1         Objective

Financial instruments include a wide range of assets and liabilities at the United Nations Secretariat reporting entities such as cash, term deposits, investments, contributions receivables and account payables. In addition Cash Pools which represent significant portion of the United Nations assets is within the scope of accounting for financial instrument.

The objective of this chapter is to give a brief overview of the accounting lifecycle and relevant guidance on accounting for financial liabilities within Umoja environment. This chapter on financial instruments includes Accounts Payable module within Umoja environment.

This chapter details how an end user, based on the involved Umoja user profiles, should perform roles and responsibilities related to accounting of financial liabilities.

2         Summary of IPSAS Accounting Policies

2.1            Financial Liabilities

2.1.1        Financial Liabilities - Classification and Measurement

UN Secretariat reporting entities classifies its financial liabilities at fair value through surplus or deficit or other financial liability at initial recognition and re-evaluates the classification at each reporting date.

Currently no financial liabilities are classified under the category of financial liabilities as fair value through surplus or deficit at the UN Secretariat reporting entities, accordingly UN Secretariat reporting entities' financial liabilities are classified as 'other financial liabilities'. They include accounts payable in respect of goods and services, unspent funds held for future refunds, finance lease liability, borrowings and other financial liabilities such as inter-fund balances payable.

Financial liabilities classified as other financial liabilities are initially recognized at fair value, less transaction costs, and subsequently measured at amortized cost using the effective interest method. Financial liabilities with duration of less than 12 months are recognized at their nominal value.

2.1.2        Financial Liabilities - Examples

·               Accounts payable and accrued expenses: Accounts payables and accrued expenses arise from the purchase of goods and services that have been received but not paid for as at the reporting date. They are stated at invoice amounts, less payment discounts at the reporting date. Payables are recognized and subsequently measured at their nominal value as they are generally due within 12 months. Accounts payable also includes due to Member States.

·               Transfers payable: Transfers payable relates to amounts owed to executing entities/implementing agencies and partners and payables due to funding sources.

·               Advance receipt: Advance receipt includes contributions received in advance, member state assessment received in advance

2.2            Identification of Financial Instruments - Liabilities

Table below provides a list of common statement of financial position line items and applies the concepts to determine whether the items meet the definition of a financial instrument. The last two columns of the table establish whether the instruments identified fall within or outside the scope of IPSAS 28: Financial Instruments: Presentation; IPSAS 29: Financial Instruments: Recognition and Measurement, and IPSAS 30: Financial Instruments: Disclosures.

The list is not exhaustive, but an aide to help in identifying financial instruments.

 

Items such as deferred revenue are not financial liabilities, because the outflow of economic benefits associated with them is the delivery of goods and services, rather than a contractual obligation to pay cash or another financial asset.

2.3            Reference

For more details on the IPSAS requirements regarding Financial Instruments, refer to:

·               The IPSAS Policy Framework;

·               The Corporate Guidance on Financial Instruments.

3         Desktop Procedures

3.1            Introduction to Accounts Payable Module

The purpose of the Accounts Payable (AP) module is to manage accounts payable documents and the payment process up to the point where files are handled over to bank signatories. The module records and administers master as well as accounting data for all vendors. It is integrated with other modules such as Supply Relationship Management (SRM), Asset Accounting (AA), General Ledger (GL), Cash Management and Treasury and Travel Management (TM). All postings in AP module are recorded simultaneously in the General Ledger (GL) through reconciliation or control account.

The larger part of accounts payables transactions will be coming from the Purchase to Pay process that is triggered in SRM and describes the overall business process of buying goods and services and paying for them. The Accounts Payable process explains the steps to verify that a vendor or supplier should indeed be paid for goods or services rendered. The Accounts Payable process uses information from a combination of purchasing documents, goods receiving documents, vendor invoice documents, and other business documents such as quality reports (inspection) or troop strength reports.

Accounts payable business processes outlined in this document is within the parameters of creating invoice and subsequent transactions through the use of Business Partner (BP) with vendor role. All advance payments to vendors, non-commercial partners or other entities are processed using the Down Payment request functionality whether or not there is a Purchase Order (PO).

3.1.1        Document Types

In the accounts payable module, document types are used for:

a)            writing a story on the vendor's account with enough definition to ensure that someone who was not involved with the recording transaction can readily understand what happened;

b)            determining different workflows i.e. the number of workflow steps and the routing can differ by document type; and

c)            providing different rules (either for validation or clearing) by document types.

There are four categories of accounts payable document types:

i)              Original document

·               Documents created manually by AP Users directly into the account payable module.

·               Downpayment (advance) requests, invoices, credit notes, write offs and incoming payments received by the Cashier and recorded in the cash journal are original documents.

·               It is expected that AP Users attached supporting documentation to original documents. Original documents must be approved in workflow, except for cash journal documents which are posted immediately by the cash journal custodian.

ii)            Follow on documents

·               Documents that are automatically created by the system based on original documents. There cannot be a follow on document without an original document.

·               Majority of these follow on documents are payment documents generated by the payment program and clearing documents created by the clearing batch program.

·               An example of a follow on document created by the AP User and not automatically by the system is when a downpayment (advance) has been paid in a currency different than the claim. In this case there is no automatic clearing and the AP User must do a manual downpayment clearing prior to recording the claim.

·               Follow on documents are posted without workflow approval and no supporting documentation is attached.

iii)          Interfaced documents

·               With exception of FSS interface travel claims, all accounts payable documents created by an interface are created with status 'posted'.

·               For travel claims created in FSS and interfaces to Umoja, same workflow approval applies as if these documents had been created directly in Umoja.

·               No supporting document is expected to be attached to interfaced documents.

iv)          Converted documents

·               All converted documents in accounts payable have the same document type X2. These documents are posted by the conversion program and there is no supporting documents attached.

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3.1.2        Document Status, Workflow Status and Workflow Routing

In Umoja the document status is not linked to the workflow status, thus to know what action is needed to complete a document, a combination of the document status and the workflow status needs to be considered.

Below are document statutes for FI documents, Earmarked Funds documents and FM redeployments:

AP Documents Status	AP Document Type	Comment
1. Hold	RE	·   Only the creator of the document can retrieve it
2. Save Parked Document	RE	·   Document is saved/parked without edit or budget check ·   No FM document created ·   Workflow is triggered and document is submitted into workflow ·   Document is submitted in workflow and cannot be changed outside of workflow
	KE, KG, KH, KM, KT, KR	·   Document is saved/parked without edit or budget check ·   No FM document created ·   Workflow is not triggered ·   Any TEA can retrieve and correct/delete/submit the document to workflow.
3. Save as Completed	KE, KG, KH, KM, KT, KR, RE	·   Edit and budget checks are completed ·   If RE document, then three-way match is checked ·   If real commitment item is used, an FM document is posted to commit budget ·   Document is submitted in workflow and cannot be changed outside of workflow
4. Posted	All AP document types: KA, KC, KE, KG, KH, KM, KT, KR, KY, KZ, RE	·   When a document is reversed, it remains posted. A new document with the same document type is posted to offset the original document.

 

The following table illustrates possible combinations for accounts payable documents:

Description	Doc Type*	Document Status	Workflow Status	Comment
Downpayment Requests (DPRs)	KA	Posted (payment block D)	In Progress with DB1 or TEA	DB1 = Approving Officer TEA = AP User
		Posted (no payment block)	Completed	Completed
Invoices and Credit Memos	KR	Parked	Not submitted in workflow	Not submitted in workflow
		Parked-Save as Completed	In Progress with DA1, DB1 or TEA	DA1 = Certifying Officer DB1 = Approving Officer TEA = AP User
		Posted	Completed	Completed
	KE, KH, KG,KM, KT, KW	Parked	Not submitted in workflow	Not submitted in workflow
		Parked-Save as Completed	In Progress with DB1 or TEA	DB1 = Approving Officer TEA = AP User
		Posted	Completed	Completed
	RE	Hold	Not submitted in workflow	Not submitted in workflow
		Parked	In Progress with DA1, DB1 or TEA	DA1 = Peer (AP User) DB1 = Approving Officer TEA = AP User
		Parked-Save as Completed	In Progress with DA1, DB1 or TEA
		Posted	Completed	Completed

* Only document types that have a workflow are included.

From the above table:

1.            Downpayment requests (DPRs):

·               can only be posted i.e. they cannot be parked. A payment block D is automatically put on the DPR document when it is created and it is removed when the DPR is approved by the DB1. AP Users or Approvers cannot manually remove a payment block D. This prevents payment before the workflow approval is completed.

·               are posted on the vendor's account even though they are not yet approved.

2.            Document type KR behaves differently than other 'K' document types because KR documents are certified before they are approved.

3.            Purchase order invoices (document type RE) have a peer review prior to approval by an Approving Officer.

4.            We can have accounts payable documents that are parked in FI with a corresponding document posted in FM. This is meant to be temporary event as parked documents are supposed to be reviewed, approved and posted quickly after submission in the workflow.

Note: All parked accounts payable documents need to be cleared at month end.

·               It is the responsibility of the mission/local office to ensure there are no parked documents at month end.

·               It is the responsibility of UNHQ to ensure that there are no parked documents on a period before the period is closed.

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3.1.3        Business Partner (BP)

An accounts payable module requires a vendor for all transactions. No transaction can be posted in the module without a vendor. A vendor is a business partner that has one of the vendor roles.

3.1.3.1  BP Groups

The BP group defines:

·               the number range of the BP;

·               the General Ledger control account used to record accounts payable transactions for that BP; and

·               the roles the BP can have.

The BP group is the first parameter that is defined on the BP master record and it should not be changed afterwards.

The following table shows the BP groups available in Umoja:

 

BP numbers are automatically determined by ECC (Enterprise Core Component) in a sequential manner except for:

·               Commercial vendor UNGM (1110). The BP number is determined by Supplier Relationship Management (SRM); as such it is considered 'external' to ECC.

·               Individuals BP Groups (2000 to 2001 Individual External, Staff Members and Military and Police). The BP number incorporates the individual's index number (6 or 7 digits) preceded by 2 and two or three zeros to fill in the BP number to 10 digits.

3.1.3.2  BP Roles

BP roles defines what transactions can be recorded on the BP. Roles are added to the BP Master record by the Master Data Maintenance (MDM) teams responsible for BPs. Roles can be added at the time of creation or at any time later upon request (via iNeed).

Many roles do not permit the recording of financial transactions in financial accounting (FI). BP roles available in Umoja are as follows:

	Role	Financial Transactions	Comment
Z00009	UN Low Value Vendor	Accounts payable	Can be used in SRM with a low value PO and directly in AP for invoices without PO
Z00010	UN FI Vendor	Accounts payable	Only invoices without PO
Z00011	UN Vendor	Accounts payable	Can be used in SRM with POs and directly in AP for invoices without PO
Z00012	UN FI Customer	Accounts receivable	Only invoices without sales order
Z00013	UN Customer	Accounts receivable	Can be used in Sales and Distribution for sales order and directly in AR module for invoices without sales order
Z00014	UN Tenant (w/o Cust. Acct)	No
Z00015	UN Master Tenant	No
Z00016	UN Sponsor	No
Z00017	UN Counterparty	No
Z00018	UN Ship to Partner	No
Z00019	UN Bill to Partner	No
Z00020	UN Financial Services BP	No, Treasury only
Z00021	UN Issuer	No, Treasury only
Z00022	UN Global Custodian	No, Treasury only
Z00023	UN Depository Bank	No, Treasury only
Z00024	UN Bank	No, Treasury only
Z00025	UN Paying Bank	No, Treasury only
Z00026	UN Landlord w.Vendor Account	No
Z00050	UN Lease Processor	No
Z00051	UN Contract Approver	No
Z00052	UN Facilities Planner	No
Z00053	UN Facilities Manager	No
Z00054	UN Real Estate Agent	No
Z00055	UN Contact Person	No

Note: Roles in italized font permit the recording of financial transactions. Roles in blue font are relevant to accounts payable.

In practice, many BPs have more than one roles. The number of roles created on the BP master record depends on the BP group. The following shows for each BP group, what roles the UN Secretariat has decided to give to all BPs created in that group and what additional roles can be requested at the time of creation or later on an 'as needed' basis.

 

Note: Commercial BP groups (1110 Commercial Vendors, 1800 Commercial Customers and 1900 Vendor non UNGM) do not mix vendor and customer roles on the same BP while other BP groups (such as 1111 Member States) combine the same vendor and customer role on the same BP. This is because the BP number for 1110 Commercial Vendor UNGM is not determined in ECC while for commercial customers, the BP number is determined in ECC.

There are two BP groups for commercial vendors:

·               Z00009 Low Value Vendor can only be used with low value POs while Z00011 UN Vendor can be used with all other PO types.

·               Z00009 Low Value Vendor and Z00011 UN Vendor can be used in SRM and directly in the AP subledger for invoices without POs while Z00010 FI Vendor can only be used in the AP subledger. Z00010 FI Vendor for staff members is created to ensure that SRM is not cluttered with thousands of staff members and that we do not perform procurement activities from staff members.

When a Low Value Vendor becomes an UNGM Vendor, a new BP is created in the Z00011 UN Vendor group and procurement activities are recorded on the new BP. When all balances are cleared on the Low Value Vendor, the BP master record is archived by the MDM team.

When a UNGM Vendor BP no longer has an active contract with the UN (i.e. the contract has expired and has not been renewed) and all balances are cleared, the MDM team will archive the BP (upon receiving a request). It is possible to request a creation of a Low Value Vendor BP to record low value transactions with the commercial entity after the contract has expired.

When a staff member retires from the UN, or when a retiree is retained by the UN as a consultant, the same BP continues to be used since both Staff Member and Individual External BP groups have the same number range. In this case, the BP Roles and/or BP Types may be changed.

3.1.3.3  BP Types

The BP Types provides more definition within a BP group. BP Types are mostly used to distinguish the type of individual. A BP can have only one type at a time; however the BP type can be changed as needed by MDM teams.

The HRM solution does not require BP types, as it uses Employee groups and sub-groups to categorized individuals. However, in the Umoja foundation the Progen payroll system has been retained and BP types are used to categorize individuals for the purpose of the Progen interface.

BP Types available in Umoja are as follows:

 

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3.1.4        General Ledger (GL) Account used in Accounts Payable

The accounts payable subledger uses reconciliation accounts to record transactions. These accounts can only be accessed through the subledger with the use of a business partner with a vendor role. This ensures that the AP subledger will reconcile with the general ledger.

The GL account structure for accounts payable include three GL accounts for each BP Groups. This structure will allow us to provide analysis or disclosure information by BP Group.

 

The following table summarizes the GL accounts that may be classified as 'other financial liabilities':

 

3.1.4.1  Exchange Payable

The following GL accounts are used to record exchange accounts payable balances:

 

Notes:

·               BP groups for Commercial Vendor UNGM and Non-UNGM Vendors have the same reconciliation GL account as we do not disclose balances separately for these groups.

·               Current liability GL accounts start with 3.

·               2^nd to 4^th digits of the GL account number can be thought of as an IPSAS category. These 3 digits reflect the distinction between Member States (320) and other BP Groups (510) to accommodate financial statement presentation on separate lines.

·               GL account 3-510-98-10 is to manually record accruals at period end. This GL is not a reconciliation account.

·               GL account 3-510-99-10 is used by the system to automatically accrue prompt payment discounts. This is a reconciliation account.

3.1.4.2  Advances Paid and Loans Receivable

The UN financial statement format requires that advances and loans receivable be classified as current assets. In Umoja, these transactions are categorized under accounts payable transactions because in their process it involves payment being issued out of Umoja. Thus the resulting advance or loan receivable is recorded in the accounts payable subledger on a BP with a vendor role. Conversely loans payable are recorded in the accounts receivable subledger on a BP with a customer role.

