Setup bills of exchange

This article describes the setup needed to use the bill of exchange functionality in Dynamics AX 2012. A bill of exchange is an electronic order from a customer specifying that another party, the bank, should pay a stated amount to the company. To use this functionality, you must:

  • Create several specific journal name,
  • Setup a customer posting profile for the BOE flow,
  • Update AR parameters,
  • Create a method of payment,
  • Setup the layout in the bank account (if needed).

1/ Journal names

Access: GL > Setup > Journals > Journal names

Setup 5 journals names:

  • BOE creation : type “Customer draw bill of exchange“
  • BOE unpaid : type “Customer protest bill of exchange”
  • BOE representation : type “Customer accept bill of exchange “
  • BOE remittance : type “Customer bank remittance”
  • BOE settlement : type “Customer settle bill of exchange”

BillExchangeAR001

2/ Customer posting profile

Access: AR > Setup > Customer posting profile

Setup specific posting profile for the BOE flow. For example, in french accounting we need this accounting schema:

Option A: remit for collection (payment on the due date)

  • Step 1- Creation:  D/413 > C/411
  • Step 2 – Acceptation : no accounting
  • Step 3 – Remittance : D/5113 > C/413
  • Step 4 – Payment : D/512 > C/5113

Option B: remit for discount (payment before the due date)

  • Step 1- Creation:  D/413 > C/411
  • Step 2 – Acceptation : no accounting
  • Step 3 – Remittance for discount : D/5114 > C/413
  • Step 4 – Payment : D/512 > C/5114 (in this case, the bank can add interest fees).

Posting profile Bill of exchange (for step 1) : Summary account = 413000

BillExchangeAR002

Posting profile for remittance (step 3/Option A) : Summary account = 511300

BillExchangeAR003

Posting profile for remittance with discount (step 3/option B) : Summary account = 511400

BillExchangeAR005

Posting profile for unpaid BOE : Summary account = 416000

BillExchangeAR004

3/ AR parameters

Access: AR > Setup > AR parameters

Select Customer posting profile to use for the BOE process.

BillExchangeAR006

4/ Method of payment

Access: AR > Setup > Payment > Methods of payment

When you create the BOE method of payment, you can choose between two options:

  • Option A: Automatic creation of the BOE after the posting of the invoice.
  • Option B: Manual creation of the BOE (create a payment journal to settle the invoice with the BOE payement).
  • For both, select in the payment type field: “Bill of exchange”.
  • For both, select a type of draft : no draft, Bill with acceptance, Bill with no acceptance.

BillExchangeAR007

5/ Bank account

Access: Cash & Bank management > Common > Bank account

If you need a layout, you must setup the layout in the Bank account.BillExchangeAR008

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8 thoughts on “Setup bills of exchange

  1. Pingback: AR: Bills of exchange transactions | My Financial Dynamics AX

  2. Hi Violaine ,

    Thanks for the detail inforamtion .

    You mentioned that Draw the BOE : ” create the payment, with all the information : amount, due date, … You can ask for an acknowledgment or not.”

    Could i know to whom i need to ask for acknowledgement ?

    How will i ask for acknowledgement in AX 2012 ?( would be great if you share the screenshot)

    When i am creating the sales order or free text invoice , where i need to attach the BOE number , which i have created from the BOE setup ?

    Please share the answers .

    Reply
    • Hello Lally,
      For some BOE you need the acceptance from the customer before remit the BOE to the bank. It is the case for the BOE paper in France. I just posted a new article about the BOE with acceptance. Check this post to have all the steps. And for the setup in the methods of payment, select “Bill with acceptance” in the BOE draft field.
      When you use a BOE paper with a layout, you have to create BOE number in the Bank module (like for the cheque). This number is taken by the system when you print the file.

      Reply
  3. Pingback: Bills of exchange: transaction with acceptance | My Financial Dynamics AX

  4. Hi Violaine ,

    I’m having an issue with the BOE number, i did create BOE number in the Bank module (like for the cheque), but in the “Draw BOE journal” the system is not taking it!

    Any help ?

    Thanks.

    Reply
  5. Hi Violaine ,

    Thanks for the detail inforamtion .
    I’m having an issue with the BOE number, i did create BOE number in the Bank module (like for the cheque), but in the “Draw BOE journal” the system is not taking it!

    Any help?
    Thanks.

    Reply
    • You need to check several points:
      – In the bank account > Setup of the BOE layout: BOE number sequence = Fixed. And you need to enter Paper length and a BOE start position.
      – In the method of payment > Tab file formats: Export format = Bill of exchange document. And you need to select Period = Total
      Tell me if you still have a problem with this setup.

      Reply

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