Exact Financials (v3)

Finance Manual C/S - [Banking, Cheques & B/E payment debtors, Journalize cheques & B/E's]

[Banking, Cheques & B/E payment debtors, Journalize cheques & B/E's]

The financial entries created after journalizing each bill of exchange code, depend on the accounts linked to the bill of exchange codes defined in [Tables, Maintenance, Banking, Cheques & Bill of exchange, Cheque & B/E accounts], and on the previous status of the bill of exchange. If you have not defined any accounts for the bill of exchange codes, the accounts which are defined in the company settings will be used.

Examples

Journalizing a received bill of exchange generates the following journal item:

Debtors outstanding bills of exchange-,--

Debtors-,--

The general ledger account 'Outstanding bill of exchange' is linked to the bill of exchange code and status 'Received' in [Tables, Maintenance, Banking, Cheques & Bill of exchange, Cheques & B/E accounts] or accounts in the bill of exchange settings. The controlling account 'Debtors' is the fixed offset account linked to the sales journal. The entry is made in the 'Bill of exchange' journal

Examples of financial entries after journalizing the remittance are:

Remittance of bill of exchange to be discounted:

Debtors bil of exchange to be discounted-,--

Debtors outstanding bills of exchange-,--

An example of a financial entry, created upon receipt of acceptance of the bank when the remittance was send to discount (in the bank journal):

Bank -,--

Bills of exchange to be discounted-,--

When direct to bank entries cannot be made (this depends on the financial setting for entries in the setting), the payment in transit account is used instead of the bank account and the entry will be created in the 'Bill of exchange' journal customers.

An example of a financial entry, created upon receipt of acceptance by the bank when the remittance was sent to be discounted (in the bank journal):

Bank-.--

Debt to bank-,--

Once the due date has expired the following financial entry will be made:

Debt to bank-,--

Bills of exchange to be discounted-,--

In some countries (Spain and France) the journal entries are always entered in the bank account and in the 'Payment in transit' account.

Remittance of bill of exchange to be cashed:

Bills of exchange to be cashed-,--

Outstanding bills of exchange-,--

If the due date is expired the following journal entry is created:

Bank-,--

Bills of exchange to be cashed-,--

The general ledger accounts used in the financial entries depend on the general accounts linked to the bill of exchange code and status [Tables, Maintenance, Banking, Cheques & Bill of exchange, Cheques & B/E accounts].

The journal entries can be checked in [Ledger, Journal entry, Entry report] or [Ledger, Journal entry, Overview entered periods]. Changes can be made by canceling the entry and restarting the procedure. Reconciliation of cheque payments can be done when the bank statement is received.

See also:

Type

Status

Remittance

Financial year

Period

Entry date

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Finance Manual C/S > Contents > Working with bill of exchange in debtor accounts > Journalizing cheques and bills of exchange in debtor accounts > [Banking, Cheques & B/E payment debtors, Journalize cheques & B/E's]