Table of contents
Objective and Scope
The purpose of this document is to explain how to perform the internal controls for Accounts Receivable process.
The Internal Controls mentioned in this OP aims to ensure:
- Compliance with AR procedures
- Application of Process Expert’s instructions and guidelines
- Assure the mitigation of financial risk in key tasks
This operating procedure (OP) applies to all companies and customer payments for invoices factored to Solvay Financial America (4044) and reversal factoring for company 7424 in WP1.
Definitions
- SC: In the current document, “Service Center” will be replaced by its abbreviation “SC”.
- OP: Operating procedure
- SFA: Solvay Financial America
- SSA: Solvay SA
- CM: Credit Manager
- DA: Doubtful invoice
- NAM: North America (US; Mexico; Canada; Puerto Rico).
- PE: Process Expert
Scope
ERP
References
Attachments
INTERNAL CONTROLS
Daily review of Unallocated Payments
The control of the unallocated cash is done in order to ensure that no payment received is open on the sub-account without having been correctly addressed and escalated asking more details.
In PI1:
We have two transactions that should be checked. The first one is FEBA and the second one is FLB1.
FEBA – FORNA PAYMENTS: Open FEBA transaction and choose the following criteria’s:
Company code: 4044
House Bank: FORNA
Statement date: Statement date of the payments
Statement status: 7
Execute 
Afterwards, click on each unallocated (red entries), click on the 900… document, choose 
and go to the “Attachment list” to check the case number. Then, go to Fresh Desk and check if the case was correctly created and sent to the correct entity (Credit Manager, Collections Team and Treasury).
FLB1 - LOCKBOX: Open FLB1 transaction and choose the following criteria’s:
DATE: Day of our last working day then execute .
Afterwards, click on each unallocated (red entries), click on the 900… document, choose and go to the “Attachment list” to check the case number. Then, go to Fresh Desk and check if the case was correctly created and sent to the correct entity (Credit Manager, Collections Team and Treasury).
After we check the PI1 system, the report “Unallocated” should be retrieved from Fresh Desk as below:
Open Fresh Desk, go to Tickets Tab and choose the following criteria’s:
On a daily basis a google file is updated:
All cases should be justified with the reason and mention to whom it was escalated as below:
It should be done a print screen of the file and the image added to the email.
Escalation procedure
For unallocated cases for more than three months and if no answer received or if is not enough to allocate the payment, the team member doing the controls should send an email to Accounts Receivables Process Expert, explaining the reason why it is being escalated (mention if no answer received, doubts, proposal). In case it is interco related or any technical constraint, a reminder should be sent to the company related or to IS.
Weekly review of Unmatched payments
The objective of this control is to assure that all non-matched payments equal or above 50.000,00 USD have been analyzed and escalated. Therefore a list with all those items has to be justified by the AR specialist and should be sent to SC Manager, AR Process Expert and to Cash Collector Team Leader (which should deploy to the cash collector if justified).
In PI1:
Open FBL5N transaction and chose the following variant:
On field “open at key date” put the today’s date then execute
The following screen appears as below:
In order to identify the collector responsible for each unmatched case, we should copy all the cases IDs, then go to UDM_DISPUTE transaction and choose the fields as per image below:
Paste the cases IDs then 
a list of disputes will appear with the collector responsible for each case.
For each of the unmatched amounts, the AR specialist should update a google file and describe the reason of non-allocation and mention to whom it was escalated:
It should be done a print screen of the file updated and the image added to the email.
Daily Review of Factoring Monitoring
All the assigned Receivables to SFA that do not have all the information or aren't correct can originate errors when are assigned and are displayed in Z3F_FA_OI_MONITOR transaction.
All the contracts assigned to 4044 are verified automatically by the system through 24 checking, described below:
The objective of this control is to check that all open entries are already handled and escalated to the proper entity.
Run Z3F_FA_OI_MONITOR in the three local systems transaction:
Select Customers and Execute 
Remark: EMEA and BR customers should be excluded.
The status of the entries should be yellow and the payment block X, meaning that the situation was already escalated through email. If it is red, it means that is open and it wasn't analysed.
It should be done a print screen of the entries and added to the email.
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Records of Doubtful receivables and losses based only on a supporting document communicated by CM:
For bad debt customers, we should provide the request in which OTC AR received the request to post a customer into doubtful status only if requested by Audit Company. In this case, we should search in Freshdesk the request case and send it to requester.
Reporting Controls:
The email should be sent to the following addresses:
