FI321 Umoja Accounts Payable Process. Umoja Accounts Payable Process Version 12 1

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1 FI321 Umoja Accounts Payable Process Umoja Accounts Payable Process Version 12 Copyright Last Modified: United 05-Dec-14 Nations 1

2 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 2

3 Introduction Please share with us: Your Name Your Section/Unit # Years with the UN Interesting Fact About Yourself 3

4 Ground Rules Please consider the following guidelines during the training session: Turn your cell phone to silent mode. Please step out of the class to take any important phone call Please do not access your or the Internet outside of breaks Participate fully in the training session and respect each other s contribution Breaks are included at the discretion of the trainer X X No Phones Do Not Access Participate Ask Questions Breaks 4

5 Course Overview The purpose of the Umoja Accounts Payable Process is to teach end users how to enter Invoices, Credit Memos, Down Payments and perform all other Accounts Payable (A/P) activities in Umoja. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Accounts Payable Overview Umoja ECC Navigation Course Duration: 12 hours 5

6 Course Objectives After completing this course, you will be able to: List the different G/L accounts relevant for Accounts Payable Scan, park and/or post an Invoice Process Invoices with or without a Purchase Order (PO) Process Invoices applying payment retention Process Invoice reductions Enter and clear Down Payments Enter a Credit Memo 6

8 Module 1 Objectives After completing this module, you will be able to perform the following actions: Identify the purpose of Reconciliation Accounts for Accounts Payable Explain the purpose of Special GL (SPGL) Indicators Differentiate between the different Business Partner Groups in Umoja 8

9 Key Terminology Key Term Chart of Accounts Subsidiary Ledger Reconciliation Account Description A new Chart of Accounts applies to Umoja. Each GL account is now 8 digit (compared to 4 digits Object of Expenditure). The Chart of Accounts is designed to produce the IPSAS compliant Financial Statements. Umoja introduces Subsidiary Ledgers where all entries for vendors are recorded. Each Subsidiary Ledger will be tied to the General Ledger through a Reconciliation Account; the balance of all entries in the Subsidiary Ledger will reconcile with balance in the General Ledger account. Special GL (SPGL) Indicator New functionality of SPGL ensures that all Down Payments (advances) are recorded in a different Reconciliation Account instead of regular Reconciliation Account. 9

10 General Ledger vs. Subsidiary Ledgers The Subsidiary Ledger is a supporting ledger (to the General Ledger) that records transactions in individual accounts and divides financial data into distinct and more manageable categories. The total of all individual account balances in the subsidiary ledger equals the balance of the Reconciliation Account in the General Ledger. General Ledgers Postings to Reconciliation Accounts Subsidiary Ledgers 10

11 A/P Subsidiary Ledger The A/P Subsidiary Ledger (or Sub Ledger) is one of three Sub Ledgers in Umoja. General Ledger Accounts Receivable (A/R) (contains Customer accounts) Accounts Payable (A/P) (contains vendor information) Fixed Assets (FA) (contains assets not recorded in Galileo) 11

12 Reconciliation Accounts Umoja uses Reconciliation Accounts to reconcile financial information contained in the subsidiary ledgers in real-time. The entries in the Reconciliation Account can only come from a Subsidiary Ledger. For example, fuel purchased from a vendor will be recorded in General Ledger as follows: A/P Subsidiary Ledger General Ledger Journal Voucher Debit Fuel 2000 Credit Vendor 2000 Vendor Account 2000 A/P- Reconciliation Account 2000 Expenses 2000 Fuel In the A/P Subsidiary Ledger, the vendor is credited with the amount due In the General Ledger, the A/P Reconciliation Account has a corresponding credit entry to reconcile with the A/P Subsidiary Ledger. 12

13 G/L Accounts used for A/P Entries in the A/P Sub Ledger Entries for Revaluation of Monetary Balances Entries for late audit adjustment G/L Account Reconciliation Accounts Revaluation Accounts Manual Adjustment Accounts Reason Ensures the Sub Ledger is always reconciled with the G/L. It gets automatic entries from the Subsidiary Ledger and no manual entry can be recorded to these accounts. Revaluation entries are recorded in the Revaluation Account as the individual records in the Sub Ledger are not affected by revaluation run. Should be recorded at the G/L level since the Sub Ledger may be closed earlier than the G/L 13

14 Recording A/P Entries in Umoja G/L Accounts For each Business Partner Group, Umoja provides a standard numbering convention for each type of G/L Account: Account Type Ending with Digits Reconciliation account 10 Manual Adjustment account 20 Revaluation account 99 14

15 Business Partner Groups in Umoja Member States Non-member States Other Governmental Entities UN Agencies, Funds and Programs Individuals (Staff Members, Retirees, Survivors) Individual Consultants and Contractors NGO s Commercial Vendors 15

16 G/L Accounts for A/P For standard invoice transactions, the following G/L accounts are automatically derived by Umoja based on the Business Partner Group: Business Partner Group Reconciliation G/L Account Member States Non-Member States Other Governmental Entities UN Agencies, Funds and Programs Non-Governmental Organizations Commercial Vendors Individuals (Staff Members, Retirees, Survivors and so on) Individual Contractors and Consultants

17 Special GL Indicators Special GL (SPGL) Indicators are used to identify transactions that should be recorded to alternate G/L accounts. In Umoja, the following SPGL are used for A/P: Transaction Down payments to commercial vendors Advances to implementing partners Travel advance Salary advance Security deposits Cash Advance for Cash Payments SPGL A Y T S H K Note: In Umoja, SPGL are used in conjunction with the Down Payment functionality, which is covered later in the course. 17

18 Learning Checkpoint 1 The total of all individual accounts in the Subsidiary Ledger equals the balance which account in the General Ledger. Select the correct option. A. Reconciliation Account B. Revaluation Account C. Manual Adjustment Account D. A/P Sub Ledger 18

19 Learning Checkpoint 1 The total of all individual accounts in the Subsidiary Ledger equals the balance which account in the General Ledger. Select the correct option. A. Reconciliation Account B. Revaluation Account C. Manual Adjustment Account D. A/P Sub Ledger Option A is the correct answer. Reconciliation Accounts are used to reconcile financial information contained in the Subsidiary Ledgers in real-time. 19

20 Learning Checkpoint 2 Down Payments to commercial vendors are recorded using a particular type of. Select the correct option. A. General Ledger Account B. A/P Sub Ledger Account C. SPGL Indicator D. Business Partner 20

21 Learning Checkpoint 2 Down Payments to commercial vendors are recorded using a particular type of. Select the correct option. A. General Ledger Account B. A/P Sub Ledger Account C. SPGL Indicator D. Business Partner Options C is the correct option. SPGL Indicators are used to identify transactions, including Down Payments, that should be recorded to alternate G/L accounts. 21

22 Module 1 Summary The key points covered in this module are listed below: Reconciliation Accounts are used to update the General Ledger based on postings to the A/P Subledger SPGL Indicators are used to make postings to accounts outside of the standard Reconciliation Account (for example, for Down Payments) Business Partner Groups in Umoja each have their own set of Reconciliation Accounts 22

24 Module 2 Objectives After completing this module, you will be able to perform the following actions: Enter an Invoice with reference to a PO Calculate and apply Value Added Tax (VAT) to an Invoice Hold an Invoice for later completion Simulate Invoice posting Save Invoice as Parked (for Review) Post Invoice Approve or reject a parked Invoice Review a PO Reverse an Invoice 24

