Factoring Monitoring procedure

Authorizations & Roles

Version Control

Table of contents

1. Check vendor master data payment block (Factoring) 14
2. Partner does not exist in the factoring company (General) 16
3. Partner does not exist in the factoring company (company code) 16
4. Partner is blocked for posting in the factoring company 16
5. Partner is flagged for deletion in the factoring company 18
6. Bank country with embargo 19
7. Document with factoring but not factoring in the master data 19
8. No payment method defined in doc and in MD 20
9. The vendor with more than one[ payment method 21
10. Partner not mapped 22
11. Bank type missing 22
12. Partner bank type details not aligned between systems 23
13. Withholding tax amount discrepancies 24
14. Partner bank type doesn't exist in CICC 24
15. Company Code not mapped 25
16. Alternative payee stored in company code view 25
17. Document currency is not accepted 25
18. The document belongs to chained vendor 25
19. Posting date is higher than the current date 26
20. The payment method of the document is not accepted 26
21. The document date is higher than the current date 26
22. The amount is bigger than the max amount (Outgoing cash) 27
23. The amount is bigger than the max amount (Incoming cash) 27
24. Down payment exists for vendor 31
25. Doc related to VIP/SFP vendor 35

1. Objective and Scope
   1. Objective of this Procedure

The purpose of this document is to have a detailed procedure how to control the assignment of third party vendor payments and agents (only for WP1) which are sent for factoring process in PF1 and WP1 environments. Also describes the roles and responsibilities of each Actor in this process.

1. 1. Scope

This operating procedure (OP) applies to all vendors, agents, and miscellaneous creditors documents (invoices and credit notes) with factoring allowed (to be factored to CICC).

1. Reference Documents

Draft of AP-SOP 40.04.01 Factoring Monitoring from 19.12.2012

1. Definitions

1. Roles & Responsibilities of Each Actor

SBS-AP-CONTROL and SBS-AP-CONTROL Teams are responsible to control the request of payment assigned for factoring process in PF1 and WP1 environment for all vendors, agents (WP1) and miscellaneous creditor.



Factoring Monitoring error messages has two categories, the error messages related to Master Data issues and the other category related with the posting of document issues.
MD and MD-DOC block reasons are not Monitoring team scope.
SBS-AP-CONTROL is responsible to control the following error messages:

SBS-D&A is responsible for controls all documents blocked in the Factoring Monitoring with the following error messages related to master data issues:

SBS-AP-CONTROL control the factoring tool during all day, since documents are constantly being assigned to factoring process with special attention in morning control (until 08:30 A.M (Lisbon Time) in order to check any potential urgent payments.
Note: It can happen the same document be blocked with AP and D&A block reason, in this case, D&A analyses and solve their block and after insert comment " DA: To be released" in order to AP knows that we can analyze our block and release the document. These documents are usually with block X.


SBS-D&A control the factoring tool twice a day, before the urgent payment time (until 08:30 A.M -Lisbon Time) and at the end of the working day.

The Monitoring transaction is developed in PF1 and WP1 environments ( )
This control minimizes the number of errors assigned to factoring and allows to:

• simplify and improve the process

• improve checks

• generate a contract in PI1 environment only for the correctly assigned document and reduce the number of contract cancellation in PI1 environment due to the incorrect factoring

• non-assignment of "non-factorable" documents

• faster factoring by accelerating process

5. Procedure

5.1) Description of SAP transactions on Factoring Monitoring
Factoring Monitoring daily report is used to analyze possible errors in the factoring process and to ensure that errors are corrected before assignment to PI1 system.
Before factoring extraction, automatics List of checks are done on supplier's master data:

Automatics List of checks
1: MD: Not a dummy partner
2: EMPL: Vendor is not an employee
3: MD: Partner is not a factoring company
4: Partner corresponds to the company
5: CONV: Any convention for affiliate
6: COUNTRY: No embargo on the partner country
7: COUNTRY: Authorized to do factoring for affiliate country
8: INTRA: Partner is part of a chained process
9: CONV: Convention exists between factoring company and affiliate
Verification is done in PF1 and WP1 environments, to check whether a document is factorable or not.
Only the factorable documents enter in the factoring process.
If the document fulfills the factoring requirements the document can be factored.

