FI322 Umoja Payment Processing. Umoja Payment Processing Version 17 1

FI322 Umoja Payment Processing Umoja Payment Processing Version 17 Last Copyright Modified: United 16-August-13 Nations 1

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 2

Introduction Please share with us: Your name Your section/unit Years of experience in the field An interesting fact about you 3

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 e-mail 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 E-mail Participate Ask Questions Breaks 4

Course Overview The purpose of the Umoja Payment Processing course is to explain how to process incoming and outgoing payments in the Umoja system. It will also describe how prior day treasury and operational transactions are automatically cleared when bank statements are uploaded. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data and Coding Block Overview Umoja Cash Management and Treasury Overview Umoja ECC Navigation Umoja BI Navigation Course Duration: 6 hours 5

Course Objectives After completing this course, you will be able to: Process an outgoing payment Process an incoming payment Explain the automatic clearance of treasury and operational transactions Execute the Payment Processing reports 6

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 7

Module 1 Objectives After completing this module, you will be able to: List the roles involved in the Outgoing Payments process Initiate and modify a payment proposal Check cash sufficiency Create a payment list Schedule and execute a payment run 8

Roles & Responsibilities The following Umoja Enterprise role is involved in the Outgoing Payments process: Cashier Submits cash forecast to UN Treasury Ensures that that the bank account has sufficient balance to cover the payments Generates all payments (using the transaction code- F110 ) in Umoja Manages cash control by fund/grant Raises issues identified through cash control to Finance Managers for resolution Ensures that bank data is reflected accurately in Umoja on a timely basis to allow Front Office to manage daily liquidity Verifies that the bank communication files are processed and accepted by SWIFT/banks in a timely manner 9

Sources of Outgoing Payments Outgoing Payments refer to the disbursement of Funds in settlement of requirements originating from two main sources: Accounts Payable (A/P) Payments AP payments are transactions that are associated with a vendor and an invoice due, and processed through the AP process (covered in the FI321 Umoja Accounts Payable Process course). Treasury Payments Treasury payments are initiated based on the settlement instructions for each treasury transaction. These transactions include: Investments Foreign Exchange Transactions (Spot) Internal Bank Transfers (conducted when accounts are in surplus or deficit) Note: During Foundation, all UN staff members will be setup and handled as vendors in Umoja. This process will change with the introduction of the Human Resources (HR) module during Extension. 10

Outgoing Payments Processing Outgoing Payment Processing looks at the various disbursement channels used to make payments to different payees such as: Through House Banks From the Main Imprest Accounts kept by the Cashier From Imprest Accounts kept by other UN Personnel outside of the Cashier s Office e.g. Regional Administrative Officers From Petty Cash Accounts kept by other UN Personnel in locations away from the Cashier s Office e.g. Petty Cash in the Medical Section 11

Outgoing Payments Processing through House Banks Payments Methods We ll first look at Outgoing Payment Processing through House Banks before turning to the Cash Journal functionality which is used for Imprest and Petty Cash disbursements. When Outgoing Payments are processed through House Banks, two types of payment methods are used: 1. Electronic Funds Transfer (EFT) payment methods. 2. Special payment methods. 12

Outgoing Payments Processing through House Banks a/ Electronic Funds Transfers Payment Methods Symbol Description A P S W Q H Automated Clearing House (ACH) wire transfers to businesses: Require a US bank account. Automated Clearing House (ACH) wire transfers to individuals: Require a US bank account. Single European Payment Area (SEPA) only for Euro wire transfers in the Euro zone and affiliated countries. Require a valid IBAN in SEPA country. Wire transfers using Swift messages, typically used for local EFT payments. Require a valid bank account. Cheque for mailing. Requires a valid street address. Cheque for pickup at Cashier s office. Has no specific requirements in terms of mailing address in BP. 13

Outgoing Payments Processing through House Banks b/ Special Payment Methods Symbol Description Y R U Cash payments via cash journal (exempted of cash control): will be processed through F110/FPRL_LIST and paid from cash journal UNDP Service (exempted of cash control): will be processed through F110/FPRL_LIST UNDP Pay Agent (exempted of cash control): will be processed through F110/FPRL_LIST Note: The payment method 1 must not be chosen for vendor payments; this payment method is reserved for Treasury internal transfers and investment related payments. 14

Outgoing Payments Processing through House Banks Treasury Pool Funds: With the introduction of House Banks, all bank accounts now belong to one of three Treasury Pool Funds. 1. Main Pool Cash & Investment 64VQA-> all operational in/out payments 2. EUR Pool Investment 64VQE 3. UNSMIS Pool Investment 64VQZ Operational Funds (e.g. Missions) no longer have balances in their own bank accounts. Instead they have equity in the Treasury Main Pool. The equity of each Fund in the Pool increases with the Fund s incoming payments and falls with outgoing payments. Outgoing Payments will be pooled by currency, based on House Bank Determination logic. Foreign currency payments will be delegated to the appropriate House Bank account, maintained by UNHQ Treasury. Local payments will continue to be the responsibility of the mission-based cashiers. 15

Outgoing Payments Processing through House Banks 16

Outgoing Payments House Bank: Example Sells supplies UNMISS Payment amount deducted from the balance of the UNMISS fund in the cash pool Pays for supplies from its House Bank Account Vendor in Lebanon Funding UN Treasury Fund Cash Pool LBP House Bank Account If the United Nations Mission in the Republic of South Sudan (UNMISS) purchases supplies from a vendor in Lebanon, then the vendor will be paid from the LBP House Bank Account, managed by the United Nations Interim Force in Lebanon (UNIFIL). The cash level documented in the UNMISS Fund, which is maintained within the USD cash pool, will reduce by the amount of the payment made. The amount of the payment will have been preemptively forecasted and, as a result, already deposited into the LBP House Bank account. 17

Pilot Specific Arrangements For Pilot only, the UNIFIL Cashier users are setup to run payments for: a/ Cheques LBFS1 LBP Q & H for vendors with a valid Lebanese address in the Business Partner master record (ZIP code not needed, but street and city) LBFS2 USD Q & H for vendors with a valid Lebanese address in Business Partner master record (ZIP code not needed, but street and city are required) b/ Electronic Funds Transfers LBCI1 LBP W for vendors with a valid Lebanese bank account LBCI2 USD W for vendors with a valid Lebanese bank account Any other combination has to be processed by a Headquarters Treasury user (test userids starting with 00 instead of LF) N.B. No Cashier functions were created for UNSCOL users in Pilot. 18

