1. Table of contents
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2. Objective and Scope
The purpose of this document is to describe how to reconcile and justify the Bank sub-accounts and states the importance to have it regularly reconciled (on a daily basis) in order to assure a better and accurate visibility at every moment.
This operating procedure (OP) applies to the receivables g/l accounts assigned to CICCSolvay S.A.
3. Definitions
- SBS: In the current document, "Solvay Business Services" will be replaced by its abbreviation "SBS".
- OTC BO CCT AR: Order to cash Back Office Accounts ReceivableCustomer Credit & Trade Accounts Receivables team
- OP: Operating procedure
- WARP: PI system for Worldwide Accounts Receivable and Payable
- CICC: Coordination Internationale des Crédits Commerciaux
- 0231: Company code in PI1 system for Solvay S.A.
- IBA: Internal Bank account
- BoE: Bill of exchange
Scope
ERP
References
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Attachments
- SAP transactions
- FBL3N
- F-03
Attachments
4. Solvay S.A. Sub-accounts Reconciliation
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CCT AR team is responsible to reconcile and do the follow-up (send reminders) regarding the open items in the bank sub-accounts in order to ensure an accurate balance view of the g/l accounts. Reminders should be sent on a regular and closer way to assure we are doing an effective follow-up |
4. CICC Sub-accounts Reconciliation
OTC BO AR is responsible to clear on a daily basis Cc WARP, 0231 sub-accounts and local misdirect payments accounts for companies with receivables assigned to CICC. |
4.1 Definitions and Reconciliation rules
WARP/0231Below it is described the document types in WARP and 0231 sub-accounts and the clearing rules to match the different sub-accounts.
Sub-accounts
- 505xxx12 – Miscellaneous
- 505xxx15 – Cheques bank account
- 505xxx16 – Bank transfers bank account
- 505xxx17 – Manual drafts and Direct Debits bank account
G/L Document types description:
WARP
G1
BoE
DK
Cheque
DZ
Bank transfer & Direct debit
KR
TI | Transfer IN |
TO | Transfer OUT |
0231
TI
Transfer IN
TO
Transfer OUT
Documents created per each contract cleared in WARP
SA | Banking fees |
& IBA |
movements | |
DY | Unpaid |
Reconciliation rules in WARP:
- Sub-Account 505**12: TO's should be reconciled with KZ items. Exception: in case of rejected payments the TO's on 12 will have to be cleared with TI's on 16
- Sub-Account 505**15: DK's items should be reconciled with TI items
- Sub-Account 505**16: DZ's items should be reconciled with TI items. Exceptions:
- Payments which that are for a customer/affiliate not migrated to CICC Solvay SA or a payment to be paid through vendor account - In this case the TI will match with a KR;KF
- Payments for items not assigned to WARP Solvay SA are transferred through the IBA's - In this case the TI will match with a SA;
- Sub-Account 505**17: G1 's items should be reconciled with TI items except for UK and GermanySEPA Direct Debit. In these Regionsthat case, DZ items are to should be matched reconciled with TI items.
- DY items should be reconciled with TO items except for UK and Germany.
- All the items (G1 or DK) with the same posting date should be selected and matched against the TI's (several TI's can be received regarding with the same file but is advised to split the TI's whenever possibledate, but the clearings need to be split by TI).
- Two different bank sub-accounts might need to be cleared reconciled together in order to match the items. (Ex.: A TO enter on G/L 505xxx12 related to a TI document on G/L 505xxx16).
- In Spain, Pagares enter on G/L 50554EUR15 together with cheques. Recibos enter on G/L 50554EUR17.
- In Spain, when matching DY's with TO's on the G/L account 50554EUR17, there could be banking fees of 1, 77 EUR for each DY document.
- BoE: In WARP, all BoE: All BoE already sent to the Bank through FBWE transaction are displayed (764.. doc. Number) in the sub-accounts.
- Reversals: When reversing a document, the original DZ is reversed and TI will then clear with reconcile with the new DZ (if payment is reposted)
Reconciliation rules in 0231_
- Sub-Account 505**12: TO's should be reconciled with U3 items Exception: in case of rejected payments the TO's on 12 will have to be cleared with TI's on 16
- Sub-Account 505**15: U3's items should be reconciled with TI items
- Sub-Account 505**16: U3's items should be reconciled with TI items. Exceptions:
- Payments which are for a customer/affiliate not migrated to CICC or a payment to be paid through vendor account - In this case the TI will match with a SA;
- Payments for items not assigned to WARP transferred through the IBA's - In this case the TI will match with a SA;
- Sub-Account 505**17: U3's items should be reconciled with TI items
- One U3 document is created for each contract cleared. Therefore while in WARP there is one TI for one DZ (which can contain 20 invoices cleared), in 0231 we will have one TI to clear 20 U3's.