25 Key Terminology Key Term Three-Way Match Workflow Park Document Post Document Invoice Tolerance Description Umoja compares the quantity/amount in Purchase Order, Goods Receipt and Invoice. Umoja process that automatically routes Invoices or other financial/procurement documents to the appropriate persons for approval and/or review A process that forwards a financial document in Umoja to other colleague for review/completion. The parked documents do not have any financial impact. A process that posts a financial document to a particular subledger. This results in the relevant financial impacts to the G/L accounts The maximum amount by which an Invoice may differ from the PO total and each PO line to pass the budget check ($4000 or 10% of PO, whichever is lower) 25

26 Key Terminology Key Term Payment Block Goods Receipt Service Entry Sheet (SES) Movement Type Description A block entered in the document that ensures an invoice cannot be paid until the payment block is removed A document entered to record receipt of goods, referencing one or more PO s. Goods receipt creates a financial document to record expense and accrued liability in GR-IR account A document entered to record receipt of services, referencing one or more PO's. SES creates a financial document to expense services and record an accrued liability in GR-IR account A three-character field in the Umoja ECC system (seen in Purchase Order) identifying type of transactions against a PO (for example, Return Delivery to Supplier) 26

27 Roles & Responsibilities The following Umoja Enterprise roles are involved in the A/P process: Financial Accounting User (A/P) Financial Accounting Approver (A/P) Creates vendor Invoices and vendor Credit Memos within the A/P subledger. This entails: Adding VAT Changing payment terms, if needed Adding a payment block, if needed Reducing the invoice, if needed Requesting that PO be modified, if needed These documents are subject to workflow approval Reviews and approves the vendor Invoices and Credit Memos created by the Financial Accounting User (A/P) within the A/P subledger Reviews and provide comments when rejecting the document back to AP user. Close the record after which users can not attach any further supporting documents 27

28 Roles & Responsibilities The following Umoja Enterprise roles are involved in the A/P process: Financial Accounting Senior User (G/L, A/R, A/P and CO) Reverses the Posted documents Clears G/L, A/R and A/P documents 28

29 Invoice Transactions in Umoja There are two main transactions within Umoja ECC to enter an Invoice: MIR7 is used for standard invoices for goods and services in reference to a PO FV60 is used in cases when there is no PO. Invoices processed with FV60 may refer to a Funds Commitment (obligation document e.g. MOD) In this module, we will cover the MIR7 transaction. 29

30 Invoice Transactions in Umoja Below are key differences between the two Invoice transactions in Umoja, Invoices with or without PO: MIR7 Invoice entered with reference to a PO Line items delivered are derived automatically Parking the document will trigger workflow and send to the A/P Reviewer for completion/review Holding the document will save for later completion but will not trigger workflow FV60 Invoice entered without reference to a PO Line items must be entered manually or through an Excel file Parking the document will save for later completion but will not trigger workflow No Hold functionality 30

31 Three-Way Match Umoja ECC performs Three-Way Match Invoice Goods Receipt Umoja ECC Purchase Order Enter Invoice with PO (MIR7) Umoja ECC s automated Three-Way Match enables the cross-check of Purchase Order, Goods Receipt and Invoice documents If the documents cannot be matched within the Invoice Tolerance, the system won t allow the invoice to be forwarded to the appropriate approvers If the documents do match, the A/P User will be able to Save as Complete, which will forward the Invoice to the A/P Approver, who can make the financial posting 31

32 Three-Way Match Enter Invoice with PO (MIR7) Cont d If physical discrepancies (for example, physical damage) are found during goods receipt, a appropriate movement type is recorded on the goods, resulting in no financial posting. This blocked status is removed by appropriate movement type accepting the goods resulting in financial posting. If good are subject to inspection, the goods receipt is performed upon delivery. Since the inspection is performed subsequently and may highlight some items are missing or don t meet the specifications. Only after the inspection is complete should the Invoice be posted. This will require coordination between the operations and the accounts payable unit 32

33 Review Purchase Order After receiving an Invoice from a vendor, it may be necessary to view details about a PO. To view a PO, use ME23N transaction. You can also review all PO s for a vendor using the ME2N transaction. To enter a PO number, select the Other Purchase Order in the menu or using the icon. A pop-up window will appear where you can enter the PO number. You may also click the Matchcode icon to search for a particular PO by vendor, cost center or many other criteria. 33

34 Review Purchase Order The Display Purchase Order screen has three main sections: Header Data tabs Item Overview Item Details Each one of these sections can be expanded or collapsed by clicking the button next to their label. 34

35 Review Purchase Order Header Data tab shows information on Status, Payment terms, etc. 35

36 Review Purchase Order Item Overview tab shows information items ordered, quantity, price, etc. 36

37 Review Purchase Order Item Details tab has many tabs, important for AP processing are Account Assignment and Payment History for each line item in purchase order. 37

38 Review Purchase Order The Purchase Order History tab displays a full history of receipts, returns and any other actions that have occurred for each line item. The MvT field displays all the Movement Types that have occurred. The relevant Movement Types in Umoja are: 101 Goods Receipt for Purchase Order 102 Cancellation or reversal of Goods Receipt 103 Goods moved into blocked stock 105 Goods moved from blocked stock into unrestricted stock 122 Return Delivery to Supplier ZP1 Virtual Goods Receipt (Goods received through a freight forwarder) Note: Payment should only be made for movement types 101 and

39 Review Purchase Order To see the FI postings, double click on Material Document number. In the next screen select 'Doc Info' tab and click on. The pop up window shows all documents created, select Accounting Document. System posts the expense and credits AP Ex Goods Recpt which will be adjusted when vendor invoice is paid. 39

40 Invoice Process Steps (MIR7) The main steps to process an Invoice with a PO are: Add Header Data Calculate VAT Add PO Reference Add Payment Terms and Unplanned Delivery Costs Simulate and Post Document 40

41 Add Header Data Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Enter the MIR7 Transaction Code. The Park Incoming Invoice: Company Code 1000 screen appears. The top-half of the screen is called Header; bottom half is called Line items. Populate the following fields in the Basic Data tab: 1 Invoice Date: The date on the vendor invoice 2 Posting Date: The date on which the Invoice will be posted (usually today s date)

42 Add Header Data Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Populate the following fields in the Basic Data tab: 1 Reference: The vendor Invoice number 2 Amount: The total amount on the Invoice including VAT and all charges. 3 Currency: Currency of the Purchase order 4 Text: A free text field used to convey any particular information about the document (in case of review) Note: At this time enter the PO currency even if the vendor has submitted invoice in local currency and wants payment in invoiced currency. Payment in other currency is covered later in the course

43 Calculate VAT Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post To add tax information, select Calculate Tax box. Then click the icon next to the tax rate field. This will let you change the Reporting Country. If you do not know the Country Code for your Country, click the icon to see a full list. After selecting the reporting country, a list of Tax Codes will be available to select from the dropdown menu. Choose the appropriate Tax Code. After the PO information is loaded, the Tax Amount will be automatically calculated. 43

44 Calculate VAT Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post The selected Tax Code will allow Umoja to calculate the tax amount and determine in which G/L Account to record the VAT. Examples of Tax Code options available are: 1 L1 (Input VAT 10% Reimbursable): Records VAT on Balance Sheet L2 (Input VAT 10% Non reimbursable): VAT recorded on the same expense line as the underlying amount 2 V0 (Zero Tax)

