UN unicon Welcome to the United Nations. It's your world.

Chapter 14 - Accounts Payable

 

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.

Statement of financial position line item

Financial instrument

Included within the scope of IPSAS 28 and IPSAS 30

Included within the scope of IPSAS 29

Yes =

Yes =

Yes =

No =

No =

No =

Accounts payables

Accruals - goods and services (settlement in cash)

Deferred revenue

n/a

n/a

Borrowings

Derivative instruments

Retirement benefit obligations

Provisions for constructive obligations (IPSAS 19)

n/a

n/a

Financial guarantee contracts issued (unless elected to treat them as insurance contracts)

Operating lease

n/a

n/a

Finance lease obligations

 

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.

Back to top


Type

Name

Document Number Range

Description

Workflow Routing in FI Module

Typical posting schemes

Original Documents

KA

Downpayment Request

35

Downpayment requests created with F-47 are not recorded on the balance sheet as they are 'noted items' in the system's memory until they are disbursed. Upon disbursement, a KZ document is created to record the downpayment paid.

TEA -> DB1

 

TEA = Data Entry Agent

DB1 = Approving Officer

Cr Vendor

 

Noted Items are not balanced documents

KE

Vendor Inv. with EMF

31

Account payable document recorded against an earmarked fund (EMF). EMF reference is mandatory.

Cr Vendor

Dr Expense

KH

Inv > USD 4,000 no certif

31

Doc type KH is used for invoices without PO and without EMF that do not require certification.

KW

Vendor Write-Off

37

To record a write off. This doc type allows anyone in the organization to subsequently identify a write off taken by another office in the past and initiate recovery procedure if the business partner re-begins to transact with the UN.

KG

Vendor Credit Memo

32

To record a recoverable from vendor

Dr Vendor

Cr Expense

KR

Inv < USD 4,000 w certif

31

Doc type KR is used for invoices without PO and without EMF that require certification.

TEA -> DA1 -> DB1

 

DA1 = Certifying Officer

DB1 = Approving Officer

Cr Vendor

Dr Expense

RE

Purch order Invoice

51

Invoice referencing a PO (entered with MIR7) i.e. a logistics invoice

Cr Vendor

Dr GR-IR

ZC

Cashier Incmng_Outgn

64

Incoming payment from vendor received by Cashier. E.g. telephone charge

No workflow. Posted immediately by Cash Journal custodian.

Dr Cash Journal

Cr. Vendor

ZI

Imprest Account

61

Incoming payment from vendor received by Imprest custodian. E.g. replenishment.

ZP

Petty Cash

62

Incoming payment from vendor received by petty cash custodian. E.g. replenishment.

 

Type

Name

Document Number Range

Description

Workflow Routing in FI Module

Typical posting schemes

Follow on Documents

KA

Downpayment Clearing (automatic)

35

Downpayments recorded against a PO prior to goods receipt are cleared by the system at the time of goods receipt or at the time of invoice receipt with a KA document that is automatically created by the system.

No workflow. Posted immediately by system

Recording MIGO or MIR7 results in automatic clearing of DP

KA

Downpayment Clearing (manual)

35

Manual downpayment clearing for the purpose of writing off or for the purpose of netting against a claim in a different payment currency.

No workflow. Posted immediately by AP User

AP User uses F-54

KC

Vendor Clearing

34

Automatic clearing document KC is created upon disbursement to clear the payable against the payment KZ/KY

No workflow. Posted immediately by system

Automatic clearing through:

a)      F.13 daily clearing batch; or

b)      F110/FPRL_LIST

KY

Vendor Clearing F110

33

Payment document generated by payment program for cash or UNDP payment methods

No workflow. Posted immediately by system

Created through payment program F110/FPRL_LIST

KZ

Vendor Payment

33

Payment document generated by payment program for electronic or cheque payment methods.

RT

Retention Doc

32

When PO has retention indicator, the system automatically creates a separate retention document RT at the time we enter the PO invoice. The RT doc has a due date in the future, as specified when the PO invoice is entered

No workflow. Posted immediately by system

System created when PO has retention indicator

 

Type

Name

Document Number Range

Description

Workflow Routing in FI Module

Typical posting schemes

Documents interfaces into accounts payable module

KT

Claims FSS Interface

38

Travel claims created in FSS and interfaced to Umoja in status 'Save as Completed'.

