Bill of exchange Forfieted,

Question

Can u expalin me the complete process of Bill of exchange Forfieted, From Sale invoice to Forfieting.
What is difference between F-36 payment & F-34 collection?

Answer 1

The standard process as provided by SAP is as follows:
Book Customer Invoice,
(ii) Post the Incoming Payment from Customer thru BOE (Bills of Exchange). While doing so, the invoice open item would be cleared and a new open item with special GL will be generated for BOE Receivable.
(iii) Discount the BOE with Bank. This will create a new contingent liability with the Banker.
(iv) At the time of maturity, reverse the Contingent Liability.
Accounting Entries:
When Customer accepts the bill of exchange (Recording the receipt of the bill of exchange) (TCode : F-36)
Menu path     Accounting  Financial Accounting  Accounts Receivable  Document Entry  Bill of Exchange  Payment
Customer A/c (with Special GL indicator)    Dr  [BOE Receivable]
     To Customer A/c
At the time of Discounting the bill with the Bank (TCode : F-33 or FBW3)
Menu path     Accounting  Financial Accounting  Accounts Receivable  Document Entry  Bill of Exchange  Discounting
Incoming Bank A/c                          Dr
Bill Discounting A/c          Dr
     To BOE Contingent Liability A/c
Reverse the Contingent Liability on actual collection by Bank (TCode : F-20 or FBW4)
Menu path     Accounting  Financial Accounting  Accounts Receivable  Document Entry  Bill of Exchange  Reverse Contingent Liability
BOE Contingent Liability A/c         Dr
     To Customer A/c (with Special GL indicator)[BOE      Receivable]
In case the Bill of Exchange is not honored by the customer (TCode : FBZG)
Menu path     Accounting  Financial Accounting  Banks  Incomings Failed Bill of Exchange
Customer A/c                                 Dr
     To Bank A/c
Revert back in case of doubts.
Regards,
Kapil