45 Add PO Reference Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post To create the link between the Invoice and PO, enter the PO number referenced in the Invoice in the field next to the Purchase Order/Scheduling Agreement drop-down menu. When you hit Enter, the vendor information appears on the top right side of the screen. In addition, the line items from the PO will populate in the table below. 45

46 Add PO Reference Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Items that have been received are highlighted in yellow. If you scroll to the right, you will see the number of items received under the Received field. Remove highlight from lines not included in invoice by clicking on the side bar. If you would like to add an additional PO to the Invoice: 1 Click the yellow arrow button next to the PO number field 2 A pop-up window will appear where you can enter more PO numbers 3 Click the Adopt icon to return to the MIR7 screen 46

47 Add PO Reference Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post In addition to adding the Tax Code at the Header level, it must also be entered for each line item. To do this, in the PO Reference section, scroll over to the right until you see the Tax Code field. Select the same tax code for each line item and hit Enter. The document will balance. 47

48 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Next, the payment terms should be input.. Payment terms are defaulted from the Vendor s Business Partner information and can be overwritten in the Payment tab. 1 The following fields must be populated to ensure no problems in Treasury Payment run: 1 Payment Terms: Select appropriate payment terms, starting with Z from drop down menu; Eg. Z001 = Due immediately; Depending on discount applicable select appropriate term e.g. Z003 To be paid within 14 days at 3% cash discount, within 20 days with 2% cash discount, within 30 days due net 48

49 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post 2 Baseline Date: Date from which system will calculate and derive due date to send outgoing payment with appropriate discount. System copies the invoice date as Baseline date and cases where invoice is received significantly later than the Invoice date listed, change the baseline date to match payment terms. 3 Payment Method: Specifies the way payment will be made to the vendor. Note: Umoja determines the House Bank from where the payment is sent using three parameters; Currency, Payment 3 Method and Beneficiary bank location. For Cheques the determination is done from Accounting Clerk field in BP. 2 49

50 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Selection of correct payment method ensures the payment is not held up as Exception. Common Payment Methods are: A Bank Transfer (ACH-CCD): For payee bank in the US, currency USD D & E Revised not to be used H Vendor will pick up cheque at Cashier window Q Cheque will be mailed. In this case the correct mailing address must exist in the vendor record. R UNDP Service: Used in situations where UNDP is procuring goods or services on behalf of an Umoja entity. Funds are not sent to UNDP at this stage. S SEPA: (Single Euro Payments Area) For payee bank in Eurozone and currency of payment is Euro U UNDP Pay Agent: Used in situations where UNDP is a Pay Agent or is paying a Travel Advance. Funds are not sent to UNDP at this stage. W Wire (SWIFT MT103): Used in all other regions X Wire payment in specific countries Y - Payment from Cash journal (allowed for amounts below USD 4,000) 50

51 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post 4 Payment Block: Denotes why a payment block is placed on the Invoice. Payment blocks must be manually removed for an Invoice to be paid 5 Partner 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. Click on Icon Save as Completed and system will route the document for Approval

52 Process Payment Retention Slide 35 shows the Retention at Header level. The Retention can also be at line level. This is seen in Item Detail under Invoice tab. 1 When PO number is input, system gives message Item is relevant to retention, see message log 2 System requires due date for the retention. Scroll far to the right until you find the Due Date field. Enter the desired payment retention due date 3 Check box in Tax Reduction field to eliminate tax from retention amount 4 Simulate the document and check the retention amount is credited to the Vendor account Save as complete to send document for approval through workflow. 5 52

53 Process Payment Retention The simulated document shows the lines for payment and retention. System credits the vendor for full amount and then creates another entry debiting the vendor and crediting vendor for retention items. At payment run the vendor will be paid net amount while the retention amounts will be paid only on due date. 53

54 Process Payment Retention After the Invoice has been posted, there will be two corresponding accounting documents created: one for the Invoice and one for the Retention. You can see the documents through PO or MIR4. To view these documents, first open the Invoice using the Display Document (T-Code FB03) Transaction. Click the Follow-On Documents button to open a list of all relevant financial documents for the invoice, including the Invoice and Payment Retention documents. Double-click any of these documents to display them. 54

55 Process Payment Retention First document shows full amount due to vendor while second document shows retention amount (with special GL indicator R ) payable at later date. 55

56 Add Unplanned Charges There may be instances where Procurement has agreed to other expenses and did not issue a Revision to the original PO; OR vendor has send invoice with additional charges to which Procurement agrees. Umoja allows payment of these expenses as Unplanned Charges provided these are within the tolerance of 10% or USD 4,000 whichever is lower. To record such charges: In the Basic data tab, enter full invoice amount (including the unplanned charges). When the PO is entered, the document is unbalanced due to unplanned charges In the Details tab, enter the unplanned charges in the Unpl. Del. Csts field. The document will become balanced as signified by the green light Click Simulate to simulate the document postings Click Save as Complete to submit for approval 56

57 Add Unplanned Charges The document is unbalanced by Euro This is due to unplanned charges for EUR 566 plus 10% tax. Enter the EUR 566 in unplanned charges tab, hit enter. System calculates the tax on this amount and balances the document. It also changes the tax amount in Basic data tab. 57

58 Add Unplanned Charges In Simulation, you can see that the unplanned charges are debited to the expense account in proportion to the original charges and vendor is paid full amount. 58

59 Enter Invoice Reduction Invoice more than PO In cases where the invoice is more than PO, Invoice Reduction option is used to settle the invoice. In addition, Invoice Reductions can only be entered if they fall within Invoice Tolerance (4000 USD or 10% of PO, whichever is lower). To do this: 1 Enter the Amount as it appears on the Invoice along with all other required fields (such as Payment Terms) Add the PO Number as the PO Reference 2 3 As you can see below, the Invoice Amount is JPY 100,000 more than the amount of the PO and Goods Received

60 Enter Invoice Reduction Invoice more than PO 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) 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 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

61 Enter Invoice Reduction Invoice more than PO 7 Next, 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 Qty Acc to Vendor field, hit Enter. 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 8 61

62 Enter Invoice Reduction Invoice more than PO The Simulation shows the vendor invoice is reduced and net payable to vendor is the Goods Receipt amount. If you are satisfied with the results, click Save as Complete to submit for approval. 62

63 Cases where the invoice is lower than GR There may be times when the Invoice is less than the Goods Receipt. In such cases, the matter should be raised with Procurement to find out reason for discrepancy. After the matter is discussed with Procurement and decision is made to pay the amount on invoice, In MIR7, enter the header details; the Purchase order number to call up lines that can be paid. 1 When the invoice is less than the Goods Receipt, the document will not balance. 2 In the illustration, the invoice value is $ 9,500 while the goods receipt is $ 10,000 and document is unbalanced by $

64 Cases where the invoice is lower than GR Click and remove the highlight from the line. 1 2 Enter the amount of invoice with no change in the quantity. 3 Hit Enter and document will balance

65 Cases where the invoice is lower than GR Simulate the invoice. You will note that Umoja debits the GR/IR with full amount thus clearing the account. Credits the vendor with invoice amount Credits the expense account for the balance. If you are satisfied, save as complete to route the document for approval. 65

66 How to pay the balance amount on the invoice that was reduced earlier In case Procurement informs that the amount less paid earlier should be paid, option MIR7 with Subsequent Debit is used. Enter appropriate information and call up the purchase order. In the line, enter the amount payable and quantity; simulate, save as complete to route for approval.. 66