DB1 = Approving Officer

Cr Vendor

Dr Expense

Cr Advance

Dr Vendor

P1

Progen Interface

70

Progen document recording accounts payable against net pay account

Posted by Progen interface

Cr Vendor

Dr Payroll net pay

P2

Progen Clearing

70

Progen document clearing deductions or additional payments against the net pay account

Dr/Cr Payable/Recoverable Cr/Dr Payroll net pay

PY

HR Payroll

65

Salary downpayment and downpayment clearing (when advance is recovered)

Posted by HCM interface

Dr/Cr Vendor

Dr/Cr 35501090 HCM Pyr Tech Clrg

TA

Travel Advance

35

This is a payable document that is automatically created in FI (in real time) when travel request has been approved in travel module.

Posted by TV interface

Dr Trav Adv TRM

Cr Vendor

TC

Travel Credit Memo

32

Recovery of travel advance when the travel expense (claim) is submitted in travel

 

TG

Travel Agent Invoice

31

Travel agent invoice recorded and approved in travel module

Dr Expense

Cr Vendor

TI

Travel Invoice

31

Travel expense report recorded and approved in travel module

Dr Expense

Cr Advance

Cr Vendor

UI

UNDP SCA invoice

31

Payable document created with UNDP SCA file upload against the EMF or PO transmitted in the Financial Authorization

 

Dr Expense

Cr Vendor

Converted Documents

X2

AP Conversion

78

Doc type X2 is used for all documents converted to the AP sub-ledger.

Posted by conversion program

Dr Conversion account

Cr Vendor

 


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.

Back to top

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 Group

BP No

Commercial Vendor UNGM

1110

Member States (Permanent Mission)

1111

Non Member State (Holy See, etc.)

1200

Government and Local Authority

1300

UN Agency Fund Programme

1400

Intergovernment and NGO

1500

Treasury Business Partner (Counterparty)

1700

Commercial Customers

1800

Vendor non UNGM

1900

Individuals externals (Retirees, consultants, independent contractors, survivors, etc.) with Index No

2000 to 2001

Staff Members

2000 to 2001

Military and Police

2000

Ship to

9000

Bill to

9100

Contact Person

9200

 

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.

BP No

BP Group

Roles Given to all BPs in the Group

Additional Roles (as needed)

1110

Commercial Vendor UNGM

Z00011 UN Vendor

Z00026 UN Landlord w.Vendor Acct

Z00054 Real Estate Agent

1111

Member States (Permanent Mission)

Z00011 UN Vendor

Z00013 UN Customer

Z00016 UN Sponsor

Z00015 UN Master Tenant

Z00026 UN Landlord w.Vendor Acct

1200

Non Member State (Holy See, etc.)

1300

Government and Local Authority

1400

UN Agency Fund Programme

1500

Intergovernment and NGO

1700

Treasury Business Partner (Counterparty)

Z00020 UN Financial Services BP

Z00021 UN Issuer

Z00022 UN Global Custodian

Z00023 UN Depository Bank

Z00024 UN Bank

Z00025 UN Paying Bank

None

1800

Commercial Customers

Z00013 UN Customer

Z00015 UN Master Tenant

1900

Vendor non UNGM

Z00009 UN Low Value Vendor

Z00015 UN Master Tenant

Z00026 UN Landlord w.Vendor Acct

Z00054 Real Estate Agent

2000 to 2001

Individuals externals (Retirees, consultants, independent contractors, survivors, etc.) with Index No

Z00011 UN Vendor

None

2000 to 2001

Staff Members

Z00010 UN FI Vendor

Z00050 UN Lease Processor

Z00051 UN Contract Approver

Z00052 UN Facilities Planner

Z00053 UN Facilities Manager

2000

Military and Police

Z00010 UN FI Vendor

None

9000

Ship to

Z00018 UN Ship to Partner

None

9100

Bill to

Z00019 UN Bill to Partner

None

9200

Contact Person

Z00055 UN Contact Person

None

 

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:

BP Type

Description

Z001

International Staff

Z002

Local Staff

Z003

UNVs

Z004

Military Staff Officer

Z005

Military Observer

Z006

UN Police

Z007

Correctional Officer

Z020

Retirees

Z100

Individual Contractor

Z101

Consultant

Z900

Other Types

Z999

HR Active: Not Progen Relevant

 

Back to top

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.