Because only one reconciliation GL account can be maintained on the BP master record, and we have opted to maintain the Exchange GL account on the BP master record, special GL indicators (SPGL) will need to be used to record advances and loans receivable from entities outside Umoja in different reconciliation accounts. The combination of the reconciliation account on the BP master record with the specific SPGL used on the transaction will determine the alternate reconciliation GL account for advances and loans receivable.

The GL account structure for advances and loans receivable include four GL accounts for each BP Groups as follows:

 

GL accounts used for advances and loans receivable are as follow:

 

 

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Notes:

·               BP groups for Commercial Vendor UNGM and Non-UNGM Vendors have the same reconciliation GL account.

·               Current asset GL accounts start with 1.

·               2^nd to 4^th digits of the GL account number can be thought of as an IPSAS category. These 3 digits reflect the distinction between loans receivable (620), advances to Implementing Partners (810) and other advances such as commercial, salary, travel, paymaster and security deposits (910) to accommodate financial statement presentation on separate lines.

·               GL account 1-620-13-18 is to manually record accruals at period end. This GL is not a reconciliation account.

·               GL account 1-910-90-14 Advance Travel Module is used to record travel advances approved in the Travel module of Umoja.

3.1.5        Special GL (SPGL) Indicator

The following table shows SPGL indicators available in Umoja and the change in reconciliation account resulting from each SPGL indicator for each BP groups.

 

3.1.6        Document Flow - General

The automation brought by Umoja rests on respecting the natural accounts payable document flow. The natural flow provides for an account payable document cleared by a payment document cleared by a bank statement document.

If the natural flow is not followed, the automatic clearing of bank statement documents (ZR) against payment documents (KZ) is foregone.

The following flowchart illustrates the natural document flow for different payment methods.

 

3.2            Recognition of Accounts Payable

The vendor invoicing process is triggered in one of the following two areas: Logistics Invoice Verification or Finance within Umoja depending upon the type of invoice and ends with processing invoice and payment. As all invoices without purchase order (PO) will need approval, Umoja allows the parking of these documents and a workflow routes these through the approval steps. Final approval triggers the conversion of the parked document to a posted document.

The UN business processes with reference to Accounts Payable include:

·                     Invoice Processing with PO (Logistics Invoice Processing) - Refer section 3.2.1

·                     Invoice Processing without PO (FI invoice) - Refer section 3.2.2

·                     Adjustments for Credit Invoices with Vendors - Refer section 3.2.3

·                     Tax Accounting - VAT - Refer section 3.2.4

·                     Document Processing - Inter Agency - Refer section 3.2.5

·                     Process Local Troops (PCC/TCC) payments - Refer section 3.2.6

·                     Petty Cash Management - Refer section 3.2.7

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3.2.1        Invoice Processing with Purchase Order (PO)

The Umoja solution uses the three way matching process for validating invoices for payment with reference to PO.

The Three Way Match process compares three purchasing documents to verify that a payment should be made to a vendor. The three documents required are: a purchase order, a goods receipt, and a vendor's invoice. The purchase order and goods receipt are entered in the system as logistic steps in the procurement process. When the vendor's invoice is received an electronic record is created in the system. This can be done manually by transcribing data elements from the vendor's invoice into the system. If the vendor references the UN PO number, the person entering the invoice enters the invoice date and the PO number. The invoice date sets the baseline date for ageing the invoice for payment according to the payment terms. From the PO number the system will validate that a PO was approved and that a goods receipt was entered for the items on that PO. Duplicate invoice check is activated to ensure no duplicate invoices are processed during Logistics Invoice Verification (LIV) and paid twice.

Evaluated receipt settlement (ERS) is also applicable with reference to PO specific to external consultants contracted by UN to render professional services. The consultants are paid based on attendance submission. Once the ERS program runs, it will automatically generate the invoice postings based on information provided from PO and service entry sheets made against the PO. The ERS indicator must be flagged in the PO as well as in BP vendor master record of consultants.

3.2.1.1  Invoice Processing with PO with VAT and with Retention

The following are steps to PO invoice processing with VAT and retention:

A.      Enter parked invoice based on supplier's invoice received / Transaction Code: MIR7

A.1.      Enter MIR7 in the Command field and click the Enter icon. It will display the Park Incoming Invoice: Company Code 1000 screen.

A.2.      In the screen, enter the relevant values in the Basic data tab:

·               Invoice date: The date on the vendor invoice

·               Posting Date: The date on which the invoice is posted

·               Reference: The vendor invoice number

·               Amount: The total amount on the Invoice, including VAT and all charges

·               Currency

·               Text: A free text field to convey any particular information about the document

Note: The document type is NOT required to be entered by the end user if processing invoice with reference to PO. The standard document type RE (Purchase Order Invoice) is assigned by the system for invoice processing with reference to PO.

A.3.      To calculate VAT, tick the Calculate tax box. Then click the icon next to the Tax Amount field. The Limitations pop-up window is displayed. This will allow you to change the Reporting Country (Reporting cntry).

If you do not know the country code for your country, click the Matchcode icon next to the Reporting cntry field.

A.4.      Click the Tax Code drop down list and select a tax code. The selected Tax Code will allow Umoja to calculate the tax amount and determine in which GL Account to record the VAT.

A.5.      In the PO Reference tab, enter the PO number referenced in the invoice in the field next to the Purchase Order/Scheduling Agreement drop down menu to pull out the PO details in line item.

A.6.      Scroll over to the right until you see the Tax Code field. Select the same Tax Code as the one at the Header level for each line item and press Enter.

A.7.      The status in the Balance field at the top should now become green.

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A.8.      If the PO is subject to retention processing, a system message is issued 'Item is relevant for retention, see message log'. Then click the Continue icon.

A.9.      A Due Date is required for payment retention for each line item. In the PO Reference tab, scroll right until you find the Due Date field.

A.10.  Tick the boxes in the Tax Reduction field to eliminate tax from retention amount.

A.11.  Add Payment Terms.

Payment terms are defaulted from the Vendor's Business Partner information. They can be overwritten by editing the information in the Payment tab in MIR7.

Payt Terms: A key that defines what set of payment terms will be used, including discount percentages and payment periods. Example: Z002 = To be paid within 14 days at 2% cash discount or within 30 days due net.

BaselineDt: Date used to track the different payment terms. If the Invoice is received significantly later than the Invoice date listed, you may wish to baseline the payment terms to a different date.

Pmt Method: Specifies the way payment will be made to the vendor. The Vendor Business Partner must be set up to accept this type of payment in order for the payment to be made. If overwriting a default Payment Method, use the BP Transaction to ensure that Payment Method is set up for that Business Partner.

Common Payment Methods are:

·               A -Bank Transfer (ACH-CCD): For payee bank in the US

·               S -SEPA: (Single Euro Payments Area) For payee bank in Eurozone and currency of payment is Euro

·               W -Wire (SWIFT MT103): Used in all other regions

·               Y -for payments in cash from Cashier's imprest

·               U -UNDP Pay Agent: Used in situations where UNDP is a Pay Agent or is paying a Travel Advance

·               R -UNDP Service: Used in situations where UNDP is procuring goods or services on behalf of an Umoja entity

Click here for the link to Payment Method Determination list

Pmnt Block: Denotes why a payment block is placed on the Invoice. Payment blocks must be manually removed for an Invoice to be paid.

Part. Bank: A vendor may have multiple banks accounts in separate currencies. The partner bank field should be selected to tell the system which payee bank payment should be sent. Also, this must match the Payment Method selected.

Note: Umoja automatically determines the House Bank which will make the payment using one of these is Payment Method. Therefore, make sure the appropriate Payment Method is selected prior to clicking Save as Completed.

A.12.  Go to Documents and select Simulate General Ledger. The simulated document displays the lines for payment and retention.

A.13.  Click Save as Completed.

If all checks by the Umoja system are successful, the document is routed through workflow and the system will generate the document number that can be seen at the left bottom side of the screen.

Process in this section explains the postings for a purchase of document currency USD 50 with 10% retention amount.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(50)	USD	P003
86	35401010	AP Exchange Goods Receipt Payable GRIR	50	USD	P003	10074	20OLA

 

Another posting document is parked for the retention of a percentage of payable to vendor as defined during PO creation, e.g. 10%. Document type RT (Retention Document) is automatically assigned by the system for retention related transactions.

PK	SPGL	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
21		1110XXXXXX*	BP with vendor role	5	USD	P003
39	R	1110XXXXXX**	BP with vendor role	(5)	USD	P003

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

**The special GL indicator R indicates that the related credit posting to BP vendor is posted to an alternative reconciliation account 35111510 AP Commercial Vendor Retention to segregate the payable to vendor arising from retention processing.

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3.2.1.2  Invoice Processing with PO with Invoice Reduction

In cases where the amount in the invoice is more than the amount in the PO, the Invoice Reduction option is used to settle the invoice.

B.      Invoice Reductions are entered with the original Invoice in MIR7, only after you have received approval to enter an Invoice Reduction. In addition, they can only be entered if they fall within Invoice Tolerance of USD 4,000 or 10% of PO, whichever is lower.

B.1.      Enter the amount in the Amount field under the Basic data tab as it appears on the Invoice along with all other required fields (such as Payment Terms).

B.2.      Add the PO Number in the Purchase Order / Scheduling Agreement field under the PO Reference tab

B.3.      The status in the Balance field displays in red.

Note: As you can see below, the invoice amount is JPY 100,000 more than the amount on the PO and Goods Received.

B.4.      Verify the invoice with the PO and identify line item with the difference. Difference could be for price or quantity (in case of rejection of items).

B.5.      In the drop-down menu next to Layout, select Invoice reduction. This will restrict the number of columns to just those that are relevant for Invoice Reductions.

B.6.      Scroll to the right until you find the Correctn ID field. For the line item that should be reduced, select the Vendor error: reduce invoice option.

B.7.      Under the Invoice Amount Acc. To Vendor field, enter the amount that the Vendor invoiced for this line item. Enter the Invoiced quantity in the Invoice Qty Acc to Vendor field. Press Enter.

B.8.      You will see a pop-up window that shows how much the Invoice was reduced. The balance of the invoice will also be corrected. The invoice can now be simulated.

B.9.      Go to Document button and select Simulate General Ledger.

The document type is NOT required to be entered by the end user if processing invoice with reference to PO. The standard document type RE (Purchase Order Invoice) is assigned by the system for invoice processing with reference to PO.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(2,600,000)	JPY	P003
86	35401010	AP Exchange Goods Receipt Payable GRIR	2,500,000	JPY	P003	10074	20OLA
40	19901010	AR Invoice Reduction Clearing	100,000	JPY	P003

 

To offset the AR clearing from invoice reduction, another posting document (credit memo) is automatically created in the system. Document type KG (Vendor Credit Memo) is automatically assigned by the system for reduction related transactions.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
21	1110XXXXXX*	BP with vendor role	100,000	JPY	P003
50	19901010	AR Invoice Reduction Clearing	(100,00)	JPY	P003

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

B.10.  Click Save as Completed to submit for approval.

3.2.1.3  Invoice Processing with PO with Unplanned Charges

Umoja allows payment of unplanned delivery costs as Unplanned Charges provided these are within the tolerance of 10% of PO or USD 4,000, whichever the lower.

C.      Below are the steps if the invoice from supplier include unplanned delivery costs (charges):

C.1.      Enter the full amount in the Amount field under the Basic data tab.

Note: When the amount is entered, the document will be unbalanced, as signified by the red light, due to unplanned charges.

C.2.      Go to Details tab. Enter the unplanned charges in the Unpl. Del. Csts field. It will balance the document as signified by the green light.

Note: In the example, the document was unbalanced by Euro 622.60. This is due to unplanned charges for Euro 566 plus 10% tax. Entering the Euro 566 in unplanned charges tab will have the system calculate the tax on this amount which balances the document. It also changes the tax amount under the Basic data tab.

C.3.      Go to Documents button and select the Simulate General Ledger.

The simulated document will show that the unplanned charges are debited to the expense account in proportion to the original charges and vendor is paid full amount.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(10,230)	EUR	P003
86	35401010	AP Exchange Goods Receipt Payable GRIR	8,734	EUR	P003	10074	20OLA
81	7XXXXXXX	Expense account	566	EUR	P003
40	15201020	AR VAT Recoverable	930	EUR	P003

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

C.4.      Click Save as Completed button.

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3.2.1.4  Release Blocked Invoices

The Three-Way Match process in Umoja is triggered to do a triage check against PO, Goods Receipt and invoice.

·               If the documents cannot be matched within the invoice tolerance which is 10% or USD 4,000 whichever is lower, the system automatically blocks the payment.

·               If the documents do match or are within the invoice tolerance, payments are automatically processed according to payment terms.

For invoices posted by the system but automatically blocked for payment due to quantity and price difference, the AP user or AP approver as duly authorized is expected to reconcile the blocked invoices and release the invoices accordingly to facilitate outgoing payment processing.

D.     The following are steps to release block invoices / Transaction Code: MRBR

D.1.     Enter MRBR in the Command field.

D.2.     Enter the following information in corresponding fields:

·               Company code: 1000

·               Invoice document: 51xxxxxxxx - 51xxxxxxxx

·               Fiscal year:

·               Vendor:

·               Posting date:

·               Due Date:

·               Purchasing Group:

·               User:

·               Release indicator: Release manually or Release automatically

·               Blocking procedure: Blocked due to variances, Manual payment block, Stochastically blocked

D.3.     Click Execute button

The system will list all blocked invoices based on parameters entered in selection screen.

D.4.     Highlight all invoices subject for release and select Release Invoice button

D.5.     Select the Save button to save changes made.

3.2.1.5  Processing Down Payments

In Umoja, all advance payments to vendors, non-commercial partners or other entities are known as Down Payments.

Down payments are processed using the Down Payments functionality T-code: F-47 regardless the existing of PO. For down payments made against a PO, a down payment request is made in Umoja ECC. Clearing occurs automatically after goods are received and the invoice is posted.

A down payment request is only a noted item and no financial impact. The related coding block from PO or Fund Commitment reference will be derived to populate fields. Document type KA (Down payment) is defaulted by the system for down payment request transactions.

E.      Down Payment request / Transaction Code: F-47

E.1.      Type in F-47 in the Command field.

E.2.      Enter the following information in the corresponding fields:

·               Document Date: enter the Memo date

·               Type: KA (for down payment)

·               Posting Date:

·               Currency/Rate:

·               Reference: enter the Memo number

·               Doc.Header Text: brief description of the down payment

E.3.      Enter the Vendor number in the Account field and select the type of Special GL indicator in the Trg.sp.G/L ind. field.

Note: In the example, Trg.sp.G/L indicator 'A' is used as the vendor is a commercial vendor. A debit will be posted to the Vendor down payment account.

E.4.      Click Enter icon.

E.5.      Enter the following information in the respective fields and press Enter.

·               Amount:

·               Tax code (mandatory): V0 - no tax on this example transaction

·               Calculate tax: tick if applicable

·               Due on: for payment schedule

·               Pmt Method: used 'Y' for travel advance

·               Earmd Fnds: Fund Commitment document number

E.6.      When making the down payment against a PO, enter PO number in the Purch.Doc. field.

E.7.      When making down payment without a PO or Fund commitment, enter the following fields then press Enter:

·               Bus. Area:

·               Fund:

·               Grant:

E.8.      Click the Save button to submit the document for approval.

3.2.1.6  Approve Down Payment Request

F.       After the request has been submitted, it will be routed to the appropriate A/P Approver through a workflow, appearing in their Business Workplace Inbox.

