A bill of exchange (BOE) is an agreement between two parties in which one party promises to pay the other a specific amount for goods or services at a future date. The date on which payment is due is known as the maturity date. In Receivables, bills of exchange are similar to receipts: you can enter them either manually or automatically and apply, reverse, confirm, clear, and risk–eliminate them.

1. Use the Automatic Receipts program to automatically create bills of exchange and apply them to specific transactions. Use the Receipts window to manually enter bills of exchange and then apply them to one or more open debit items in the Applications window.

2. You determine the required processing steps and numbering information for your bills of exchange by defining a bill of exchange receipt class. As with automatic receipts, bills of exchange generated by the Automatic Receipts program require confirmation only if you check the Require Confirmation check box when you define the receipt class in the Receipt Classes window.

3. The remittance method determines the accounting entries Receivables generates for your bills of exchange, regardless of the creation method.

To help you track and manage bills of exchange, Receivables enables you to:

• clearly distinguish receipts from bills of exchange in Receivables windows
• view the total amount of risk created by bills of exchange and regular receipts
• view all bills of exchange or receipts at risk using variable selection criteria, such as customer name, maturity date, and remittance bank information
• view the total amount of receipts and bills of exchange at risk for a specific customer or for all customers