GL Account Structure for Accounts Payable

Reconciliation account ending in '10'

·      All sub-ledger entries are recorded in this account

·      Account is determined from the BP master record and SPGL and cannot be selected by AP Users

·      No JVs allowed in this account

·      Postings have open or cleared status

Man. Adj. GL account ending in '20'

·      Any manual adjustment done outside the AP subledger with JVs should be recorded in this GL account. Entries posted to this GL accounts do not use a BP

·      Year end system reclassification batch for net debit balances on vendor's accounts will be posted to Man. Adj. accounts (doc type SA)

·      No open/cleared status

·      Note: These accounts cannot be Open Item Managed (OIM) accounts, as system reclassification cannot be posted to OIM accounts

Revaluation GL account ending in '99'

·      Only FI revaluation program posts to this account in accordance with IPSAS (doc type SL)

·      No open/cleared status

·      Note: These accounts cannot be Open Item Managed (OIM) accounts, as revaluation program cannot post to OIM accounts

 

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

Sr. No.

Brief Description of payable

GL range

1

Assessed Contributions Reimbursable

3310XXXX

2

Payable to Member Sates

3320XXXX

3

Voluntary Contributions Reimbursable

3410XXXX

4

Accounts Payable

3510XXXX

5

Retention Payable

3511XXXX

6

Investment Purchases Payable

3530XXXX

7

GR-IR Goods Received - Awaiting Invoice

354010XX

8

AP Clearing Accounts

354011XX

9

Transfers Payable

3570XXXX

4570XXXX

10

Borrowings

3620XXXX

4620XXXX

11

Certain GL accounts classified as current liabilities

3910XXXX

12

Unapplied cash

3920XXXX

13

Certain GL accounts classified as non-current liabilities

4910XXXX

 

3.1.4.1  Exchange Payable

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

GL Acct

Long Text

GL Acct Structure

 

 

 

 

33201010

AP Exch Mmbr St

3

320

10

10

 

 

 

 

33201020

AP Exch Mmbr St Man

20

 

 

 

 

33201099

AP Exch Mmbr St Reval

99

 

 

 

 

33201110

AP Exch Govt NonMmbr St

11

10

 

 

 

 

33201120

AP Exch Govt NonMmbr St Man

20

 

 

 

 

33201199

AP Exch Govt NonMmbr St Reval

99

 

 

 

 

35101210

AP Govt and Local Authority

510

12

10

3 = Current Liability

35101220

AP Govt and Local Authority Man Adj

20

 

 

 

 

35101299

AP Govt and Local Authority Revaluation

99

 

320 = Exch Accounts Payable Member States

35101310

AP UN Agency Fund Programme

13

10

 

 

 

 

35101320

AP UN Agency Fund Programme Man Adj

20

 

510 = Exch Accounts Payable Other

35101399

AP UN Agency Fund Programme Revaluation

99

 

 

 

 

35101410

AP Intergovernment NGO

14

10

 

 

10 to 18 = BP Group

35101420

AP Intergovernment NGO Man Adj

20

 

 

 

 

35101499

AP Intergovernment NGO Revaluation

99

 

 

98 = Accruals (No BP)

35101510

AP Commercial Vendor

15

10

 

 

 

35101520

AP Commercial Vendor Man Adj

20

 

 

99 = Accrued Discount clearing (No BP)

35101599

AP Commercial Vendor Revaluation

99

 

 

 

 

35101610

AP UN Staff Member

16

10

 

 

 

10 = reconciliation account on BP Master Record

35101620

AP UN Staff Member Man Adj

20

 

 

 

 

35101699

AP UN Staff Member Revaluation

99

 

 

 

20 = Man Adj + System Reclas (No BP)

35101710

AP Military and Police

17

10

 

 

 

 

35101720

AP Military and Police Man Adj

20

 

 

 

99 = System Reval per IPSAS (No BP)

35101799

AP Military and Police Revaluation

99

 

 

 

 

35101810

AP Individual External

18

10

 

 

 

 

35101820

AP Individual External Man Adj

20

 

 

 

 

35101899

AP Individual External Revaluation

99

 

 

 

 

35109810

AP Accrued Expense Man

98

10

 

 

 

 

35109899

AP Accrued Expense Reval

99

 

 

 

 

35109910

AP Accrued Discount Clearing

99

10

 

 

 

 

35109919

AP Accrued Discount Clearing Reval

19

 

 

 

 

 

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.

