Accounts Payable and Cash Payments Overview Dan Aldridge
Finance Training Agenda ACR & CMG ACR - Accounts Payable Overview Overview Master Data Processing Open Entries Exercises CMG - Cash Management Overview Overview Master Data Processing Exercises 2
Finance Training Agenda Accounts Payable Accounts Payable Overview 3
Finance Training Agenda Accounts Payable Overview Business Partners Financial Customer Groups Processing Terms Processing Received Invoices Invoice Matching Invoice - Cost Recurring Purchase Invoices Reporting Master Data Parameters Procurement Card Purchase Invoice Report Definition Open Entries Dashboard Aging Reports Recalculate Invoice-From BP Balances 4
All supplier and/or all customer roles must be defined for a business partner Buy From Sold To Supplier Roles Ship From Invoice Accounts Payable From Business Partners Pay To Business Partner Pay By Ship To Invoice To Customer Roles 5
Supplier Buy-From: BP Status Language Area Line of Business Address Order Discount Purchase Office Terms of Delivery Supplier Ship-From: BP Status Language Address Warehouse Accounts Payable Supplier Information Supplier Invoice-From: BP Status Language Address Currency Financial Supplier Group Statement Method Terms of Payment Payment Method Supplier Pay-To: BP Status Language Address Currency BP Bank 6
Business Partner Accounts Payable Financial Supplier Groups Financial Supplier Group Ledger Accounts 7
8 Financial Supplier Group Information: Control Account Currency Profit & Loss Payment Differences Discounts Late Payment Surcharges Invoice Receipts Anticipated Payments Price Differences Unallocated Payments Advance Payments Others Accounts Payable Financial Supplier Groups
Print Purchase Order Print Good Rec. Note PN4 Maintain Receipts Print Claims Maintain Approvals Print Storage List Accounts Payable Purchase Order Steps Print Return Notes Print Purchase Inv. Process Delivered Purchase Orders 9
Accounts Payable Cost Invoices Purpose: To process invoices for (non-inventory) items that were purchased without a purchase order. No longer separate Transaction Type in LN. Process Flow: Maintain Transaction Purchase Invoice Header Purchase Invoice Lines Optional: - Change terms of payment. - Attach payment schedule, then create transactions from schedule. - Change authorization data. 10
Accounts Payable Purchase Order Matching Receive and Authorize Invoice Register (Voucher) Invoice Purchase Invoice Matching: Automatic or Manual* Booking Difference Approve Price Difference Approve Invoice for Payment Optional 11
Received Invoice has been entered in Maintain Received Purchase Invoices session Registered Invoice can be a batch in Maintain Transactions session. Ledger accounts will then be assigned. Matched Invoice has been matched to Purchase Order and/or Receipt in Match/Approve Purchase Invoices with Orders or Match Receipts sessions. Approved Invoice has been approved (authorized) in Approve Purchase Invoices session Canceled Invoice has been canceled in Maintain Received Purchase Invoices session Accounts Payable Keywords 12
Accounts Payable Order Matching Differences Booking Difference: An additional invoiced amount. Recorded as an add-on cost. Enter G/L account and dimension code. For example, freight, insurance, and so on. Price Difference: A true Purchase Price Variance (PPV). The invoiced price is different than the PO price. G/L account price variance (within tolerances). G/L account result (outside tolerances). 13
Finance Training Agenda Accounts Payable Accounts Payable Master Data 14
Parameters Default Aging Analysis Transaction Types for Currency Differences Financial Customer Groups Procurement Cards Matching Codes Accounts Payable Master Data Parameters 15
Purchase Invoices Hold Reasons Assigned Approvers Authorizations Matching Tolerances Purchase Offices Reporting Aging Analysis Data A/P Statements Credit Notes Letter Accounts Payable Master Data Parameters 16
Finance Training Agenda Accounts Payable Accounts Payable Processing 17
Accounts Payable Processing Procurement Cards Procurement Card processing is focused on corporate houses, where the products are purchased using a corporate Procurement Card. The buyer is not necessarily a regular buyer of goods in the organization 18
Accounts Payable Processing Procurement Cards Manually Electronically Manually Electronically Purchase Requisition Holiday Inn hotel EUR 850 Lufthansa EUR 1.400 Holiday Inn hotel EUR 850 Lufthansa EUR 1.400 EUR 2.250 Manually Automatically Match 19
