system detects any pending items that are in error.

Use the Accounting Entries page to review accounting entries created for drafts during the Receivable Update process.

See Also

Posting and Unposting Groups

Reviewing Draft Information

Use inquiry pages and reports to look up information about drafts.

This section discusses how to review all drafts.

Pages Used to Review Drafts

Page Name	Object Name	Navigation	Usage
Draft Control	DRAFT_CONTROL_DSP	Accounts Receivable, Drafts, Review Drafts, All Drafts, Draft Control	Review summary or detailed information for each item on a draft.
Draft Details	DRAFT_WS_DTL_SEC	Click the Draft ID link on the Draft Control page.	View information about the bank that will receive the draft payment, bank statement reconciliation information, and bank fees.
Draft Items	DRAFT_ITEM_DSP	Accounts Receivable, Drafts, Review Drafts, All Drafts, Draft Items	Review details about each item on a draft.
Draft Inquiry	DR_INQUIRY_IC	Accounts Receivable, Drafts, Review Drafts, Draft Inquiry, Draft Inquiry	Search for a list of drafts based on search criteria, such as business unit, customer ID, due date, bank information, draft type, and draft status. Review draft details and drill down to the draft control information and draft items for each draft.
Item Activity From A Draft	ITEM_DRAFT	Accounts Receivable, Drafts, Review Drafts, Item Activity from Draft, Item Activity From A Draft	View activity for draft items.
Draft Reports	DRAFT_REPORTS	Accounts Receivable, Drafts, Reports, Draft Reports, Draft Reports	Define the run parameters for draft aging reports (AR32102). Your options are a draft aging report by bank, a draft aging report by customer. Use the report to list unpaid drafts by due date.
Draft Statement	RUN_AR32100	Accounts Receivable, Drafts, Reports, Draft Statement, Parameters	Define the run parameters for the Draft Statement report (AR32100). Use the report to list invoices and other documents in a draft.

Reviewing All Drafts

Access the Draft Control page.

Draft ID

Click to access the Draft Details page where you view details about the draft, such as information about the customer's bank, bank statement reconciliation, and bank fees. Depending on the draft's status, you can use this link to change the due date and MICR ID.

Draft Notes

Click to access the draft notes page where you can view or enter comments about the draft.

Pre-approved Draft

If selected, the draft is preapproved for payment by a bill-to customer and you can submit it to the customer's bank without the customer's sign-off. If the check box is not selected, the draft must be reviewed and approved by the customer before you can submit it to the bank for payment.

Hold Switch

If selected, the draft is placed on hold on the draft worksheet.

Due Date	Enter the due date for the draft.
Creation Date and Accounting Date	Override the dates, if needed. The default creation date and accounting date for the draft is the current date.
Amount	Enter the total amount of the draft.
Est Settlement Date (estimated settlement date)	The system populates this value when you save. It uses the bank holiday rules defined for the bank account that you assigned to the customer for the draft if it falls on a holiday.
Range of References	Select to enter a range of items.

Remittance Date	Enter the date that you remit the draft to the bank for payment. Override today's date if needed.
Bank and Account	Change the bank account to which you submit the draft if needed.
Discount Draft	If this check box is selected, you can change the discount date for discounted drafts.
Allow Recourse	If selected, you are still responsible for the draft amount up until the original due date of the draft. In other words, the amount appears as a liability on your books until your bank receives the funds.

Draft ID	Click to access the Draft Details page where you view details about the draft, such as information about the customer's bank, bank statement reconciliation, and bank fees. Depending on the draft's status, you can use this link to change the due date and MICR ID.
Draft Notes	Click to access the draft notes page where you can view or enter comments about the draft.
Pre-approved Draft	If selected, the draft is preapproved for payment by a bill-to customer and you can submit it to the customer's bank without the customer's sign-off. If the check box is not selected, the draft must be reviewed and approved by the customer before you can submit it to the bank for payment.
Hold Switch	If selected, the draft is placed on hold on the draft worksheet.