House Bank Outgoing Payments Processing: End-to-End Process Description The Outgoing Payments process identifies the steps to create a payment proposal, conduct required cash sufficiency checks, hold a payment (if necessary) and release the payment. The end-to-end Outgoing Payment process is as follows: Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files 19

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The first step for processing an outgoing payment is to create a payment proposal. To create a payment proposal, you must generate and complete the parameters of that proposal. Parameters included in a payment proposal are: 1. Accounts to be included in the payment run 2. Account types 3. Desired posting date 4. Payment method 5. Payment currency 6. Date of next payment run 7. Payment grouping when being paid out to the same vendor 8. Netting with Accounts Receivable (A/R) Note: Parameters 1-6 are mandatory fields, whereas parameters 7 and 8 are optional. 20

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files To access the Automatic Payment Transactions screen, the steps are: 1 Log in to Umoja and type F110 in the Command field 2 Click the Enter icon 2 1 21

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Automatic Payment Transactions: Parameters screen appears. Populate required details in the following parameter fields: 3 Enter the run date in the Run Date field 4 Enter the current date in the Posting Date field 5 Enter the document entry date in the Docs entered up to field 3 4 5 22

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Enter 1000 in the Company codes field 6 7 Enter the Payment Method Enter the next Posting Date 8 9 Enter payments for a range of vendors in the lists in the Vendor account field Note: Each payment method is represented by a symbol in Umoja. When you scroll over that field in the system, the menu icon will appear. Click the menu icon to view the list of payment codes. 6 6 7 8 9 23

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Click the Free Selection tab and enter the appropriate selection criteria: 10 Click the Document Number from the Mathcode Field Name menu 11 Enter the document number in the Values field. Use a comma when specifying more than one document number 12 10 11 Note: Free selection entries are strictly optional and will normally only be used when we want to make a specific payment. 12 24

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Click the Additional Log tab and enter the following data: 13 Check the options in the Required logging type section : 14 Due date check Payment method selection in all cases Line items of the payment documents 15 Enter the account number for the vendor being paid in the proposal in the first text box In the Accounts required section. 14 13 Note: If multiple vendors are being paid, a range can be entered by adding the account number of the last vendor in the second text box. 15 25

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Propose the payment run Click the Save icon to save all the parameters entered 16 Click the Status tab 17 Click the Proposal button 18 18 16 17 26

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Activate the Payment Release List. The Information dialog box appears stating that the payment release list is activated. Click the Checkmark button 19 19 27

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Schedule the payment release list. Click the Status button. 20 The first time you click the Status button, the Schedule a Proposal pop-up window appears. The user can either schedule the proposal to run at a certain date and time or run it immediately by clicking the Start immediately check box. 20 In this example: The proposal will run immediately as the Start immediately checkbox has been selected. 28

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Click the Status button until the message No parameters entered as yet appears in the status tab 21 21 29

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files After the payments release list is proposed, the items in the list are further grouped into smaller lists according to different payment criteria. The sub-lists are then approved and released for payment. 23 22 The steps to follow are: Enter FPRL_LIST in the Command field 2 Click the Enter icon 22 23 The settlement and item data in the payment proposals created in the Automatic Payment Program are displayed as open items in a list of unassigned items. 30

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files All payment proposals must be assigned to a Payment Release List in order to be processed and released in Umoja. The FPRL_List screen displays the last Payment Release List created by the user. If no Payment Release Lists have been created, the screen appears blank. Note: It is recommended that a new payment list is created every time FPRL_LIST is run. This will assist the user in keeping track of what has and has not been processed. One list should be made for each type of payment. Ex: USDchequepayments To create a Payment Release List, the following steps must be executed: Click the Create New List button. 24 31

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The List Attributes window appears. Enter a list name in the List Description field 25 Select the correct user ID in the Processor field 26 Press the Enter icon 27 26 25 Note: Selecting a processor enables the system to pull all payment proposals created by that user into the list being created. 27 32

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The steps to assign the payments to be made to the current list are: Click the Unassigned tab Select the payments to be made by clicking on the button on the left side of each row. Use Ctrl-Click or Shift-Click to select multiple rows. 28 29 Click the Assign Items icon 30 33

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The steps to approve payments to be made are: Click the Assigned tab 31 Select the payments to be made by clicking on the button on the left side of each row. Use Ctrl- Click or Shift-Click to select multiple rows. When all desired rows desired are selected, then they will be highlighted Click the Approve Items icon 32 33 34

Create a Payment Proposal Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The steps to make payments are: Select the payments to be made by clicking on the button on the left side of each row. Use Ctrl- Click or Shift-Click to select multiple rows. 34 Click the Pay Items icon 35 35

Check Cash Sufficiency at the Account Level Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files After creating a payment proposal, the user must conduct a cash sufficiency check to ensure that the cash balance in the identified account is sufficient to cover the proposed payment. 2 1 Navigate to the Overview Values for Cash Control Account Assignments. 1 Type FMCCAVCOVERVIEW in the Command field 2 Click the Enter icon 36

Check Cash Sufficiency at the Account Level Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Enter the data required to run the cash sufficiency check. 3 Enter 1000 in the Company Code field 4 Enter 9P in the Control Ledger field. If appropriate, enter the fund to narrow down your selection 5 Click the Execute icon to run the report 5 3 4 37

Cash Control Overview Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Cash Control Overview Report for the selected Ledger appears. Review the report. Expand the necessary folders and double-click amounts to see the desired information. 38

Schedule Payment Run Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files After checking the cash sufficiency at the account level, the user merges payments and schedules a payment run. 2 1 Navigate to the Creation of Cross-Payment Run Payment Media screen Type FBPM1 in the Command field Click the Enter icon 1 2 Note: Payments are batched according to currency first, then vendor. 39

Schedule Payment Run Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Specify the selection criteria for the payments to be included and create the payment media. 7 3 In the Pymt.runs section, enter the processing date in the Run Date field (do not enter the value date) Enter House Bank 4 5 Enter Payment Method 6 Enter Currency 7 Click the Execute icon It is advisable to run payment batching at the end of the day once all payments have been entered (prior to applicable bank deadlines) 3 4 5 6 40