Accounts Payable Processing Procurement Cards Procurement Cards Procurement card number Procurement card company (business partner) Status / validation data Credit limit Procurement Card Lines Line Category Purchase requisition Past adjustment Others Default ledger account 20
Accounts Payable - Processing Received Invoices Purpose: To optionally preregister invoices without generating financial transactions and opening A/P items. Also includes authorization by different employees/departments for further A/P processing. 21
Accounts Payable - Processing Processes Received Invoices Approval Maintain Transactions Maintain Purchase Invoices Matching with Orders Maintain Transaction Lines Approval GLD Processing 22
Accounts Payable - Processing Types of Matching Register Invoice Yes $ Receipt / $ Invoice - Tolerance No Automatic Match Manual Match Complete Price Difference On FSG Approve Invoice 23
Accounts Payable - Processing Assign Credit Notes to Invoices Now Later Original Invoice Transaction Type One Credit Note to One Invoice One Credit Note to Many Invoices Reduces the Open Balance of the Invoice 24
Accounts Payable - Processing Recurring Purchase Invoices Today Period 1 Period 2 Period N 25
Accounts Payable - Processing Tolerances Higher Lower % $ % $ 2% 50.00 5% 100.00 Receipt Amount = $100.00 Invoice Amount = $120.00 Out of Tolerance Receipt Amount = $100.00 Invoice Amount = $97.00 In Tolerance 26
Finance Training Agenda Accounts Payable Accounts Payable Open Entries 27
Accounts Payable Open Entries Print / Display Options Need info NOW? Open Entries Business Partner (BP) Purchase Invoices Registered Purchase Invoices by BP BP Totals BP by Factoring Company Print Purchase Invoices Print Invoice Authorization Schemes Print Invoice-from BP Balances Print Invoice-from BPs Total Balances (by Co.) Print Aging Analysis by Invoice-from BP Print Invoice-from BP Aging Summary Print Invoice-from BPs Finalized Transactions Print Control Account Checklist Print Recurring Purchase Invoices 28
Accounts Payable Dashboard Main Accounts Payable Dashboard 29
30 Review Questions and Answers
Accounts Payable Training Exercises Training Exercise: Input Cost Invoice Finalize Batch Review in Transactions in ACP Dashboards 3
Finance Training Agenda Cash Management Cash Management 32
Finance Training Agenda Cash Management Overview Master Data Parameters Payment Authorizations Bank Relations & Methods Check Master Electronic Bank Statements IRS 1099 Reporting Processing Payments to Suppliers Receive Payments 33
Finance Training Agenda Accounts Payable Cash Management Overview 34
Cash Management Remittance based on cash application Facilitates quick data entry Does not restrict user with data consistency checks Checks are done when applying the remittance advice Reduction of cash application lead time Options to easily handle: Short payments Over payments 35
Cash Management Uninterrupted supplier payment process Select Invoices for Payment Payment Batch X1 Uninterrupted Payment Process Payment Created Financial Posting Exception Error Payment Batch X2 36
Cash Management Uninterrupted payment/receipt process Payment Process Defaults Devices Payment Process Defaults by Bank/Payment Method Starting Check Senders Identity File Identification Device for Payments 37
Cash Management Uninterrupted payment process Error report during Payment Process Display of all exception errors per payment batch 38
Cash Management Accounting for anticipated payments At Check Run At Bank Reconciliation Check mailed Check received by Supplier and presented to Supplier s Bank Check clears your Bank L E D G E R E N T R I E S Debit Credit Debit Credit Debit Credit Anticipated Payments Cash Clearing Cash Clearing Anticipated Payments Accounts Payable Cash 39
Finance Training Agenda Accounts Payable Cash Management Master Data 40
Cash Management Master Data Parameters Parameters Payments by Company Group Select Only Finalized Invoices Payment Differences Tolerances 41
Cash Management Master Data Payment Authorizations Payment Authorizations Used to limit check writing to selected user along with putting limits on size of payment. 42
Cash Management Master Data Payment / Receipt Methods Payment / Receipt Methods Separate Methods for: Receipts Payments Checks Payments ACH Checks Printing: Multiple Checks Single Check w/remittance Single Check with overflow to Remittance. 43
Cash Management Master Data Check Master Check Master By Payment Method Check Status: Not Used Test Print Void Damaged Anticipated Rejected Paid 44