The following situations can occur:

• Payment block "D" (automatic system block) is inserted into the document and document automatically assigned CICC.

It means that factoring requirements were fulfilled and no error was found in the document.

• Payment block "Y" (automatic system block) is inserted into the document and document is blocked for assignment.

It means that check is failed, factoring requirements were fulfilled but there is an error on the document that has to be checked.

• The non-factorable documents are out of the factoring process (e.g.: local payments, intercompany documents).

5.2) How to perform the factoring Extraction

• 1st Step - Launch transaction Z3F_FA_OI_MONITOR - Factoring monitoring;

Transaction screen:

Before launch, the system selects by default the following options:

• Vendors. When you want to treat Agents, please select Agent option.
• Type of payment blocks
• The priority of the document based on the due date. By default, all options are selected but you can choose to work one by one.
• Amounts (all amounts or select specifics amount). You can also select the option to perform the high amount first and in here you can select the amount and the currency.

• 2nd Step - Click execute and the following information will be generated

All new documents in Factoring Monitoring Tool are blocked with Payment block "Y", is an automatic payment block set by SAP System which is temporary and indicates that no action was taken on document. That means document will remain blocked on the list until is treated.

Please be aware:

• All documents with flag on Urgent, SFP or VIP column have priority treatment because they have a big impact in supplier satisfaction and in SBS business.

• Same document can be blocked due to one or more than one block reason.

• 3º Step - During analysis, the first step may be taken: general check (reference, document date, amount and vendor details if are identical between the invoice and document information) and check on the block reasons (procedure different according to each one).

• After, there are two possible scenarios:
• If everything is ok, the document is released and the Payment block "Y" changes automatically to Payment block "D"(green light);

• If modifications/updates/corrections are required, Payment block "Y" will change automatically to Payment block "X" (yellow light) and the document will be blocked until block reason is solved. These modifications/updates/corrections may be requested by the Monitoring team.

• Documents depend from Ptp AP - Operator and outside scope operator. Actions are based most of the times by creating tickets to PF1/WP1 operator, HD or D&A team.

• Payment block (X) can also be inserted manually if we use button depending on the actions taken that will be described further on in this operational procedure ( OP). In other words, if a ticket was created in Freshdesk, we may copy the ticket number and use "Insert text" tool in order to block the document with X.

5.2.1) Description of the error messages
This section describes the control messages that can appear on this report and how to handle each of them appropriately.

Highlight: For every document, the normal check must be done. In other words, we always have to check if the reference, date, amount, currency, vendor name and bank details match between the invoice and document.

1. Check vendor master data payment block (D&A scope)

Description Vendor is blocked for factoring due to the payment block in the master data.

Action To review this message the following checks must be done:

• Confirm payment block in the vendor master data.
• If exists any ticket with instructions to block vendor in factoring
• If there is a new vendor account that should be used instead

• If an alternative vendor cannot be found, no ticket with instructions to block vendor used and supplier account is correct please create a ticket to D&A team requesting to unblock vendor select button

After selecting the button "Release for factoring", please select the proper reason:

• Invoice confirmed;
• Free text (Ex: Ticket #)

• If exist evidence (new vendor to be used or ticket with instructions to block vendor used).

Please create a ticket to PTP Data & Analysis Team and request correction, using button :

• In order to request an update of bank account, use the "Request by email" tool, selecting "Codif: master data" as indicated in the image above.

• In the previous image, there is an example of how to create a ticket directly through the environment. Please indicate always the vendor number, document number, company code, block reason and why you are requesting update/modification/confirmation. In the end, after receiving an email with the ticket number, attach the invoice image.

b) Partner does not exist in the factoring company (General - D&A scope)
Description The partner is not yet created in the factoring system (PI1)
Action To review this message the following checks must be done:

• If there is a new vendor account that should be used instead of the one used.