F.1.       Workflow to AP Approver / Transaction Code: SBWP

Based on the organizational unit e.g. business area and/ or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection. For more information on workflow refer to section 3.2.2 (H.2).

In this example the down-payment request - approving agent is being approved.

F.2.       Clear Down Payments

The down payment request is created in the system. The down payment will be included in payment proposal run subject to payment run approval based on due date using transaction code F110. Transaction code F110 is the automatic payment processing covered in section 3.3.1.1 of Chapter on Cash Management.

When the next invoice against the vendor is entered in Umoja, the system will remind the user about the down payment. The user can apply/clear the down payment against the invoice.

Down payments will be adjusted against the invoice by the system on approval of the document. The system will clear the full down payment even if partial delivery is received.

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3.2.1.7  Evaluated Receipt Settlement (ERS)

The ERS process is applicable to UN consultants who render professional services for the Organization. Typically a PO is created which is flagged for ERS process settlement. The consultants with BP vendor role are not required to submit vendor invoices to UN. Based on approved PO and service entry sheets (same as goods receipt) created in SRM, the ERS program is run to create invoice postings. The program can be run in test mode, to provide the user an opportunity to review the financial postings before actual run.

G.     Following are the steps in performing ERS / Transaction Code: MRRL

G.1.     Enter MRRL in the Command field

G.2.     Enter data in the following fields:

·               Company Code: 1000

·               Plant: for location-each mission/office has a unique Plant Code which is used instead of Business Area.

·               Purchasing Document: 2500000000 to 2599999999 - a unique range reserved for consultant and individual contractors.

G.3.     Under Processing Options section:

·               Doc. selection: This brings up separate lines for each Service Entry Sheet.

·               Test Run: Ticked

G.4.     Click the Execute icon to review the financial postings in test run.

The resulting screen shows the Vendor number, Purchase Document and under Ref. Doc. the Service Entry Sheet number.

G.5.     Click the Back icon to go back to the previous screen. Un-tick the box next to Test Run and execute the transaction again.

This will post the payable documents in Vendor account and debit the GR/IR (35401010) account.

Note:

·               There is no workflow in this transaction.

·               The Independent Contractor (IC)/Consultant cannot be paid through ERS unless the Auto Evaluation Settlement is checked in the Business Partner (BP) record. This can be seen under Purchasing in UN vendor role.

G.6.     Similar with transaction codes MIR7 (parked invoice) or MIRO (Logistics Invoice Verification), ERS will also provide a proforma entry as shown below:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(100)	USD	P003
86	35401010	AP Exchange Goods Receipt Payable GRIR	100	USD	P003	10074	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

Note: The document type is NOT required to be entered by the end user if processing invoice with reference to PO. The standard document type RE (Purchase Order Invoice) is assigned by the system for invoice processing with reference to PO.

3.2.2        Invoice Processing without PO

Umoja introduces the concept of creating invoices with reference to a Funds Commitment instead of a PO. This applies in the following scenarios:

·                     Grants process for implementing partners

·                     Official Travel

·                     Entitlement Travel

·                     Fellowship Study Tour*

·                     Education Grant*

·                     Self-Insurance (unless treated as special PO)*

·                     Appendix D Claims - All Fund Types

·                     Peacekeeping (PK) Local TCC / PCC payments

·                     Miscellaneous Obligating Documents

* Requires to be revisited when the Human Capital Management (HCM) solution is deployed in Umoja.

H.     The following process steps are applicable to Invoice Processing without PO

H.1.     Create parked vendor invoice / Transaction Code: FV60

H.1.1.     Enter FV60 in the Command field and click the Enter icon. It will display the Park Vendor Invoice: Company Code 1000 screen.

H.1.2.     In the screen, enter the relevant values in the Basic data tab:

·               Vendor: vendor number

·               Invoice date:

·               Reference:

H.1.3.     Click the Editing options icon.

H.1.4.     Click the Doc.type option drop down list and select 'Entry with short name'.

H.1.5.     Click the Save icon and then the Back button to return to previous screen.

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H.1.6.     Click Document Type drop down list and select the document type from the listing.

Note:

The document type input is necessary to correctly route the document to workflow as well as for future reporting purposes.

·               KE: for charges with Fund Commitments (obligations)

·               KR: for direct expenses that require certification. This document type is defaulted by the system for manual invoice transaction.

·               KH: for charges not requiring certification (i.e. refund of security deposit).

H.1.7.     If the invoice value is less than USD 4,000, the system will not require a Fund Commitment (obligation), otherwise a Fund Commitment document must be referenced to Earmarked Fund and Earmarked Fund document item. A system message will be displayed to remind the user 'Please verify if this invoice requires a fund commitment'.

H.1.8.     Check the Calculate tax box if tax is payable. In the event that it is, the country and the reimbursable or non-reimbursable tax rate must be entered.

H.1.9.     In the line item, enter the following values:

·               G/L acct: 74171010 OE Consult Indiv Fee

·               Amount in doc.curr.: USD 100

·               Cost Center: 10059

·               Fund: 20OLA

Note: For Invoices that reference a Funds Commitment (obligation), the document number of the Funds Commitment should be entered in the Earmarked funds field. In addition, the line item within that Funds Commitment must also be entered in the Earmarked funds: Document Item field. Other fields will be derived from the Fund Commitment document.

H.1.10. In the Payment tab; payment attributes are defaulted from the Vendor's Business Partner (BP) information but can be overwritten in through this tab.

H.1.11. Hit Enter. The system will fill the other fields and give the following message at the bottom of the screen.

H.1.12. Go to Documents button and select Simulate General Ledger to review the proforma entry

Based on GL account, cost center, and fund values entered, system will derive the remaining coding block account assignment such as Business Area, Segment, Functional Area, Budget Period, Funded Program, Fund Center, and Grant.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(100)	USD	P001	10059	20OLA
40	74171010	OE Consult Indiv Fee	100	USD	P001	10059	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

H.1.13. Select Save as completed button to release the parked invoice entry to workflow.

H.2.     Workflow to AP Approver / Transaction Code: SBWP

Based on the organizational unit e.g. business area and/ or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection.

H.2.1.     Enter in SBWP in Command field.

H.2.2.     Double click the Workflow icon. Then it will expand to provide the task under the work flow.

H.2.3.     Select the type of document to approve. In this example the AP document - Approving agent is being approved.

H.2.4.     Select the document from the dialog box that opens which is highlighted to the right in the image above.

H.2.5.     To review an item, double-click the selected document in your inbox. If a decision is required, decision options that will display are:

·               Approve

·               Refuse

·               Cancel and keep work item in inbox: to be used when it's determined that another approver in the approver group should review the document.

H.2.6.     Below the decision options, you can view summary information about the document on the left-hand side. On the right-hand side of the screen, under Objects and attachments, you can review whether the SAP parked document was entered correctly:

• Double-click the link next to Office Document to view the scanned copy of the document.

• Double-click the link next to Display Parked Doc. to view the document as entered in Umoja.

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3.2.3        Adjustment for Credit Invoices with Vendors

The process for Adjustments for Credit Invoices with Vendors initiates when an issue with a vendor is identified and communicated to an Invoice Processor in the Accounts Payable Unit. The issue typically results from an invoice error, issues with the goods receipt, and problems during inspection or delay in the submission of services. The adjustment will reduce the amount payable to vendor or record amount recoverable from a vendor.

The process of adjustment is entered by the User (AP) with or without reference to a specific PO. The document will then go through the workflow for approval. Upon approval, the adjustment (credit memo) will be picked up in the next Payment Run made to the vendor in which the credit amount will be automatically subtracted from the amount being paid to the vendor.

Note: The UN may decide to reduce the outstanding open invoice value by the amount in dispute or damaged goods. Close coordination with AP user is required to raise a credit memo in the system to reduce the outstanding payable to the vendor before settlement is made.

The following steps are applicable to Adjustments for Credit Invoices with Vendors.

3.2.3.1  Credit Memo Processing with PO

I.        Create parked credit memo for PO related transactions / Transaction Code: MIR7

I.1.        Enter MIR7 in the Command field.

I.2.        In the Transaction drop down menu select 'Credit memo' instead of 'Invoice'.

I.3.        Enter the information for the following fields:

·               Reference: the vendor invoice number

·               Tax Amount:

I.4.        Under the PO Reference section, enter the PO number in the Purchase Order/Scheduling Agreement field and hit Enter. This will bring up all the lines on the PO that were delivered and are highlighted in .

I.5.        Unselect the lines not required for credit memo. In the required lines, change the Quantity of items and Amount as well as the VAT field.

I.6.        Enter the total amount of the credit note in the Amount field. Press Enter and the document will balance.

I.7.        Go to Payment tab and enter the Umoja Invoice number in the Inv.ref. field.

I.8.        Press Enter. Umoja will bring the Payment Attributes from the invoice and net off the credit note amount during payment. A message at the bottom will confirm that data was copied from the invoice.

I.9.        Payment attributes (payment method, partner bank, etc.) should be entered to ensure settlement of the subsequent credit from the next payment to vendor.

I.10.    Click on Simulate and then Save as completed to send the document for approval.

3.2.3.2  Credit Memo Processing without PO

J.        Create parked credit memo without PO / Transaction Code: FV65

J.1.        Enter FV65 in the Command field and click Enter icon.

J.2.        In the Transactn drop down menu select 'Credit memo'.

J.3.        In the Basic data tab, enter the relevant values in the following fields:

·               Vendor: vendor number

·               Document date:

·               Posting date:

·               Reference: number of supporting document requesting recovery from vendors

·               Document Type: KG

·               Amount:

·               Text:

Note: Document type KG (Vendor Credit Memo) is defaulted by the system for adjustment to vendor accounts.

J.4.        In the Line item section, enter the following values:

·               G/L acct: 72111213 and 72111212

·               Amount in doc.curr.: USD 152 and USD 490

·               Cost Center: 10059

·               Fund: 20OLA

Note: If any Fund Commitment is involved, enter the Earmarked Fund (EMF) number and line number. The system will automatically derive the coding block information from the EMF.

J.5.        Click the Payment tab and enter the Payment Attributes to ensure recovery from next payment to vendor.

J.6.        Go to Documents button and select Simulate General Ledger to review the proforma entry

Based on GL account, cost center, and fund values entered, system will derive the remaining coding block account assignment such as Business Area, Segment, Functional Area, Budget Period, Funded Program, Fund Center, and Grant.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
21	1110XXXXXX*	BP with vendor role	642	USD	P001	10059	20OLA
50	72111213	OT Staff OutMissTerm	(152)	USD	P001	10059	20OLA
50	72111212	OT Staff OutMiss DSA	(490)	USD	P001	10059	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

By assigning a specific invoice document to credit memo, the system automatically assigned the invoice document number to assignment field of CM linking the invoice and credit memo together for clearing purposes.

J.7.        Select Save as completed button to release the parked credit memo entry to workflow.

3.2.3.3  Workflow to AP Approver

Based on the organizational unit e.g. business area and / or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection. Refer to section 3.2.2 (H.2) for more detailed steps.

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3.2.3.4  Release Blocked Invoices

For invoices posted by the system but automatically blocked for payment due to quantity and price difference, the AP user or AP approver as duly authorized is expected to reconcile the blocked invoices and release the invoices using transaction code MRBR accordingly to facilitate outgoing payment processing. Refer to section 3.2.1.4 for detail instructions.

K.      The following are steps to release block invoices / Transaction Code: MRBR or FB02

If the invoice is manually blocked for payment after it is posted (through workflow approval), use T-code FB02 to unblock.

K.1.      Enter FB02 in the Command field.

K.2.      Enter appropriate details in the following fields:

·               Document Number: invoice number

Note: If you do not know the document number, click the Document List button. When the Document List pop-up displays, enter all possible parameters that could help identify the invoice.

·               Fiscal Year:

K.3.      Once the document appears, double click the vendor line (first line of the document), which will open a pop-up screen.

Note: Fields that can be changed will be in and fields that cannot be changed will be in grey.

K.4.      To release the block invoice: Enter/select Free for payment in the Pmnt Block field.

K.5.      Click Save icon. Ensure you receive the system message 'Changes have been saved'.

3.2.4        Tax Accounting - VAT

The business process steps for accounting of VAT is embedded in three separate business processes such as: Invoice processing with PO, Invoice processing without PO, and Adjustments for Credit Invoices with Vendors.

There are three valid treatment of invoice that includes VAT which the AP user must ascertain:

·               The invoice includes VAT and the VAT is not reimbursable; consequently the VAT is paid and expensed.

·               The invoice includes VAT but UN only processes the invoice for the net amount (excluding the VAT) and informs the Vendor (a copy of VAT exemption can be sent to the vendor for their records).

·               The invoice includes VAT, the VAT is reimbursable thus the VAT is initially paid. When VAT is paid with the invoice, a receivable is established for the equivalent amount and appropriate reports are provided to support the recovery of VAT.

3.2.4.1  Invoice Processing with VAT Reimbursable by Government

On making a payment to the vendor, UN is entitled to receive the VAT amount from the Government. Accordingly a receivable should be recorded to reflect VAT recoverable.

L.       VAT component on invoice is reimbursable by the Government to UN / Transaction Code: FV60 or MIR7

L.1.       Enter the following values in the header (Basic data tab) and Line item data:

Header - Amount: USD 110

Header - Tax Amount: USD 10

Header - Reporting cntry: LB (Lebanon)

Header - Tax Rate: L1 Input VAT 10% Reimbursable Lebanon

 

Line item - G/L account: 74174010 OE Consulting Service Ad Hoc Expert Fee

Line item - Amount in doc.curr.: USD 100

Line item - Cost Center: 10074

Line item - Fund: 20OLA

The document type is NOT required to be entered by the end user if processing invoice with reference to PO. The standard document type RE (Purchase Order Invoice) is assigned by the system for invoice processing with reference to PO using transaction code MIR7. Document type KR (Vendor Invoice) is defaulted by the system for manual invoices using transaction code FV60. Refer to section 3.2.1 for MIR7 step by step process.

L.2.       Go to Documents button and select Simulate General Ledger to review the proforma entry.

Based on GL account, cost center, and fund values entered, system will derive the remaining coding block account assignment such as Business Area, Segment, Functional Area, Budget Period, Funded Program, Fund Center, and Grant.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(110)	USD	P003	10074	20OLA
40	74174010	OE Consult Service Adhoc Ex	100	USD	P003	10074	20OLA
40	15201020	AR VAT Recoverable	10	USD	P003	10074	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

L.3.       Select Save as completed button to release the parked invoice entry to workflow

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3.2.4.2  Workflow to AP Approver

Based on the organizational unit e.g. business area and / or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection. Refer to section 3.2.2 (H.2) for more detailed steps.

3.2.4.3  Analyze AR VAT Recoverable

M.   Analyze all AR VAT Recoverable transactions per Reporting Country / Transaction Code: S_ALR_87012357

The amount accumulated in the AR VAT Recoverable Account (GL 15201020) mentioned above is used to prepare the quarterly VAT Return. To determine this amount, a report is run as follows:

M.1.   Enter S_ALR_87012357 in the Command field.

M.2.   Click the Enter icon.

M.3.   Enter 1000 in the Company code field.

M.4.   Enter the relevant date in the Posting date field.

M.5.   Click the Further selections button.

M.6.   Enter relevant detail in the Tax return country field.

M.7.   Enter relevant detail in the Tax on sales/purchases code field.

M.8.   Click the Execute icon to generate the VAT Report.

The report has sections for both Input Tax (VAT paid for purchases) and Output Tax (VAT received from sales). A claim for a reimbursement from the Government is made for the amount by which Input Tax exceeds Output Tax.

3.2.4.4  Reclassify AR VAT Recoverable

N.     Reclassify the AR VAT Recoverable to specific BP with customer role / Transaction Code: FV70

N.1.     Enter FV70 in the Command field.

