1.Table of contents 

2. Objective and Scope 

The purpose of this document is to describe the flow to handle payments received from third party customers and how to search all the necessary information for cash allocation process. 

The payments are received on SOLVAY FINANCE AMERICA's bank accounts and OTC AR matches those payments that could not be matched automatically by the system. This procedure describes which steps should be followed in order to track all the necessary information for the cash allocation process. 

This operating procedure (OP) applies to the account receivables of SOLVAY FINANCE AMERICA.

3. Definitions

1. • SBS: In the current document, “Solvay Business Services” will be replaced by its abbreviation “SBS”.
   • OTC AR: Order to cash Accounts Receivable
   • OTC CM: Order to cash Credit Management
   • CSR: Customer Service Representative
   • OP: Operating procedure
   • 4044: Company Code of PI system for handling Cash Allocation
   • SFA: Solvay Finance America
   • DZ: Customer  payment

4. Cash Allocation

4.1 Bank Statements Extraction

On a daily basis, the Bank electronic files with information about the amounts received on SOLVAY FINANCE AMERICA bank accounts are uploaded into SAP. The system does the first sorting and processes the payments in which there is some valid and correct information displayed on the bank statement. Therefore, all the payments that could not be processed by the system have to be allocated manually by OTC AR.

The first thing to do is to extract the bank statements at the site of the JP Morgan Bank.

Access the following website: https://access.jpmorgan.com/jpmalogon?TARGET=$SM$https%3a%2f%2ftssportal.jpmorgan.com%2fpp%2fpp%2fWSQ%2fservlet%2fstarthomepage&brand=jpma , and insert the User ID on the field:

On the next screen, check your “Site Phrase” to make sure it’s the real JP Morgan website and then insert your password and the token informaton and Log On.

On the next screen you have two options: click on “Run Cash Report” or on the tab “View” and then on “Cash Reports”

 On the “Cash Reports” screen, you can see all the templates you already have. Additionally to runing them, you can copy and customize them to create your own.

If you do customize one, the NAM application statement will be account 304669709

 Once you have done customizing the kind of statement you need, you can select it and click on “Run”.

The following message will be displayed and will disappear after a few sceonds.

After that, click on “Cash Reports Inbox” on the left side of the screen and you will be taken to the below screen, where you can see all the reports you have run:

 Select the report you want and click on “download”.  The following window will pop up:

The statement is saved on AR Downloads folder. Alternatively you can click on the highlighted button shown above and save it on your desktop or wherever you desire. Also, save a copy on the following folder: https://drive.google.com/drive/folders/0BxNeRbgJ3R9GTlhqLWNzeHYxcFk?usp=sharing . (Ar & Billing Documents > AR Documents > Bank Statements > 4044 – JP Morgan Bank Statements).

For Checks received, access the same website  you did for the stament, insert your USER ID, click on "Log on" and then insert your password and token information, if required.

4.2 Lockbox Transaction

After downloaded  all bank statement files, payments have to be posted on customer accounts using FLB1 transaction.
If we receive a payment for an invoice that is already cleared against a credit note, we should re-open the credit note and clear the invoice with the payment. The credit note can be deducted by the customer on the next payment.

4.2.1  FLB1 transaction.

Open "FLB1" transaction. Insert the date of last working day and press 

The following "clocks" will appear:

The first one is for payments received by check and the second one is for electronic transfers.

Open the "cloks" and following screen will appear:

• Green Sign it means that the payment was automatically applied by the system, we can not verify it;
•  Blue Sign it means that the system found the customer account but could not apply the payment. We need to apply this payment;
•  Red Sign it means that the payment is unallocated. System could not find customer account neither invoices. We need to apply this payment;

To process a payments, select a document and press . 

Transaction FB05 will be opened. At this stage, some possibilities can occur:

a) Account Not Found:

1. Search by invoice number;
2. Search by customer name;
3. Search by using "Specificities of NAM Customers” Database;

4.2.2 Search by invoice number 

Open “Z3F_FA_CNTR_DISPLAY” transaction. The first screen that appears is the following: “Factoring contract display”.

This screen should be filled in as follows:

Affiliate document number – Invoice number

Then click on the Execute button  

All details regarding the invoice number are displayed on the following screen: 

The image is divided by colours to easily explain the fields. Therefore: 

Red: In this box, we can find the customer name, the document (invoice or credit note) and its amount

Green: Here we can find the contract status (open, closed, etc.) and creation dates

Yellow : In these fields, we can see information regarding the affiliate as the company code, document (Invoice reference), reference and PO Ref. Also the customer number in local company is visible here

Blue: Information of the document in 0231. Again the inv. Reference available and customer number is in 0231.

