Bill Discounting in SAP
When goods are sold to the customer on credit basis the company (drawer) will issue bills of exchange on the customer (drawee) stating the payment due date. In case company is in need of payment before the maturity of the due date it can discount the bill of exchange with bank. The bank charges discount as it needs commission for the service rendered. The bill is sold less than face value.
Example: If face value of bill is 100000/- and bank charges discount of 5% i.e 5000. Then selling price of bill would be 95000/-
After the maturity of the bill due date, the bank will collect the amount of bill from the customer. If customer makes payment to the bank no liability on company. In case if customer dishonours the bill then bank can recover the same form the company (liability on company).
Bill Discounting Customization
1. Creation of 2GL Masters
2. Link Between Sundry Debtors and Sundry Debtors Bill Of Exchange
3. Link Bank Current Account, Sundry Debtors and Bank Bill Discounting Accounts
End User Area
1. Sales Invoice Posting
2. Bill of Exchange Payment
3. Bill Discounting
4. Report to View Customer wise, Document wise and Bank wise Outstanding
5. Reverse Contingent Liability
When goods are sold to the customer on credit basis the company (drawer) will issue bills of exchange on the customer (drawee) stating the payment due date. In case company is in need of payment before the maturity of the due date it can discount the bill of exchange with bank. The bank charges discount as it needs commission for the service rendered. The bill is sold less than face value.
Example: If face value of bill is 100000/- and bank charges discount of 5% i.e 5000. Then selling price of bill would be 95000/-
After the maturity of the bill due date, the bank will collect the amount of bill from the customer. If customer makes payment to the bank no liability on company. In case if customer dishonours the bill then bank can recover the same form the company (liability on company).
Bill Discounting Customization
1. Creation of 2GL Masters
2. Link Between Sundry Debtors and Sundry Debtors Bill Of Exchange
3. Link Bank Current Account, Sundry Debtors and Bank Bill Discounting Accounts
End User Area
1. Sales Invoice Posting
2. Bill of Exchange Payment
3. Bill Discounting
4. Report to View Customer wise, Document wise and Bank wise Outstanding
5. Reverse Contingent Liability