67 How to pay the balance amount on the invoice that was reduced earlier Simulate the invoice. You will note that Umoja debits the Expense account Credits the vendor with invoice amount. Vendor is paid and expense is fully charged. 67

68 Key Actions for MIR7 (Hold) The MIR7 transactions provides several actions that can be taken on an Invoice. It is important to understand the function for each of the following functions in order to properly process an Invoice with a PO. Hold Simulate Document Save as Parked Save as Completed Click the Hold button to save the Invoice to complete at a later time. Clicking the Hold will not trigger any automated checks. It will not trigger workflow and will be viewable only to the original creator of the document. A document number will be generated at this point. 68

69 Key Actions for MIR7 (Simulate) Hold Simulate Document Save as Completed Save as Parked Before parking a document, the creator should always simulate the document to review for accuracy and completeness. Clicking the Simulate button will display a simulated financial posting in USD to the Vendor and G/L accounts. 69

70 Key Actions for MIR7 (Save as Parked) Hold Simulate Document Save as Parked Save as Completed If the Invoice fails any of the checks, it cannot be Saved as Complete and needs to be either put on Hold or Saved as Parked. Clicking the Save as Parked button will send the Invoice to the A/P Processor for review/completion through Workflow. There will be no edit check, budget check or an attempt at Three-Way Match at this time. A document number will be generated at this time. 70

71 Key Actions for MIR7 (Save as Complete) Hold Simulate Document Save as Parked Save as Completed The Save as Completed button is used to post the Invoice if it is within the Invoice Tolerance. In detail, clicking the Save as Completed button will cause the Umoja system to: Perform edit checks to ensure period is open and coding block is valid Verify budget availability (AVC) to ensure budget is sufficient to absorb VAT (when not reimbursable) or differences due to changes in exchange rates. Budget consumption is updated Attempt Three-Way Match If all checks are successful, document is routed through workflow System will Generate the Document number. 71

72 Look Up Document Approver The document sent through workflow for approval can be viewed by the processor. Using MIR4, enter the invoice document number, system will bring up the document. Click the Services for Object icon and select Workflow / Workflow Overview. In the next screen click on Information under column Agent. A list of approvers will be displayed and you will see whether these are intermediate approvers or approving agents. The Accounts Payable has 2 levels of approval; After first review document is routed to Approving Officer for posting. 72

73 Reverse Invoice If an invoice was posted erroneously, it can be reversed using the MR8M transaction Cancel Invoice Document. However, only the Financial Accounting Senior User has the access to execute this transaction. It should be executed after thorough review of the invoice and circumstances requiring reversal. The reversal and original documents should then be amended and text inserted for audit trail. To reverse an Invoice, the following fields are required: Invoice Document to be reversed 1 Reversal Reason: 2 Select 01 to reverse the invoice in the same period as originally posted. This will work only if the original posting period is open. Select 02 to post document in the currently open period. E.g. document was posted in January which is closed; its reversal and posting in April is achieved through 02 option. Posting Date: Select a posting date, if required; as default system takes current date as posting date. 3 Click on Display Document icon to see and confirm original document you are about to reverse. Click Save and reversal is posted

74 Changes to posted invoice Using the Change Posted Document transaction (FB02), Umoja allows for the following fields to be changed after a document is posted through workflow approval: Payment method Payment currency other than the PO currency Payment block Assignment Long Text To access the document, enter the document number and the fiscal year and click enter. If you don t know the document number, click the Document List button and enter parameters such as document type, posting date, own documents, etc. 74

75 Change Posted Invoice To change the Payment Method, Payment Block or Assignment: 1 Once the document appears, double-click the vendor line (the first line in the document) and another screen will pop up 2 Fields that can be changed will be in white. Fields in grey cannot be changed. Once the change is made, click the Save icon and ensure you receive the system message Changes have been saved. 3 Enter the local currency in which vendor wants payment. The Assignment field is used for the automatic clearing of Invoices. You may want to copy the assignment number from any other document that should be cleared against this document

76 Change Posted Invoice (Payment Long Text) Umoja allows insertion of comments and explanations on the document in addition to the Document Header Text and the Text on each document line. For example, it can be used to give a full description for why an Invoice has been reversed. To modify the Long Text: 1 Click the Extras menu 2 Select Text In the pop-up window that appears, enter the explanation next to the Correspondence field. Return to the document and click the Save icon to make your changes

77 Workflow Approval & Rejection In Umoja, documents that require review or approval(s) are automatically routed to the correct approvers based on the Delegation of Authority tables. This is handled in the Umoja system using the Business Workplace. The Business Workplace (T-Code SBWP) screen is organized in a similar way to an application. It has sections for the Inbox, Outbox and private/shared folders. You can view your items organized by content or tasks. Screen shot shows the document created in slide 91 is in Approving Officer box. 77

78 Workflow Approval & Rejection If you want to review the document before deciding whether you should approve it, click on the Document number in the lower part of the screen. This way you can see the document without locking it To Approve or Reject the document click on document in the box (highlighted in screen shot). 78

79 Workflow Approval & Rejection When you are ready to take action on the document, following options are displayed.: 1 Approve 2 Refuse requires reason for rejection 3 Cancel and keep work item in inbox does not replace it back in the workflow. It remains with the Approving Officer until it is replaced back in the workflow

80 Workflow Approval & Rejection If the Approve option is selected, a system message will appear at the bottom of the screen indicating that the document has been posted. If the Refuse option is selected, the document will no longer be visible in the list and will be sent back to the all users of the Accounts Payable group for action. In your Outbox, you can review items that you have previously reviewed along with their final decisions. 80

81 Simulation Activities Throughout this training, users will have the opportunity to conduct activities in the form of simulations. Simulations are interactive recordings of the Umoja system used to help facilitate a hands-on learning experience. The simulation links are provided on the corresponding activity slides. Users can access simulations in three different modes: Show me: Users view a video of an entire transaction being conducted Let s do it together: Users will be prompted to input data at key points during the transaction (recommended) Try it: Users can complete an entire transaction on their own, with no additional instructions provided 81

82 Activity 1 Transaction Name: Process Invoice with PO Transaction Code: MIR7 Link to the uperform simulation: ?originalContext=

83 Learning Checkpoint 1 Which of the following processes is used to compare the Invoice to the PO and the goods receipt? Select the correct option. A. Three-Way Matching B. Down Payments process C. Outgoing Payments process D. All of the above 83

84 Learning Checkpoint 1 Which of the following processes is used to compare the Invoice to the PO and the goods receipt? Select the correct option. A. Three-Way Matching B. Down Payments process C. Outgoing Payments process D. All of the above Option A is the correct answer. Three-way matching is used to compare the Invoice to the PO and the goods receipt. 84

85 Learning Checkpoint 2 Which of the following buttons lets the User (A/P) preview financial postings before clicking Save as Complete? Select the correct option. A. Add PO B. Preview Posting C. Check D. Simulate 85

86 Learning Checkpoint 2 Which of the following buttons lets the User (A/P) preview financial postings before clicking Save as Complete? Select the correct option. A. Add PO B. Preview Posting C. Check D. Simulate Options D is the correct option. All Invoice postings should be simulated before being Saved as Complete. 86