Pink: On the left side, all the information regarding dates for affiliate and factoring side. On the right side, it is displayed all the information related to payment status (open or closed in Cc 0231, payment method and discount terms

4.2.3 Search by customer name 

Click on the floppy disk on the payment. The following screen appears: 

To search for the customer number, click on the icon . Following screen appears:

This screen enables us to search for a customer by country, by name, etc.

Advise:  Use upper case letters and if you are not sure of the entire name, type a part of the name, surrounded by asterisks, as in the upper example and then click on  .

When the system finds a result, following screen appears:

Double-click on the customer name to automatically return to the previous screen – “Post with Clearing Select open items”.  The “Account” field is automatically filled in with the customer number as follows:

Click on “Process open items”. 

 Open items= list of invoices not yet paid in the customer account

4.2.4 Search using “Specificities of NAM Customers” Database

All specificities regarding to customers of NAM Region can be found in the Google drive or in the following link:

b) Payment does not match if the invoices on customer account:

In a case of the payment received does not match with the invoices mentioned by customer, we should leave the payment on customer account and create a dispute of detail missing.

4.2.5 Posting a payment as DZ on customer account

Sometimes there are payments received from identified customers but without any payment details (invoice numbers). Those amounts cannot be matched on customer’s accounts against the invoices but they must be applied on the customer’s account as a DZ document. Then, a dispute should be created to obtain the payment details. 

In order to leave the payment open on customer’s account, we should proceed as follows: 

We should click on Save button on the payment screen on FLB1transaction:

Click on the green arrow at the top of the screen 

Following screen appears:

This screen must be filled in as follows: 

• PstKy: 15 (for credit movement on customer account – Incoming payment)
• Account: Customer Number

Afterwards, click on  ‘Enter’.  The following screen appears:

In order to insert the amount, simply type asterisk  “* “in the Amount field and press Enter  to avoid errors (more accurate). The item can be now validated by clicking on the floppy disk 

4.3 Payment in Advance procedure

Sometimes we receive payments made by customers before the goods are shipped and invoice sent and assigned to SOLVAY FINANCE AMERICA. Therefore, we receive the payment and the invoice isn’t yet available on customer account. 

There are three steps that should be considered when recording a payment in advance: 

1. The customer must be identified
2. Check whether there is an invoice open in that account, and if not, consult the various systems to determine if an advanced payment is expected
3. If the order, customer and amount are identical of what is stated on bank statement, we are authorized to process the E5 (payment in advance). If not a dispute should be created requesting confirmation to Collections Team.

4.3.1 Process a Payment in advance

The first thing to do is to post the payment on customer account as a “DZ” document type entry (see paragraph 4.3 of this procedure). 

Then, we should transform the  “DZ”  entry into an  “E5”  entry through  Z3F_FA_PIA transaction.

This screen has to be filled in as follows:  

• Company code: 4044
• Customer: Customer number in which payment was allocated
• Processing Mode: N
• Test mode: Not selected

We should select the line of the payment that needs to be transformed into payment in advance, double click on it and fill it as follows:

• Aff.Co Co: Affiliate number
• Sales Doc.: Sales order (we should fill this field or the Billing doc. – Only one is needed)
• Billing Doc.: Billing doc. (we should fill this field or the Sales doc. – Only one is needed)

Then we should choose button  and the Amount field will be filled automatically with the Sales document amount. Please note that BusA field must be filled in, otherwise payment in advance will not be processed. When there are differences between this amount and the payment, it can be for several reasons: partial payment, banking fees, etc. Thus an analysis should be performed to trace the reason of the difference.

Click on 

Choose Yes in the table and the following message appears:

After this posting, a job will run automatically and will create an E5 document on customer account. See below an example:

A dispute will be automatically created informing Credit Manager of the posting. 

When the invoice is assigned and there is no difference, an automatic job runs every day and clears the E5 with the invoice (s). If there is a difference, the job will not clear and collections should ask information to the responsible CSR and Credit Manager.

4.4 Customer not Created in Cc 4044

In case customer is not created in Cc 4044 and we are sure that is the correct customer, we should run transaction Z3F_FA_PARTN_CC_VIEW.

First of all we should select variant CIE4044 by double clicking on it:

After that we should insert customer account number and execute   

Customer is then created in 4044 with default values.