- In the "assignment" field of the U3, the contract number can be found
- In the "text" field, the clearing document can be found. Selecting the text field and using button "Subtotal", we will have the documents to be matched with the payment
- BoE: In 0231 they will appear as U3, only the BoE for which the Risk cancelation already run (at BOE due date) will appear open in the sub-accounts. This difference between WARP (G1 when sent to the bank) and 0231 (U3 at due date) will create a difference in the balance
- Reversals: When reversing a document, two situations might occur:
- In case we reverse a payment due to wrong clearing, an U3 with opposite sign will be created which will then be cleared with a new U3 as soon as new clearing is done (contract is cleared)
- In case we reverse a payment which was cleared with a contract before and we need to transfer the payment to vendor/IBA, we should reverse 0231 sub-account (TI with U3) and clear the U3 of the reversal with the original U3. The TI will be use to transfer the payment
- a new payment is posted)
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4.2 Display of sub-accounts
To check the open and cleared items on Bank sub-accounts, we should use transaction FBL3N. Using this transaction we can check the items not yet matched reconciled and also the ones already cleared ones , if there is any need to consult an old clearing.
Open FBL3N transaction and choose "Open items"
Sub-account 50501EUR16 in WARP505*16
The following screen appears:
Checking this sub-account, we are able to see that for some TI's the DZ's match perfectly and that they have the same assignment and Document Header textAssignment. For the TI's which there isn't without a matching DZ, it means it is unallocated.
Sub-account 50501EUR16 in 0231
Checking this sub-account, we are able to see that for some TI's the U3's match perfectly and that they have the same Document Header text. For the TI's which there isn't a U3, it means it is unallocated or unmatched (this last will imply a difference between the balance in WARP and 0231 sub-account)Unallocated or there is a technical issue.
To check items already cleared, a tick should be inserted in "Cleared items" and a date should be inserted.
In these items, the clearing document is displayed displayed.
4.2.1 Manual reconciliation
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On a daily basis, an automatic program runs in WARP and 0231 to clear reconcile the DZ's with the respective payments (TI's). In WARP the The job clears reconciles the documents according the "Assignment" and "Amount" fields and in 0231 it clears the U3's with the TI's that have the same "Document Header text". This job is parameterized only for Bank sub-accounts 50516505*16. For the remaining sub-accounts (50512505*12/15/17) , an analysis and a manual clearing(s) is required from by SBS OTC AR team on a daily basis. In this Operating procedure, it will be explained which what are the steps that should be taken to clear reconcile these sub-accounts. |
Below on Find below an example for each type of sub-account by payment method:
50533EUR12Sub-account 505*12
In this sub-account we can find the refund movements of credit notes and payments which were allocated on customer account and for which Collections team has created a refund request.
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Each month we receive in 50501EUR12 a TO related to monthly banking fees. The clearing of this item should be performed by the ihb.accounting@support.solvay.com. We should make a request for the clearing of the item. |
Example below is a refund of a two credit note notes from customer 4003862 319523 (credit note is notes are matched against a KZ):
To reconcile the sub-account proceed as follows:
Open In WARP, open F-03 as below:
The fields should be filled in as below:
- Account: Sub-account to be reconciled.
- Clearing date: Previous working day.
- Company code
- Currency
Click on the "Process open items" button 
.
Select both items (KZ and TO) and press 
.
In 0231, open F-03 as below:
The fields should be filled in as below:
- Account: Sub-account to be reconciled.
- Clearing date: Previous working day
- Company code
- Currency
Click on the "Process open items" button.
Select both items (U3 and TO) and press
Sub-account 505*15
50554EUR15
One example with cheques.
In WARP, open Open F-03 as below:
The fields should be filled in as below:
- Account: Sub-account to be reconciled.
- Clearing date: Previous working day.
- Company code
- Currency
Click on the "Process open items" button .
Select both items (DK and TI) and press .
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In this case two g/l accounts are open (50501EUR15 and 50502EUR15) |
In 0231, open F-03 as below:
The fields should be filled in as below:
- Account: Sub-account to be reconciled.
- Clearing date: Previous working day
- Company code
- Currency
Click on the "Process open items" button.
