A Draft is essentially a promise to pay a certain amount on a certain day in the future – it is comparable to a post-dated check. LCR (letter de change releve) or BOR (Billet à ordre relevé) or Bill of Exchange or Promissory Note are key parts of France and Southern European countries day-to-day cash processing.
The AP Draft Management module allows users to create AP drafts in Cashbook, modify the evolution of the draft’s status which is a key feature of drafts, and send draft files in electronic format directly to the bank (similar to sending an electronic credit or debit file to the bank).
Cashbook AP Draft Management removes many of the manual processes associated with paper drafts. The solution was also designed for pan-European corporations to replace local country solutions. This facilitates the adoption of a common platform, data and process model across the business and ensures continuity in corporate software systems solutions.
This Cashbook Drafts module is fully integrated with the company’s ERP system. Creation of drafts is driven directly from the AP data in the ERP. The module permits:
- Local languages supported in software.
- Creation of drafts from open AP invoices.
- Formatting of drafts for local bank requirements.
- Transmitting an electronic draft to the bank.
- Manual printing of drafts is also accommodated,receiving completed transactions on the bank statement.
- In the module drafts can be tracked through multiple status levels to maturity. Appropriateaccounting entries are made to the ERP system at each status point, including the ability to reverse or dishonour individual drafts, essentially reversing all previously posted accounting entries and subsystem records.
- This module can be integrated with any bank accepting AP drafts either manually or
- Ideally suited for European Shared Service Centre operations who need to cater forspecific country requirements.