Schedule Payment Run Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files A dialog box will display stating the number of payments selected, the medium run created and an indication that the program has started as a separate job. After scheduling a payment run, the payment batch is automatically sent to the SAP Bank Communication Management (BCM) program to be released. The batch will not be released from BCM until it has been approved by the bank signatories associated with the House Bank account the money is being withdrawn from. Let s take a closer look at the BCM and review the process followed by the bank signatory to approve (and ultimately release) the payment batch. 41

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The following steps are conducted by the bank signatories to review, approve and release a payment batch: Access the Payment Batches Screen: 1 Enter BNK_APP in the Command field Click the Enter icon 2 2 1 42

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Payment Batches screen appears displaying all payment batches created in the system. A batch can be easily located by referencing its run date or its three letter identification. As stated in each line item, a batch requires approval by two separate bank signatories. 43

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Payment Batches screen groups batches into separate tabs based on status: Batches awaiting approval from second bank signatory Payments that have been dropped and must be recreated/ reprocessed Batches waiting for approval from first bank signatory Batches that have already been released List of changes made to batches 44

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Process the payment batch 3 Highlight the correct batch 4 Click the Approve icon 4 Note: Only a bank signatory can review and approve the list of batches being paid from the House Bank Account for which s/he has been delegated authority to serve as bank signatories. Dual approval requires two different bank signatories to approve the batch. 3 45

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files A pop-up box appears prompting the user to confirm that the batch is being approved. 5 Click the Enter button or press the Enter key to confirm. 5 The batch line item is moved to the Additional Release Steps tab and is now ready for approval by the second bank signatory. 46

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Second Bank Signatory in the Additional Release Steps Tab, 6 Highlight the appropriate batch line item 7 Click the Approve button 7 6 47

Release Payment Files Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files A pop-up box appears prompting the user to confirm that the batch is being approved. 8 Click the Enter button or press the Enter key to confirm. 8 The second Bank Signatory approval triggers the automatic release of the batch. For batches containing electronic payments, a SWIFT202 message is automatically generated and sent to notify the bank that the specified amount must be drawn and deposited in the vendor s bank account. For cheques, the second Bank Signatory approval triggers cheque printing. It is thus important that the second approver coordinates with the Cashier s Office where the cheque printer is installed. 48

Release Payment Files or Print Cheques Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Batch and Process Monitor screen is a component of the Bank Communications Management program and is used to conduct the following activities: Review SWIFT messages sent to banks following batch approval Manage cheque log and print cheques Let s explore the Batch and Process Monitor in greater detail. Access the Batch and Process Monitor screen: 1 Type BNK_MONI in the Command field Click the Enter button 2 2 1 49

Release Payment Files or Print Cheques Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Batch and Payment Monitor screen appears. Enter the following information: 3 Company Code 4 House Bank 5 Run Date 3 4 Note: This is an inquiry screen that provides the user with filtered views of system data. Each additional field populated increases the specificity of the data by filtering it. 5 50

Release Payment Files or Print Cheques Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The Batches screen appears displaying all batches created in Umoja within the parameters entered on the Batch and Monitor screen (e.g. House Bank Account). 51

Release Payment Files or Print Cheques Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files A consolidated list of all batches is displayed in the All tab. Batches are also listed in separate tabs according to status: Lists batches that are being approved by the bank signatory Ack/nack received from bank Lists batches that could not be processed (e.g. error in pay, approver rejection) Lists batches that have been created Lists batches that have been approved by the bank signatory Lists batches that have been released (SWIFT payment sent to bank) Batches have been reconciled against bank statements (automatic reconciliation) 52

Release Payment Files or Print Cheques Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files Additional information can be retrieved from the Batches page for each batch line item listed in the tabs. 6 Highlight the appropriate line item Click the FILES button 7 7 6 53

Release Payment Files or Print Cheques Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files The FILES button displays two menu options. The File for this batch menu option displays the SWIFT MT202 message sent to the bank for completed electronic batch line items. 54

Check Management As mentioned earlier, the second Bank Signatory approval triggers the automatic release of the batch. This release initiates Cheque printing. A sample of the cheque layout is displayed on the right. Positioning the second bank signatory in the office where the cheques are printing allows that signatory to needed troubleshooting and modification of payments immediately 55

Check Management Cheques can be viewed and modified on the Check Register screen displayed below. This screen is accessed by running the FCHN t-code. Please refer to the Payment Processing: Modifications and Troubleshooting Job Aid to review the processes followed to modify, void or reprint a cheque in Umoja. 56

Introduction of the Cash Journal The Cash Journal is a functionality in Umoja that is used to record the following types of cash transactions: Outgoing Payments Main Cashier's Imprest Disbursements Imprest Disbursements Petty Cash Transactions Incoming Payments Cash Receipts Cheque Receipts The introduction of the Cash Journal represents a large step in streamlining the process currently used by UN field missions to document the receipt and disbursement of cash and cheques. Currently, receipts are documented in paper form. With the implementation of the Cash Journal, this manual task will be eliminated. Petty Cash and Imprest Custodians will henceforth make entries directly in Umoja at the time they disburse cash. 57

Outgoing Payments Processing through the Cash Journal Payments Types Three types of Outgoing Payments can be processed through the Cash Journal functionality. 1. Main Cashier's Imprest payments 2. Imprest Account payments 3. Petty Cash payments As mentioned earlier, custodians of the Imprest Account and Petty Cash Accounts are not part of the Cashier s Office. However, as all three accounts are used to disburse funds, we ll examine each in turn, beginning with the Main Cashier's Imprest. For each account, we ll examine: 1. The accounting entries passed in Umoja to: Setup the account and subsequently replenish it Make disbursements from the account Close the account as part of Year End closing activities 2. The step-by-step process in Umoja to record Outgoing Payments from the account 58

Posting Disbursement from Main Cashier's Imprest Account Establishment & Replenishment The establishment of a Main Cashier's Imprest Account at a mission s HQ remains the sole authority of the Controller. When such authorization has been given, the Main Cashier's Imprest Account will be setup with an amount equivalent to the level indicated in the authorization (usually USD 25,000) as follows: 1. Accounts Payable Unit will raise a payable using FV60 Dr. Cash Journal Clearing Account (a/c 1-171-1000) Cr. Accounts Payable Vendor (Staff Member - GL Recon A/c 3-510-1610) 2. Treasury will generate the payment through F110 Dr. Accounts Payable Vendor (Staff Member - GL Recon A/c 3-510-1610) Cr. Bank EFT Out (a/c 1-101 -XX 14) 3. Custodian collects cash from the bank and brings to Main Cashier Imprest (FBCJ) Dr. Main Imprest Account (a/c 1-171-1XXX) Cr. Cash Journal Clearing Account (a/c 1-171-1000) The same entries will be passed when replenishing the Main Cashier's Imprest, but this time only with the amount necessary to bring the Imprest to the level authorized by the Controller. 59