N.2.     Click the Enter icon

N.3.     Enter the following values in in respective fields:

Basic data tab:

·               Customer: BP number with customer role

·               Invoice date:

·               Posting Date:

·               Amount: USD 600

·               Document Type: DR Customer Invoice (Default)

·               Currency: USD

·               SGL Ind: N

·               Reference:

Payment tab:

·               Payt Terms: if different from BP customer record

·               BaselineDt:

N.4.     In the Line item, enter the following values:

·               GL account: 15201020 AR VAT Recoverable

·               Amount in document currency: USD 600

·               Business Area: P003

·               Fund: 20OLA

·               Grant: GMNR

N.5.     Press the Enter key to validate the information entered in the invoice.

N.6.     Navigate to the menu item. Select Documents and click the Simulate General Ledger to review the proforma entry:

PK	SPGL	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Fund	Grant
09	N	1111000072	BP with customer role	600	USD	P003	20OLA	GMNR
50		15201020	AR VAT Recoverable	(600)	USD	P003	20OLA	GMNR

* The special GL indicator N indicates that the related debit posting to BP customer is posted to an alternative reconciliation account 15201010 AR VAT Receivable to segregate the receivable from BP customer arising from recoverable VAT.

N.7.     Select Save as completed button to release the parked customer invoice to workflow.

N.8.     Workflow to AR Approver / Transaction Code: SBWP.

Based on the organizational unit e.g. business area and / or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection. For more details of the step by step process please refer to section 3.2.2 (H.2). Instead of approving an AP document, an AR document is now being approved.

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3.2.4.5  Invoice Processing with VAT Non-Reimbursable by Government

In this situation, the VAT component is considered as part of the cost of acquiring goods or services, accordingly while recording a payable to the vendor, VAT component is included as payable to the Vendor.

O.     VAT component on invoice is non- reimbursable by the Government to UN / Transaction Code: FV60 or MIR7

O.1.     Enter the following values in the header (Basic data tab) and Line item data:

Header - Amount: USD 220

Header - Tax Amount: USD 20

Header - Reporting cntry: LB (Lebanon)

Header - Tax Rate: L2 Input VAT 10% Non -Reimbursable Lebanon

 

Line item - G/L acct: 74174010 OE Consulting Service Ad Hoc Expert Fee

Line item - Amount in doc.curr.: USD 200

Line item - Cost center: 10074

Line item - Fund: 20OLA

The document type is NOT required to be entered by the end user if processing invoice with reference to PO. The standard document type RE (Purchase Order Invoice) is assigned by the system for invoice processing with reference to PO using transaction code MIR7. Document type KR (Vendor Invoice) is defaulted by the system for manual invoices using transaction code FV60. Refer to section 3.2.1 for MIR7 step by step process.

O.2.     Go to Documents button and select Simulate General Ledger to review the proforma entry.

Based on GL account, cost center, and fund values entered, system will derive the remaining coding block account assignment such as Business Area, Segment, Functional Area, Budget Period, Funded Program, Fund Center, and Grant.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	1110XXXXXX*	BP with vendor role	(220)	USD	P003	10074	20OLA
40	74174010	OE Consult Service Adhoc Ex	220	USD	P003	10074	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 which is Commercial Vendor and derive GL account 35101510 AP Commercial Vendor.

O.3.     Select Save as completed button to release the parked invoice entry to workflow.

O.4.     Workflow to AP Approver / Transaction Code: SBWP.

Based on the organizational unit e.g. business area and / or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection. For more details refer to the step by step process described in section 3.2.2 (H.2).

3.2.5        Document Processing (Inter-Agency)

The UN Agency in this business process refers to UNDP only, however it is envisioned that the business processes outlined can be leveraged by the UN Secretariat in doing business with other UN Agencies.

There are two ways that the UN Agency provides services to the UN Secretariat:

1.                  The UN Agency assists with the acquisition of goods and/or provision of services to support Technical Cooperation or other Peacekeeping operations that are administered by the United Nations. Following the acquisition of goods and services the UN Agency pays the vendor.

The examples of services performed by the UN Agency are:

·               Staff selection and recruitment

·               Staff HR and Benefits Admin and Management

·               Consultant recruitment

·               Procurement (identification, selection, contracting, follow-up)

·               Travel Assistance (buying flights, paying daily subsistence allowance)

·               Conference/Meeting Management (booking venue, organizing catering)

2.                  The UN Agency only acts as pay agent. When the UN Agency acts as pay agent, the procurement process is performed by the UN. However the UN Agency will pay the invoice.

The examples of services performed by the UN Agency are:

·               Monthly Payroll Order

·               Invoice Payment

The UN Agency establishes a donor code for each executing office within the UN that utilizes its services. Currently, some offices (e.g. DESA, DPI and OCHA) have separate Donor code. Today most UN Departments share a single Donor code under 'UN'. The donor code assigned by UN Agency which is used as a basis to generate Financial Authorization (FA) from Umoja with information details pulled from PO, Funds Commitment, and AP invoice against third party vendor. Each source document in Umoja is linked to UN Agency through the following: PO for vendor account, Funds Commitment for Reference field; and Invoice for payment term.

The following process steps are applicable to Document Processing for Inter Agency transactions.

3.2.5.1  Replenishment of the UN Agency (UNDP) Account

The balance of advance payment to UN Agency is reviewed periodically by executing offices. Each Executing Office transmits periodic replenishments (normally an agreed optimum activity value to cover one-and-half to two months operations) to the UN Agency to cover anticipated expenditures that will be incurred. These replenishment amounts will be booked on Inter Agency Account by executing office.

In order to replenish the UN Agency account, an account payable document needs to be created in Umoja.

P.      Create parked vendor invoice to replenish the advance payment to UN Agency / Transaction Code: FV60

P.1.      Enter FV60 in the Command field and press Enter.

P.2.      In the Basic data tab of the opening window, enter:

·         Vendor: 14xxxxxxxx (UNDP BP Partners)

·         Invoice date: document date

·         Posting Date

·         Document Type: KH (Inv >USD 4,000 no certify)

·         Reference: free text - indicate the entity and replenishment or advance

·         Amount

·         Currency: USD

P.3.      In the Item section, enter:

·         G/L Acct: 18105020 Advance UNDP Pay Agent Request (Advance clearing UNDP SCA)

·         Fund: source of fund

·         Business Area

·         Unearmaked Internal Oder or WBS: if advance is grant relevant (grant will be automatically derived)

P.4.      In the Payment tab, enter:

·         Part. Bank: bank account of UNDP where the money should be sent

·         Pmt Method: method by which the payment should be sent

·         Payt Terms: default from BP master record but can be changed if necessary

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P.5.      Proforma accounting entry

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	14XXXXXXXX*	BP with vendor role	(3000)	USD	S100		10UNA
40	18105020	Advance UNDP Pay Agent Request (Advance Clearing UNDP SCA)	3000	USD	S100	10002	10UNA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 14 will call BP account group Z014 which is UN Agency Fund Programme and derive GL account 35101310 AP UN Agency Fund Programme.

P.6.      Select Save as completed button to release the parked invoice entry to workflow.

P.7.      Workflow to AP Approver / Transaction Code: SBWP

Based on the organizational unit e.g. business area and / or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection.

Once the parked invoice is approved and posted, the replenishment invoice will be included in the payment proposal based on due date. It will be settled through automatic payment processing using transaction code F110. F110 is covered in section 3.3.1.1 of Chapter on Cash Management.

3.2.5.2  Disbursement Requests

The UN Program Managers utilizes other Agency such as UNDP to purchase goods or services and / or perform payment on behalf of UN. There are three main ways where these disbursement requests can be processed in Umoja and from which the financial authorization (FA) form will be derived from:

1.      Funds Commitments (section 3.2.5.2.1);

2.      Accounts Payable - payment for third party invoice with PO (section 3.2.5.2.3) and without PO (section 3.2.5.2.2); and

3.      Purchase Order (section 3.2.5.2.4).

3.2.5.2.1 Funds Commitment (FC)

The request process is to be performed for transactions related to:

·         Payroll of local staff

·         Organization of event which does not give the rights to any travel

Note: In cases where the UN Agency (i.e. UNDP) procures goods or services, use the purchase order process.

Q.     Steps for processing disbursement request through Funds Commitment / Transaction Code: FMZ1

Note: Transaction code (T-code) FMZ1 is the actual creation of a commitment and FMZ3 assumes that a commitment has already been created and is used to display the commitment.

Q.1.     Enter FMZ1 in the Command field and press Enter.

Q.2.     In the Funds commitment: Create InitScrn, enter the following and click the Enter icon.

·         Document type

Note: The following Funds Commitment document types require the approval of a Certifying Officer and Approving Officer:

·         31 - Letter of Authorization

·         33 - Institutional Contractor Agent

·         39 - FM Conversion Obligation Doc Typ

·         45 - Travel Authorization Official

·         50 - Consultant/Contractor/ALD Agre

·         51 - Education Grant

·         55 - Travel Autho. Entitlemt Travel

The name of the officer that gives the final approval of the document will appear in the FA form. FA forms can only be sent for approved Funds Commitments.

·         Currency/rate: USD

Q.3.     Enter text in the Doc.text field. The text should start with 'UNDP (Country Office)…'

Note: The text in this field will not appear on the FA form. It is informational only to help the certifying/approving officers easily identifying UNDP documents in workflow.

Q.4.     In the Line items section, enter the following values:

·         Original Amount:

·         Text:

·         Fund: 20OLA

·         Fund Center: 10067

·         Grant: GMNR

·         GL account:

·         Vendor: 14XXXXXXXX (UNDP BP partners)

Q.5.     To enter the Account assignment / coding block on the line item, click on Goto from the top menu option à Detail line item to open the Funds commitment: Create Detail scr

Q.6.     Do not add a line for Service Fees on the Funds Commitment document that is sent as the FA. Service fee lines will be sent in the SCA file and will be posted against the same document (FC or PO) as the baseline charge.

Q.7.     Double click on the last line of the Funds Commitment from the Line items section to add detailed service instructions that apply to the whole document.

Note: if the service instructions only apply to a specific line, then enter the text in the text field of that specific line.

Q.8.     In the Funds commitment: Create Detail scr, click on Extra from the top menu option à Document line long text or click on the icon to access the line item text screen.

Note: It is important that the text is entered at the line item level and not the header level. Text entered in the document header will not appear on the FA.

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Q.9.     Type text up to a 1000 characters into the field and click the Save icon.

Note: '//' is used to split the text into multiple lines.

Q.10. Click the Back icon to return to the previous screen.

Q.11. Click on Park Document button to post the document for certification and approval through workflow. Refer to section 3.2.2 (H.2) for step by step process of approving the parked document in the workflow (T-code: SBWP).

3.2.5.2.2 Accounts Payable (AP) - Invoice without PO

This scenario is often used when the UN Secretariat requests UNDP to pay a third party vendor on behalf of UN. The third party invoice is already outstanding in Umoja system with assigned payment method 'U' (UNDP Pay Agent) to identify that the invoice will be settled through UNDP.

The virtual payment run will be performed using transaction code (T-code) F110 (automatic payment) in Cash Management work stream. However, this payment processing is without any cash outflow as it is merely closing the open invoice against UNDP Service Clearing Account (SCA). For detailed process steps, refer to outgoing payment processing in section 3.3.1.1 of Chapter on Cash Management.

R.      Steps for processing disbursement request for payment of third party invoice without PO / Transaction Code: FV60

R.1.      Enter FV60 in the Command field and press Enter.

R.2.      In the Basic data tab, enter:

·         Vendor: Vendor that UNDP is going pay

·         Invoice date:

·         Reference:

·         Document Type:

·         Amount:

·         Text: Select UNDP Country Office from the drop-down list

R.3.      In the Line Items section, enter:

·         G/L acct: 35109920

·         Amount

·         Coding Block: WBS, Fund, Grant, etc.

·         Assignment: corresponding Assignment number derived from the down payment document processed through F-47

R.4.      In the Payment tab, enter 'U' for Pmt Method.

R.5.      Go to Notes tab and enter the detailed instructions for Un Agency (i.e. UNDP) that will be printed on the FA form.

R.6.      Click on Save as completed for enable the document to be posted through the workflow. Refer to section 3.2.2 (H.2) for step by step process of approving an AP parked document in the workflow (T-code: SBWP).

Note: Only posted AP documents can be sent as FA.

R.7.      The AP document must be cleared in order for the SCA line to be able to post automatically when the SCA file is uploaded. Once the AP is posted, it will be picked up and paid in the next Treasury run for payment method 'U'.

R.8.      The proforma accounting entry for clearing (payment) documents created for payment method U is illustrated below:

Document type KZ (Vendor Payment) is automatically assigned by the system for vendor payment transactions.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
25	20XXXXXXXX*	BP with vendor role	10,000	USD	P003		20OLA
50	18105020	Advance UNDP Pay Agent	(10,000)	USD	P003	10067	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 20 will call BP account group Z020 which is Staff Member, Ex-Staff Member, Survivors and Dependents, Retirees and derive GL account 35101610 AP UN Agency Fund Programme.

3.2.5.2.3 Accounts Payable (AP) - Invoice with PO

This scenario is used when the UN requests UNDP to pay a third party logistic invoice, but not procure the goods. The logistic invoice will be created using T-code MIR7. Pre-requisite to this step are PO of the procurement has been posted and GR/SES has been approved.

S.       Steps for processing disbursement request for payment of logistic invoice / Transaction Code: MIR7

S.1.       Enter MIR7 in the Command field and press Enter.

S.2.       In the Basic data tab, enter:

·         Invoice date

·         Reference

·         Amount

·         Text: Select UNDP Country Office from the drop down list

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S.3.       In the Payment tab, enter 'U' for Pmt Method.

S.4.       Enter the detailed service instructions to be included in the FA under the Note tab.

S.5.       On the PO Reference tab, enter the PO number and press Enter.

S.6.       Enter the Amount (if not previously entered). If the document is balanced, click on Save as Completed to send the document to workflow. Refer to section 3.2.2 (H.2) for step by step process of approving an AP parked document in the workflow (T-code: SBWP).

Note: The document should be posted through workflow. Once the document is posted, it will automatically appear in the FA program and ready to be sent out to the UN Agency.

3.2.5.2.4 Purchase Order (PO)

In this scenario the UN Agency (i.e. UNDP) procures and pays for goods and services on behalf of the UN. The business process of procurement including PO creation to receipt of goods and services is covered in Supply Chain Management work stream in Umoja. The PO will be created with the UNDP Country Office as BP with vendor role.When the goods or services are received by the UN Agency on behalf of UN Secretariat, goods receipt (GR) or service receipt (SR) will be performed in Umoja (ECC portal) generating an accounting entry as illustrated below using transaction code (T-code) MIGO.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
81	7XXXXXXX*	Expense account	100	USD	P003	10067	20OLA
96	35401010	AP Exch Goods Receipt Payable GRIR	(100)	USD	P003	10067	20OLA

*The account debited during goods receipt can also be an asset.

The document type is NOT required to be entered by the end user if processing goods receipt. The standard document type WE (Goods Receipt) is assigned by the system for invoice processing with reference to PO.

This process is only applicable when the UN Agency (i.e. UNDP) has engaged the Purchase Order with the third party - UNDP signed the contract with the third party and the invoice will be addressed to UNDP. The Financial Authorization will be created at the time of the invoice.

T.      Steps for processing disbursement request where the UN Agency procures and pays for goods and services / SRM Portal

T.1.      Create a Shopping Cart / SRM

Refer to section 3.2.4.1 of Chapter on Expenses for detailed steps in creating a shopping cart.

