What is check/bill of exchange in SAP FI - Financial Accounting?

SAP Term: check/bill of exchange

• Component: FI

• Component Name: Financial Accounting

• Description: A financing procedure to help the buyer borrow money. The buyer pays by check and has the vendor draw a bill of exchange on him or her at the same time. He or she accepts the bill of exchange and hands it in at his or her bank for discounting.

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• Key Concepts: 
  A check/bill of exchange is a financial instrument used in SAP Financial Accounting (FI) to facilitate payments between two parties. It is a written order from one party (the drawer) to another (the drawee) to pay a certain amount of money on a specified date. The drawee is obligated to pay the amount specified in the bill of exchange, and the drawer is obligated to accept payment when it is due. 
  
  How to use it: 
  In SAP FI, checks/bills of exchange can be used to make payments for goods and services. The check/bill of exchange must be created in the system before it can be used. Once created, it can be printed and sent to the drawee for payment. The payment can then be recorded in the system when it is received. 
  
  Tips & Tricks: 
  When creating a check/bill of exchange in SAP FI, make sure that all of the necessary information is included, such as the date, amount, and payee. Additionally, make sure that the check/bill of exchange is signed by both parties before it is sent out. 
  
  Related Information: 
  For more information on checks/bills of exchange in SAP FI, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_FI/2020_05_500/en-US