The Bill of Exchange (BoE) is a widely used instrument in China’s business landscape, supporting transactions such as discounting, endorsement, payment, and pledging. Before you can begin working with this functionality, a few configuration steps are required to ensure the feature is properly activated and tailored to your organization’s needs.
This guide walks you through the essential setup process, from company code maintenance to bank-enterprise direct connectivity.
1. Maintain Companies with Activated Bill of Exchange
To use the Bill of Exchange functionality, you first need to maintain your company codes in the configuration point “Maintain Companies with Activated Bill of Exchange” (ID: 101219).
Please note the following:
- (1) When creating a Bill of Exchange, only company codes that have been maintained in this configuration are supported.
- (2) If you do not need the Bill of Exchange functionality for certain company codes, you can either select the “Deactivate” flag or remove them directly from the list.
- (3) If you use Bill Pouches, you can simply select the “Bill Pouch Activation” flag for the corresponding company code to activate the Bill Pouch feature for company codes that already have the Bill of Exchange functionality enabled.
2. Define Number Ranges
Next, configure the required number ranges using the configuration point “Define Number Ranges for Bill of Exchange” (ID: 106611).
Click “Intervals” to configure the number segments needed for the Bill of Exchange:
- Number Range 01 – Internal identification code for the Bill of Exchange (configured by year)
- Number Range 02 – Transaction identifier for the business transaction (configured by year)
3. Maintain Transaction and Request Settings
Configuration Purpose: Determine which Bill of Exchange transaction types are enabled and whether the request mechanism is used.
Please note the following:
- (1) Transaction Usage: If a transaction is not selected as “Transaction in Use,” users will not be able to use this transaction during the Bill of Exchange lifecycle.
- (2) Use Request: The Bill of Exchange provides a request and approval workflow during transactions (such as discounting, endorsement, payment, and pledging). If a transaction is marked as “Use Request,” an approval/rejection process and its corresponding statuses will be added during that transaction flow—for example, Discount Instruction and Discount Instruction Approved.
Configuration Steps:
- Select “Maintain Transaction and Request Settings” to begin configuration.
- Choose the relevant company code, then double-click “Enable Transaction & Request” to enter the detailed view.
- Select the corresponding transactions and requests you wish to enable.
4. Activate Data Exchange Services – Bank-Enterprise Direct Connectivity Scenario
Purpose: If you have already implemented the bank-enterprise direct connectivity integration scenario (i.e., enabled the direct connection functionality), you need to specify the corresponding accounts and their activated direct connectivity interfaces in this setting. Features that are not selected will not be available for use.
Steps:
- Select Application Area = Finance, Sub-Application Area = Integration, and Project Name = Electronic Payment Integration (China).
- Maintain the company code, account holding bank, and account identifier for which bank-enterprise direct connectivity has been implemented, and select the functional interfaces that each account has activated. If the bank has a specific encoding rule, you can also maintain it here. If the encoding field is left empty, UTF-8 will be used by default.
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