Posting Disbursement from Main Cashier's Imprest Account Disbursement Disbursements from the Main Cashier's Imprest Account shall remain on exceptional basis where it is not practical to process outgoing payments through a House Bank as described earlier. For instance, it may become necessary to medically evacuate a staff member on a weekend when banks aren t open. Whatever the reason to make an outgoing payment through the Cashier s Main Imprest, Accounts Payable must first raise a payable (using FV60 or MIR7) as follows: Dr. Expense (7-4XX-XXXX) or Asset (2-7XX-XXXX) Cr. Accounts Payable - Vendor(3-51X-XXXX) The Cashier references the Document Number generated from the entry above in the Assignment Field of the Cash Journal when making the disbursement. The entries passed are: Dr. Accounts Payable Vendor (3-51X-XXXX) Cr. Main Imprest Account (a/c 1-171-1XXX) N.B. The Assignment Field is the main link between the Cash Journal and Accounts Payable. 60

Posting Disbursement from Main Cashier's Imprest Account Year End Closing As part of the closing instructions from Accounts Division in HQ, all mission Main Cashier's Imprest Accounts have to be closed. On the cut-off date for Year End Closing, the remaining cash held by the Main Cashier's Imprest Account Custodian must be deposited into the House Bank. This enables Certifying and Approving Officers to verify physical cash counts. When the Main Cashier's Imprest Account Custodian deposits cash in the bank, the following entries are passed: 1. In the Cash Journal (FBCJ) Dr. Cash Journal Clearing Account (1-171-1000) Cr. Main Cashier Imprest (1-171-1XXX) 2. When the bank statement is uploaded (FF.5) Dr. Bank Nominal (1-101-XX10) Cr. Bank EFT In (a/c 1-101 -XX16) 3. In Accounts Unit, F-03 is used to clear the Bank Clearing A/c Dr. Bank EFT In (a/c 1-101 -XX16) Cr. Cash Journal Clearing Account (1-171-1000) 61

Posting Disbursement from the Main Cashier's Imprest Having looked at how the Main Cashier's Imprest is setup, how disbursements are made from it and how the account is closed at Year End, we can now look at the step-by-step process for making an outgoing payment from the account. As indicated earlier, cash can only be disbursed from the Main Cashier's Imprest if a payable is raised by Accounts Payable for the required amount. The document number generated when the payable was posted is entered in the Assignment Field in the Cash Journal. Let s walk through the process followed to post a disbursement from the Main Cashier's Imprest. Access the Cash Journal in Umoja Enter FBCJ in the Command field 1 Click the Enter button 2 2 1 62

Posting Disbursement from the Main Cashier's Imprest 3 Enter 1000 in the Company Code field 4 Select the appropriate Main Cashier's Imprest journal 5 Click the Enter button 2 5 63

Posting Disbursement from the Main Cashier's Imprest The Main Cashier's Imprest appears. 6 Click the Today button to ensure that the available balance of the journal is up to date 6 64

Posting Disbursement from the Main Cashier's Imprest Entries into the Main Cashier's Imprest are made in the Cash Payments tab. 7 Enter the following information: Select Paid to Vendor in the Business Transaction column Enter the transaction amount Select the vendor being paid Enter the document number of the associated approved payable in the Assignment field 8 Press the Enter key to auto-populate remaining required fields. Remaining required information is auto populated in each respective column and the red status light appears in the document status column. 9 Highlight the transaction Click the button 10 7 65

Posting Disbursement from the Main Cashier's Imprest The status light in the Document Status column turns green indicating that the transaction has been posted to the Main Cashier's Imprest. The amount posted can now be disbursed by the cashier. This transaction has now been matched with the approved invoice and posted, but both documents will be automatically clear if the Assignment Field is correctly filled in. In case automatic clearing fails manual clearing will be used. This is explained later. For now, lets review the process followed to view the transaction outside the cash journal. 66

Posting Disbursement from the Main Cashier's Imprest The document view and general ledger view of this transaction can be viewed from the cash journal screen. 11 Click the Follow-on doc.button The List of Documents in Accounting pop-up window appears. 12 Double-click the Accounting document row 12 11 67

Posting Disbursement from the Main Cashier's Imprest The Document Display View shows one line item crediting the vendors account and one line item debiting the appropriate UN account. To view the how the transaction displays in the General Ledger, click the General Ledger View button. 68

Posting Disbursement from the Main Cashier's Imprest The General Ledger View shows the transaction line item posted to the Accounts Payable Subsidiary Ledger and the transaction line item posted to the Reconciliation Account. To view more details on the vendor transaction, double click the vendor line item. 69

Posting Disbursement from the Main Cashier's Imprest The Vendor Line Item Display provides additional details on the transaction, including: The corresponding invoice The cashier s imprest payment transaction = past due Note: In this example, we see that the cash imprest payment has been posted, but not cleared along with the payable listed. Once both line items have been cleared, they will move to the table at the bottom of the screen. 70

Posting Disbursement from Imprest Account Establishment & Replenishment Unlike the Main Cashier's Imprest Account the Controller delegates authority to the DMS/CMS to: (i) to establish new Imprest Accounts except Main Cashier's Imprest Account ; and (ii) to approve Imprest Account holders (FRR 104.8, 104.9 and ST/AI/2004/1) The entries to setup the Imprest Account are same for the Main Cashier's Imprest: 1. Accounts Payable Unit will raise a payable using FV60 Dr. Cash Journal Clearing Account (a/c 1-171-1000) Cr. Accounts Payable Vendor (Staff Member - GL Recon A/c 3-510-1610) 2. Treasury will generate the payment through F110 Dr. Accounts Payable Vendor (Staff Member - GL Recon A/c 3-510-1610) Cr. Bank EFT Out (a/c 1-101 -XX 14) 3. Custodian collects cash from the bank and brings to Imprest A/c (FBCJ) Dr. Imprest Account (a/c 1-172-1XXX) Cr. Cash Journal Clearing Account (a/c 1-171-1000) The same entries will be passed when replenishing the Imprest Account, but this time only with the amount necessary to bring the account to the authorized level. 71