Select both items (U3 and TI) and press
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In this case two g/l accounts are open (50501EUR15 and 50502EUR15) |
One example regarding BoE and Direct Debits.
In WARP, open Open F-03 as below:
The fields should be filled in as below:
- Account: Sub-account to be reconciled.
- Clearing date: Previous working day.
- Company code
- Currency
Click on the "Process open items" button .
In 505*17 sub-accounts we should clear the TI's with the BoE/DD. As sometimes there is a huge amount of G1's, we should order the items by posting date.
Then press
In 0231, open F-03 as below:
The fields should be filled in as below:
- Account: Sub-account to be reconciled.
- Clearing date: Previous working day
- Company code
- Currency
Click on the "Process open items" button.
In case of 0231, the TI should be cleared with the U3. To facilitate the clearing, the items should be ordered by posting date.
Afterwards, click on the 
button.
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4.2.2 Reconciling two different bank sub-accounts
There might be the need to join open two different sub-accounts to match perform one operation.
Use transaction Open F-03 as below:
This screen must be filled in as follows:
- Account: First sub-account involved
- Currency: Sub-account currency
- Company code
- .
- Clearing Date: Previous working day.
- Company code
- Currency
Click on .
The system displays all open items in this sub-account. Go back to indicate the second sub-account involved:
Click on the 
button.
The following screen appears:
Click on the 
button.
Insert the second sub-account involved on the "Account" field.
Then, click on 
.
This screen appears showing the non-cleared items for the both sub-accounts. Therefore, we can proceed with the reconciliation according to the posting date;
Validate by clicking on the floppy disk 
button (at the top of the screen).
4.2.3 Run manually WARP/0231 automatic job (50*16)
There might be the need to run manually WARP and 0231 automatic jobs to clear 50*16 sub-accounts especially at the end of month to have an accurate and update view of the sub-accounts.
In WARP:
Open F.13 transaction
Go to the variant button 
and remove the PT number
Click on Execute and choose the following variant:
Click on Execute 
In 0231:
- Open SM37 transaction
- Job name: S3ZF_020_D_CLEAR_SUBBANK (Flag: Sched)
- User name: Delete our user and insert *
Execute
Choose Job and Change
Immediate and Save
Save again
4.3 CICC Sub-accounts Justification
After reconciliation, it is critical to justify all the outstanding amounts once a month. This justification should be done for open items at last day of each month for WARP, and 0231 bank accounts (see file attached with a list with all CICC bank accounts).
The justification should be done for each open document at that day and inserted in the text field.
Open FBL3N transaction with variant "TQM" plus layout: "/PAULA JUST." and insert the last day of the previous month in the "Open items" field. See below:
Execute 
Afterwards, analyse all the open documents and insert a brief description in the text field with reason. Ex. in case of Unmatched, the DZ document number should be inserted in the text and in case of unallocated it should have case number.
4.3.1 Balance discrepancies between WARP and 0231 - Z3F_REPORT_BANK_ACC
In order to help us to identify the differences between WARP and 0231, we might use Z3F_REPORT_BANK_ACC transaction which shows the balance of each sub-account in WARP and 0231. It shows us also the amount of the unmatched cash (note: please double check the documents considered as unmatched in the transaction). We can also check sub-account by sub-account and compares the balances between WARP and 0231.
Open Z3F_REPORT_BANK_AC, choose "/AR EMEA" variant and insert the period for which you would want to see the balances.
Execute 
As this transaction shows all CICC bank accounts (AR and AP), select only the ones 50*12, 15, 16 and 17 through 
as below:
The following report appears:
For all the accounts which there is a difference is the last column, a justification should be given.
Example:
In this case the balance in WARP plus the unmatched amount is equal to the 0231 balance, therefore 0,00 is displayed in the Difference field. In case it is displayed a difference, we should analyse it and justify according to the chapter below:
Possible Reasons for the discrepancy between WARP & 0231 balances:
Unmatched
To check if an open item in 0231 is related to an unmatched, open 0231 g/l account:
Then, open the same g/l but in WARP (All items: document date of the TI – in this case 04.12.2014). See below:
Click twice on the DZ document, go to 
and enter on customer account line:
There isn't any clearing document and no contract inserted in "Ref. Key 1", meaning that is still open in customer account and not assigned to an affiliate, which explains the difference between WARP and 0231. In WARP, as soon as we allocate the payment in customer account, a DZ document is created and will be cleared with the TI. In 0231, only when a contract is cleared, a U3 document is created with the TI. The justification should be inserted in text column as below:
Unallocated
For the unallocated cash, two entries should be open, one in WARP and other in 0231. See example below:
In both items, the text "Unallocated Case xxxx" should be inserted. These open items are open in WARP and in 0231 > no difference in balances
U3 posting date in next month
During the closure, as soon as CICC Accounting close IBA's flows, the U3's which will credit the IBA's affiliate will have the posting date of the next month meaning that even if we received a payment with December statement date and we posted it with December posting date in WARP, the U3 in 0231 will have January posting date. This will represent a difference between WARP (TI and DZ will have posting date in December) and 0231 (TI will have posting in December but U3 in January). See below how to check this situation:
Click twice on the TI document and click again on the clearing document , in this case 
.
Then go to
Enter on the U3 document and choose 
In the posting date we can see 05.01.2015 but document date is 31.12.2014 (meaning the clearing in WARP was in December) which will originate a difference between WARP and 0231. In this case we should justify the item with the following text:
Clearing with other G/l account
In 0231, in case we clear two different g/l accounts it will imply a difference in the balance for which we should add the other g/l in order to have zero. In the example below we have the U3's in 50515GBP17 (direct debits related) but the TI's in 50515GBP16. In case below we have a difference of 75.299,92GBP in both g/l accounts as below:
If we check the clearing document we are able to see both g/l accounts in the "Account" field and the balance zero.
In the file we should justify as below:
Corrections
For the cases in which a reversal/correction was done in a different period, we should add a comment as the one below:
Additional, it can occur issues with U3 document. Ex. U3 posted with the wrong sign. In this case, the situation should be escalated to IS and add the following comment in the justification:
After all items are justified, we should extract the report from Z3F_REPORT_BANK_ACC to excel file and justify the differences between WARP and 0231 as the following file:
Other g/l accounts should also be reconciled and justified at month-end for 0231. See below the list:
- 5919010000 - Encashment/Payment (transit)
U2 documents (vendor related) to be excluded of the reconciliation/justification. In this account, it is posted the U3's result of an AB clearing (example: clearing between an invoice and a credit note; clearing of an E5 payment in advance with an invoice) and SA's documents result of a clearing in which there was banking fees (in this case we should clear the normal sub-account 50*16 with this one).
Example:
This clearing is related to customer 555591 in which a payment in advance was cleared againt the invoice.
- 5919010010 - Encashment/Payment (transfer)
In this account we can find some U3's created following a transition posting in which we transfer a balance from 5763 to WARP or vice-versa.
- 5080100000 - Clearing payment request/ passage annulation RIBA
Usually the U3's related with unpaid are posted in 0231 on the respective country sub bank account 505*EUR17. However in case a U3 is missing on those accounts please check account 5080100000 as this was the account originally set for the unpaid and by some reason the program can post on this account instead.
- 5080100100 - Clearing payment request/ passage annulation RIBA
Whenever we post a KR in WARP on vendor account using transaction ZFA_TRANSFER_AR_AP - a SA is posted on this account in 0231 clearing the TI on respective AR Sub account. To complete the flow an U2 is posted on this account clearing the TO on AP sub account. A clearing is then executed between the SA and the U2. However if the KR is posted manually or because of technical reason the SA is not created, OTC BO AR will have to clear the AR Sub account directly with the U2 on this account.
Finally, to complete the justification, the total amounts of Unmatched and Unallocated in 0231 have to be saved into a file. To do so, take the balances in Local Currency EUR on accounts 505*16 Cc 0231 split by Unmatched and Unallocated. Example here below:
The month which we are justifying should be added to the following excel file
5. Misdirected payments accounts reconciliation and justification
OTC BO AR should also reconcile and justify the misdirected payments g/l accounts for the companies which customers are assigned to CICC.
Access in PF1, WP1 and RHO systems to the following variant in FBL3N transaction:
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There is an automatic job which clears the documents posted by RtR and Accenture regarding misdirected payments (DT) with the documents which are created for each contract we clear in WARP (one DT per contract). The clearing is based on the assignment which should be the customer number in local accounting. See below one example: |
For the remaining documents which are not cleared automatically due a technical issue, OTC AR should analyse and reconcile manually these documents.
In the justification, each open document should be justified and a clear reason should be inserted in the "Text" field. See example below:
Remark: If for some reason there is an open item due technical constraint, it should be escalated through Fas-connect to IS and add "Technical issue" and fas-connect number in the text
The justification should also be extracted to the following file:
Example:
6. Appendix