Cash Management Master Data Check Master Reasons Can be Added to Payments Valid for 1099-MISC Yes / No 45
Finance Training Agenda Cash Management Processing 46
Cash Management Processing Supplier Payments Supplier Payments Based on Payment Batches Created by session and modifiable. Supplier total can not be negative. Can be used for EFT or Checks Use separate batches for EFT and Checks Use different payment Methods. Payments can be easily voided or rejected until cleared. Payments not in GLD until Posted. Automated clearing available with Bank Electronic file. Requires set up of EBS import specifications. Still requires manual processing for problem checks. 47
Cash Management Processing Supplier Payment Process Select invoices for payment Payment advise Documents Trade Note process Automatic payment process Documents File Change Trade Note step Electronic bank statement Manual bank statement Automatic matching Reconcile Open entries 48
Cash Management Processing Select Invoices for Payment Select Invoices Create Batch to pay May be modified Not Selected Prints a report of invoices NOT selected. Helpful Hint: You should print the Not Selected report to see what is still open. 49
Cash Management Processing Payment Advice Payment Advice Ability to modify Payment Batch before paying invoices. 50
Cash Management Processing Process Payments Process Payments Compose Payment Assign Banks to Payment Audit Payments Create Payment Orders Checks ACH Print Remittance Letters Post Payments to GLD By Payment Batch 51
Cash Management Processing IRS 1099 Reporting IRS 1099 Reporting Generates output for filing 1099s with IRS Can be either: Paper Electronic 52
Cash Management Processing Customer Payments Customer Payments Manual process uses same session as Journal Vouchers Uses Cash Transaction Type Normally uses a Checksums for batch. Automated process available with Bank Electronic file. Requires set up of EBS import specifications. Used with Lockboxes Still requires manual processing for unmatched receipts. 53
Cash Management Processing Customer Payments Physical Receipt of Cash, Check, etc. Manual Receipts OR Direct Debits $ Cancel Open Invoices Advance Receipts Business Partner s bank is automatically charged for a selected sales invoice Receipts not specifically Allocated to Open Invoices Non-BP Related remittance for Sundry Sales (Trans posted Directly to GL) 54
Cash Management Processing Customer Payments To process manual bank reconciliation entries, available Transaction Types in the Bank Transactions (tfcmg2100m000) session include: Receipt Transaction - The Bank transaction type to process customer receipts and payments for credit notes State Bank & Trust S T A T E M E N T Deposits 7/12/99 $18000.00 7/18/99 $27889.77 7/23/99 $ 9987.00 7/30/99 $33887.65 Checks 7/01/99 7/06/99 7/07/99 7/07/99 7/08/99 7/09/99 325432 325438 325447 325448 325449 svc chg $ 60.00 $ 14002.40 $ 232.09 $ 115.50 $ 1160.45 $ 22.00 55
Cash Management Processing Customer Payments Journal - The Bank transaction type to process charges directly to the general ledger (e.g., bank costs, bank service charges, and other sundry charges) Receipt Reconciliation - The Bank transaction type to process anticipated receipts actually received by the bank Unallocated Receipt - The Bank transaction type to process an unallocated receipt not linked to an invoice. These amounts can be assigned to open entries now (Assign Adv./Unall. Receipt under Specific), or at any later date Unallocated Receipt - The Bank transaction type to process an unallocated receipt not linked to an invoice. These amounts can be assigned to open entries now (Assign Adv./Unall. Receipt under Specific), or at any later date 56
Cash Management Processing Customer Payments Unallocated and advance receipts: Create open cash amounts on the partners account after they have been reconciled to the bank statement. Advance receipt: Tax can be calculate tax on Advance Receipt. Unallocated receipt: Tax can NOT be calculated on Unallocated Receipt. Choosing which type of receipt to create depends on the business situation and the local tax legislation requirements. 57
58 Review Questions and Answers
Cash Management Training Exercises Training Exercise: Create Payment Batch Edit Payment Batch Process & Post Payment Batch Finalize Batch Review in Transactions in ACP Dashboards 5
For more info: Email dan.aldridge@i-app.com Twitter @danaldridge1, @iapperp Website: www.inforln.com/wp