Posting Disbursement from Imprest Account Disbursement Imprest Accounts are usually established for a Mission s Regional Offices with Regional Administrative Officers as custodians. Disbursements from the Imprest Account are of two types: 1. Payments as instructed by the CFO on the basis of a payable raised by Accounts Payable. This is similar to disbursements from the Main Cashier Imprest. 2. Payments for which no payable has been raised but for which specific delegation has been given to the custodian to undertake e.g. settlement of utilities. The amount disbursed from the Imprest A/c can t exceed the low value procurement threshold of USD 4,000.00 per transaction. The accounting entries are the same as for the Main Cashier's Imprest Account. 1. Raising of payable Dr. Expense (7-4XX-XXXX) Cr. Accounts Payable Vendor (3-51X-XXXX) 2. Disbursement of Cash Dr. Accounts Payable Vendor (3-51X-XXXX) Cr. Cash (1-171-2XXX) 72

Posting Disbursement from Imprest Account Year End Closing The Imprest Account Custodian is also required to deposit remaining cash in the House Bank on the cut-off date for Year End Closing. When the Imprest Account Custodian pays cash in the bank, the following entries are passed: 1. In the Cash Journal (FBCJ) Dr. Cash Journal Clearing Account (1-171-1000) Cr. Imprest Account (a/c 1-172-1XXX ) 2. When the bank statement is uploaded (FF.5) Dr. Bank Nominal (1-101-XX10) Cr. Bank EFT In (a/c 1-101 -XX16) 3. In Accounts Unit, F-03 is used to clear the Bank Clearing A/c Dr. Bank EFT In (a/c 1-101 -XX16) Cr. Cash Journal Clearing Account (1-171-1000) N.B. If the Imprest Custodian had deposited a cheque and not cash, the debit and credit entries in (1) and (3) above would have been Bank Clearing Cheque In (1-101-XX12) 73

Posting Disbursement from Imprest Account Step-by-Step Process The step-by-step process to follow to disburse cash from the Imprest Account depends on whether or not a payable has been raised in Accounts Payable. 1. When a payable already exist and the Imprest Custodian is instructed to make the disbursement, the steps to follow in Umoja will be the same like those followed by the Main Cashier's Imprest Custodian. The Accounts Payable Unit will communicate the Document Number generated when the payable was raised to the Imprest Account Custodian so that it can be referenced in the Assignment Field of the transaction line of the Cash Journal. 2. In the case a payable has not be raised, the Imprest Account Custodian will enter the details in the Cash Journal and wait for an Approving Officer in the Finance Section to post the entry before disbursing the cash. We discuss the process in detail when looking at how outgoing payments are disbursed from Petty Cash. N.B When selecting the appropriate journal ensure that the Imprest Account is picked. Also note that disbursements from the Imprest Account are considered low value procurement and capped at USD 4,000.00. 74

Posting Disbursement from Petty Cash Account Establishment & Replenishment Petty Cash Accounts are established under the authority of the DMS/CMS in the same way as Imprest Accounts. The maximum amount per Petty Cash Account is usually set at USD 5,000.00. The accounting entries are equally similar, except for the Petty Cash Account number. 1. Accounts Payable Unit will raise a payable using FV60 Dr. Cash Journal Clearing Account (a/c 1-171-1000) Cr. Accounts Payable Vendor (Staff Member - GL Recon A/c 3-510-1610) 2. Treasury will generate the payment through F110 Dr. Accounts Payable Vendor (Staff Member - GL Recon A/c 3-510-1610) Cr. Bank EFT Out (a/c 1-101 -XX 14) 3. Custodian collects cash from the bank and brings to Petty Cash A/c (FBCJ) Dr. Petty Cash Account (a/c 1-172-5XXX) Cr. Cash Journal Clearing Account (a/c 1-171-1000) The same entries will be passed when replenishing the Imprest Account, but this time only with the amount necessary to bring the account to the authorized level. 75

Posting Disbursement from Petty Cash Account Disbursement Payments from the Petty Cash Account are only for small expenses and are capped at USD 350 per transaction. The only accounting entries for each disbursement are made in the Cash Journal as follows: Dr. Expense Clearing Account with FSG requiring Cost Object (7-XXX-XXXX) Cr. Cash (1-171-5XXX) 76

Posting Disbursement from Petty Cash Account Year End Closing The Petty Cash Account Custodian is also required to deposit remaining cash in the House Bank on the cut-off date for Year End Closing. When the Petty Cash Account Custodian pays cash in the bank, the accounting entries are once more the same as for the Imprest Accounts: 1. In the Cash Journal (FBCJ) Dr. Cash Journal Clearing Account (1-171-1000) Cr. Petty Cash Account (a/c 1-172-5XXX) 2. When the bank statement is uploaded (FF.5) Dr. Bank Nominal (1-101-XX10) Cr. Bank EFT In (a/c 1-101 -XX16) 3. In Accounts Unit, F-03 is used to clear the Bank Clearing A/c Dr. Bank EFT In (a/c 1-101 -XX16) Cr. Cash Journal Clearing Account (1-171-1000) N.B. If the Petty Cash Custodian had deposited a cheque and not cash, the debit and credit entries in (1) and (3) above would have been Bank Clearing Cheque In (1-101-XX12) 77

Posting Disbursement from Petty Cash Account The step-by-step process begins once the user has logged into Umoja. To access the Cash Journal in Umoja, the steps are: 1 Enter FBCJ in the Command field 2 Click the Enter icon. The Cash Journal Screen appears and the Cash Journal Specification window pops-up Enter 1000 in the Company code field 3 2 1 3 78

Posting Disbursement from Petty Cash Account Cash journals are organized by: Type (petty cash, imprest, cashier s imprest) Business Area Currency Functional Area 4 Select the appropriate Petty Cash journal 5 Click the Enter icon 4 5 79

Posting Disbursement from Petty Cash Account The Selected Petty Cash Journal appears displaying the available balance. 6 Click the Today button to ensure that the current available cash balance appears Petty cash transaction entries are entered in the Cash Payments tab of the cash journal. 6 80

Posting Disbursement from Petty Cash Account Now that the available petty cash balance has been confirmed, the disbursement can be documented and posted. 7 Select the Expense Business Transaction 7 81

