1. Table of contents
2. Objective and Scope
This Local operational procedure (LOP) demonstrates processes and procedures to execute Accounts Receivable activities by receiving Bank Draft for legal entities in CHINA. This LOP provides instruction for users to perform recurring activities and reacting expected scenarios.
This LOP applies for Accounts Receivable-Bank Draft activities of all CHINA entities:CHINA :
Solvay Specialty Polymers (Changshu) | 5991 |
Solvay Chemicals (Shanghai) Co Ltd | 6078 |
Solvay (Shanghai) Co Ltd | 5876 |
Zhejiang Lansol Fluorchem Co., Ltd. | 5993 |
Solvay (China) Co Ltd, Shanghai | 7728 |
Solvay (Shanghai) International Trading Co Ltd | 6859 |
Solvay Fine Chemical Additives (Qingdao) Co Ltd | 7797 |
Solvay (Zhenjiang) Chemicals Co Ltd | 7811 |
Zhuhai Solvay Specialty Chemicals Co Ltd | 6577 |
Baotou Solvay Rare Earth Co Ltd | 6875 |
Liyang Solvay Rare Earth New Materials Co Ltd | 6811 |
Solvay (Zhangjiagang) Specialty Chemicals Ltd | 6526 |
Solvay Energy Services, Beijing | 6878 |
3. Definitions
- SBS: In the current document, "Solvay Business Services" will be replaced by its abbreviation "SBS".
- AR BO: Accounts Receivable Service Center
- OP: Operating procedure
- CA: Customer Assistant Representative
- Treasury / CAMs
Scope
China
ERP
References
Attachments
4. Process Flows
4.1 Maintain Bank Draft and Clear AR in RCS:AR–040-010
Overview of the tasks in this process:
AR Accountant (BO) check the Bank Draft copying, maintains Bank Draft that received from cashier. AR Accountant (BO) then clears AR and creates Notes Receivable under the same customer code in RCS.
Transaction code: F-36 and excel file
Step:
- Extraction all bank draft list from the bank portal and verify bank draft as per Treasury's policy.
- If Bank draft under qualify, AR process with business team to get extra approval. If Bank draft qualify, AR process acceptance process via Bank portal.
- Maintain Bank draft information in google sheet.
Definitions of excel column:
- Customer name: Name of customer who pay by bank draft.
- RCS code: Customer account in SAP.
- Draft No.: Bank draft number, from copying bank draft.
- Issue Date: Date of issued bank draft, from copying bank draft.(Chinese Language)
- Maturity Date: Date of Bank draft due, from copying bank draft.(Chinese Language)
- Maturity:Year and Month of Maturity Date.(Formula by Excel)
- Month: Month Age of bank draft.(Calculate from issuing and maturity date)
- BD drawer: Owner bank of bank draft.
- BD amount: Amount of bank draft.
- Comment: Status of bank Draft.
- Received data: Date of cashier received bank draft.
- Period: Accounting period of received
- Posting Date: Date of AR-BO received and posted bank draft in SAP.
- Age: Month Age of bank draft on our hand.(Calculate from maturity date and received data)
- Voucher number: Document posting number.(Record receiving bank draft)
- Clearing number: Document posting number.(Record Bank draft accepted, Transfer to vendor,BD Discount)
- GBU:Business type of bank draft which pay for.(to record correct profit center)
- Record bank draft receiving by using F-36
On the screen: “Bill of Exchange Payment: Header Data”, enter information in the fields as below:
- Document Date: Enter the date of the accounting document.
- Type: "DW" is Customer Bill Exchange
- Company Code/ Currency/Rate: Enter information about bank draft
- Reference/ Doc. Header Text: Enter a text that will be displayed on all of the lines for this posting.
- Transaction to be processed: “Incoming payment” is displayed by default.
“First Line item Data”, enter information in the fields as below:
- PstKy: 09 is Special G/L debit is displayed by default
- Account: Enter the customer account.
- Special G/L Ind.: Enter the special G/L indicator:
- “9” is Bank Draft CN (< 3 months)
- “8” is Bank Draft CN (> 3 months)
Press “choose open item” go to the next screen.
2. On the screen: “Bill of Exchange Payment Customer item”, enter information in the fields as below:
- Amount: Enter the amount of bank draft.
- Assignment: Bank Draft Number
- Text: Same as "Doc. Header Text".
- Due on: The Maturity date of the bank draft.
- Issue date: Date of issue Bank Draft
Then For Option 1 if need to clear AR choose " Process open item " button.
Option 2 In AR-BO practical we post as advance incoming to customer account first.
Thus we will put the information in next line item.
- PstKy: 19 is Special G/L credit
- Account: Enter the customer account.
- Special G/L Ind.: Enter the special G/L indicator: "A" is Down payment
Press "Enter" go to the next screen.
"The warning screen, it won't be shown every time. It will be reminded that credit limit is exceeded for this account, ignore it."
On the next screen for option 1: "Bill of Exchange Payment Select open items", enter information in the fields
Then process open item screen show as below to select open item to match with received bank draft amount.
Even if cannot match the amount we can choose the item and leave outstanding by partial or residul item.
For China, invoice that can be choose need to have Fa Piao (Gloden Tax number) in reference key1 feild.
