This operation is applicable for the following entities:

1. Objective and Scope

1.1. Objective of this Operation

WP1 Bank Reconciliation: The bank reconciliation it’s a daily task that consist in ensure the information between the bank transaction and SAP records it’s consistent. 

With this control we guarantee the reliability, accuracy, confidence and control. 

The objective of the document is to explain the bank reconciliation process for accounts from 7723 company.

1.2. Scope

This operation is applicable only for 7723 company.

2. Definitions

See Finance Glossary:

• Bank reconciliation
• WP1
  
  
  

3. Tasks description

We have two mirror accounts in 7723 company, the account 51000801 that is used to pay the local bills, for example water, local tax, lodge card, electrical energy and the "PECA" account, 51000823, is used to pay the "pedimentos". These "pedimentos" are an specific tax that we paid for the local goods movements.

These mirror accounts will reflect in transitory accounts.

3.1. I reconcile the banks

The reconciliation process is specific for each bank; however the general process is the same for all of them. The main guidelines are described in the steps below.

Regarding the specificities of each bank, they are included in the excel file attached to this procedure.

3.1.1. I check bank statement balance in SAP

To check the bank statement balance you will use the SAP extract accounts 51000801 and 51000823 in transaction FBL3N and check the balance until the current date.

Go to transaction FBL3N: 

Complete the fields: 

• Accounts: 51000801 and 51000823
• Company Code: 7723 
• Open Items: (Current date)
• Layout: /CONCILIAÇÃO

Then, you will check the balance with the transaction FBL3N with the bank statement, you should make an subtotal by G/L account and check the balance, as you see below.

In the SAP:

Example: Citibank Statement

3.1.2. I process the FEBAN transaction

The bank statement of these 2 accounts (51000801 and 51000823) are posted automatically, you should check in FEBAN transaction if the bank statement were uploaded correctly. 

If after perform the transaction, the transaction don't show any error you can start the next step.

If the FEBAN transaction show any problem, you should send an ticket to TREASURY APAC team and inform that the bank statement wasn't process.  (eg. ticket #4690629)

You can see one example the FEBAN error below:

To correct the error, you can process the document manually. 

3.2. I perform the bank reconciliation

The bank reconciliation is made only with the transitional accounts, you will use the mirror account (510*) only to check the bank statement balance. 

In general, to perform the reconciliation you have to compensate documents type SK (bank documents uploaded by FEBAN and documents uploaded with the global posting file) only with others documents types - ex: SB or KZ. Usually the SAP show the documents that will need be compensate in F-03, but you need to check if you could clean then or not. 

To check the documents posted you need check the transaction FBL3N and use the variant "7723 CITI".

* Important: You never should compensate document SK with another SK document, only when you posted documents incorrectly or charge backs *

To check if you could clean these documents: 

• Check if both documents are in the same G/L account;
• Check if one of them are not SK;
• Check if the amounts are the same;
  
• Check if the documents dates are close;

If after check all these information, before to clean you will need check one more thing.

We recommended check if you have more than one document with the same amount, for example.

3.2.1. I perform the bank reconciliation from account *0823 (PECA)

We use the PECA account to paid the PEDIMENTOS and the documents SK were automatically uploaded and the counterpart, the document type KZ were uploaded by the Account payables team. 

• PEDIMENTOS: To reconcile this documents you can follow the steps bellow. 

Go in the document KZ and click in the button , Environment and Payment Usage. 

And them you need to go in the document RE and click in the bottom ;

Check if in the begin of the field "text" in SK document (in the bank account) is the same from the reference in the RE document;

If the document header text and the reference are the same, so you can clear the documents.

3.2.2. I perform the bank reconciliation from transitory accounts *0801 (Normal)

• NONIMA AND INTERBANCARIO: To clear the account 50990801 you should reconcile the documents with the text "NOMINA SEMANA" and "INTERBANCARIO", usually the documents were sent weekly by Raquel De La Mora with document type "SB". The only action with this documents will be check the amount and adjust the assignment to clear in the transaction F-03. 

• GLOBAL BILLING AND IVA: Besides that, once a month you must post two documents to recognize the expenses in the properly accounts. The first one is the document with text "GLOBAL BILLING", this document must be posted in the G/L account 98546220. 

The second document, is the IVA and usually are uploaded in the same day that the document and represent 16% of the document with Global Billing in the text. This document must be posted in the G/L account 44700160, as the example bellow. 

• OTHER DOCUMENTS: In the account *0801 you will find another documents to reconcile, for example, bills from American express, electricity, water, that were paid in this account. Usually we have two documents, the documents type SK (bank documents) that were automatically uploaded and the document type KZ that were posted by the Account payables team and applied by the payments team. If during the month or in the closing period you didn't find these documents you could send an email to ptp-nafta@support.solvay.com asking about the documents. 

Eg. American Express and electricity documents.

• CASH IN TRANSIT DOCUMENTS: During the month, the account *0801 could received big amounts that you need to reconcile to the correct account. Usually the reclassification must have be done to the accounts 58999920 or 58999000. To check if it's correct this reclassification, you go in the FBL3N and use the variant "SBS_CASH", adjust the company code for 7723 and the "open items date" to the actual date. 

After run the transaction you will find the document:

In the bank statement we have one document type SK, posting key 50, with same amount and with the same posting date and document date from the document in the account 58999920 with posting key 40. After check these information you can check and reclassify the document to account 58999920 (in this case).

Before clear the documents in transaction F-03, in transaction FBL3N you can change the assignment from these documents to facilitate cleaning.

To change you follow the next steps:

• Select the documents;
• Go to the bottom "Mass change";

And them, you change the assignments from the documents. 

After change the assignment you can clean these documents in transaction F-03. 

3.3. I clean the documents in G/L account

The bank reconciliation is made only with transitional accounts (5001*, 5002*, 5005*, 5006* and 5099). In general, to perform the reconciliation you have to compensate  documents type SK (bank documents) with other documents type. 

You can use this procedure to clean the documents:

F-03 - Clear G/L Account

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Go to transaction F-03 and complete the fields:

In this example, I will use the documents from account 50060823, amounts 64.029,00 and -64.029,00 MXN. 

• Select account: 50060823 (or account that you will clear)
• Clearing date: 31.08.2020 (date from current month)
• Period: (Same month from the clearing date - 08)
• Company Code: 7723
• Additional Selections: Others + Enter (We will select the option "Assignment")
• Use the bottom Page Down (in your keyboard) to page 3. 

Them, you will use the assignment that you choose previously from these documents, and click in Process Open Items.

After you clean this documents, the G/L account shouldn't have any documents pending.  

End of document.