• If an alternative vendor cannot be found and vendor account is correct please transfer the account to PI1 system. After done select button

• If the vendor account is incorrect, please create a freshdesk ticket to Data & Analysis Team and request for correction. The invoice image may be attached every time a ticket is created.

c) Partner does not exist in the factoring company (company code - D&A scope)
Description The partner is not yet created in the factoring company.
Action Please create a D&A ticket with creation request of the vendor in the factoring company code (CICC). Usually is only need to release the document to PI1 system.

d) Partner is blocked for posting in the factoring company (D&A scope)
Description The partner is blocked for posting in the factoring company.

Action To review this message the following checks must be done:

• If there is a new vendor account that should be used instead of the blocked one.
• If exists any ticket with instructions to block vendor in factoring company.

• If an alternative vendor cannot be found and vendor account is correct please unblock the account and select button

After selecting the button "Release" please select the proper reason for release for factoring:
Invoice confirmed
Free text (Ex: Codif case number)

• If the vendor account is incorrect, using same button :

Vendor account is incorrect please create a ticket to PtP Data & Analysis Team and request for correction.

e) Partner is flagged for deletion in the factoring company (D&A scope)
Description The partner is flagged for deletion in the factoring company.


Action To review this message the following checks must be done:

• If the partner is flagged for deletion only in factoring company correct please un-flagged in factoring company (PI1 system) and
• If the partner is flagged for deletion also in PF1or WP1 or RHO system, please confirm if there is a new supplier account that should be used instead.

• If vendor is correct please un-flagged vendor in PRS system and

• If the vendor account is incorrect, using button :

If the vendor account is incorrect please create a ticket to PtP Data & Analysis Team and request for correction.

In the additional note field insert important information that should appear in the ticket:

• Vendor number
• Document number and company code
• Reason for the correction request
• Correct vendor (if you have that information)

f) Bank country with embargo (D&A scope)
Description There is an existing embargo on the country of the bank where the payment has to be done.
Action To review this message the following actions must be done:

• Confirm if the invoice was posted on the correct vendor, based on invoice information comparing with the information on master data.

• If yes, create a ticket PtP Data & Analysis Team to check if the invoice can be paid on another bank account existing in the supplier master data (attach always the invoice image).

• If the document cannot be paid on another bank account existing on vendor master data, create a ticket to SBS CICC Team informing that document is blocked due to embargo/ compliance and request them to inform our bank about economic purpose and invoice image.

g) Document with factoring but not factoring in the master data (D&A scope)
Description The document has Factoring House bank or pledging indicator but a partner
Master data has value "no factoring allowed".

Action To review this message the following checks must be done:
Please confirm is the vendor used is the correct one. If yes, please create a salesforce ticket to PtP Data & Analysis Team to check if the documents can be factored or it will be paid locally.

• If the vendor is to be factored, please insert FACT in house bank field.
  
  h) No payment method defined in doc and in MD (D&A scope)
  Description There is no payment method defined in document neither in vendor's Master
  Data.
  
  Action To review this message the following checks must be done:

• Please confirm is the vendor used is the correct one.

• If yes, accordingly with invoice information or any Codif case please insert the vendor's master date with the correct payment method.

• Once vendor's master data is updated, release the document blocked in factoring monitoring tool  selecting button

Insert the payment method in "New Value" and approve.

• The document will be blocked with X, select document line and

i) A vendor with more than one payment method
Description Vendor has more than one payment method defined in master data.

Action This error only appears for WP1 or PF1 system. These vendors are supposed
to have only one payment method.

• Please confirm the correct payment method to maintain in master data.

• Once vendor's master data is updated, select line of document blocked in factoring monitoring tool choose button

Insert the payment method in "New Value" and approve.

• The document will be blocked with X, select document line and

j) Partner not mapped (D&A scope)
Description The link between RCS or RHO partner with PRS partner is not working.

Action To review this message the following checks must be done:

• Please confirm is the vendor used is the correct one.

• If yes, accordingly with invoice information please link with correct PRS supplier.

• If the vendor's account is incorrect please create a ticket and send an e-mail to Data & Analysis Team team and request the correction.

k) Bank type missing (D&A scope NOT in all cases)
Description No bank type defined in doc or in master data.