87 Module 2 Summary The key points covered in this module are listed below: Invoice with Purchase order is entered through Tcode MIR7. Sales tax, Retention and early payment discount are applied in the invoice process Documents should be simulated to verify correctness of the entry before Saving as Complete to trigger workflow Three-Way Matching is used to compare the Invoice to the PO and the goods receipt. System allows payment more than purchase order as Unplanned Charges subject to tolerance level of USD 4,000 or 10% whichever is lower. You can change Payment method, Payment Currency, Remove/insert payment block, and insert additional text after the invoice is posted. The invoice document can be reversed using the T-code MR8M You can look up the Approver (A/P) names from the Invoice document 87

89 Module 3 Objectives After completing this module, you will be able to: Process Invoices without PO Reversal of Invoice without a PO 89

90 Invoices without PO's Umoja introduces the concept of creating invoices with reference to a Funds Commitment (obligations) instead of a PO. This applies in the following scenarios: 1. Grants process for implementing partners 2. Official Travel 3. Entitlement Travel 4. Miscellaneous Obligating Documents 5. Fellowship Study Tour 6. Education Grant 7. Self-Insurance (unless treated as special PO) 8. Appendix D Claims All Fund Types 9. PK Local TCC/PCC payments 90

91 Process Invoice Without PO To create a non-po Invoice: Review the Fund Commitment Document using the T-code FMZ3 and note down the 1 Document and item number you need to use to charge the budget; 2 GL account number; 3 Vendor number, if any

92 Process Invoice Without PO Tcode FV60 is used to process the invoices (F10 claim, other settlements against obligations). Enter the vendor number, invoice date and Reference fields. Then click on Editing Options 92

93 Process Invoice Without PO 1 In the next screen, select Entry with short name in the Doc. Type Option 2 Click Save 3 Click return to previous screen. 2 3 Note: Document type input is very necessary to correctly route the document to workflow as well as for future reporting purposes. 1 93

94 Process Invoice Without PO Select appropriate document type (from drop down menu) for processing. Document type Purpose KE For charges with Fund Commitments (obligations) KR For direct expenses that require certification KH For charges not requiring certification (e.g. refund of security deposit) 94

95 Process Invoice Without PO If tax is applicable, check Calculate tax box, select country and applicable tax rate (reimbursable / non reimbursable). In our example tax is not applicable. In the line items, enter the General Ledger account (which should be same as in the Fund Commitment (obligation). Then scroll to the right and enter the Fund Commitment number in the Earmarked funds field. Then enter line item number of the Funds Commitment in the Earmarked funds: Document Item field. Other fields will be derived from the Fund Commitment document. 95

96 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Next, the payment terms should be input.. Payment terms are defaulted from the Vendor s Business Partner information and can be overwritten in the Payment tab. 1 The following fields must be populated to ensure no problems in Treasury Payment run: 1 Payment Terms: Select appropriate payment terms, starting with Z from drop down menu; Eg. Z001 = Due immediately; Depending on discount applicable select appropriate term e.g. Z003 To be paid within 14 days at 3% cash discount, within 20 days with 2% cash discount, within 30 days due net 96

97 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post 2 Baseline Date: Date from which system will calculate and derive due date to send outgoing payment with appropriate discount. System copies the invoice date as Baseline date and cases where invoice is received significantly later than the Invoice date listed, change the baseline date to match payment terms. 3 Payment Method: Specifies the way payment will be made to the vendor. Note: Umoja determines the House Bank from where the payment is sent using three parameters; Currency, Payment Method and Beneficiary bank location. For Cheques the determination is done from Accounting Clerk field in BP

98 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Selection of correct payment method ensures the payment is not held up as Exception. Common Payment Methods are: A Bank Transfer (ACH-CCD): For payee bank in the US, currency USD D & E Revised not to be used H Vendor will pick up cheque at Cashier window Q Cheque will be mailed. In this case the correct mailing address must exist in the vendor record. R UNDP Service: Used in situations where UNDP is procuring goods or services on behalf of an Umoja entity. Funds are not sent to UNDP at this stage. S SEPA: (Single Euro Payments Area) For payee bank in Eurozone and currency of payment is Euro U UNDP Pay Agent: Used in situations where UNDP is a Pay Agent or is paying a Travel Advance. Funds are not sent to UNDP at this stage. W Wire (SWIFT MT103): Used in all other regions X Wire payment in specific countries Y - Payment from Cash journal (allowed for amounts below USD 4,000) 98

99 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post 4 Payment Block: Denotes why a payment block is placed on the Invoice. Payment blocks must be manually removed for an Invoice to be paid 5 Partner 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. 6 In FV60, Payment currency is added during invoice processing

100 Process Invoice Without PO After completing all fields, hit enter. System will fill other fields and give message. at the bottom of the screen 100

101 Process Invoice Without PO For payments without the Fund Commitment document may require certification (to be used for direct expenses less than USD 4,000). In this case select document type KR and enter information for each of the following fields: G/L acct The account that will be to post D/C Whether the posting is a Debit or Credit Amount Fund Business Area Cost Center Grant (if applicable) G/L Line Text VAT (if applicable) Document type KH does not go through certification step and is directly routed to Approving Officer for posting. All above fields should be filled in for completeness. 101

102 Process Invoice Without PO When all fields are complete: 1 Click the Simulate button to view the simulated postings after the Invoice is approved. If you would like to save the document for later completion, click the Document menu, then select Park 2 Click the Save as completed button to forward the Invoice for approval and posting

103 Key Actions for FV60 Park Simulate Document Save as Completed Parking a document using FV60 saves the Invoice for later completion. However, it does not forward the document using workflow to the A/P Approver. In effect it is identical to the Hold button in MIR7. 103

104 Key Actions for FV60 Park Simulate Document Save as Completed The Simulate Document function is identical to MIR7. Before attempting to post the Invoice, the Simulate button should be clicked to ensure the correct accounts are being posted to. 104

105 Key Actions for FV60 Simulate Document Park Save as Completed Save as Complete should be used once the A/P User would like to post the Invoice. This will trigger workflow and will forward the document to the A/P Approver for review. Once the A/P Approver approves the Invoice, it will be posted to the relevant accounts. 105

106 Workflow Approval & Rejection In Umoja, documents that require review or approval(s) are automatically routed to the correct approvers based on the Delegation of Authority tables. This is handled in the Umoja system using the Business Workplace. The Business Workplace (T-Code SBWP) screen is organized in a similar way to an application. It has sections for the Inbox, Outbox and private/shared folders. You can view your items organized by content or tasks. Screen shot shows the document created in slide 91 is in Approving Officer box. 106

107 Workflow Approval & Rejection If you want to review the document before deciding whether you should approve it, click on the Document number in the lower part of the screen. This way you can see the document without locking it To Approve or Reject the document click on document in the box (highlighted in screen shot). 107

108 Workflow Approval & Rejection The decision options available are: 1 Approve 2 Refuse requires reason for rejection 3 Cancel and keep work item in inbox does not replace it back in the workflow. It remains with the Approving Officer until it is replaced back in the workflow

109 Workflow Approval & Rejection If the Approve option is selected, a system message will appear at the bottom of the screen indicating that the document has been posted. If the Refuse option is selected, the document will no longer be visible in the list and will be sent back to the all users of the Accounts Payable group for action. In your Outbox, you can review items that you have previously reviewed along with their final decisions. 109

