1. Table of contents
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 Solvay S.A.
3. Definitions
- SBS: In the current document, "Solvay Business Services" will be replaced by its abbreviation "SBS".
- OTC SC AR: Order to Cash Service Center Accounts Receivable
- OP: Operating procedure
- 0231: Company code in PI1 system for Solvay S.A.
- SSA: Solvay S.A.
- IBA: Internal Bank account
Scope
ERP
References
Attachments
4. Solvay S.A. Sub-accounts Reconciliation
OTC SC AR is responsible to clear on a daily basis SSA's sub-accounts in order to ensure a clear view of the sub-accounts.
4.1 Definitions and Reconciliation rules
Below it is described the document types in 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:
TI | Transfer IN |
TO | Transfer OUT |
SA | Banking fees, IBA & Transition postings |
DY | Unpaid |
Reconciliation rules:
- 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 that are for a customer/affiliate not migrated to SSA or a payment to be paid through vendor account - In this case the TI will match with a KF;
- Payments for items not assigned to SSA are transferred through the IBA's - In this case the TI will match with a SA;
- Sub-Account 505**17: G1 items should be reconciled with TI items except for SEPA Direct Debit. In that case, DZ items should be 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 with the same date, but the clearings need to be split by TI).
- Two different bank sub-accounts might need to be reconciled together in order to match the items. (Ex.: A TO enter on G/L 505xxx12 related to a TI on G/L 505xxx16).
- In Spain, Pagares enter on G/L 50554EUR15 together with cheques. Recibos enter on G/L 50554EUR17.
- 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 reconcile with the new DZ (if payment is reposted).
Warnings
- For the TO's for which we are missing information, an email should be sent to the Bank directly asking more details regarding the movement (please refer bank account and send bank statement). Below Bank contacts:
- BBVA: globalesbarna@bbva.com
- BNP: ccs@bnpparibas.com
- SOCIETE GENERALE: marie-pascale.a.beaupere@socgen.com and mathieu.martinez@socgen.com
- For all debits and credits which are received in SSA bank sub-accounts 12, 15, 16 and 17 for which it is not possible to clear it in customer account (ex. banking fees related to returned/rejected cheques; situations in which customer makes a type of correction and the contract related is already cleared and there is no more business), we should debit/credit the affiliate through IBA. Afterwards, we should post the entry in affiliate in the correct g/l account (banking fees/discount).
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 reconciled and also the ones already cleared, if there is any need to consult an old clearing.
Open FBL3N transaction and choose "Open items"
Sub-account 505*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. For the TI's without a matching DZ, it means it is 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.
4.2.1 Manual reconciliation
Warnings
On a daily basis, an automatic program runs to reconcile the DZ's with the respective payments (TI's). The job reconciles the documents according the "Assignment" and "Amount" fields. This job is parameterized only for Bank sub-accounts 505*16.
However, these sub-accounts should be anyway daily consulted by OTC SC AR in order to check the unallocated amounts and possible issues.
For the remaining sub-accounts (505*12/15/17) an analysis and manual clearing(s) is required from OTC SC AR on a daily basis. In this Operating procedure, it will be explained what are the steps that should be taken to reconcile these sub-accounts.
Find below an example for each type of sub-account:
Sub-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.
"Frais Mensuel"
Each month we receive in 50501EUR12 a TO related to monthly banking fees. The clearing of this item should be performed by the CICC Accounting Luxembourg team.
We should make a request for the clearing of the item.
Example below is a refund of two credit notes from customer 319523 (credit notes are matched against a KZ):
To reconcile the sub-account proceed as follows:
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 
.
Select both items (KZ and TO) and press 
.
Sub-account 505*15
One example with cheques.
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 .
Select both items (DK and TI) and press .
Sub-account 505*17
Note: due to the complexity and volume of the operations it would be helpful to open the accounts 505*17 in 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.
One example regarding BoE and Direct Debits.
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 .
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 .
4.2.2 Reconciling two different bank sub-accounts
There might be the need to open two different sub-accounts to perform one operation.
Open F-03 as below:
This screen must be filled in as follows:
- Account: First sub-account involved.
- 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).
4.3 Solvay S.A. Sub-accounts Justification
After the 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 0231 bank accounts (see file attached with a list with all SSA bank accounts).
The justification should be done for every open document at that day and inserted in justification file.
Use transaction FBL3N with variant "SUBACCJUST" and insert the last day of the previous month in the "Open items" field.
Execute 
.
The list will have to be extracted and copied to the justification file.
Go to List » Export » Spreadsheet...
Select the format "Excel (in MHTML Format).
Press 
.
Save the file, and it should open automatically in Excel.
Open the Solvay SA 0231 Sub-Accounts justification file.
Create a new tab for the month you are justifying, and copy from the excel file you extracted to the justification file.
Add another column in which the justification for each open item must be written.
5. Misdirected payments accounts justification
OTC SC AR should justify the misdirected payments g/l accounts for the companies with customers assigned to SSA.
Access PF1 and WP1 systems and use the following variant in FBL3N transaction:
In the justification, each open document should be justified and a clear reason should be inserted in the "Text" field. See example below:
The justification should also be extracted to the Solvay SA 0231 Sub-Accounts justification file.
Example:
6. Appendix