Note: In the header of the shopping cart, add a comment in the Approval Note field indicating that UNDP is the vendor. In POs where UNDP is the vendor, no additional solicitation is required from other vendors.

T.2.      Create a Purchase Order (PO) / SRM

T.2.1.      Log into SRM and refer to section 3.2.5 of Chapter on Expenses for detailed steps in creating a PO for low value acquisition (LVA).

Note: For Services POs, put only one line on the PO. If the shopping cart has 5 lines, then 5 POs must be created. If a services PO has multiple lines, the FA will be rejected because the FA form cannot accommodate multiple Service lines.

Different from Services POs, Goods POs can have as many lines as needed.

T.2.2.      Enter the UN Agency (i.e. UNDP) BP in the Supplier field.

T.2.3.      Click on Internal Note located on the Notes and Attachments tab of the line item to add detailed service instructions that should appear on the FA form.

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T.2.4.      In the pop-up box, enter the text. Use '//' to split the text into multiple lines on the form.

T.2.5.      Click OK when complete. The text should appear in the Description column for Internal Note.

T.2.6.      When all line items have been entered and validated, click Order to save the PO and automatically route the PO to the workflow to be approved by the GM Approver.

T.2.7.      Once the PO is approved in SRM workflow, it will appear in ECC and the Financial Authorization can be sent to the UN Agency.

3.2.5.2.5 Special Scenarios

Travel Request

Travel disbursement for travel advance and / or travel invoice for plane ticket s that will be paid by the UN Agency starts from creation of travel request in ESS. Please refer to section 3.4 of the Expenses Chapter for detailed steps.

Once the travel request is approved by the certifying officer and the approving officer in the travel unit, a batch job in ECC will post the travel request to accounting and accounting document types TA for travel advance and / or TI for travel invoice will be automatically created in ECC.

When these documents are posted, they will be picked up on the next Treasury payment run for payment method 'U'. A FA form needs to be sent for both TA and TI documents.

PMO Payroll

This scenario applies to payroll portion that needs to be paid by the UN Agency (i.e. UNDP). This portion will be posted on GL account 35501210 (HCM Payroll UNDP Clearing).

Using the data posted in this GL account, an AP document (invoice without PO) needs to be created to enable an FA form to be sent to the UN Agency. The vendor number is 20+personnel number. One AP document per staff member should be created.

Refer to disbursement request using an AP document - invoice without PO (section 3.2.5.2.2) for detailed steps of creating the AP document.

3.2.5.3  Financial Authorization (FA) Form

After the Umoja documents have been posted, the FA forms can be sent to the UN Agency via email. The UN Agency email address can be retrieved from the UN Agency's vendor BP record.

Only users assigned as Financial Cable Approver with a digital signature will be able to send Financial Authorization forms. The signature of this user will appear on the FA.

Note: FA form should not be sent to the UN Agency until the document has been posted. No parked documents should be sent to the UN Agency.

U.     Generate the Financial Authorization (FA) form / Transaction Code: ZAP_FIAUTH

U.1.     Enter ZAP_FIAUTH in the Command field.

U.2.     In the selection screen provide the following values:

·               Company code: 1000

·               Business Area: P003

·               Cost Center range: 10060 to 10076

Note: Certain fields will be automatically filled in when using the Variant icon and select the appropriate variant from the Variant Directory list.

·               Additional information: FA Approver, Remarks, Email Address

U.3.     Select the source (Purchasing Document, Funds Commitment, AP Invoice) from which the FA form will be generated in the Scenario section.

In the selection screen, the user has the option to provide document range of PO, Funds Commitment, and AP Invoices.

Note: It is recommended to include the next two month range in the date ranges for those documents to shorten the processing time.

U.4.     Unless specifically advised to send a reprinted or revised copy of FA, enter 'ORIGINAL' in the System Status field.

U.5.     Execute the program in Test Run mode. If this is the first time the FA is being run for these documents, the status of the FAs will be 'DRAFT ONLY'.

U.6.     Click on the FA Number to display the print preview of the FA form.

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U.7.     After reviewing the FA form, use the Back button to go back the previous screens and Execute the program in actual mode with System Status in 'ORIGINAL' mode.

Possible statuses of the Financial Authorization:

Status	Desciption
Draft Only	Appears when the FA is generated in Test Run mode for the first time.
Original	Appears when the FA is generated for the first time as a production run.
Reprint	Appears for any subsequent generation of the FA form without any change to the source document. The FA will be sent exactly the same as the previous version with indication 'REPRINT'.
Revised	Appears for any subsequent generation of the FA form where there has been a change to the source document. Version number will be updated.
Cancelled	Appears for any generation of the FA form where the source document has been cancelled after the Financial Authorization was sent.

 

U.8.     Check the box in the Select column.

U.9.     Click on the Send FA form icon.

U.10. A message will appear to indicate that the email has been sent.

U.11. UNDP to execute the request by UN based on FA form.

U.12. If a FA is not correct and should not be sent to the UN Agency, enter text in the Manual Status field indicating it should not be sent to prompt the FA Authorization Officer.

Click the Save icon to make sure the data entered in the Manual Status column is properly saved.

3.2.5.4  Upload the Service Clearing Account (SCA) File

The SCA file upload program in Umoja requires the SCA file name to use a certain naming convention. The structure of the naming convention is:

S_DDDDDYYMM.BN

·            S_ = Fixed value

·            DDDDD = 5 characters representing the donor code

·            YY = Year

·            MM = Month

·            BN = Batch number

The file must be unique and the format of file received should be a text delimited file (.txt).

User will upload the SCA file from his/her computer. The program will perform business validations to ensure no duplicate file is uploaded twice.

V.      Upload the Service Clearing Account (SCA) / Transaction Code: ZAPUNDPSCAUP

V.1.      Enter ZAPUNDPSCAUP in the Command field and press Enter.

V.2.      Enter selection parameters:

·               Company Code: 1000 (default)

·               Posting Date: date the file is being uploaded

·               Run Date: default to current date

·               File name: S_XXXXXDDDDDYYMM.BN

·               Execution mode: Execute in Foreground (default setting)

o      Execute in Background - select this option if the file contains a large amount of entries (> 10,000 lines); use T-code: SP02 to display the results.

o      Execute in Foreground - select this option if the file contains less than 10,000 lines; results will be displayed on the next screen.

·               Test Run: initial run of a file should be done as a test run

V.3.      Select the Execute button.

V.4.      Analyze the results of the test run.

The values from the SCA file will be displayed on the output screen.

Note: If there's an error, this will be noted in the header section and the lines in error will be highlighted in red.

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V.5.      Click the Back icon to return to the initial screed. Uncheck the Text Run box and click the Execute icon.

V.6.      When the file is uploaded in production mode, a document will be created and the document number will be displayed in the DocumentNo column.

V.7.      The Log Status column indicates the status of the Umoja document created by the SCA file upload. Except for Log Status = 'PST-SCA line itm approved', which means that the document will be automatically posted, the others will indicate that the document is parked in Umoja.

3.2.5.5  Reconciliation of SCA Line

All SCA line item adjustments will be part of manual reconciliation of SCA file subsequent to upload and automatic matching of line item charges. During reconciliation, the UN staff responsible to process the Inter-Agency transactions can post the parked documents created from upload.

3.2.5.5.1 Reconciliation of the Advance/Replenishment Document

When the UN Agency (i.e. UNDP) receives the advance/replenishment, they will send a SCA file with acknowledgment of receipt of the funds. The line in the SCA file will show Log Status = PRK-Misc Deposit which means that a parked document is created in Umoja.

Using UNDP as an example, below are the steps to process the parked document related to acknowledgment of receipt of advance/replenishment by UNDP in Umoja.

W.   Viewing the parked document created by the SCA upload in Umoja / Transaction Code: ZGL_UNDP

W.1.   Enter ZGL_UNDP in the Command field and press Enter à the Umoja-UNDP SCA reconciliation report screen appears.

W.2.   Populate the following data and click on the Execute icon.

·         UNDP Donor Code: *

·         UNDP Operating Unit: * (optional)

·         Month: month of the upload (optional)

·         Upload Batch: batch number of the SCA file (optional)

* Information can be retrieved from the SCA line uploaded (refer to section 3.2.5.4).

W.3.   Click on a document number in the column SCA Document Number to view the document.

W.4.   Proforma accounting entry for the document created:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	18105010	Advance UNDP SCA	2,000	USD	F200		10UNA
50	18105020	Advance UNDP Pay Agent Request (Advance Clearing UNDP SCA)	(2,000)	USD	F200		10UNA

 

Document type UJ is a GL (journal) document specific to UNDP. The coding block is default coding block from the UNDP Donor Code which needs to be changed before the document is posted.

X.      Processing the SCA document / Transaction Code: SBWP

X.1.      Enter SBWP in the Command field and press Enter.

X.2.      Go to Workflow inbox and select the folder GL documents: Data entry agent (TEA).

X.3.      Double click on the document line à the Decision Options appears. Select the Change button to modify the document.

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X.4.      Double click on the line for GL account 18105020.

X.5.      Add the FV60 Advance/Replenishment document number in the Assignment field and click the More button.

X.6.      Enter the coding block data from the FV60 account payable document that was issued for the advance/replenishment payment to UNDP.

Note: If the advance/replenishment was paid from a trust Fund (Fund type 32), enter the unearmarked WBS on which the advance/replenishment was paid in the WBS field. Press Enter and the rest of the coding block will be derived.

X.7.      Click on the Back icon to return to the main screen. Double click on the line for GL account 18105010.

X.8.      Repeat steps X.6 and click on the Back icon or press F3 to return to the Change Parked Document: Overview screen.

X.9.      Change the text in the Doc.Header Text field to 'PROCESSED-Misc Deposit' to allow easy reporting in the UNDP SCA Reconciliation report to differentiated parked documents that have been processed from the ones still require action to be taken.

X.10.  From the top menu, click on Document and select Complete to save the document as completed.

X.11.  The workflow screen with the Decision Options appears. Click on the Process button.

This will send the document to the Approving Officer and once the Approving Officer approves, the document will be posted.

3.2.5.5.2 Reconciliation of Funds Commitment (FC) Document

Including in the SCA file is invoice posting for the consumption of the Funds Commitment. The transaction type for the baseline charge of such invoice will be shown as 'VOUCHER' in the SCA line. If there is an associated Service Fee, it will be shown as transaction type 'SERVICE FEE' and both will be linked by similar Transaction IDs.

Document type UI (UNDP SCA invoice) is automatically assigned by the system and the characteristics include:

·         Payment Method (Pmt Method): R (UNDP Service) will be automatically assigned to invoice created from Fund commitment scenario.

·         Assignment: FA number or FC document number

·         Currency: USD

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Note: If the values in the SCA file match the values in the Umoja FC document, the UI document will be automatically posted otherwise it will be parked and manual processing will be required to post the document.

Proforma accounting entry for the document created:

 

Once the parked document is posted, it will be picked up by the next Treasury method R payment run. The posting of the payment document will be:

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 14 will call BP account group Z014 which is UN Agency Fund Programme and derive GL account 35101310 AP UN Agency Fund Programme.

The following are different possible post-processing scenarios of parked documents related to Fund Commitment.

3.2.5.5.2.1     Rejection of a SCA Line

When there is a SCA line that needs to be rejected, a modification to the document can be done through a user's Workflow inbox so that there is a posting to the UN Agency's (i.e. UNDP) Rejection GL account.

Y.      Steps to modify a parked document to reject a SCA line / Transaction Code: SBWP

Y.1.      Enter SBWP in the Command field and press Enter.

Y.2.      Double click on the line of the desired document located in the AP document - Data entry agent Workflow Inbox.

Y.3.      Click on the Change button of the Decision Options à the Change Parked Document: Overview screen opens.

Y.4.      Click on the Acct model icon to add the necessary lines for the rejection posting.

Y.5.      Click the Matchcode icon in the Select Account Assignment Model pop up box and select the appropriate Acct model corresponding to the right organization.

Y.6.      Click the Continue icon.

Y.7.      In the Park document: Entry with account assignment model screen, enter values in the following fields for both lines:

·         Amount

·         Rejection reason: select from drop down list

·         Ref. Key 2: Financial Authorization document number

Y.8.      Press Enter and click on the Back icon (or F3) to return to the Change Parked Document: Overview screen where the new lines will appear.

Y.9.      Select the first line (UNDP vendor line). From the top menu, click on Edit and select Delete item.

Amount will now appear as USD 0.00

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Y.10.  Repeat step Y.9 for the Expense line (second line).

Y.11.  Enter the Transaction ID from the SCA line in the UNDP SCA Reconciliation report (ZGL_UNDP) in the Doc.Header Text field.

Y.12.  From the top menu, click Document and select Complete to save the document and release it to the workflow.

Y.13.  Click the Process button of the Decision Options to send the document to the next Approver in workflow.

Y.14.  The Approving Officer approves the document by clicking the Approve button in workflow à the document is posted.

Y.15.  Proforma accounting entry for the posted document:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	18105040	Advance UNDP Rejected Charges	990	USD	S200		32DDN
50	18105020	Advance UNDP Pay Agent Request	(990)	USD	S200		32DDN

 

3.2.5.5.2.2     Rejection of a SCA Line that is a credit

For this scenario, the main process follows the same steps as the rejection of a debit SCA line (step 3.2.5.5.2.1). The difference is that after the Account Assignment model for rejection has been selected, the Posting Keys will need to be reversed.

Z.      Steps to modify a parked document to reject a credit SCA line / Transaction Code: SBWP

Z.1.      Refer to steps Y.1 to Y.7 of section 3.2.5.5.2.1.

Z.2.      Change the posting keys for both lines by manually typing the posting keys into the PK boxes.

Z.3.      Refer to steps Y.8 to Y.14 of section 3.2.5.5.2.1.

Z.4.      Proforma accounting entry for the posted document:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
50	18105040	Advance UNDP Rejected Charges	(50)	USD	S200		32TIP
40	18105020	Advance UNDP Pay Agent Request	50	USD	S200		32TIP

 

3.2.5.5.2.3     Rejection of a SCA Line in foreign currency

For this scenario, the USD value of the rejection lines will need to be modified. The Umoja system will propose the USD equivalent of the foreign currency using the current day's exchange rate which needs to be overwritten using the USD value from the SCA file.

AA. Steps to modify a parked document to reject a SCA line in foreign currency / Transaction Code: SBWP

AA.1. Refer to steps Y1 to Y.10 of section 3.2.5.5.2.1.

AA.2. Double click on the line for 18105040 in order to see the details.

AA.3. Erase the USD amount in the Amount in LC field and enter the USD value from the SCA file. Press Enter.

Note: A message will appear indicating that the exchange rate between the foreign currency and the USD amount differs from the exchange rate maintained in Umoja.

AA.4. Press Enter to continue and click on the Back icon to return to the main screen.

AA.5. Repeat steps AA.2 to AA.4 for changing the USD value of line 18105020.

AA.6. Refer to steps Y.11 to Y14 of section 3.2.5.5.2.1.

3.2.5.5.2.4     Confirmation of payment rejection

A new SCA file with the confirmation of the rejection will be sent by the UN Agency (i.e. UNDP) if they agree with the rejection. A transaction type of AP JRNL VCHR with Log Status: PRK-AP Jrnl Voucher will be shown on the SCA line which will create a parked document in Umoja.

When a SCA line is updated for the confirmation of a rejection of a debit charge, the parked document will appear as a debit to the UN Agency vendor account and a credit to expense. The opposite will apply to confirmation of a rejection of a credit charge.

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BB. Steps to modify a parked document for confirmation of a rejection of a debit and credit charges / Transaction Code: SBWP

BB.1. Refer to steps Y.1 to Y.14 of section 3.2.5.5.2.1 for confirmation of a rejection of a debit charge. Refer to steps Z.1 to Z.3 of section 3.2.5.5.2.2 for confirmation of a rejection of a credit charge.

