Pre-Accepted Drafts

Bills of exchange that are pre-accepted save on time and money since the vendor doesn't have to process an extra step by sending the draft to the customer for approval.  Only pre-accepted drafts can be processed by the Automatic Draft Application Program.

The Automatic Draft Application matches pre-accepted drafts with their corresponding invoices, debit memos, and credit memos (consolidated drafts only) to format the Batch Payment Application input files (AR125AP1 and AR125AP2).  In the same job stream, the Batch Payment Entry Program is then run to actually create the payments and generate all necessary accounting transactions.

Pre-acceptance is determined by payment type on Reference File category 344.  Only bills of exchange can have their pre-accepted draft flag set to 'Y' (yes).