Bills discounted with bank

Normal Accounting

SAP Accounting
A) Incase of sales
Customer A/c Dr
To Sales

Customer A/c Dr
(Sundry debtors)
To Sales
B) Bill of exchange payment
- No entry -

Customer special GL (W) Dr

(Sundry debtors bill of exchange)
To customer a/c with clearing
(Sundry debtors)
C) Bill discounting
Bank current A/c Dr
To Bank bill discounting

Bank current A/c Dr

To Interest A/c
To Bank Bill discounting
D) Report view customer wise /BIllwise due date wise/Bankwise out standings
available in SAP

E) Reverse contingent liability

Bank bill discounting Dr
To Customer

Bank bill discounting (with clearing) Dr

To Customer special GL(W) with
clearing
(sundry debtors will of exchange)

Presentation in Balance sheet:

Sundry debtors=Sundry debtors

Sundry debtors Debit

(Bill of exchange) } Net Zero
Bank bill discounting Credit

Or
Don�t plot sundry debtors bill of exchange and bank discounting in balance sheet-It
is required only for notes to accounts.

Customer A/c SBI bill discounting

Normal items OP BAL 300000

A) 100000 B)100000 E)100000 C)100000

----------
400000
Special GL

B)100000 E)100000
300000

Limits with banks: SBI IDBI

Bill discounting limit 5000000
2000000
Already discounted 3000000
2000000
-------------
------------
Limit available 2000000
0
=======
Bill discounted as per C 1000000
-----------
Limit available 1000000
Payment by customer as per E 1000000
-----------
Now limit available 2000000
======

Creation of 2 GL masters
Sundry debtors (Bill exchange under current assets, loans & advances.

SBI bill discounting

Secured loans

Fund based limits and non-fund base limits First change on current
asset and
second change on fixed assets.

Creation of GL account (FS00)

Give the GL account no. :200111

Company code :AML
Select with template
Give the GL account no.200110 Sundry debtors
Company code :AML
Enter
Change short text to sundry debtors Bill of Exchange
Change GL account long text to sundry debtors (Bill of exchange)
Other fields are common
Select save button or Ctrl+S
GL account no. :100302
Company code :AML
Select with template with button
Give the GL account no.100300 SBI Rupee Term loan
Company code :AML
Change short text and GL account long text to SBI bill discounting
Select control data tab
Select open item management check box
Select create /bank /interest tab
Select post automatically only check box
Save

Link between sundry debtors and sundry debtors bill of exchange

Path:SPRO-Financial account-Bank account �Business transactions-Bill of exchange

transactions-Bill of Exchange receivable-Post bill of change receivable-Define
alternative reconcile �Actual for Bills/Exchange receivable (Tr code is OBYN)

Double click on special GL indicator :W (Bill of Exchange receivable)

Give the chart of accounts :AML
Enter
Reconciliation account :200110
Special GL account :200111 Sundry
debtors (Bill of exchange)
Save
Save in your request

Link for Bank current account, Sundry debtors Account and bank bill discounting
account

Path: up to the bill of exchange receivable at bank-Define bank sub accounts(Tr

code is OBYK)

Select new entries button

Chart of accounts :AML
Bank account :200105 SBI current account
Usage select discounting special GL indicator :W
Customer reconciliation account :200110(sundry debtors)
Bank sub account for liability :100302 (SBI bill discount)
Save
Press enter to save in your request

END USER AREA

Sales invoice posting (F-22)

Give the document date :Today�s date

Type :DR
Company code :AML
Select posting key :01
Account no. :6600001
Enter
Amount :100000
Business area :AMLH
Payment terms :Select NT 30 Net 30 (30 days credit)
Text :sales invoice posting
Posting key :50
Account :300000 Sales account
Enter
Ignore the warning message press enter
Amount :*
Business area :AMLH
Text :+
From the menu select document �Simulate and save

Bill of exchange payment:

Path :Accounting �Financial accounting- Accounts receivable �Document entry-Bill of

exchange �Payment (F-36)

Give the document date :Today�s date

Type :DZ
Company code :AML
Posting key :09 Customer special debit
Account no. :6600001
Special GL indictor :W
Enter
Amount :100000
Business area :AMLH
Text :Bill of exchange payment
Due on :14.12.2008 (30 days due date)
Placement usage :select discounting
Domicile :SBI
Control bank location :Main Branch, HYD
select choose open item button
Select process open item button
Double click on receivable :100000
From the menu select document �Simulate and save
Note the document no.500003

Bill discounting:

Path :Accounting �Financial accounting- Accounts receivable- Document entry �Bill

of exchange �Discounting (F-33)

Give the document date :Today�s date

Type :DA
Company code :AML
Bank account :200105 (SBI current account)
Business area :AMLH
Amount :95000
Text :SBI bill discounting
Posting key :40
Account no. :400400 Interest account
Enter
Amount :500000
Business area :AMLH
Text :+
Press select bill of exchange button
Doc no. :500003
Document �Simulate and save

Report to view customer wise bill wise, document wise and bank wise outstanding:

Path :Accounting �Financial accounting-Accounts receivable-Periodic processing

�Bill of exclude processing �Korea-Bill of exchange management (Tr codes
S_ALR_87012213)

Give the chart of accounts :AML

GL account :200111 Bill of
exchange
Company code :AML
Special GL indicator :W
Usage
:select D (Discounting)
Select discounted /Collected radio button
Execute
Select current layout button
Keep the fields due date, document no, customer received form, document data-
Domicile.
Amount in local currency
Select copy button

Reverse contingent liability :

Path :Accounting-Financial accounting �Accounts receivable-Document entry- Bill of

exchange �Reverse contingent liability (F-20)

Give the document date & Posting date :13.12.2008

Type :DA
Company code :AML
GL account :200111 (Sundry
debtors bill of exchange)
Usage
:Select discounting
Due by :
31.12.2008
Customer :6600001
Select edit line items button
Ignore the all warning message and press enter

Select drop down button for command column

+ Set items to active

++ Set items is blocks to active
- Set items to inactive
- Set items in blocks to inactive

Customer made payment for 2,3 and 4 bills.

Bill No or or
�
2 + ++
3 +
4 + ++
5 -

Customer made payment for 1 and 5 bills

Bill no. or or
1 +
2 - -
3 -
4 - -
5 +

Command filed select +

Save
From the menu select document �Display

If bill is dishonored:
Contingent liability becomes actual liability base step E reverse contingent
liability additional entry to be passed.

Customer account Dr
To SBI current account (Sundry debtors)

Dunning (Reminder)
If the customer does not make the payment as per terms of payment system will
issue dunning letters.

We are not programmers we use system given dunning letter formats.