BB.2. Proforma accounting entries for the posted document.

For confirmation of a rejection of a debit charge:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
50	18105040	Advance UNDP Rejected Charges	(990)	USD	S200		32DDN
40	18105020	Advance UNDP Pay Agent Request	990	USD	S200		32DDN

 

For confirmation of a rejection of a credit charge:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	18105040	Advance UNDP Rejected Charges	50	USD	S200		32TIP
50	18105020	Advance UNDP Pay Agent Request	(50)	USD	S200		32TIP

 

3.2.5.5.2.5     Post a SCA Line on a different Funds Commitment or directly to expense

If there is not enough fund available on the Funds Commitment line item, the Funds Commitment in the parked document can be changed to Funds Commitment that does have available fund or even split the line against different Funds Commitments with available funds.

If the SCA line is related to bank charges, the GL account needs to be replaced by the bank charges GL account:

·         74251010 - OE Bank Service Fee MAIN Pool

·         74251210 - OE Bank Account Fee EUR Pool

CC. Steps to post a SCA line on a different Funds Commitment or directly to expense / Transaction Code: SBWP

CC.1. Refer to steps Y.1 to Y.3 of section 3.2.5.5.2.1.

CC.2. Click on the Non-Vendor line. From the top menu, click on Edit and select Delete item.

The amount will now appear s USD 0.00

CC.3. Add a new line item corresponding to the GL of the Fund Commitment on which to post the earmarked fund.

·         PstKy: 40 (Debit)

·         Account: * Corresponding GL account in the Earmarked Fund.

Note (*): Below are steps to check the corresponding GL account in the Earmarked Fund.

CC.3.1. Using T-code: FMZ3, enter the Funds Commitment number in the Document number field and press Enter.

CC.3.2. Scroll to the G/L Account column to source the corresponding GL account numbers.

CC.4. Click the Enter icon à the Change Parked: Enter G/L Account Item screen opens.

CC.5. Enter a '*' symbol in the Amount field and click the More icon.

CC.6. In the Coding Block pop up box, enter Earmarked Funds document and line item number and press Enter à all information will be automatically populated.

Note: If it is for a direct expense, enter the following information:

·         Cost Center or WBS Element or Internal Order

·         Fund

CC.7. Click the Continue icon and click on the Back icon to return to the Change Parked Document: Overview screen.

CC.8. Enter 'PROC' or 'PROCESSED' as part of the text in the Doc.Header Text field to indicate that the parked document has been processed.

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CC.9. Refer to steps Y.12 to Y.14 of section 3.2.5.5.2.1 to complete the process.

3.2.5.5.2.6     Split the SCA Line

As mentioned earlier, a SCA line can be split into several lines posted to earmarked fund documents or direct expenses.

DD.Steps to split a SCA line / Transaction Code: SBWP

DD.1.Refer to steps Y.1 to Y.3 of section 3.2.5.5.2.1.

DD.2.Double click on the Non-Vendor line.

DD.3.In the open screen, change the Amount by entering the amount that should be charged against that corresponding line of the Funds Commitment.

DD.4.Follow steps CC.3 to CC.9 of section 3.2.5.5.2.5 to complete the process.

3.2.5.5.2.7     Reverse an incorrectly posted SCA Line and manually create new document

The scenario occurs when the interface has automatically posted a line that should have not been posted. When this happens, the document must be reversed and a new document should be manually created.

EE.  Steps to reverse a SCA line and create a new document

EE.1.  Reverse the document (document type UI) / Transaction Code: FB08

EE.1.1.  Enter FB08 in the Command field and press Enter.

EE.1.2.  In the Reverse Document: Header Data screen, enter the following fields:

·         Document Number: document number to be reversed

·         Reversal Reason:

·         Posting Date: default to current date; enter different date if required

EE.1.3.  Click on the Display before reversal button to display the document to be reversed.

EE.1.4.  Click on the Back icon to return to the Reverse Document: Header Data screen and click the Save icon to post the reversal.

EE.1.5.  A message will appear with the number of the reversal document that was created.

EE.2.  Create new document (document type KH) / Transaction Code: FV60

Copy document Header text, Reference and Assignment of the original document that was reversed into the new document.

3.2.5.5.2.8     Post the SCA Line against Accounts Payable (with PO) invoice

In this case, the interface has parked a SCA line against Funds Commitment where it should have been posted against a Purchase Order.

FF.   Steps to post a SCA line against Purchase Order / Transaction Code: SBWP and MIR7

FF.1.   From the workflow inbox (T-code: SBWP), Delete the parked document corresponding to the SCA line.

Note: Take note of the document details before being deleted.

FF.2.   Using T-code MIR7, re-enter the SCA line against the Purchase Order by entering the following information:

·         Amount: amount of the SCA line

·         Currency: currency of the SCA line

·         Assignment: document number of the deleted document

·         Reference: reference number of the deleted document

·         Purchase Order Number

FF.3.   Click the Save icon to send the document through workflow for the Approving Officer to review and approve.

3.2.5.5.3 Reconciliation of Accounts Payable (AP) Document

In the AP scenario, the UN Agency (i.e. UNDP) is acting as Pay Agent only. The UN Agency is supposed to pay the exact amount of the AP document, except for flight tickets where the amount excepted is amount of the Financial Authorization plus 10%.

The SCA file will include JV entry posting to acknowledge the payment of an AP document. AP documents include: FV60 invoices, MIR7 invoices, travel document for flight tickets (document type TI), travel advances (document type TA) and payroll documents.

Document type UJ (UNDP JV entry) is automatically assigned by the system for journal entry transactions and the document will have payment method U which means there is no outgoing payment sent to the bank.

Proforma accounting entry for the document created:

 

Proforma accounting entry for the posting of the payment document will be:

 

When the value of the SCA file matches the value of the AP document in Umoja, the document created by the file upload will be automatically posted, otherwise a parked document will be created. The following are different possible post-processing transactions related to AP documents.

3.2.5.5.3.1     Error log is: 'PRK-NO clearing doc'

In order for the reconciliation with the SCA line, the AP documents must be cleared first. If a treasury payment run has not picked up and cleared the AP document, the document created by the SCA upload with be parked with a Log Status: 'PRK-No clearing doc'.

GG.   Steps to clear invoice and post AP document

GG.1.   Clear AP invoice / Transaction Code: FB03

GG.1.1.   Enter FB03 in the Command field and press Enter.

GG.1.2.   Display the AP document that is referenced in the FA number and confirm the following on the vendor line:

·         Payt. Terms and Bline Date: A document will not be paid by the Treasury unless it is due.

·         Pmnt Block: No payment block

·         Pmt Method: U

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GG.1.3.   There is an automatically scheduled payment run for payment method U so the AP documents should all be paid by the SCA file is uploaded. Once a document has been paid, a clearing document number will appear on the vendor line of the AP document.

GG.2.   Post AP document / Transaction Code: SBWP

GG.2.1.   Enter SBWP in the Command field and press Enter.

GG.2.2.   Double click on the parked document located in the GL documents: Data entry agent (TEA) folder of the Workflow Inbox.

GG.2.3.   Click on the Change button of the Decision Options à the Changed Parked Document: Overview screen opens.

GG.2.4.   Double click on GL account 18105020.

GG.2.5.   Enter the Clearing document number (refer to step GG.1.3) in the Assignment field and press Enter.

GG.2.6.   Click on the Back icon to return to the Change Parked Document: Overview screen.

GG.2.7.   From the top menu, select Document à Complete to save the document and release it to the workflow.

GG.2.8.   From the Workflow Inbox, select the document and click on Process button of the Decision Options à the document will disappear from the inbox and will be sent to the next Approving Officer.

3.2.5.5.3.2     Post a SCA Line on the AP found

If a SCA line listed in the SCA file is not found in Umoja, a UJ parked document with Log Status: 'PRK-FA # not fnd' will be created when the SCA file is uploaded.

HH.Steps to post an unidentified SCA line in Umoja on the AP found

HH.1.   Modify the parked document - adding the correct FA number / Transaction Code: FB03

HH.1.1.   Display the parked document using T-code FB03 to found out which agents this document has been routed to in workflow.

HH.1.2.   This document is in the workflow folder General Ledger Documents - Data Entry Agent. Click on the Information button in the Agent column.

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HH.1.3.   List of data entry agents will appear.

The data entry agent will need to access this document in their workflow and make changes to it.

HH.2.   Post the SCA line sourced from an AP document / Transaction Code: SBWP

HH.2.1.   Follow steps GG.2.1 to GG.2.6 of section 3.2.5.5.3.1.

HH.2.2.   Double click on the line for GL account 18105010 - Adv UNDP SCA. The same as the steps done for GL account 18105020¸ the account assignment objects (WBS or Internal Control, Fund, Business Area and Cost Center) need to be confirmed or entered in accordance with the original transaction.

HH.2.3.Follow steps GG.2.6 to GG.2.8 of section 3.2.5.5.3.1 to post the document.

3.2.5.5.3.3     Rejection of a SCA Line

This scenario applies to situation when a rejection is required for a SCA line where the FA document is for a FV60 invoice, MIR7 invoice, travel document (TA or TI) or payroll document. The steps are the same as the steps for rejection of SCA line where the FA document relates to Funds Commitment (refer to section 3.2.5.5.2.1). The document in this case can be accessed through the GL documents: Data entry agent (TEA) folder of the data entry agent's Workflow Inbox.

3.2.5.5.3.4     Acknowledgment of rejection

This scenario is a reversal of previous rejection of a SCA line. It repeats the exact same steps as the ones done for the rejection but select the Account Assignment Model corresponding to the 'Reversal of rejection'.

3.2.5.5.3.5     Post a SCA Line on bank charges account

If the SCA line is related to bank charges, the relevant parked SCA document will need to be modified so that bank charges is posted to GL account:

·         74251010 - OE Bank Service Fee MAIN Pool

·         74251210 - OE Bank Account Fee EUR Pool

II.      Steps to post an AP SCA line on bank charges account / Transaction Code: SBWP

II.1.      Follow steps GG.2.1 to GG.2.3 of section 3.2.5.5.3.1.

II.2.      Click cursor on the line for GL account 18105020 - Adv UNDP Pay Agent. From top menu, go to Edit and select Delete Item.

The amount of this line will become USD 0.00

II.3.      Enter the following values in the Other line items section and press Enter:

·         PstKy: 40

·         Account: 74251010

II.4.      On the next screen enter:

·         Amount: type '*' to pull in the same amount value as the other line of the document

·         WBS or Internal Order or Cost Center: should be selected from the original document. WBS can be selected by clicking the More button.

II.5.      Press Enter and click on the Back icon to return to the Change Parked Document: Overview screen.

II.6.      Once the posting is confirmed, follow steps GG.2.7 to GG.2.8 of section 3.2.5.5.3.1 to post the document.

3.2.5.5.3.6     Post a SCA Line (partially and fully) on expense account

This transaction applies to situation where the UN Agency (i.e. UNDP) has charged more than the amount on the AP document. However, the differences is accepted by the Umoja entity and posted to expense account.

JJ.     Steps to partially or fully post a line on expense account / Transaction Code: SBWP

JJ.1.     Refer to steps GG.2.1 to GG.2.3 of section 3.2.5.5.3.1 to bring up the Change Parked Document: Overview screen of the selected document.

JJ.2.     Double click on GL account 18105020.

JJ.3.     In this example, UNDP has charge Amount USD 802 and the value in the Assignment field indicates the original FA document number.

Use the original FA document number (i.e. 3300652140) to view the original value.

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JJ.3.1.     Enter FB03 in the Command field and press Enter.

JJ.3.2.     Enter the document number 3300652140 and Execute à the Display Document: Data Entry View will appear.

JJ.3.3.     From the top menu, click on Environment and select Payment usage to confirm whether the request has been cleared.

From the above result, X2 document (FA document) of USD 2,000 has been cleared in full with KY document. Since UNDP has only charge USD 802, the accepted difference can be credited on expense account.

JJ.4.     In the Change Parked Document screen for GL account 18105020, change the Amount to the amount of the FA document and click the Overview icon.

JJ.5.     Add a new line item for the accepted difference between the FA and SCA line charges by entering the following details in the Other line items section and press Enter.

·         PstKy: 40 for Debit or 50 for Credit

·         Account: expense account on which to post the difference

JJ.6.     On the next screen enter:

·         Amount: type '*'to pull in the balance amount

·         WBS or Internal Order or Cost Center: should be the same as the other lines

JJ.7.     Press Enter and click on the Back icon to return to the Change Parked Document: Overview screen and follow steps GG.2.7 to GG.2.8 of section 3.2.5.5.3.1 to post the document.

3.2.5.5.3.7     Reverse an incorrectly posted SCA Line and manually create new document

Similar to the situation in section 3.2.5.5.2.7, if the document to be reversed in this scenario is document type UJ, then a new document of document type SA needs to be created using T-code FV50.

KK.  Steps to reverse a SCA line and create a new document

KK.1.  Reverse the document (document type UJ) / Transaction Code: FB08

Refer to steps EE.1 of section 3.2.5.5.2.7.

KK.2.  Create new document (document type SA) / Transaction Code: FV50

KK.2.1.  Enter FV50 in the Command field and press Enter.

KK.2.2.  Enter the values from the original UJ document into the following fields:

Header section:

·         Reference

·         Doc.Header Text

·         Currency

Line Items section:

·         Accounts Assignment Objects: Fund, Business Area, WBS, Internal Order, etc.

·         Assignment: document number of the original document created by the SCA upload

·         Line item text

KK.2.3.  For both lines, copy the values in the line item Reference Key 1 and Reference Key 3 fields of the original document into the new document created.

Using T-code FB03, display the original document and click on the Additional Data button to display these fields.

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KK.2.4.  In the new SA document screen, double click on one of the GL account to display the line item details à the Correct G/L account item screen opens.

KK.2.5.  Click the More button to display additional fields.

KK.2.6.  Enter the same values in the Reference Key 1 and Reference Key 3 fields as in the original document (step KK.2.3) and press Enter to accept the values.

KK.2.7.  Click on the Next item icon to move to the screen with the details of the next line item and repeat the above steps (KK.2.5 to KK.2.6) to complete item 2.

KK.2.8.  Click the Back icon to return to the main screen.

KK.2.9.  From the top menu, click Document and select Simulate General Ledger.

KK.2.10. Confirm the values/fields are populated correctly.

KK.2.11. Click in the Save as completed icon to send the document into Workflow for posting by the Approving Agent.

3.2.5.5.3.8     Post the SCA Line against Funds Commitment

This scenario refers to a situation when a SCA line from an AP document is supposed to be posted against Funds Commitment. In this case the UJ parked document needs to be changed to an UI document.

LL.   Steps to change UJ document to UI document and post against Funds Commitments / Transaction Code: SBWP

LL.1.   Follow steps GG.2.1 to GG.2.3 of section 3.2.5.5.3.1 to bring up the Change Parked Document Overview screen of the selected document.

LL.2.   Delete the two line items. Refer to II.2 of section 3.2.5.5.3.5 for detailed steps on how to delete a line item.

LL.3.   Once both line items are deleted, add new posting lines:

·         Debit: Expense - Corresponding GL account in the earmarked fund

·         Credit: UN Agency with vendor role (i.e. UNDP country office)

LL.4.   Add a new line corresponding to the GL of the Funds Commitment on which to post the earmarked fund.

·         PstKy: 40 (Debit)

·         Account: * Corresponding GL account in the Earmarked Fund.

Note (*): Refer to CC.3.1 to CC.3.2 of section 3.2.5.5.2.5 for detailed steps on how to retrieve the corresponding GL account from the Earmarked Fund.