·               2nd to 4th 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.

Image chapter 14

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

GL Account Structure for Accounts Payable

Reconciliation account ending in '10'

·      All sub-ledger entries are recorded in this account

·      Account is determined from the BP master record and SPGL and cannot be selected by AP Users

·      No JVs allowed in this account

·      Postings have open or cleared status

Man. Adj. GL account ending in '14'

·      Any manual adjustment done outside the AP subledger with JVs should be recorded in this GL account. Entries posted to this GL accounts do not use a BP

·      Year end system reclassification batch for net debit balances on vendor's accounts will be posted to Man. Adj. accounts (doc type SA)

·      No open/cleared status

·      Note: These accounts cannot be Open Item Managed (OIM) accounts, as system reclassification cannot be posted to OIM accounts

ADA Man ending in '16'

·      Allowances for Doubtful Accounts (ADA) are recorded outside the AP subledger with JVs in this GL account

·      Entries should be entered with FBS1 and should reverse the following year

·      This GL account is an OIM account

·      Postings have open or cleared status

Revaluation GL account ending in '19' - only for monetary items

·      Only FI revaluation program posts to this account in accordance with IPSAS (doc type SL)

·      No open/cleared status

·      Note: These accounts cannot be Open Item Managed (OIM) accounts, as revaluation program cannot post to OIM accounts

 

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

GL Acct

Long Text

GL Account Structure

Advances to Implementing Partners

18101210

Advance Govt and Local Authority - SPGL Y (PO or EMF)

1

810

12

10

18101214

Advance Govt and Local Authority Man

14

18101216

Advance Govt and Local Authority ADA Man

16

18101310

Advance UN Agency Fund Programme - SPGL Y

13

10

18101314

Advance UN Agency Fund Programme Man

14

18101316

Advance UN Agency Fund Programme ADA Man

16

18101410

Advance Government NGO - SPGL Y

14

10

18101414

Advance Government NGO Man

14

18101416

Advance Government NGO ADA Man

16

 

GL Acct

Long Text

GL Account Structure

Commercial Advances

19101210

Advance to Govt and Local Authority - SPGL A (PO or EMF)

1

910

12

10

19101214

Advance to Govt and Local Authority Manual

14

19101216

Advance toGovt and Local Authority AFDA Man

16

19101310

Advance to UN Agency Fund Programme - SPGL A

13

10

19101314

Advance to UN Agency Fund Programme Manual

14

19101316

Advance toUN Agency Fund Programme AFDA Man

16

19101410

Advance to Intergovernment NGO - SPGL A

14

10

19101414

Advance to Intergovernment NGO Man

14

19101416

Advance to Intergovernment NGO ADA Man

16

19101510

Advance to Vendor - SPGL A

15

10

19101514

Advance to Vendor Man

14

19101516

Advance to Vendor ADA Man

16

 

Back to top

GL Acct

Long Text

GL Account Structure

Salary Advances

19101610

Advance to Staff Member Payroll Sal Ben - SPGL S (no EMF)

1

910

16

10

19101614

Advance to Staff Member Payroll Sal Ben Man

14

19101616

Advance to Staff Member Payroll Sal Ben AFDA Man

16

19101710

Advance to Military - SPGL S

17

10

19101714

Advance to Military Man

14

19101716

Advance to Military AFDA Man

16

19101810

Advance to Individual External - SPGL S

18

10

19101814

Advance to Individual External Man

14

19101816

Advance to Individual External AFDA Man

16

 

GL Acct

Long Text

GL Account Structure

Paymaster Advance

19102010

Advance for Cash Payment Paymaster - SPGL K (no EMF)

1

910

20

10

19102014

Advance for Cash Payment Man OIM

14

19102015

Advance for Cash Payment Man

15

 

GL Acct

Long Text

GL Account Structure

Travel Advance

19109010

Advance Travel - SPGL T with EMF (Foundation)

1

910

90

10

19109014

Advance Travel Module (no SPGL) (UE1)