Press "simulate" to check all entry G/L
Once we choose the residual item, on overview Screen line item of outstanding amount will show in "blue" for enter the detail.
Then enter Payment term, Bline date: refer from original invoice.
And Text: Residual-invoice number
Clicks “save” to post the document and get the document number.
On the next screen for option 2: "Bill of Exchange Payment add Customer item", enter information in the fields as below:
Press "simulate" to check all entry G/L
Press "Save" to post the document.
The document number will be shown on the bottom of the screen.
4.2 Clearing Bank draft
AR Accountant (BO) clear bank draft record when bank draft following below:
- Bank draft due , Local Cashier submit to local bank and get the money to bank account
- Transfer bank draft to Vendor, PtP team and Local Cashier agreed to pay vendor by customer's bank draft receiving.
- Bank Draft Discount, Local Cashier agrees with local bank to get the money before bank draft due by interest charges.
Transaction code: F-36 and F-30 and Excel file
In the event of Bank draft due and bank draft discount, clearing bank draft record in system by T-Code F-30 document type DA.
Step:
Bank Draft Due is Bank Draft submitted bank to get the money.
Bank Draft Discount is Bank Draft submitted bank to get the money before maturity date with interest charges.
Check statement and get information from Local cashier and/or Treasury Team
From AR-BO download and monitor bank account statement by daily basis.
Once we have incoming about bank draft due and/or bank draft discount.
Example statement file and Bank draft inventory file.
Bank Statement
Bank Draft due
Bank Draft inventory file
Bank Draft due
Posting and clearing in SAP by F-30 document type DA.
- Document Date: Enter the date of the accounting document.
- Type: "DA" is Customer document
- Company Code/ Currency/Rate: Enter information about bank draft
- Reference/ Doc. Header Text: Enter a text that will be displayed on all of the lines for this posting.
- Transaction to be processed: “Transfer posting with clearing” is displayed by default.
“First Line item Data”, enter information in the fields as below:
- PstKy: 40 is Debit entry G/L
- Account: Enter the GL bank account.
Press “Enter” go to the next screen.
- Amount: Enter the amount of bank incoming.
- Value Date: Default by system.
- Text : Same as "Doc. Header Text".
Presses "Choose open item" go to the next screen.
Then process open item screen to select open item.(Choose bank draft which Due / dicounted)
Press “simulate” to check all entry G/L
And discount case,Bank would charge interest to company. AR-BO would post interest to expense G/L
"Other Line item Data", enter information in the fields as below:
PstKy: 40 is Debit entry G/L
Account: Enter the GL other financial expense.
Amount: Enter the amount of bank interest.
Cost center: Default by system.
Text: Same as "Doc. Header Text".
Press "simulate" to check all entry G/L
Clicks "save" to post the document and get the document number.
Document sample for Bank draft Due
Document sample for Bank draft Discount
In the event of Transfer bank Draft to Vendor, clearing bank draft record in system by T-Code F-36 document type DW.
Transfer bank draft to Vendor is PtP team and Local Cashier agreed to pay vendor by customer's bank draft.
Step:
Local cashier and PtP agree to pay vendor by customer bank draft. (Which bank draft to pay, what vendor code, is concerning project?)
PtP send all information with approval's Authorizer.
Bank Draft inventory file
Posting and clearing in SAP by F-36 document type DW.
Document Date: Enter the date of the accounting document.
Type: "DW" is Customer Bill Exchange.
Company Code/ Currency/Rate: Enter information about bank draft
Reference/ Doc. Header Text: Enter a text that will be displayed on all of the lines for this posting.
Transaction to be processed: "Incoming Payment" is displayed by default.
"First Line item Data", enter information in the fields as below:
PstKy: 29 is Special G/L debit for Vendor
Account: Enter the Vendor account
Special G/L Ind.: Enter the special G/L indicator: "A" is Down payment.
"M" is Down payment for Tangible Asset.
Press "Enter" go to the next screen.
Amount: Enter the amount of Bank Draft Transfer.
Purch.Doc: PO number, PtP inform
WBS Element: Cost center of project, PtP inform.
Text: Same as "Doc. Header Text".
Presses "Choose open item" go to the next screen.
Presses "Process open item" go to the next screen.
Select open item to clear.
Then press "simulate" to check all entry G/L
Clicks "save" to post the document and get the document number
Document sample for Transfer Bank draft to Vendor
4.3 Bank Draft Stocktaking (Bank Draft Reconciliation)
AR Accountant (BO) reconcile bank draft inventory after month end closing. To declare movement and balancing of bank draft by cross check with G/L account on monthly basis.
Transaction code: FS10N and Excel File
Record movement of bank draftStep: During month once we have movement about bank draft, AR-BO keeps all movement, historical of each bank draft by comment, document number and clearing document.
After monthend closing ,AR-BO do bank draft reconciliation.
Show movement bank draft processing and reconcile with GL account in SAP.
Use T-Code FS10N to check balancing of GL account of each month for reconcile bank draft balancing.
On screen FS10N ,enter G/L account number , company code and Fiscal Year and click execute.
Then reconcile balancing against cumulative balance of G/L account by monthly.