LL.5.   Click the Enter icon à the Change Parked: Enter G/L Account Item screen opens.

LL.6.   Enter a '*' symbol in the Amount field and click the More icon.

LL.7.   In the Coding Block pop up box, enter Earmarked Funds document and line item number and press Enter à all information will be automatically populated.

Note: If it is for a direct expense, enter the following information:

·         Cost Center or WBS Element or Internal Order

·         Fund

LL.8.   Click the Continue icon.

LL.9.   Enter details for the second line item.

·         PstKy: 31 (Credit on vendor)

·         Account: 14XXXXXXXX (UNDP Country office)

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LL.10.  Repeat above steps (LL.5 to LL.8) and click on the Back icon to return to the Change Parked Document Overview screen.

LL.11.  From the top menu, click on Document and select Complete to save the document and release it to the workflow.

LL.12.  From the Workflow Inbox, select the document and click on Process button of the Decision Options à the document will disappear from the inbox and will be sent to the next Approving Officer.

3.2.5.5.3.9     Flight ticket reconciliation

If the original FA was a flight ticket, the system considers the amount on the FA as the 'maximum amount' that the UN Agency can spend. Nevertheless, the interface will automatically park the difference on the UN Agency vendor account if the actual amount spend is still within the tolerance limit (<=10% above the FA amount).

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	18105020	Advance UNDP Pay Agent	2,000	USD	R400		32BKT
50	18105010	Advance UNDP SCA	(1,800)	USD	R400		32BKT
31	14XXXXXXXX*	BP with vendor role	(200)	USD	R400

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 14 will call BP account group Z014 which is UN Agency Fund Programme and derive GL account 35101310 AP UN Agency Fund Programme.

MM.  Steps to reconcile flight ticket request

MM.1.  Post the parked document created / Transaction Code: SBWP

The process follows a similar process as scenario in section 3.2.5.5.3.6 (posting a SCA line on expense account) only in this scenario the interface has automatically created a park document for whatever the difference amount is (within the 10% tolerance limit) against the UN Agency (i.e. UNDP Country office) vendor account.

Note: Make sure that Pmt Method: 'U' and Pmnt Block: 'B' are entered in the line item of the park document that records the difference prior to saving the document and releasing it the workflow.

MM.2.  Send report to Travel Office / Transaction Code: ZAPFBL1N

This report needs to be send periodically (once a week) to the Travel Office so that they can adjust the travel request amount based on the IOV received.

MM.2.1.  Enter ZAPFBL1N in the Command field and press Enter à the Financial Accounting Accounts Payable screen appears.

MM.2.2.  Click on the Dynamic Selections icon and enter values into the following fields:

·         Vendor account

·         Business Area

·         Document Type: UJ

·         Payment Block: B

MM.2.3.  Click on the Execute icon to generate the report and send to Travel Unit.

MM.3.  Travel Unit to Amend Approved Travel Authorization.

3.2.5.5.3.10 DSA advance reconciliation

In this scenario, if the SCA line has not the exact amount than the FA, the difference will be automatically parked by the interface. No tolerance is accepted on the DSA.

Note: Staff responsible to process the transaction needs to check with the Substantive Offices if the line should be accepted or rejected.

NN.   Steps to reconcile DSA advance

NN.1.   Post the accepted parked document / Transaction Code: SBWP

The process follows the same process as scenario in section 3.2.5.5.3.6 (post a SCA line on expense account). But in this scenario once the amount of GL account 18105020 is changed to the FA amount, the new line item created to post the difference will have the following details:

·         Account: 20XXXXXXXX (GL account for staff with vendor role)

·         PstKy: 31 (Credit) and 21 (Debit)

·         Pmnt Block: B

·         Pmt Method: U

·         Assignment: Trip number

NN.2.   Send report to Travel Processing Unit / Transaction Code: ZAPFBL1N

Refer to section MM.2 for detailed steps.

NN.3.   Travel Processing Unit to adjust the advance of the travel request / Transaction Code: PR03

NN.3.1.   Enter PR03 in the Command field and press Enter.

NN.3.2.   Enter the PersonnelNo

NN.3.3.   Double click the required trip number.

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NN.3.4.   Click the Cash check box and click the Save icon.

NN.3.5.   A Batch Run is going to create a Financial Document in accounting with below details:

·         Pmnt Block: B

·         Pmt Method: U

·         Assignment: Trip number

·         Text: UN Agency (i.e. UNDP) vendor number

3.2.5.5.4 Reconciliation of Purchase Order (PO) Document

Including in the SCA file is invoice posting for the consumption of the Purchase Order. The transaction type for the baseline charge of such invoice will be shown as 'VOUCHER' in the SCA line. If there is an associated Service Fee, it will be shown as transaction type 'SERVICE FEE'.

Document type UI is automatically assigned by the system for SCA documents related to Purchase Orders. Other characteristics of the document are including:

·         Payment Method (Pmt Method): R (UNDP Service) will be defaulted

·         Reference: Donor code + year + Operating Unit (Country of the UN Agency) + month + batch number

·         Text: Transaction ID from SCA file

·         Vendor posted is always the UN Agency country office (i.e. UNDP country office)

Proforma accounting entry for the document created:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
31	14XXXXXXXX*	BP with vendor role	(100)	USD	P003		20OLA
40	35401010	AP Exch Goods Receipt Payable GRIR	100	USD	P003		20OLA

 

Once the document is posted, it will be picked up by the next Treasury method R payment run. The posting of the payment document will be:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
25	14XXXXXXXX*	BP with vendor role	100	USD	P003		20OLA
50	18105010	Advance UNDP SCA	(100)	USD	P003		20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 14 will call BP account group Z014 which is UN Agency Fund Programme and derive GL account 35101310 AP UN Agency Fund Programme.

The following are different possible post-processing of transactions related to Purchase Order.

3.2.5.5.4.1     Rejection of a SCA Line

When a SCA file is uploaded and a parked document is created incorrectly, the document must be manually modified so that the UN Agency's (i.e. UNDP) Rejection GL account is posted to.

OO.  Steps to reject a SCA line / Transaction Code: SBWP

OO.1.  Enter SBWP in the Command field and press Enter.

OO.2.  Double click on the line of the desired document located in the AP document - Data entry agent folder in the Workflow Inbox.

OO.3.  Click on the Change Invoice button of the Decision Options à the Change Invoice Document screen displays in change mode.

OO.4.  To add the lines for the Rejection posting, in the PO Reference tab, deactivate the PO by selecting the PO line item.

OO.5.  Click the Enter icon à the line turns out to be un-highlighted and the document is now out of balance.

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OO.6.  Scroll to the Acct Assgt field and click the Multiple icon.

OO.7.  Note down the account assignment objects from the pop up window and click the Back button.

OO.8.  Click the G/L Account tab.

OO.9.  Enter the following:

Line item 1:

·         G/L acct: 18105040 - Adv UNDP RejectChrge

·         D/C: Debit

·         Amount in doc.curr: 145.30 (amount that is showing in the document header)

·         Funds, Business Area, etc: account assignment objects - refer to step OO.7.

Note: Grant is always GMNR.

·         Text: select the reason of rejection for the list.

Line item 2:

·         G/L acct: 18105020 - Adv UNDO Pay Agent

·         D/C: Credit

·         Amount in doc.curr: 145.30 (amount that is showing in the document header)

·         Funds, Business Area, etc: account assignment objects - refer to step OO.7.

Note: Grant is always GMNR.

·         Text: select the reason of rejection for the list.

OO.10. Click the Enter icon to accept the values.

OO.11. Go to the Details tab and enter the Funds Center / Cost Center (from step OO.7) in the Header Text field.

OO.12. To balance the document, go to the Basic data tab and delete the value in the Amount field and click the Enter icon à the light next to the Balance field should turn green.

OO.13. From the top menu, click the Invoice Document and select Save as Completed to release the document to the workflow.

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OO.14. In the workflow Decision Options, type the reason for the rejection into the Justify Your Decision field and click the Process button to send the document to Approving Agent.

OO.15. Proforma accounting entry for the posted document:

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
25	14XXXXXXXX*	BP with vendor role	100	USD	P003		20OLA
50	18105010	Advance UNDP SCA	(100)	USD	P003		20OLA

 

3.2.5.5.4.2     Confirmation of payment rejection

The process for this scenario is the same as processing confirmation of payment rejection for document related to Funds Commitment. Please refer to section 3.2.5.5.2.4 for detailed steps.

3.2.5.5.4.3     Post a SCA Line on a different Purchase Order

In the case that the FA referenced in the SCA file does not exist in Umoja, a parked document will be created by the SCA upload. This document will need to be changed by reassigning to a PO that does exist in Umoja.

PP.  Steps to post a SCA line on a different PO / Transaction Code: SBWP

PP.1.  Enter SBWP in the Command field and press Enter.

PP.2.  Double click on the line of the desired document located in the DA1: Account Payable officer folder of the DA1 Workflow Inbox.

PP.3.  Click on the Change Invoice button of the Decision Options à the Change Invoice Document screen displays in change mode.

PP.4.  In the PO Reference tab, enter or change the PO.

PP.5.  Click the Enter icon à details of the PO are being populated.

PP.6.  If there are multiple POs, deactivate POs that are not required by selecting the line items and click the Enter icon à the light next to the Balance field should be green to indicate that the document is in Balance.

PP.7.  From the top menu, click the Invoice Document and select Save as Completed to release the document to the workflow.

PP.8.  In the workflow Decision Options, type the reason for the rejection into the Justify Your Decision field and click the Process button to send the document to Approving Agent.

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3.2.5.5.4.4     Post a SCA Line on bank charges account

If the SCA line is related to bank charges, the relevant parked SCA document will need to be modified so that bank charges is posted to GL account:

·         74251010 - OE Bank Service Fee MAIN Pool

·         74251210 - OE Bank Account Fee EUR Pool

QQ.  Steps to post a SCA line on bank charges account / Transaction Code: SBWP

QQ.1.  Follow steps PP.1 to PP.2 of section 3.2.5.5.4.3 to display the document in change mode.

QQ.2.  Follow steps OO.4 to OO.8 of section 3.2.5.5.4.1 to modify the document posting.

QQ.3.  Enter the following details in the G/L Account tab and click Enter icon to accept the values.

·         G/L acct: 74251010 (OE Bank Service Fee MAIN Pool)

·         D/C: Debit

·         Amount in doc.curr.: same value as the amount on the Basic data tab

·         Business Area: same as the Business Area on the PO

·         Fund: same as the PO fund

·         Grant: same as the PO grant

QQ.4.  Go to the Details tab and enter the Funds Center / Cost Center in the Header Text field.

QQ.5.  Once all the necessary information has been entered in the document, click the Save as Completed button to release the document to the workflow.

QQ.6.  In the Workflow screen, type a reason into the Justify Your Decision field and then click the Process button to send the document to the Approving Agent for posting.

3.2.5.5.4.5     Reverse an incorrectly posted SCA Line and manually create new document

When the interface has posted a SCA document that should have not been posted, the document must be reversed and a new document should be manually created. For PO scenario, the document created by the SCA file is a logistic invoice (document type UI) therefore the reversal of this document must be done through T-code MR8M and a new document type KH needs to be created using the T-code FV60.

RR. Steps to reverse a SCA line a create a new document

RR.1. Reverse the document (logistic invoice) / Transaction Code: MR8M

RR.1.1. Enter MR8M in the Command field and press Enter.

RR.1.2. In the Cancel Invoice Document screen, enter the following fields for the document that is to be reversed:

·         Invoice Document No.

·         Fiscal Year

·         Reversal Reason

·         Posting Date

RR.1.3. Click the Save icon to post the reversal

RR.1.4. A message will appear with the number of the reversal document that was created.

Note: For logistic invoices, the associated FI documents must be cleared manually.

RR.2. Create new document (document type KH) / Transaction Code: FV60

All values, excluding value that was incorrect, and the reason for the reversal from the original document need to be populated to the new document.

RR.2.1. Display the original document / Transaction Code: MIR4

RR.2.1.1.       Enter MIR4 in the Command field and press Enter.

RR.2.1.2.       Populate the following fields and press Enter.

·         Invoice Document No.

·         Fiscal Year

RR.2.1.3.       Click on the Follow-On Documents button.

RR.2.1.4.       Double click the Accounting document number from the List of Documents in Accounting pop up window.

RR.2.1.5.       Note down the values of the logistic invoice document selected.

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RR.2.2. Create new document / Transaction Code: FV60

RR.2.2.1.       In a new screen, enter FV60 in the Command field and press Enter to open the Park Vendor Invoice screen.

RR.2.2.2.       In the Basic data tab, enter the following fields:

·         Vendor: copy from the reversed logistic invoice document (step RR.2.1)

·         Invoice date:

·         Reference: copy from the reversed logistic invoice document (step RR.2.1)

·         Document Type: KH

·         Amount: copy from the reversed logistic invoice document (step RR.2.1)

·         Text: copy from the reversed logistic invoice document (step RR.2.1)

RR.2.2.3.       In the Payment tab, enter the following fields:

·         Pmt Method: R

·         Payt Terms: immediate

RR.2.2.4.       In the Details tab, enter the following fields:

·         Assign.: copy from the reversed logistic invoice document (step RR.2.1)

·         HeaderText: free text

·         Bus. Area: copy from the reversed logistic invoice document (step RR.2.1)

RR.2.2.5.       In the Basic data tab, enter the following fields in the Line item section:

·         G/L acct: GL account from Funds Commitment

·         Amount in doc.curr.: copy from the reversed logistic invoice document (step RR.2.1)

·         Earmarked fund: enter Financial Authorization

RR.2.2.6.       Click the Save as completed button to release the document to the workflow for approval.

3.2.5.5.5 Reconciliation of Incoming Deposit

This scenario occurs when the UN Agency (i.e. UNDP) sends incoming payment to the UN. In the SCA file, the line's Log Status is shown as 'PRK-Inc. payt recvd' and 'VOUCHER' for the Transaction Type.

Document type UJ (UNDP JV entry) is automatically assigned by the system and proforma accounting entry for the document created:

 

SS.   Steps to reconcile a SCA line related to incoming payment received on behalf of the UN / Transaction Code: SBWP

SS.1.   Display the document located in the GL document: Data entry agent (TEA) folder of the Workflow Inbox in change mode (refer to steps GG.2.1 to GG.2.3 of section 3.2.5.5.3.1).

SS.2.   Double click the first line item and populate the following fields:

·         Fund: if the fund is a trust fund, enter a WBS or Internal Order)

·         Funds Center

SS.3.   Click the Overview icon.

SS.4.   Repeat step SS.2 for the second line item.

SS.5.   From the top menu, select Document à Complete to save the document and release it to the workflow.

3.2.5.6  Clearing of SCA Advance Account (GL 18105010)

Once all transactions are reconciled, on monthly basis, the SCA advance account (GL 18105010) needs to be cleared against all transaction posted.

TT.  Steps to clear SCA advance account (GL 18105010)

TT.1.  Check balance of the account / Transaction Code: FAGLL03

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TT.1.1.  Enter FAGLL03 in the Command field and press Enter à the G/L Account Line Item Display G/L View screen appears.

TT.1.2.  Click on the Dynamic Selections icon.

TT.1.3.  Double click on Business Area from the General Ledger Line Items folder and enter the relevant Business Area.

TT.1.4.  Click on the Back icon to return to the main screen and enter the following values:

·         G/L account: 18105010

·         Select radio button for Open Items

TT.1.5.  Click on the Execute icon.

TT.1.6.  The screen will show all the open transactions posted against 18105010. The list produced can give an insight about what the balance of the account is and the amounts that needs to be cleared.

