This illustration shows the life cycle of a note receivable.

1. You create a note receivable.

2. You can either remit the note to the bank for deposit or factoring, or you can return the note. If you return the note, go to step 3. If you remit the note, go to step 4.

3. To return the note, you can either exchange or repurchase the note. Go to step 1.

4. After you remit the note, the note reaches maturity. Go to step 5.

5. When the note reaches maturity, the amount should clear the bank. If the amount did not clear the bank, go to step 6. If the amount cleared the bank, go to step 7.

6. If the amount did not clear the bank, the note is delinquent. Go to step 3.

7. If the amount did clear the bank, you can clear the note or eliminate risk by running the Automatic Clearing program.