About BOE Bill of exchange and PN Promissory note in Microsoft Dynamics 365 Finance and Operations one version D365FO

About BOE Bill of exchange and PN Promissory note in Microsoft Dynamics 365 Finance and Operations one version D365FO

BOE (AR)

A bill of exchange is a written or electronic order from a customer specifying that another party, usually a bank, should pay a stated amount to the company.

When you use a bill of exchange as payment for a sales order invoice or free text invoice, you credit the customer account. That credit is secured by the bill of exchange until the customer pays the bill of exchange to the bank. You typically will settle the invoice with the bill of exchange on the due date. When you receive notification from your bank that the bill of exchange has been honored, you can close the bill of exchange.

Used with method of payment and a journal name per stage of BOE (Draw, Remit, Settle, Protest, Redraw)

Promissory note (AP)

A promissory note is a written agreement in which the maker of the note promises to pay a certain amount at a certain time. When you use promissory notes as payment for vendor invoices, you debit the vendor account. You will typically settle the invoice with the promissory note on the due date. When you receive notification from the bank that the promissory note has been honored, you can close the promissory note. In Microsoft Dynamics AX, you use journals to manage promissory notes.