Note: If there is missing information in the document displayed, a modification to the document can be done directly from this report.

TT.1.6.1.        Highlight the line and click on the Display icon.

TT.1.6.2.        Click the Change icon.

TT.1.6.3.        Click on the Header icon and enter the values in the relevant fields.

TT.1.6.4.        Click the Save icon to go back to the report.

TT.2.  Clear GL account / Transaction Code: F-03

TT.2.1.  Enter F-03 in the Command field and press Enter.

TT.2.2.  Enter the followings in the screen that opens:

·         Account: 18105010

·         Clearing Date: defaulted to today's date

TT.2.3.  In the Additional Selections section, select between the two options below by which to clear the documents:

·         Business Area - only applicable for entities with their own unique Business Areas

·         Reference - refers to the Reference in the document header. All documents created by the SCA upload have the donor code included as part of the value in the Reference field.

TT.2.4.  Select the Reference field, as an example, and press Enter.

TT.2.5.  Enter the desired donor code ranges and click on the Process open items button to bring up all the open item documents with the specified Reference values.

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TT.2.6.  Go to the Res.items tab.

TT.2.7.  If all items are to be cleared à copy the value from the Assigned field and paste it next to one Advance/Replenishment values à press Enter à the value in Not assigned field should go down to 0.00.

TT.2.8.  From the top menu, go to Document and select Simulate General Ledger to show the GL posting.

TT.2.9.  Click the Back icon. Enter the donor code and text to indicate the month of clearing in the Reference field of the Clear G/L Account Display Overview screen.

TT.2.10. Click the Save icon à a message will appear to indicate the number of the clearing document.

TT.2.11. Re-run the FAGLL03 report (step TT.1) to check the new open balance for GL account 18105010.

3.2.5.7  Virtual Payment of Outstanding Payable to UNDP

UU.   Perform virtual payment of outstanding payable to UNDP / Transaction Code: F110

Posted invoices with payment method 'R' (UNDP Service) coming from purchase orders and fund commitment scenarios will increase the payable balances of UNDP BP account with vendor role. The outstanding balance of this account must be applied against the UNDP SCA Advance. For detailed process steps, refer to outgoing payment processing in section 3.3.1.1 of Chapter on Cash Management of the Finance Manual.

Document type KZ (Vendor Payment) is automatically assigned by the system for vendor payment transactions.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
25	14XXXXXXXX*	BP with vendor role	900	USD	P003		20OLA
50	18105010	Advance UNDP SCA	(900)	USD	P003	10067	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 14 will call BP account group Z014 which is UN Agency Fund Programme and derive GL account 35101310 AP UN Agency Fund Programme.

3.2.6        Process Local PCC and TCC Payments

Please refer to section 3.2.2 Invoice Processing without PO.

3.2.7        Petty Cash Fund (PCF)

Petty Cash and Imprest Account Management is a process where an amount of discretionary funds in the form of cash is used to pay for expenditures At the UN, purchases below USD 350 can be paid from the petty cash account or imprest account and do not need a direct purchase order. Most purchases between USD 350 and USD 4,000 require a direct PO and can be paid from the imprest account if pre-authorized by head quarter.

·               Establishment of Petty Cash Accounts and Imprest Accounts: The process begins when a request is made to establish a Petty Cash Account. The request for Petty Cash funds is reviewed and if acceptable it will be approved by creating a parked invoice. For every newly approved petty cash request, a custodian is appointed (previously authorized by the Controller or Chief of Mission Support). Any request with a level in excess of USD 5,000 shall be considered an 'imprest account'.

o      Petty cash accounts are established primarily to provide funds for the purchases of goods/services to meet the mission's immediate operational requirements which could not otherwise be provided through the mission's normal procurement procedures due to the time constraints and the urgency of the requirements. The Petty Cash levels cannot exceed the levels as established by the delegation of authority.

o      Imprest accounts, other than cashier's imprest, are generally established at the mission's headquarters as well as its outlying sectors and regional headquarters to provide funds to meet their operational requirements for the local purchases of goods and/or services, particularly for those related to building management, transport, communications and general service activities.

·               Administering/Replenishing Petty Cash Accounts and Imprest Accounts: As expenditures are made and disbursements are posted in the Cash Journal (CJ), the custodian of the fund will reimburse employees and secure a reimbursement voucher in return. When the fund gets low, the custodian submits the cash journal disbursement report with supporting documents for replenishment.

·               Responsibility for Petty Cash/Imprest Custodians: In the larger UN locations, typically cash is managed by a cashier, however in the smaller or more remote locations where a cashier does not exist, a custodian will be appointed to manage the process. The Custodian's name will be maintained in the system for every petty cash account. The unspent balance will not be refunded. It will be manually checked and reconciled on the given day at the end of the year.

The following processes are applicable to Petty Cash (PCF) Management.

3.2.7.1  Replenish or Establish Petty Cash Fund

VV. Receive request to replenish PCF or establish a new PCF / Transaction Code: FV60

VV.1. Refer to business process steps in section 3.2.2 Invoice Processing without PO.

Document type KR (Vendor Invoice) is defaulted by the system manual invoice transactions.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Fund
31	20XXXXXXXX*	BP with vendor role	(5,000)	USD	P001	20OLA
40	35109920	PCF Clearing	5,000	USD	P001	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 20 will call BP account group Z016 for Individual External, Non-Staff and derive GL account 35101810 AP Individual External.

In Umoja Foundation, the reimbursement is processed through an outgoing payment in favor of the Cash Custodian as a vendor and a PCF clearing account to facilitate the outgoing payment to be initiated by Treasury.

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VV.2. Workflow to AP Approver / Transaction Code: SBWP

Based on the organizational unit e.g. business area and / or cost center, enterprise roles assigned, and financial authority delegated to workflow approvers, the parked invoice or credit memo is routed to their inbox for approval or rejection. For more information on the step by step process refer to section 3.2.2 (H.2).

VV.3. If the Custodian is new, the cash journal is required to be set up first and linked to the new Cash Custodian / SPRO

The new Cash Journal (CJ) is configured first to assign relevant GL account ; document types; CJ number, CJ name, and assignment to the new Custodian.

3.2.7.2  Outgoing Payment

WW.  Outgoing payment for the replenishment or establishment of PCF / Transaction Code: F110

Document type KZ (Vendor Payment) is automatically assigned by the system for CJ transactions depending on cash journal type used.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Fund
40	20XXXXXXXX*	BP with vendor role	5,000	USD	P001	20OLA
50	11XXXXXXXX	Cash in Bank Chq Out	(5,000)	USD	P001	20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 20 will call BP account group Z016 for Individual External, Non-Staff and derive GL account 35101810 AP Individual External.

Refer to section 3.3.1.1 of Finance Manual Chapter on Cash Management for detail steps on outgoing payment process through automatic payment processing (T-code F110).

3.2.7.3  Cash Receipt Post Replenishment

XX.  Cash receipt post replenishment of PCF in cash journal / Transaction Code: FBCJ

XX.1.  Enter the Cash journal: 5003; posting date: 2014-02-14

XX.2.  Select Cash receipts tab and enter the following in line item:

·               Business transaction type

·               Amount

·               G/L account

·               Reference

Document type ZI (Imprest Account) or ZP (Petty Cash) is automatically assigned by the system for CJ transactions depending on cash journal type used.

XX.3.  Upon receipt of replenishment cheque or cash, the Cash Custodian will enter the incoming payment in Cash Journal debiting Petty Cash Fund and crediting the PCF clearing account. In summary, PCF will be established as cash on hand in the General Ledger.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Fund
40	11715003	Cash Petty Communication	5,000	USD	P001	20OLA
50	35109920	PCF Clearing	(5,000)	USD	P001	64VQA

 

XX.4.  Highlight the line item and select the Post button

XX.5.  Select the Follow on document button to display the accounting document as summarized above.

3.2.7.4  Process Cash Journal Transactions

YY.  Process PCF transactions / Transaction Code: FBCJ

For daily activities, PCF Cash custodian can choose from the following business transactions:

·               Cash Payments tab: Expense; Paid to Vendors, Payment to Bank Account, Payment Travel Advance.

·               Cash Receipts tab: Receipt from Bank; Revenue; Receipt from Customer; Receipt from Vendor.

·               Check Receipts tab: Cheque received from Customer; Cheque received from Vendor; Revenue on Check Receipt.

It is envisioned in the future that the business transactions in Cash journal (CJ) will be restricted based on CJ type e.g. Petty Cash or Imprest Account.

YY.1.  Check the Cash journal number and current date in Data selection to ensure the appropriate Cash journal is displayed with the correct transaction date.

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YY.2.  Choose the appropriate tab to process a specific business transaction: Cash payments, Cash receipts, and Check receipts to assign the relevant Business transaction types.

Business Transaction Type	Reference
Expense	YY.2.1
Payment to Vendor	YY.2.2
Payment Travel Advance	YY.2.3
Payment to Bank	YY.2.4
Revenue	YY.2.5
Receipt from Customer	YY.2.6
Receipt from Vendor	YY.2.7
Receipt from Bank	YY.2.8

 

YY.2.1.  Choose Cash payments tab and select Business transaction type EXPENSE.

YY.2.1.1.        Enter the values in line item data:

·               Amount: USD 10

·               G/L account: 72111211

·               Fund: 20OLA

·               Cost Center: 10067

·               Reference: FBCJ - Expense

Note: If the transaction includes VAT, enter the total amount including VAT in the Amount field and click the Tax Code field to open up selection pop ups from which the tax code can be chosen from.

YY.2.1.2.        Highlight the line item and choose Save button

YY.2.1.3.        Select Post button

YY.2.1.4.        Click on the Follow on document button to display the accounting document created

Document type ZI (Imprest Account) or ZP (Petty Cash) is automatically assigned by the system for CJ transactions depending on cash journal type used.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	72111211	OT Staff Outside Missionor Country Flight Pers Effect	10	USD	P003	10067	20OLA
50	11715003	Cash Petty Communication	(10)	USD	P003		20OLA

 

YY.2.2.  Choose Cash payments tab and select Business transaction type PAID TO VENDOR

YY.2.2.1.        Enter the values in line item data:

·               Amount: USD 15

·               Vendor: 20XXXXXXXX

·               Fund: 20OLA

·               Business area: P003

·               Reference: FBCJ - Paid to Vendor

YY.2.2.2.        Repeat steps YY.2.1.2 to YY.2.1.4.

Document type KZ (Vendor Payment) is automatically assigned by the system for CJ transactions relating to payment to vendors.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
50	11715003	Cash Petty Communication	(15)	USD	P003		20OLA
25	20XXXXXXXX*	BP with vendor role	15	USD	P003		20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 20 will call BP account group Z016 for Individual External, Non-Staff and derive GL account 35101810 AP Individual External.

YY.2.3.  Choose Cash payments tab and select Business transaction type PAYMENT TRAVEL ADVANCE

YY.2.3.1.        Enter the values in line item data:

·               Amount: USD 20

·               Fund: 20OLA

·               Business area: P003

·               Reference: FBCJ - Payment Travel Advance

YY.2.3.2.        Repeat steps YY.2.1.2 to YY.2.1.4

Document type ZI (Imprest Account) or ZP (Petty Cash) is automatically assigned by the system for CJ transactions depending on cash journal type used.

Note: If the Business transaction 'Payment Travel Advance' is selected, the system is configured to debit AP Cash Payment Clearing account.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	35109920	AP Cash Payment Clearing	20	USD	P003		20OLA
50	11715003	Cash Petty Communication	(20)	USD	P003		20OLA

 

YY.2.4.  Choose Cash payments tab and select Business transaction type PAYMENT TO BANK ACCOUNT

YY.2.4.1.        Enter the values in line item data:

·               Amount: USD 55

·               G/L account: 11101312

·               Fund: 20OLA

·               Business area: P003

·               Reference: FBCJ - Payment to Bank

YY.2.4.2.        Repeat steps YY.2.1.2 to YY.2.1.4

Document type ZI (Imprest Account) or ZP (Petty Cash) is automatically assigned by the system for CJ transactions depending on cash journal type used.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	11101312	Cash UNIFIL Bint Jbeil Fransabank LBP Chq In	55	USD	P003		20OLA
50	11715003	Cash Petty Communication	(55)	USD	P003		20OLA

 

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YY.2.5.  Choose Cash receipts tab and select Business transaction type REVENUE

YY.2.5.1.        Enter the values in line item data:

·               Amount: USD 30

·               G/L account: 69132010

·               Fund: 20OLA

·               Cost Center: 10067

·               Business area: P003

·               Reference: FBCJ - Revenue

YY.2.5.2.        Repeat steps YY.2.1.2 to YY.2.1.4

Document type ZI (Imprest Account) or ZP (Petty Cash) is automatically assigned by the system for CJ transactions depending on cash journal type used.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	11715003	Cash Petty Communication	30	USD	P003		20OLA
50	69132010	IS2 Income Service Language Training	(30)	USD	P003		20OLA

 

YY.2.6.  Choose Cash receipts tab and select Business transaction type RECEIPT FROM CUSTOMER

YY.2.6.1.        Enter the values in line item data:

·               Amount: USD 80

·               Customer: 15XXXXXXXX

·               Fund: 20OLA

·               Business area: P003

·               Reference: FBCJ - Receipt from Customer

YY.2.6.2.        Repeat steps YY.2.1.2 to YY.2.1.4

Document type DZ (Incoming payment) is automatically assigned by the system for CJ transactions related to incoming payments received through CJ.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	11715003	Cash Petty Communication	80	USD	P003		20OLA
15	15XXXXXXXX*	BP with customer role	(80)	USD	P003		20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 15 will call BP account group Z015 for Non-Governmental Organizations & Intergovernmental to derive GL account 15101410 AR Ex Gov NGO.

YY.2.7.  Choose Cash receipts tab and select Business transaction type RECEIPT FROM VENDOR

YY.2.7.1.        Enter the values in line item data:

·               Amount: USD 40

·               Vendor: 1110XXXXXX

·               Fund: 20OLA

·               Business area: P003

·               Reference: FBCJ - Receipt from Vendor

YY.2.7.2.        Repeat steps YY.2.1.2 to YY.2.1.4

Document type KZ (Vendor Payment) is automatically assigned by the system for CJ transactions related to vendor payments received through CJ.

PK	GL Acct	GL Acct Name	Amount Dr / (Cr)	Document Currency	Bus Area	Cost Center	Fund
40	11715003	Cash Petty Communication	40	USD	P003		20OLA
35	1110XXXXXX*	BP with vendor role	(40)	USD	P003		20OLA

* The specific BP account number selected in data entry view determines the AP reconciliation account that will be pulled in accounting entry. In this proforma entry, BP account range 10 will call BP account group Z010 for Commercial Vendor to derive GL account 35101510 AP Commercial Vendor.

YY.2.8.  Choose Cash receipts tab and select Business transaction type RECEIPT FROM BANK

For illustrative accounting entry created, please refer to section 3.2.7.1. Replenishment of PCF or set up of new PCF are classic examples for Receipt from Bank transactions.

YY.2.9.  Business transactions in Check receipts tab

The process steps are the same as those outlined in steps YY.2.5 and YY.2.8 including the resulting accounting entry to be generated based on business transactions selected. At the line item data, additional values are to be entered to capture the check information.

YY.2.9.1.        Enter the following values:

·               Check number

·               Check issuer

·               Bank Key

·               Bank Account

·               Bank Country

Note: Use the Split button to split the amount received and give each amount their own Business Transaction and Assignment value.

YY.3.  Reconcile and close the PCF for the day / Transaction Code: FBCJ

Select Print Cash Journal button from menu bar to generate report. Reconcile cash / checks received and cash disbursed against available PCF and sign off on daily CJ report.

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December, 2016