Returned Bills of Exchange

This function facilitates automatic processing of returned bills of exchange

payable. It deals with processing the bills of exchange payable presented to your
house banks for payment. Basically, there are two different procedures:

Payment advice to house bank

Prior to maturity of the bills of exchange payable, you write a letter or create a
DME (data medium exchange) file notifying the bank of the following:
o

The bills of exchange you expect to be presented

How to proceed with the bills of exchange

The house bank then processes the bills of exchange per payment advice and
debits the account of the payer. When bills of exchange are not to be paid or
only partially paid, the house bank informs the bank at which the bill of
exchange was presented, or the bank which presented the bill of exchange for
payment at the drawee bank.

Payment advice from the house bank

The house bank notifies the drawee of which bills of exchange were presented
for payment. This notice can occur in writing or by means of DME. The drawee
checks the details from the house bank and decides whether the bills of
exchange are:
o

Paid

Refused

Partially paid.

The drawee informs the house bank of the decision on payment in writing or
using DME. The house bank then proceeds as described in the first procedure
above.
The new function bills of exchange payable supports the actions necessary for
this procedure.

Bill of exchange selection

Depending on whether a payment advice from the bank is presented as a DME
file, bills of exchange can be selected using either of the following:

Bill of exchange payable accounts

A DME file
When you make a selection using the DME file, the system imports the
payment advice from the bank and checks it against the bill holdings.

Processing the bills of exchange selected

First, you select the bills of exchange to be reported to the bank. Bills of
exchange selected using DME are already chosen, since the system assumes
that these bills are to reappear on the payment advice to the bank. Then you
must decide about the presentation.

Procedure
For returned bills of exchange, proceed as follows:
1.

Choose
you require.

Incomings Payments Returned Bills of Exchange

and the option

You reach the initial screen.

2.

Specify the selection options for:

Selection Using G/L Accts

Selection via DME File.

1.

If you do not specify any details about the G/L accounts, the
system will automatically search the existing G/L accounts using the tables
in customizing.

2.

To have the program select the bills using the DME file, enter
the house bank ID, the input file type, and the name of the UNIX file for
inputting the payment advice data.

3.

House bank ID Enter the house bank (for example, DB

for Deutsche Bank) that provides the DME file.

4.

Input File Type Enter the type of file (for example, FRI1) to be
read

3.

Run the procedure. The system displays the screen Bills of Exchange List for
Account Selection.

Select the bills of exchange for further processing and enter in the
field DC (decline code) the reason for refusing to pay the other bills of exchange.

Example
Examples of bill of exchange refusal:

DC

4.

Refusal Text

13

Bill of exchange payable does not exist

75

Bill of exchange renewal applied for

90

Partial payment

Execute the program. The system displays the screen Specifications for
Returned Bills of Exchange.

Post the returned bills of exchange here.

Create a list of the bills of exchange sorted by bank, account due

date, and document number.

Generate the DME output file to transmit the bills of exchange to the
bank.

Arrange to have a SAPScript letter created and sent to the bank.

2. Execute the program. The system displays the window Process Returned Bills of
Exchange.
Enter the target computer for executing the job.
3. Confirm your entries.

with due