Pay a vendor by endorsing a bill of exchange

In Japan, bills of exchange (BOEs) are often endorsed to a vendor and used as a method of payment. In Microsoft Dynamics 365 for Finance and Operations, Enterprise edition, a list page for BOEs provides centralized management of the BOE lifecycle.

To start managing a BOE in Finance and Operations, open the Draw bill of exchange journal. When this type of journal is posted, if the status of the BOE is Drawn, users can manage the BOE lifecycle in following stages.

Endorse a BOE to a vendor

The list page shows customer BOEs that have been drawn. You can select one or more BOEs to endorse to a vendor. However, if multiple BOEs are selected, they all must have a status of Drawn before you can endorse them. An accounting voucher will be generated to record the balance change in the endorsed BOE account and the accounts payable account.

Settle vendor transactions

When a BOE is endorsed, its status changes to Endorsed. An Accounts payable user can then settle the vendor transaction against a vendor invoice. The status of the BOE itself doesn't change when the vendor transaction is settled.

Settle endorsed BOEs

The lifecycle of a BOE ends when the BOE is paid or expires. For endorsed BOEs, you can select the BOE and settle the endorsement. An accounting voucher will be generated to record the balance change in the endorsed BOE account and the drawn BOE account.

Reserve endorsement

If the status of a BOE is Endorsed, a user can reserve its endorsement.