14

19109015

Advance Travel Man

15

19109016

Advance Travel AFDA Man

16

 

GL Acct

Long Text

GL Account Structure

Security Deposits

19301010

Security Deposit - SPGL H (No EMF)

1

930

10

10

19301020

Security Deposit Man

20

 

GL Acct

Long Text

GL Account Structure

Loans Receivable - SPGL X

16201310

Loan Receivable UN Agency Fund Programme - SPGL X (No EMF)

1

620

13

10

16201314

Loan Receivable UN Agency Fund Programme Manual

14

16201316

Loan Receivable UN Agency Fund Programme AFDA

16

16201318

Loan Receivable UN Agency Fund Programme Interfund

18

16201319

Loan Receivable UN Agency Fund Programme Reval

19

 

Notes:

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

·               Current asset GL accounts start with 1.

·               2nd to 4th 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.

SPGL Long text

AP SPGL

Normal SPGL or Downpayment

BP Group

Account Group

Normal Recon G/L Acct

SPGL G/L Account

PO or EMF

Security Deposit

H

Downpayment paid

Z010

Commercial Vendor

35101510

19301010

No

Z011

Member State

33201010

Z012

Non Member State

33201110

Z013

Government and Local Authority

35101210

Z014

UN Agency Fund Programme

35101310

Z015

Intergovernment and NGO

35101410

Advance to Implem Partner

Y

Downpayment paid

Z013

Government and Local Authority

35101210

18101210

PO

Z014

UN Agency Fund Programme

35101310

18101310

Z015

Intergovernment and NGO

35101410

18101410

Commercial Advance

A, F

Downpayment paid

Z010

Commercial Vendor

35101510

19101510

PO or EMF

Z013

Government and Local Authority

35101210

19101210

Z014

UN Agency Fund Programme

35101310

19101310

Z015

Intergovernment and NGO

35101410

19101410

Z019

Commercial Vendor non-UNGM

35101510

19101510

Retention

R

SPGL

Z010

Commercial Vendor

35101510

35111510

No

Advance Salary - Foundation

S

Downpayment paid

Z020

Staff Member, Ex-Staff Member, Survivors and Dependents, Retirees

35101610

19101610

No

Z021

Non staff Military and Police

35101710

19101710

Z016

Non Staff with Index

35101810

19101810

Loan Receivable

X

Downpayment paid

Z014

UN Agency Fund Programme

35101310

16201310

No

Advance Travel - Foundation

T

Downpayment paid

Z016

Non Staff with Index

35101810

19109010

EMF

Z020

Staff Member, Ex-Staff Member, Survivors and Dependents, Retirees

35101610

Z021

Non staff Military and Police

35101710

Cash Advance to Paymaster no EMF

K

Downpayment paid

Z020

Staff Member, Ex-Staff Member, Survivors and Dependents, Retirees

35101610

19102010

No

Z021

Non staff Military and Police

35101710

Z016

Non Staff with Index

35101810

Z019

Commercial Vendor non-UNGM

35101510

Z010

Commercial Vendor

35101510

Z014

UN Agency Fund Programme

35101310

Z013

Government and Local Authority

35101210

 

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.

Image chapter 14

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.

Image chapter 14

Accounts payable document

Document that creates a balance payable or recoverable, an advance or a noted item on the vendor's account

Payment document

KY, KZ, ZC, ZI or ZP document that indicates that one or more accounts payable documents have been paid. The vast majority of payment documents are generated automatically by the system upon approval of the payment proposal list (KZ, KY). Additionaly, a cash custodian (either petty cash, imprest or cashier's imprest) can also record a payment received on the vendor's account through the cash journal (ZC, ZI or ZP).

Bank statement document

Document (ZR) created when the bank statement is uploaded in Umoja.

Clearing document

Automated clearing documents (SC) are generated automatically via an overnight program to clear one or more debit lines with one or more credit lines on a vendor when:

·         Debits and credits total zero either in Document currency or Local currency; and

·         Assignment field is identical on all lines; and

·         Lines are posted to the same GL account

 

Manual clearing documents (SA) are created before entering a payable document (e.g. travel claim) when the advance and the claims do not have the same document currency. Having different currency prevents the automatic netting of the advance against the claim. In those cases, the AP User creates a KA document with F-54 to credit and clear the advance and debit the vendor for the same amount.