Posting Disbursement from Petty Cash Account Enter the disbursement amount in the Amount column 8 9 Enter the appropriate G/L number in the G/L column Press the Enter key to auto populate remaining required fields in the transaction row 10 8 9 10 82

Posting Disbursement from Petty Cash Account Remaining required information is auto populated in each respective column and the red status light appears in the document status column. 11 Click the Save sel. Button 11 83

Posting Disbursement from Petty Cash Account The status light in the Document Status column turns yellow indicating that the petty cash transaction has been saved in the Petty Cash Journal. 12 Click the Post sel. button 12 84

Posting Disbursement from Petty Cash Account The status light in the Document Status column turns green indicating that the petty cash transaction has been posted to the Petty Cash Journal. The petty cash amount posted can now be disbursed by the cashier. 85

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 86

Activity 1 Transaction Name: Execute Payment Run Transaction Code: F110 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2076?mode=EU&originalContext=1.11.2629 87

Activity 2 Transaction Name: Check Cash Availability Transaction Code: FMCCAVCOVERVIEW Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2092?mode=EU&originalContext=1.11.2629 88

Activity 3 Transaction Name: Release/Merge Payment Transaction Code: FPRL_LIST Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2096?mode=EU&originalContext=1.11.2629 89

Activity 4 Transaction Name: Release/Merge Payment Transaction Code: FBPM1 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2084?mode=EU&originalContext=1.11.2629 90

Touch Points The Umoja system is an integrated system and most of its modules integrate with each other to complete a process. Touch points refer to these integration points across Umoja modules, processes and activities. Master Data Management For Payee Banks, UN House Banks and Business Partners Accounts Payable (A/P) Treasury Transaction Management Outgoing Payments Funds Management General Ledger Accounting Daily Reconciliation and Cash Positioning Grants Management 91

Learning Checkpoint 1 How will payment obligations be assigned to House Banks? Select the correct option. A. House Bank Determination Logic B. Delegation by individual missions C. Political missions D. World Bank 92

Learning Checkpoint 1 How will payment obligations be assigned to House Banks? Select the correct option. A. House Bank Determination Logic B. Delegation by individual missions C. Political missions D. World Bank Option A is the correct answer. Payment obligations will be assigned to House Banks according to House Bank Determination Logic. 93

Learning Checkpoint 2 are transactions that are associated with a vendor and an invoice due. Fill in the blank with the correct option. A. A/R payments B. A/P payments C. Treasury payments D. A/P and A/R payments 94

Learning Checkpoint 2 are transactions that are associated with a vendor and an invoice due. Fill in the blank with the correct option. A. A/R payments B. A/P payments C. Treasury payments D. A/P and A/R payments Option B is the correct answer. A/P payments are transactions that are associated with a vendor and an invoice due, and are processed through the A/P Payment process. 95

Module 1 Summary The key points covered in this module are listed below: The Umoja Enterprise role involved in the Outgoing Payments process is the Cashier The Umoja subsystems used to process outgoing payments: Financial Payment Program, Treasury Payment Program and SAP Bank Communications Manager The Umoja Outgoing Payments process is comprised of four key steps: Create a payment proposal, check cash sufficiency, schedule payment run, release payment file The Umoja Cash Journal is used to post 3 types of outgoing payments: petty cash disbursements, imprest disbursements, cashier s imprest disbursements 96

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 97

Module 2 Objectives After completing this module, you will be able to: List the roles involved in the Process Incoming Payments Electronic Funds Transfer, Cash and Cheques process Record incoming payments as Electronic Funds Transfers, Cash or Cheque in the Umoja Cash Journal 98

Roles & Responsibilities The following Umoja Enterprise roles are involved in the Incoming Payment Cash and Cheques process: Cashier Back Office Treasury User Generates all payments (using the transaction code- F110 ) in Umoja Manages cash control by fund/grant Raises issues identified through cash control to Finance Managers for resolution Ensures that bank data is reflected accurately in Umoja on a timely basis to allow Front Office to manage daily liquidity Verifies that the bank communication files are processed and accepted by SWIFT/banks in a timely manner Confirms and settles all trades (investments and FX) Issues Daily Investment reports and ensures distribution of net income to participating funds and grants in overall IPSAS compliance Maintains custodian relationship, and reviews/authorizes treasury related wire transactions Provides supporting documentation related to investments for financial reporting 99

Incoming Payments Processing An Overview Forms of Incoming Payments Incoming Payments come in three forms: 1. Electronic Funds Transfers 2. Cash 3. Cheques All incoming payments are recorded in the Treasury Pool Funds described earlier. The bulk of incoming payments are received as EFTs. They are brought into Umoja when the prior day bank statement is uploaded into the system. As the process of uploading bank statements also triggers the automatic matching of incoming payments to open Accounts Receivable Items, we have covered it in the next module, where the automatic reconciliation of bank transactions is examined. In the remainder of this module, focus will be on Incoming payments received as cash and cheques. The Cash Journal functionality will be used to record both incoming cash and cheques. 100

Incoming Payments Processing Cash Journal The Cashier s Incoming Cash Account is the primary medium to record cash and cheque receipts. Examples: 1. The cashier receives a cash for a special event. Dr. Cash Cashier Incoming (1-172-100X) Cr. Cash Journal Clearing Account (1-171-1000) if receivable hasn t been set up In case the receivable exist, Cr. Accounts Receivable 2. In the majority of cases, cheques and cash received are recorded in the Cashier s Incoming Cash Journal. However, in some remote areas where there is no Cashier, the Imprest or Petty Cash Custodian will record cheques or cash received in the Imprest or Petty Cash Journal. When there is no existing receivable already established, the Custodian will record the cheque received as follows: Dr. Cash Imprest Cheque or Cash (or Petty Cash) (1-17X-XXXX) Cr. Cash Journal Clearing Account (1-171-1000) if receivable hasn t been set up In case the receivable exist, Cr. Accounts Receivable 101

Incoming Payments Cash and Cheques: End-to-End Process The steps followed to process incoming cash or cheque payments are slightly different from the steps followed to process other forms of payment. The high-level process followed to process incoming cash or cheque payments is as follows: Review cash and cheques Confirm the purpose of the payment Examine the validity of cash and cheques Post receipt of incoming payment in Cash Journal Issue receipt as required Step 1: The process begins with the receipt of funds in the form of cash or cheque. Step 2: Upon receipt, the Cashier confirms the purpose of the payment. Step 3: The Cashier reviews the physical cash or cheque to ensure that the amount submitted is correct. Step 4: Following the verification of the information, the cashier processes the payment and posts the resulting receipt to the Cash Journal. Step 5: The cashier issues a receipt to the payer. 102