110 Reverse a Non-PO Invoice If a non-po invoice was posted erroneously, it can be reversed using the FB08 transaction Cancel Invoice Document. However, only the Financial Accounting Senior User has the access to execute this transaction. It should be executed after thorough review of the invoice and circumstances requiring reversal. The reversal and original documents should then be amended and text inserted for audit trail. Invoice Document to be reversed 1 Reversal Reason: 2 Select 01 to reverse the invoice in the same period as originally posted. This will work only if the original posting period is open. Select 02 to post document in the currently open period. E.g. document was posted in January which is closed; its reversal and posting in April is achieved through 02 option. Posting Date: Select a posting date, if required; as default system takes current date as posting date. 3 Click on Display before reversal icon to see and confirm original document you are about to reverse. Click Save and reversal is posted

111 Activity 2 Transaction Name: Post Invoice without PO Transaction Code: FV60 Link to the uperform simulation: ?originalContext=

112 Module 3 Summary The key points covered in this module are listed below: As part of A/P process, there may be Invoices without PO's and may relate to Fund Commitment documents which are processed through T-code FV60. Amounts up to USD 4,000 can be paid without fund commitment and will go through certification step before approval by Approving Officer. The header fields are similar to MIR7 (basic and payment tabs except for Payment currency which is added by user before submitting for approval) This method will be used to pay daily allowance to the troops, settling Travel claims and other payments related to Fund Commitments Once an Invoice is parked, it follows the workflow and is automatically sent to the appropriate A/P Approver s inbox Invoices can be reversed and this should be done after careful review of the original transaction and need to revers the original document. The reversal reasons should be documented 112

114 Module 4 Objectives After completing this module, you will be able to: Enter a Credit Memo referencing a PO Enter an Evaluated Receipt Settlement for payment of services to Consultants and Individual Contractors 114

115 Exceptions to Three-Way Match As we have seen in Module 1, there are several options to take when an Invoice amount is greater than the amount of Goods Received. Unplanned Charges These charges are paid through the Details tab using the Unpl. Del. Csts field Invoice Reduction If the User (A/P) has received approval, they may enter an Invoice Reduction, which will lower the amount that is paid to the Vendor. This should not be used if a Credit Note is sent to the UN by a Vendor. Credit Memo In other cases, users can issue issue a Credit Memo on a specific purchase order and link it to the invoice for settlement. Note: The amount an Invoice can differ from the PO or Goods Receipt is limited by the Invoice Tolerance ($4000 USD or 10% of PO, whichever is lower). 115

116 Credit memo for PO related transactions In Umoja, the Credit Memo always links to the purchase order. This ensures history is maintained at PO level for analysis and audit trail. TO enter the Credit Memo: Access the MIR7 Transaction 1 In the Transaction drop-down menu select Credit Memo instead of Invoice 2 Mention vendor invoice against which the credit note is issued in Reference field. Enter tax information 3 Input the PO number in PO Reference and hit enter. This will bring up all the lines on the PO that were delivered and are highlighted in yellow. Remove highlight from lines not required for credit memo. In the required lines, change the quantity of items and amount, change VAT field. Check the amount in the balance box, and enter it in the Amount field. Hit enter and document will balance

117 Credit memo for PO related transactions Go to Payment tab, Enter the Umoja invoice number in the 1 Inv. ref. field and hit enter. Umoja will bring in the payment terms from the invoice and net off the credit note amount during payment. Message at the bottom will confirm data was copied from the invoice. 1 Simulate and then Save as Complete to send the document for approval. 117

118 Subsequent Credit The process to enter subsequent credit is similar to regular credit memo. This option is used for amount options only and no quantity is involved. This credit memo is linked to purchase order. This option applies to bulk discounts on quarterly purchases for Rations. The Tcode is MIR7 Select the option Subsequent credit from drop down. Input other fields (Reference, Currency, Tax and applicable rate. Enter the Purchase order. It will bring up all the lines that were settled. Select applicable line and enter the amount. Adjust the tax in the Tax code field (at line level seen when you scroll to right), hit enter and document will balance. 118

119 Subsequent Credit Go to Payment tab, 1 Determine if this credit needs to be adjusted against any pending invoice. If yes, enter the Umoja invoice number in the Inv. ref. field and hit enter. Umoja will bring in the payment terms from the invoice and net off the credit note amount during payment. Message at the bottom will confirm data was copied from the invoice In case no invoice is pending, enter Z001 (due immediately) in Payment terms field. This ensures settlement of this credit note from any next payment to vendor. Simulate and then Save as Complete to send the document for approval. 119

120 Credit Memo Without Purchase Order Tcode FV65 Park Vendor Credit Memo is used to enter Credit Memos without reference to a PO. It is to be used for recoveries from staff, consultants, etc. Enter FV65, and complete the input the following fields: Header Document date, Posting date Reference number of supporting document requesting recovery from vendors. System defaults document type KG. Text Line item GL account Amount Fund, Business area, Cost Center and Grant If any Fund Commitment is involved, enter the EMF number and line number and system will derive the coding block from EMF. 120

121 Credit Memo Without Purchase Order 121

122 Credit Memo Without Purchase Order In the Payment tab: Payment terms: usually this should be Z001 to ensure recovery from next payment to vendor. Baseline date: A future date can be put, e.g recovery in instalments. Payment Block (in our example Recovery from Payroll is used) Simulate document. If everything is correct, Save as Completed to route document for Approval. 122

123 Activity 3 Transaction Name: Apply Credit Memo Transaction Code: MIR7 Link to the uperform simulation: ?originalContext=

125 Evaluated Receipt Settlement for payment to Consultants, Contractors Purchase order is used to enter into contractual arrangement with Consultants and Contractors. As these personnel are not expected to submit invoice for their services and payment is based on attendance, Umoja uses Evaluated Receipt Settlement process to pay them. The time and attendance will be input by Requisitioner and Certified by Personnel Section, which will create document for FI posting. Tcode MRRL is used to create payables. 1 Enter Plant code for your mission. Each mission/office has a unique Plant Code which is used instead of Business Area. 2 Unique range of Purchase orders is reserved for Consultants and Individual Contractors. Range parameters are to Enter this range in Purchasing Document field

126 Evaluated Receipt Settlement 3 Select '4' in the Doc. Selection. This brings up separate lines for each Service Entry Sheet. Check the Test Run box. 4 Click on Execute icon

127 Evaluated Receipt Settlement The screen shows the vendor number, Purchase Document and under Reference Doc, the Service Entry Sheet number. You can see the Purchase order or Service Entry Sheet by clicking on the document number. If you are satisfied with the results, click the Back icon to go back to the previous screen. Un-check 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 ( ) account. Note: There is no workflow in this Tcode, so missions/offices should decide who will execute this transaction. 127

128 Evaluated Receipt Settlement The IC / Consultant can not be paid through ERS unless the Auto Evaluation settlement is checked in the Business Partner record. This can be seen under Purchasing in UN vendor role. 128

129 Reverse a ERS (MRRL) document Although the documents created through MRRL are for purchase orders, they can not be reversed using the transaction MR8M. Reversal of MRRL document should be done by issuing a Credit Note on the purchase order and selecting appropriate line. In the Assignment field, mention the copy the Assignment from original document and Save as Complete for posting. After posting, funds will be returned to Purchase Order. Next step is the Service Entry sheet should be reversed which will reverse the original GR/IR posting. 129