Action To review this message the following checks must be done:

• If the vendor has bank details on master data and corresponds with the one on invoice image, please select

Select the correct bank type and save.

• The document will be blocked with X, select document line and

• If the vendor has permitted payee and wasn't been selected while the posting. In order to avoid this document cancellation, please confirm all data on the invoice and release it for PI1 system. The document will be blocked in Payment Monitoring Tool (PI) due to Bank account missing and the permitted payee will be inserted. ( In cases where vendor only has permitted bank account)

Note: For the cases where vendor has permitted payee and also his bank account on master data, you must go to PI1 system and change to permitted payee because is possible that document would not be blocked on Payment Monitoring Tool (PI) since system will choose automatically the vendor's account when entering in PI system.

• (D&A scope) - In the case of No bank details on vendor master data, create use button :

Codif Case will be created in to confirm the bank details with vendor.

l) Partner bank type details not aligned between systems (D&A scope)
Description Bank details are not the same between systems.
Action D&A procedure.

m) Withholding tax amount discrepancies.
Description A retention tax to be paid to the government by the payer of the income (vendor).
Action PF1: Check withholding tax → NO: Request correction.
WP1: Exempted to check (internal procedure) → Release.

n) Partner bank type doesn't exist in CICC
Description Bank details selected while posting doesn't exist in CICC.
Action To review this message the following checks must be done:

• Confirm with invoice image or Codif case, select

Select the correct bank type and save.

• The document will be blocked with X, select document line and

• If vendor has permitted payee and wasn't been selected while the posting. Please confirm all data on the invoice and release the document for PI1 system. Document will be blocked in Payment Monitoring Tool (PI1) due to Bank account missing and the permitted payee will be inserted.

o) Company Code not mapped (D&A scope)
Description NO link between RCS or RHO company code with PRS system.
Action D&A procedure.

p) Alternative payee stored in company code view (D&A scope)
Description Vendor has alternative payee active at company view
Action D&A procedure.

q) Document currency is not accepted
Description Currency of the document is non-convertible and it is not accepted by the factoring system
Action Create Ticket to Data & Analysis Team team informing that document was assigned for factoring in a non-convertible currency.
Request clarification if they can correct document and assign it in a convertible currency or if they request a new document to supplier.

r) The document belongs to chained vendor (Customer block)
Description The document received in the factoring system has been assigned by the customer 999992*). This customer has assigned a power to pay but in case of a chained document a power to pay cannot be accepted only the assignment by the vendor can be accepted.
ActionConfirm vendor's master data and if he was recently modified and now the document has to be paid via bank transfer.

s) Posting date is higher than the current date
Description The document was posted with a future posting date
Action The error only applies to documents posted in the same posting period.
In case of future date but within the same month, the document can be released. (Ex: self-billing documents)

t) The payment method of the document is not accepted
Description Document was assigned for factoring with an unknown payment method in the factoring process.
Action Open invoice image and vendor´s master data to confirm the master data on both.

• If payment method on master data is correct, select the document line and change the payment method and after release it for payment.

• If payment method on master's data is incorrect, create a D&A Ticket requesting update the payment method defined in the vendor master data in order to avoid future errors.

u) The document date is higher than the current date
Description The date of the document is higher than the current date.
Action In cases where document has a future date but within the same month, the document can be released. (Ex. EPWF, Self billing)

• In cases where the document was posted incorrectly, one of the two following actions may be taken:

1. If the operator is from Posting team, create an email to WP1 or PF1 team requesting correction;
2. If the operator is not from Posting team, create a ticket to PTP Data & Analysis Team and ask for correction.

• The document will be blocked with X, until you be contacted to remove the X in order to document be reversed.

v) The amount is bigger than the max amount (Outgoing cash)
Description The document was posted with an amount higher than 50K EUR/USD and this amount will go out of the business cash flow.
Action Open document image and perform a complete audit to the invoice , including bank details (reference, amount, currency, vendor and part bnk type)

Documents below 250K:  There's no need to check nothing - Just release the document for payment.