Posting Receipt of Incoming Payments in Cash Journal Incoming cash and cheque payments are also recorded in the cash journal. Let s take a closer look at the steps followed to record these incoming payments in the FBCJ screen. The process begins once the user has logged into Umoja. The steps to access the Cash Journal in Umoja are: Enter FBCJ in the Command field 1 2 Click the Enter button 2 1 103

Posting Receipt of Incoming Payments in Cash Journal The Cash Journal Screen appears and the Cash Journal Specification window popsup. 3 Enter 1000 in the Company Code field Select the Cash journal to be opened 4 5 Click the Continue icon 5 3 4 Note: The cash journal entered will determine the currency displayed 104

Posting Receipt of Incoming Payments in Cash Journal The Cash Journal Screen appears and the Cash Journal Specification window pops-up. 6 Click the Cash Receipts tab Select the appropriate business transaction from the menu in the Business Transaction field 7 8 Click the Continue icon 6 7 8 105

Posting Receipt of Incoming Payments in Cash Journal Enter all required corresponding data for customer payment: 9 Enter the payment amount in the Amount field Enter the Customer number Enter the fund If an Accounts Receivable exist, enter the Document Number in the Assignment Field. Press the Enter key to save the line item. The line item is saved, as indicated by the yellow status triangle located in column 3 of the log. 10 9 Once all entries has been added click the button to post the payment(s) entered to the cash journal 11 106

Activity 1 Transaction Name: Post Receipt of Incoming Payment in Cash Journal Transaction Code: FBCJ Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2080?mode=EU&originalContext=1.11.2629 107

Touch Points The Umoja system is an integrated system and most of its modules integrate with each other to complete a process. Touch points refer to these integration points across Umoja modules, processes and activities. Accounts Receivable (A/R) Incoming Payment Cash and Cheques General Ledger (G/L) 108

Learning Checkpoint 1 What is the first thing the Cashier does upon receipt of funds in the form of cash or cheque? Select the correct option. A. Examines the validity of cash and cheques B. Posts the receipt of incoming payment in Cash Journal C. Issues a receipt D. Identifies the purpose of the payment 109

Learning Checkpoint 1 What is the first thing the Cashier does upon receipt of funds in the form of cash or cheque? Select the correct option. A. Examines the validity of cash and cheques B. Posts the receipt of incoming payment in Cash Journal C. Issues a receipt D. Identifies the purpose of the payment Option D is the correct answer. Upon receipt of funds in the form of cash or cheque, the Cashier confirms the purpose of the payment. 110

Learning Checkpoint 2 Which of the following items is a user-definable unit within the Cash Journal that represents a unique Cashier and/or elements of the cashiering process? Select the correct option. A. Cash Desk B. Payer's Account Number (if applicable) C. Receipt Amount D. Cost Object 111

Learning Checkpoint 2 Which of the following items is a user-definable unit within the Cash Journal that represents a unique Cashier and/or elements of the cashiering process? Select the correct option. A. Cash Desk B. Payer's Account Number (if applicable) C. Receipt Amount D. Cost Object Option A is the correct answer. A Cash Desk is a user-definable unit within the Cash Journal that represents a unique Cashier and/or a unique combination of a several identifiable elements of the cashiering process, such as Cashier/Cashiering or Location/Department. 112

Module 2 Summary The key points covered in this module are listed below: The Umoja Enterprise roles involved in the Incoming Payment Electronic Funds Transfer, Cash and Cheques process are Cashier and Back Office Treasury User The introduction of the Cash Journal represents a large step in streamlining the process currently used by UN missions to document the receipt of cash and cheques The Umoja steps in the Incoming Payments Cash and Cheques process involved posting the receipt of incoming cash and cheque payments to the cash journal 113

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 114

Module 3 Objectives After completing this module, you will be able to: Reconcile prior day bank statements against operational transactions Investigate and resolve irreconcilable items appearing in the daily bank file 115

Key Terminology SWIFT Key Term Automated Clearing House (ACH) Electronic Funds Transfer (EFT) Description Society for Worldwide Interbank Financial Telecommunication An industry cooperative that provides a standard format for transmitting payments and other financial messages to more than 7,500 member banks, broker dealers and organizations around the world. An electronic network for financial transactions in the United States large volume, low cost batches. It is used for all kinds of fund transfer transactions including direct deposit of funds, cheques and routine payments to vendors. Rules and regulations that govern the ACH network are established by National Automated Clearing House Association (NACHA) and the US Federal Reserve. Transfer of funds between accounts by electronic means rather than conventional paper-based payment methods, such as cheque. 116

Key Terminology Cash Journal Cash Desk Key Term Prior Day Bank Statement Current Day Bank Statement Controlled Disbursement Account Description The component function provided by the ERP system to manage incoming payments in the form of cash and cheques. A user-definable unit within the Cash Journal that represents a unique Cashier and/or a unique combination of a several identifiable elements of the cashiering process, such as Cashier/Cashiering or Location/Department. A Cash Desk can only be assigned to a single unique user. A user can be assigned to one or more Cash Desks. An electronic file of balance and transaction information occurring on the prior day, which allows the ERP to compile an electronic bank statement as well as automate the accounting and clearing entries. An electronic file of balance and other information occurring at a point in time on a given day. This file is used to update a current day view of the cash position. An account dedicated to the issue and management of cheques. 117

Roles & Responsibilities The following Umoja Enterprise role is involved in the Daily Reconciliation of Bank Transactions process: Back Office Treasury User Confirms and settles all trades (investments and FX) Issues Daily Investment reports and ensures distribution of net income to participating funds and grants in overall IPSAS compliance Maintains custodian relationship, and reviews/authorizes treasury related wire transactions Provides supporting documentation related to investments for financial reporting 118

Understanding the Daily Reconciliation Process The Daily Bank Reconciliation process allows the Accounts Unit to reconcile prior day bank statements against operational transactions to ensure that: All cash transactions are recorded. Unidentified items appearing on the daily bank file are investigated and resolved. Current cash balances and the short term liquidity forecast can be determined by Treasury. 119

