Bank sub accounts reconciliation and justification

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/0231

Below 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

0231

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:

1. 1. 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 KR;
   2. 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: G1's items should be reconciled with TI items except for UK and Germany. In these Regions, DZ items are to be matched 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 the same file but is advised to split the TI's whenever possible).
• Two different bank sub-accounts might need to be cleared 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 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 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:

1. 1. 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;
   2. 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

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 and also the cleared ones if there is any need to consult an old clearing.

Open FBL3N transaction and choose "Open items"

Sub-account 50501EUR16 in WARP

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 text. For the TI's which there isn't a 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).

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 

4.2.1 Manual reconciliation

Below on example for each sub-account by payment method:

50533EUR12

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.

Example below is a refund of a credit note from customer 4003862 (credit note is matched against a KZ):

50554EUR15

One example with cheques

50533EUR17

Note: due to the complexity and volume of the operations it would be helpful to open the accounts 17 in WARP FBL3N with Layout "/CPTE 58/TCS". Then select Doc. Date and Value Date and press subtotals. 

This will group the G1s by the date they were sent to the bank and Value date, which usually correspond to a TI or group of TI's with the same value date. 

Below, the example to G1s selected with the same Doc. Date and Value date: 

One example regarding BoE and Direct Debits

4.2.2 Reconciling two different bank sub-accounts

There might be the need to join two different sub-accounts to match one operation. 

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.

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.

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. 

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 .

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

https://docs.google.com/spreadsheets/d/1pHtxp2SCYJIZVjknr5cF9QcoEs2SMO3II3o4wPg-MWQ/edit#gid=1960932538

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: 

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:

https://docs.google.com/spreadsheets/d/1pHtxp2SCYJIZVjknr5cF9QcoEs2SMO3II3o4wPg-MWQ/edit#gid=1906614057

Example:

6. Appendix