Documents above 250K: Open document image and perform a complete audit to the invoice, including bank details.

Documents above 500K : Also audit the payment terms (if MM document - the correct payment term is the one on PO; if FI document - the correct payment term is the vendor master data)

• If everything is correct, release the document to payment.

• If there is some error in the amount or confirmation needed, please create a ticket to PTP Data & Analysis Team requesting correction or clarifications (attach the invoice image).

w) The amount is bigger than the max amount (Incoming cash)
Description Document was posted with an amount higher than 50K EUR/USD and this amount will go enter on the business cash flow.
Action

Documents below 250K:  There's no need to check nothing - Just release the document for payment.

Documents above 250K: Open document image and perform a complete audit to the invoice, including bank details.

• If everything is correct, release document for payment.

• If there is some error or confirmation needed, please create a ticket to PTP Data & Analysis Team requesting correction or clarifications.

x) The vendor with direct debit, document with another payment method 
DescriptionDocument was posted with a payment method different from direct debit and supplier's master data has direct debit as a payment method.
As there is a signed direct debit agreement with the vendor, the document cannot be paid by bank transfer in order to avoid double payment.
Action Create a ticket to PTP Data & Analysis Team to check if the document has to be paid by bank transfer or the supplier will debit CICC´s bank account.
After confirmation:

• If the document must be paid by bank transfer, validation can be added to document and can be released it for payment.

• Please be aware that WP1 vendors don't have debit agreement with CICC yet only with local accounts so for these suppliers use local payment button in order to be cleared on WP1 direct debit payments. If you have doubts, please confirm in vendor line how other documents were cleared.

• If the amount will be debited by the vendor, change the payment method, through payment method button, to direct debit and release it or not to CICC.

Note:
Local direct debits countries Countries: PT, ES, NL and some suppliers from France and UK
Examples:
102124522 LA POSTE- local direct debit (GL) (Cc.1422)
902061499 VIA VERDE 63113639910306
1003039683 CAR PROFESSIONAL FUHRPARK C c 1424

y) Amount over the direct debit limit
Description The document was posted with a direct debit payment method but the amount is higher than the amount defined in the direct debit agreement. This error is only for the suppliers with a Direct Debit agreement with CICC.

Action Open invoice image and confirm the amount.
If the amount is correct, request to CICC team to confirm the amount agreed in table Z3F_FA_DD_VENDOR based on vendor number and company code.
If the amount agreed is not enough for your invoice, please create a ticket and sent an email to Mrs. Larissa Duval and request approval to release the direct debit amount. On your email, please attach the invoice image.
If the amount agreed on table Z3F_FA_DD_VENDOR is above your invoice amount, select the document line and release it for CICC system.

z) Payment method in doc. (direct debit) different from the one in the vendor
Description Document was posted with a direct debit payment method however in the vendor master data direct debit payment method is not defined.

Action Create a ticket to PTP Data & Analysis Team to check if the document has to be paid through direct debit or not.

• If yes, contact Mrs. Larissa Duval (CICC PCO) and confirm if there is any agreement in preparation. If is the case, issue will be solved as soon as the direct debit agreement is recorded in SAP.

• If no agreement, it means that the document could be paid through local direct debit or was posted with incorrect payment method.

• In the first case please see vendor line in affiliate system if you have local payments cleared with invoices.

• On the second case, change the payment method to transfer.

a1) Document type is not valid for agents (to review)
Description The document was posted on the agent account but with the vendor document type. The error message only valid for PF1 system.

Action Contact MBU Agency to check if the agent account is correct for this posting.

• If the agent account is correct, create a ticket to PTP Data & Analysis Team and ask for correction.

• If the agent account is not correct, it means that the supplier account and vendor document type has to be used for this posting. Create a ticket to PTP Data & Analysis Team and ask for correction.

• If there is no vendor corresponding to this agent, please create a ticket to D&A requesting support to change the account group or create a new vendor

a2) Item belong to invalid company code
Description There is no payment agreement signed with the company code.

Action Block alerts for new and obsolete companies codes in the business.
If the company is new, contact Mrs. Larissa Duval (PCO) and confirm if there
is an agreement in preparation.