Understanding the Daily Reconciliation Process After the prior day bank statements are imported into Umoja, the Reconciliation process is conducted automatically by the system. After the bank transactions are validated and matched, they are cleared from the list of open items Remaining items that could not be validated are managed manually by staff in Accounts Receivable and Accounts Units. 120

Automatic Matching of Incoming Payments When an Accounts Receivable is raised, notification is sent to the debtor with details of the amount, description of the receivable and importantly, the Document Number generated when the AR document was raised in Umoja. The debtor is advised to include the Document Number when making a payment so that the Incoming Payment can be applied to the outstanding receivable. The BELNR Number Interval specifies the range of the Document Numbers included in the Incoming Payments that feature in the bank statement that has been uploaded. If an AR document already existing in Umoja has a Document Number that is within the range indicated in the BELNR Number Interval, a match will be established, provided that the amounts in both documents are the same. The system will automatically apply the Incoming Payment to the outstanding receivable. 121

Automatic Matching of Incoming Payments The matched items are displayed on the Update Account Statement / Check Deposit Transaction screen, seen below: 122

Automatic Matching of Incoming Payments The Update Account Statement / Check Deposit Transaction screen has two posting logs. a/ Bank Accounting Posting Log Given that the Incoming Payment hits a bank account belonging to the Treasury Main Pool, the account is debited. The credit goes to an EFT-In Clearing Account. The entries are as follows: Dr 64VQA Bank Nominal Cr 64VQA Bank EFT In Clearing The system will post these entries and include the Document Number (e.g. 6300000033) in the Bank Accounting Log. 123

Automatic Matching of Incoming Payments b/ Subledger Accounting Log If there is a match between the Incoming Payment and an outstanding AR, automatic clearance will take place as described above. The Bank EFT In-Clearing account will be debited and the Customer s AR account credited. The entries will be as follows: Dr 64VQA Bank EFT In Clearing Cr 20OLA Customer Open Item This posting creates a Document Number that is shown in the Subledger Accounting Log (e.g. 2400000023). Given that the Bank Nominal account that received the Incoming Payment belongs to the Treasury Pool and is used by different Funds, another set of entries (not shown in the Update Account Statement / Check Deposit Transaction Screen), will be passed to record an increase in the interest of the Fund that raised the AR in the Treasury Pool. Dr 20OLA Equity in Pool Cr 64VQA Equity in Pool Incoming Payments that are not cleared automatically will be manually cleared daily using FEBAN or at Month End Closing of accounts using F-28 by AR staff. 124

Automatic Matching of Incoming Payments Another way to see which items cleared automatically and which didn t when the bank statement was uploaded is through use of the Edit Bank Statement Screen. It is accessed as follows: 1 Enter FEBAN in the Command field and press Enter. This opens the Selection of Bank Statements by Banks and Account Nos. screen. 2 Enter data in the following fields: Company Code House Bank Currency 3 Click the Check button at the bottom right corner of the screen to verify input, then execute if no errors are reported. 125

Automatic Matching of Incoming Payments When the Selection of Bank Statements by Banks and Account Nos is executed, the Edit Bank Statement screen is displayed. The two postings mentioned earlier result in two documents. Posting Area 1 shows the document created for the entries to record the incoming payment in the UN s bank account (Doc # 6300000002). Dr 64VQA Bank Nominal Cr 64VQA Bank EFT In Clearing Posting Area 2 shows the document created to clear the receivable account of the customer who made the payment (Doc # 2400000001). Dr 64VQA Bank EFT In Clearing Cr 20OLA Customer Open Item N.B. FEBAN also used to manually clear the items that are not cleared automatically. We see this later. 126

Touch Points The Umoja system is an integrated system and most of its modules integrate with each other to complete a process. Touch points refer to these integration points across Umoja modules, processes and activities. Accounts Payable (A/P) Daily Reconciliation of Bank Transactions Accounts Receivable (A/R) General Ledger (G/L) Accounting 127

Learning Checkpoint 1 After the prior day bank statements are imported into Umoja, the Reconciliation process is conducted. Fill in the blank with the correct option. A. Automatically by the Umoja system B. Manually by the Cash Analyst C. Manually by the Cashier D. Automatically by the Cash Journal 128

Learning Checkpoint 1 After the prior day bank statements are imported into Umoja, the Reconciliation process is conducted. Fill in the blank with the correct option. A. Automatically by the Umoja system B. Manually by the Cash Analyst C. Manually by the Cashier D. Automatically by the Cash Journal Option A is the correct answer. After the prior day bank statements are imported into Umoja, the Reconciliation process is conducted automatically by the Umoja system. 129

Learning Checkpoint 2 What is done when some items remain open as a result of missing or incorrect information? Select the correct option. A. Open items are removed B. Open items are moved to the A/R process C. Open items are moved to the A/P process D. Open items are cleared manually in the Umoja system 130

Learning Checkpoint 2 What is done when some items remain open as a result of missing or incorrect information? Select the correct option. A. Open items are removed B. Open items are moved to the A/R process C. Open items are moved to the A/P process D. Open items are cleared manually in the Umoja system Option D is the correct answer. When some items remain open as a result of missing or incorrect information, then the open items are cleared manually in the Umoja system. 131

Module 3 Summary The key points covered in this module are listed below: The Umoja Enterprise role involved in the Daily Reconciliation of Bank Transactions process is the Back Office Treasury User The benefits of reconciling prior day bank statements against treasury and operational transactions include consolidated records of cash receipts and more immediate postings of receipts The Daily Reconciliation of bank Transactions process is automated The exceptions to the Daily Reconciliation of bank Transactions process are conducted manually; the steps followed differ depending on the nature of the exception 132

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Cash and Cheque Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 133

Course Summary The key points covered in this course are listed below: After the Umoja implementation, the concept of House Banks will be introduced House bank accounts will enable missions to make international payments The Umoja subsystems used to process outgoing payments: Financial Payment Program, Treasury Payment Program and SAP Bank Communications Manager The Umoja Cash Journal is used to post 3 types of outgoing payments: petty cash disbursements, imprest disbursements, cashier s imprest disbursements 134

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Cash and Cheque Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 135

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 136

Agenda Course Introduction Module 1: Process Outgoing Payments in Umoja Module 2: Process Incoming Payments Cash and Cheque Module 3: Daily Reconciliation of Bank Transactions Course Summary Course Assessment Course Survey 137

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 138

Congratulations! You have successfully completed the Umoja Payment Processing course. 139