130 Learning Checkpoint 1 What options does a User (A/P) have if goods have been returned after the Invoice has already been posted? Select the correct option. A. Enter an Invoice Reduction B. Enter Unplanned Charges C. Enter a Credit Memo D. Enter a Goods Receipt 130

131 Learning Checkpoint 1 What options does a User (A/P) have if goods have been returned after the Invoice has already been posted? Select the correct option. A. Enter an Invoice Reduction B. Enter Unplanned Charges C. Enter a Credit Memo D. Enter a Goods Receipt Options C is the correct answer. In this case, the A/P User can enter a Credit Memo which, when approved, will reference the original Invoice and PO and the amount that has been returned. 131

132 Module 4 and 5 Summary The key points covered in this module are listed below: If an Invoice amount is greater than the expected PO or Goods Receipt, there are several options to reduce the payment that depend on scenarios of when the good was actually returned The A/P Approver must review and approve the Credit Memo in order for it to be posted The ERS process is used for payment of Consultants and Individual Contractors 132

134 Module 6 Objectives After completing this module, you will be able to: Determine when to request down payments Enter down payment requests Approve down payment requests Clear down payments against invoice Clear down payments without an invoice Clear down payments against cash received Generate report showing down payments 134

135 Key Terminology Noted Item Key Term Special GL indicator Description It refers to documents that are a one-sided memo entry. After payment is executed, the noted item will be updated to create a normal two-sided financial document. Noted items don t appear in financial reports (for example, trial balance). A parameter inserted in the Down Payment (advance) transaction which results in posting in a different General Ledger account compared to standard General Ledger account for a particular vendor group. 135

136 Down Payments Process Overview Down Payments Overview 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 and T-code F-47 whether or not there is a PO. For down payments made against a standard PO, a down payment request is made in Umoja ECC. Clearing occurs automatically after goods are received and the invoice is posted. The payment information is then forwarded to the Treasury to pay the appropriate amount. 136

137 Down Payments Process Overview Overview In Umoja, the following Special GL indicators are configured for United Nations use: Special GL Indicator (SPGL) Down payments to commercial vendors A Advances to implementing partners Y Travel advance T Salary advance S Security deposits H Cash advance for cash payments K 137

138 Down Payments Process Overview Overview Down payments require PO or Funds Commitment for following types: PO or Funds Commitment Down payments to commercial vendors PO Advances to implementing partners PO or FC Travel advance FC Salary advance n/a Security deposits n/a Cash advance for cash payments FC 138

139 Down Payments Process Overview Overview Down Payments are different than normal documents, as they are Noted Items until they are paid. This is because Umoja doesn t record both a receivable and a payable on the same document. For example, the following posting is not possible: Dr Advance Vendor Cr Accounts Payable - Vendor Instead Umoja records a Noted Item in which only one line is recorded. At the time of payment, Umoja Debits the Vendor Credits Cheque / EFT out account. Vendor debit appears in different GL account compared to standard account. 139

140 Down Payments Process Steps The main steps to process down payments are as follows: Enter Down Payment Request Approve Down Payment Request Clear Down Payments 140

141 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice 1 2 Confirm the Fund Commitment document is posted; Tcode FMZ3 Check if vendor number is mentioned in any line

142 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice The advance payment is initiated outside of Umoja. The steps for the A/P User to enter the request are: Use the T-code F-47 Populate the following fields on this screen: 1 Document Date: Memo date 2 Type: Keep default value (KA Down Payment) 3 Posting Date date of entry Currency 5 Reference: Memo number 6 4 Doc. Header Text: Free text field used for brief description of the down payment

143 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Under the Vendor section: 7 Enter the Vendor number, same as recorded in Fund Commitment 8 For the Trg.sp.G/L ind. field, select the type of Special G/L Indicator to use. In this case, a debit will be posted to the Vendor Down Payment account. 9 In the example, Spl. GL indicator A is used as the vendor is commercial vendor. When all required fields have been entered, click Enter icon to proceed to the next screen

144 Enter Down Payment Request Screen 2 Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Under the Item 1 section, enter the following fields: Amount 11 Tax Code, is mandatory. In the example Code V0 is used as there is no tax on this transaction 12 If tax is applicable, Check the Calculate tax check box and system will calculate tax. 13 Due On date (used by the Treasury to schedule the payment) 14 Payment Method: Payment method Y should be used when the travel advance will be paid in cash from imprest Earmd Fnds Enter the Fund Commitment document number and line. 17 Text Enter relevant text Then hit Enter. Umoja will derive Coding block elements from Fund Commitment

145 Enter Down Payment Request Screen 2 Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice 18 When making down payment against purchase order, enter the PO number and line. When making down payment without Purchase Order or Fund commitment e.g. Salary Advance, enter the following fields. 19 Enter Business Area Fund Enter Grant or GMNR (Grant Management Not Relevant) if there is no Grant Hit Enter Grant 145

146 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Click the Save button to submit the down payment request for approval. 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. 146

147 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Review the document, you will see there is only one line showing credit to Vendor; and Spl GL indicator F. When Treasury runs the payment, Umoja will convert F to A. 147

148 Approve Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Down payment requests are approved using the workflow and the Business Workplace (T-Code: SBWP) screen. They are sent to A/P Approvers based on their place within Delegations of Authority tables. From a G/L perspective, the down payment will appear in the vendor account as a Noted Item (not a credit or debit) before the payment is made. 148

149 Conversion of down payment to receivable After the payment is processed, Umoja clears the Noted Item and creates a receivable from the vendor with Special GL Indicator A. 149

150 Clear Down Payments against Invoice Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Incoming invoices that have had down payments applied are entered into Umoja as standard invoices using the T-code MIR7 (for Purchase Orders) or FV60 (for Fund Commitment documents). When a PO or EMF is added to the invoice, a pop-up will appear stating that a down payment has been recorded against the PO / EMF line. Down payment will be adjusted against the invoice by the system on Approval of the document. Users can not override this adjustment. Note: System will clear full down payment even though partial delivery is received. 150

151 Activity 4 Transaction Name: Enter Down Payment Transaction Code: F-47 Link to the uperform simulation: ?originalContext=

152 Learning Checkpoint 1 Which of the following fields indicates the type of down payment? Select the correct option. A. Reference B. Account C. Doc.Header Text D. Trg.sp.G/L ind. 152

153 Learning Checkpoint 1 Which of the following fields indicates the type of down payment? Select the correct option. A. Reference B. Account C. Doc.Header Text D. Trg.sp.G/L ind. Option D is the correct answer. The Trg.sp.G/L ind. field indicates the type of down payment. 153

154 Module 6 Summary The key points covered in this module are listed below: The A/P User enters the down payments using the T-code F-47 The Trg.sp.G/L ind. field in the Down Payment Request: Header Data screen indicates the type of down payment The A/P Approver makes the approval in the Business Workplace and the down payment request is converted into a down payment All payments are processed by the Treasury over the next payment run The payments can be cleared against the invoice, without invoice or against cash received 154

156 AP Document Upload Process The Accounts Payable Document process is executed automatically via an Accounts Payable voucher excel template. The process followed to automatically upload a General Ledger document via a journal voucher upload and to process a one-time manual entry is outlined below: Review Accounting Details Complete AP Excel Template Upload AP Document Post Document 156

157 AP Document upload Umoja brings in the functionality to upload Accounts Payable documents through Excel spreadsheet. The upload does the same function as FV60 or FV65. Upload can not be done for vendor invoices with a Purchase Order (MIR7 transactions). The Umoja Tcode is ZAPDOCLOAD Two versions of Excel spreadsheets have been configured: Version 2 allows users to create the individual documents i.e. each debit has a corresponding credit; multiple documents can be uploaded and each will have three lines. Since data entry is considerable, this option should be used sparingly. Version 10 allows users to create documents which have one line for Expenses and various lines for payables. This spreadsheet is useful for paying staff Danger pay, Mission Subsistence Allowance to uniformed personnel. Version 10 is also used when multiple vendors should be debited with credit going to one General Ledger Account. This is used when creating recoverable for private phone calls from staff members. 157

158 AP Document upload Shown here is the Version 2 Excel file. 1 The area in yellow is the field information in the same order as FV60 / FV65 2 The data fields are of three lines, one H and two L. H signifies the header part of FV60 (Invoice and posting dates, document type, currency, Text and baseline date). 3 Line 1 input is the posting key, Vendor number, payment block, payment method, Fund, Business Area and Grant 4 Line 2 input fields are GL account, Fund, Business Area, Cost Center, Grant and Earmarked fund/line number

159 AP document upload

160 AP document upload After completing the data fields, click on AP Data icon. Macro will create and save a text file. Note the location of text file. Enter tcode ZAPDOCLOAD In the file path, select the location. Check the Test mode and Execute. System will simulate the documents and point out errors. If required, fix the errors and execute in Test mode till there are no errors. Selecting Save as Completed will route the documents to Approving Officer. Selecting Posted will post the documents. Note: Offices/Missions should decide who should execute the Posted option. 160

162 Module 8 Objectives After completing this module, you will be able to: List the reports available in Umoja ECC which are relevant for A/P 162

163 Reports There are several reports available in Umoja ECC which are relevant for A/P. These include: Display Vendor BP Used to view the Business Partner Master Data record, including the customer and vendor records. Each Business Partner has various roles. E.g. UN Vendor, FI Vendor, Customer, etc. Different information is maintained ; General Information; Vendor role; Company code level; Purchasing; etc. To see the BP information, Tcode BP is used. Select the Vendor, and navigate to see various information for different levels. 163

164 Reports The reports that are relevant for the Invoicing process are: Display Vendor BP General data includes name, address and language. Company code data includes the G/L Reconciliation account number and payment method(s); contact information such as name of the vendor account payable processor, etc. Purchasing org data includes payment terms and default currency on orders. 164

165 Vendor General data 165

166 UN Vendor data 166

167 Company Code data 167

168 Purchasing data 168

169 Reports FBL1N Vendor Line Item Report Standard A/P sub ledger report that shows all transactions posted on specific vendors at the company code level. User can select to include: A/P documents with a Special G/L Indicator A/P documents with various statuses: Parked items Posted items open, cleared or both Noted items (down payments requests not yet processed) Overdue for payment Blocked payment Note: This report doesn t show documents by fund. Only noted items appear by fund. 169

170 Reports ZAPFBL1N Vendor Line Item Report by Fund and Grant UN has prepared a Custom A/P sub ledger report that shows all transactions posted on specific vendors at the company code level. This report open many fields for selection including Spl GL indicator, Fund, Business Area, Document Number, Parked documents, Noted Documents, Spl GL documents, Customer items, etc. This is a very useful report and shows the payables / receivables from vendor for a particular Fund and Business Area. Users can also select only Open items, Cleared items or all items. 170

171 ZAPFBL1N report 171

172 ZAPFBL1N report 172

173 Reports ZAPFBL1NN Vendor Line Item Report by Fund and Grant Another Custom A/P sub ledger is available that shows all transactions posted on specific vendors at the company code level. This report open many fields for selection including Spl GL indicator, Fund, Business Area, Document Number, Parked documents, Noted Documents, Spl GL documents, Customer items, etc. In addition to all the fields available in ZAPFBL1N, this report brings up the names of the vendors when the report is exported to Excel. Other fields such as Vendor name, Accounting Clerk, Name of Accounting Clerk, Bank Branch, Mission and Legacy Id can be seen in the report. These fields can be seen in the Change Layout mode. This report is very useful where the payment method is Z as it gives the information to the Accounting Clerk responsible to distribute the funds. 173

174 ZAPFBL1NN report 174

177 Reports FBV3 Display Parked Document To see a specific financial accounting document, we can enter the document number and fiscal year and the system will display the whole document. You can also click the Document List icon and enter certain parameters such as the user name, posting date, document type, document number range and so on to retrieve a list of document numbers. If you need more parameters use the dynamic selection icon to add parameters. The corresponding FM, CO and GM documents can be accessed from the Document Environment menu and clicking the Accounting Document option. 177

178 Reports FB03 Display Posted Document If you would like to view a specific Financial Accounting Document, you can enter the document number and fiscal year and the system will display the whole document. If you do not remember the document number, click the Document List icon and enter certain parameters such as the user name, posting date, document type, document number range and so on to retrieve a list of document numbers. You can also click the My own document button to restrict the list. Noted items can be included by ticking the Display noted item box. 178

179 Reports FB04 Display Changes This report shows changes that have been made after a document was posted. Enter the document number and fiscal year and click the Enter icon (green tick). Click the All changes button. In the example we can see that payment method was changed from blank to Q on 6 May

180 Reports FB04 Display Changes Alternatively, if you want to see changes to all posted documents for a given period, you should not enter a Document Number. Instead, click the Environment menu and then Multiple Display. 180

181 Reports FB04 Display Changes Enter the Company Code, Document Type and Period for which you want to see the change and click the Execute icon. In this example, the user elected to see document type RE (Invoice with PO), KR (Invoice without PO) and KG (Credit Memo without PO) documents changed between 1 May and 7 May

182 Reports FB04 Display Changes Note: The report shows the date, time and user ID of individuals who performed changes. 182

183 Learning Checkpoint 1 Which of the following reports shows all transactions posted on specific vendors at the company code level? Select the correct option. A. Display Changes FB04 B. Display Vendor BP C. FBL1N Vendor Line Item Report 183

184 Learning Checkpoint 1 Which of the following reports shows all transactions posted on specific vendors at the company code level? Select the correct option. A. Display Changes FB04 B. Display Vendor BP C. FBL1N Vendor Line Item Report Option C is the correct answer. FBL1N Vendor Line Item Report shows every debit/credit transaction that hits the project. 184

185 Module 8 Summary The key points covered in this module are listed below: The Display Vendor BP report is relevant for Invoice processing The reports that are relevant for the A/P process are Vendor Line Item, Display Parked Document, Display Posted Document and Display Changes Reports 185

187 Course Summary The key points covered in this course are listed below: The automated LIV process is used to compare the Invoice to the PO and the goods receipt The Invoice is simulated and posted in the Invoice process after which it goes through the workflow approval or rejection The A/P Approver makes the approval in the Business Workplace and the Down Payment request is converted into a Down Payment If an Invoice amount is greater than the expected PO or Goods Receipt, there are several options to reduce the payment that depend on scenarios of when the good was actually returned Discounts that are applied to purchases are logged in POs As part of A/P process, there may be Invoices without PO's. The A/P user may also need to process local troop payments or manage petty cash Invoices without POs typically occur if a payment is being made to another UN entity or if the payment is for goods/services is less than $350 (Petty Cash) 187

189 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 189

191 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 191

192 Congratulations! You have successfully completed the Umoja Accounts Payable Process course. 192