on 02-26-2007 5:28 AM
hello,
tell me about fortfaiting trasaction in bill of exchange
Dear Prem
In some countries, you can also pass on a bill of exchange to a third party as a means of payment. You may pass it on to a vendor, for example, to clear your own payables (means of payment).
You can also sell your bills of exchange receivable abroad (forfaiting). When you use the bill in this way (otherwise known as non-recourse financing of receivables) you are freed, on the sale of the bill, from any liability to recourse.
If this helps please reward with points.
Best Regards
Kesav
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Forfeiting is often used to allow the seller to exchange its rights to payment under such debt for cash. The debt, which is expressed as a negotiable instrument, is sold at a discount and on a non-recourse basis to a forfeiter, which is typically a financial institution
In SAP, you need to configure the below steps -
1. Create bills discounting account in FS00 [WIth open item management and post automatically only option checked]
2. Create Bank charges General ledger account
For presenting the Bill of exchange at bank -
1. You need to defien the bank sub accounts (IMG - Fin acc - bank acc - bus transaction - Bills of exchange transaction - Boe recievable - Post BoE receivable - Present BoE receivable at bank - Define bank subaccounts. Click for new entries. Give Usage as D (i.e Discounting), Customer Recon a/c is your Debtors GL Account and Bank Subaccount for liability is the Bills discounting GL account
For discounting the bill,
Go to transaction F-33, Enter therequired details. Click 'Select BoE'. enter the corresponding doucment number created in F-36 transaction.
For reversing the contingent liability, go to tcode F-20. Give the GL Account number = B/R GL account, usage = D. Click 'Edit line item'. Put + and save
Hope this clarifies your question.
Award points, if find useful.
Thanks,
Sri
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