• If there is an agreement in preparation the issue will be solved soon. Document date cannot older than the date of the creation of the agreement.

• If no agreement in preparation and company is obsolete, please create a ticket to PTP Data & Analysis Team or Affiliate to check if the document was posted correctly.

a3) Document with factoring but master data in manual exception
Description Document on "Factoring Master Data" view has "Yes" on "Factoring Allowed" but also has flag on "Manual Exception". It means that document could be factored but there is a blocking reason in the master data to avoid sending document to factoring.

Action Go to vendor line and see if you have recent postings on the vendor line item. Confirm if the invoices are being cleared with local payment.

• If yes, please use button "change to local pmt" and release the document to ERP system.

• If no recent documents on vendor line, create a Ticket to PTP Data & Analysis Team to contact locally to confirm if the payment will be done locally or not.

• After confirmation, if the document should be paid through CICC, please send the ticket to D&A requesting to remove the flag on "Manual Exception" and from now on the supplier will always be paid by CICC.

a4) Down payment exists for vendor
Action Compare invoice image details with ones in the document (date, amount, reference, vendor and bank account)
Check PO (ME23n transaction) using document's PO number.

Next, check "Payment term" and "Terms of payment" in "Texts".




Another step is checking the "Purchase Order History" in "Item Detail":

For further information and in order to help in the analysis, open Purchase Order request in attachment and compare with the one in document.

• If down payment document requested is mentioned in "Terms of Payment" in Purchase Order, as well amount to be paid is according to the agreement, release document for payment.
• If a down payment request is not clear or amount to be paid is different from the one stated in "Terms of payment" in the Purchase order, ask for further information with the Operator who post the document.

a5) Down payment - multiple line items sum over high amount limit
Description Down payment document post has several lines amounts and the sum of all lines amounts is above 250K EUR/ USD

Action Open invoice image, confirm if the sum of all lines is accordingly with information on the document (amount, currency, bank details).
a6) Down payment but vendor balance is a debtor
Description In the vendor line item, show the debtor balance.

Action Same procedure as the one described in "Down payment exists for vendor" block.
Go to Vendor Line Item (FBL1N) transaction and check if after releasing the document we are not going to pay because the vendor is a debtor.
a7) Special GL not defined as to be paid
Description Will be confirmed.

a8) Partner w/o bank account and bill of exchange or DD PM
Description Will be confirmed.

a9) Doc related to VIP/SFP vendor
Action

• If document blocked as VIP, make the normal check: compare the date, amount, currency, reference, as well vendor details and bank account in the document with the invoice image.
• If document blocked as SFP, there's no need to confirm any data - Just release the document for payment. 

6 Appendix
Diagram for Corrections







Once the ticket is solved, in case a document was reversed:

1. Wrong vendor (example):

In the end, release the posted document in the right vendor and close the ticket.

Tickets
Please, find below a sequence for how to create an email or ticket in Freshdesk:

Click "+New" → choose "Ticket" or "Email".

1. Ticket:

In the image attached below, find which options you may select in each field.


Next, you may choose "ALL GBU'S/FUNCTIONS".


In "Priority" field, choose one of the following options according to the document priority:

• Urgent;
• High;
• Medium;
• Low.

In "Status" field, choose the one according to your request (if you ask a date, vendor, amount and reference correction, choose "Transferred". In case you need a confirmation of payment method, partner bank type, or any other information, choose "Waiting on third party").
In "Group" field, you may choose "D&A
In the end, do not forget to "Submit" your ticket.

IMPORTANT NOTE: Do not forget to attach the invoice image every time a request is made related to a document.
2) Email:
When you want to create an email, you may proceed the following way:

In "From:", you may insert CICC email, while in "To:" you have to add escalate.lis@solvay.com
(for WP1 Posting team) or ptp-exceptional.scanning@solvay.com (for PF1 Posting team), depending for who you are requesting the correction.
Next, the following sections may be field the following way, except "Priority" and "Status" (same situation as the one presented before in 1. Ticket).



In the end, do not forget to "Send" your email.







End of document.