 

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

Back to top

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.

Image chapter 14

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:

Image chapter 14

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 Image chapter 14 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

Image chapter 14

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 Image chapter 14 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).

Image chapter 14

If you do not know the country code for your country, click the Matchcode Image chapter 14 icon next to the Reporting cntry field.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

Back to top

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Back to top

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Back to top

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

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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:

Image chapter 14

E.8.      Click the Save Image chapter 14 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).

Image chapter 14

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.

Back to top

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

Image chapter 14

G.4.     Click the Execute Image chapter 14 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.

Image chapter 14

G.5.     Click the Back Image chapter 14 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.

Image chapter 14

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 Image chapter 14 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.

Image chapter 14

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.

Image chapter 14

Back to top

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

Back to top

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Back to top

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:

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

Image chapter 14

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

Back to top

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.

Image chapter 14

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

Image chapter 14

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:

Image chapter 14

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

Image chapter 14

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.

Back to top

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.

Image chapter 14

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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

Image chapter 14

Back to top

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

Image chapter 14

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.

Image chapter 14

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)

Image chapter 14

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

Image chapter 14

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 Image chapter 14 icon to access the line item text screen.

Image chapter 14

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.

Back to top

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

Image chapter 14

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).

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

Back to top

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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).

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

Back to top

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

Note: Certain fields will be automatically filled in when using the Variant Image chapter 14 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.

Image chapter 14

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

Image chapter 14

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'.

Image chapter 14

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

Image chapter 14

Image chapter 14

Back to top

U.7.     After reviewing the FA form, use the Back Image chapter 14 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.

 

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

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

Image chapter 14

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

Back to top

V.5.      Click the Back Image chapter 14 icon to return to the initial screed. Uncheck the Text Run box and click the Execute icon.

Image chapter 14

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.

Image chapter 14

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).

Image chapter 14

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

Image chapter 14

Image chapter 14

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).

Image chapter 14

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

Image chapter 14

Back to top

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

Back to top

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:

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

10074

20OLA

40

7XXXXXXX

Expense GL account of the FC

100

USD

P003

10074

20OLA

 

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:

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

10074

20OLA

50

18105010

Advance UNDP SCA

(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 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.

Image chapter 14

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

Image chapter 14

Y.4.      Click on the Acct model Image chapter 14 icon to add the necessary lines for the rejection posting.

Y.5.      Click the Matchcode Image chapter 14 icon in the Select Account Assignment Model pop up box and select the appropriate Acct model corresponding to the right organization.

Image chapter 14

Y.6.      Click the Continue Image chapter 14 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

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

Amount will now appear as USD 0.00

Image chapter 14

Back to top

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.

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

Back to top

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.

Image chapter 14

The amount will now appear s USD 0.00

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

Back to top

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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:

PK

GL Acct

GL Acct Name

Amount

Dr / (Cr)

Document Currency

Bus Area

Cost Center

Fund

40

18105010

Advance UNDP SCA

50

USD

P003

10074

20OLA

50

18105020

Advance UNDP Pay Agent

(50)

USD

P003

 

20OLA

 

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

PK

GL Acct

GL Acct Name

Amount

Dr / (Cr)

Document Currency

Bus Area

Cost Center

Fund

40

18105020

Advance UNDP Pay Agent

100

USD

P003

 

20OLA

50

18105010

Advance UNDP SCA

(100)

USD

P003

10074

20OLA

 

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'.

Image chapter 14

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

Image chapter 14

Back to top

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

GG.2.4.   Double click on GL account 18105020.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

Back to top

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

Image chapter 14

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.

Image chapter 14

The amount of this line will become USD 0.00

Image chapter 14

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

·         PstKy: 40

·         Account: 74251010

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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

Back to top

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

Back to top

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.

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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.

Image chapter 14

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.

Image chapter 14

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

Image chapter 14

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)

Image chapter 14

Back to top

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 Image chapter 14 icon and enter values into the following fields:

·         Vendor account

·         Business Area

·         Document Type: UJ

·         Payment Block: B

Image chapter 14

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

Image chapter 14

NN.3.3.   Double click the required trip number.

Image chapter 14

Back to top

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

Image chapter 14

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

·