1. Bank Data Description

• S YSTEMATIC
• T HOROUGH
• R IGOUROUS
• I MPARTIAL
• C ONSISTENT
• T RACABLE

Therefore NO EXCEPTIONS apply, except in the cases that are duly described. In principle, we do not recognize URGENT PAYMENTS, except in the case of VIP SUPPLIERS .

CONTENT

Process:

• Current Overall process
• Check duplicate bank accounts
• Update bank account by SBS AP
• Invoice with Remit-To-General process (for NAFTA)

• Intermediary bank versus Final bank

• Creation of a new vendor

• Particular situations

• Payments to customers

2. Current Overall Process

3. Rules and Organization

2.1 General Process customers

Environment

Bank details must exclusively be maintained in the system where the client level of customers and vendors is maintained.

For partners maintained at client level in PRS, bank details must never be maintained in the operational systems (PF1_020 , PI1_020, WP1_400).

Maintenance by Workflows

Bank details must always be maintained by the customers and vendors workflows.

The maintenance of bank details follows the general process of the workflows.

Customers:

• The requester collects information and enters data
• The data controller checks that data respects the GAC/Data Management rules

Direct maintenance

• Performed by Data & Analysis team based on specific requests, where the WF tool cannot be applied

The mass maintenance can be also done by D&A.

2.3 Rules for Customers Bank Details

Requester

The requester can be anyone who is authorized to create requests in the customers workflow.

He is responsible for the content of the request.

Data Controller

The Data Controller is not in charge of checking if the bank account is really the one of the customer.

His role only consists in:

• checking if the data management rules described in  Bank details and  IBAN  are correctly applied.
• checking the data entered according to the evidence (attached).

If the bank details are not correct, he must return the request, asking the requester to change erroneous data and to submit it again.

Data & Analysis

When a request is in status "Error",Data & Analysis must process it manually. If the technical error concerns the bank account, Data & Analysis can do the necessary changes.

Bank details changes

When a customer informs the commercial department that his bank details have changed, the department receiving the information must:

• check that the information received comes from an authorized person
• check (possibly with the customer if it is not clearly explained on the document) if the existing bank account(s) must be kept or removed
• introduce a request for modification of the customer
• hold the evidence in a safe place

If the information is received at SBS, SBS Helpdesk (HD) must deal with the request, according to the same procedure than for vendors.

2.5 Removing bank details

Obsolete bank details

Obsolete bank details must be checked and removed.

Deleted partners

When customers or vendors are marked for deletion, their bank details must be removed.

4. Bank key and Control Key correction updates for customers

D&A accepts emails from Credit Management team to update bank keys and control keys, whenever the update request is based on original bank information as provided by the bank (e.g. bank document), namely from the Group's bank . Note: if any reference occurs to update bank account(s), these must follow the standard outbound confirmation procedure

5. Update Remit to Address

• Step 1: Check remit-to address Invoice/Master data

The AP operator checks if the remit-to mentioned on the invoice matches the one indicated in master data (Partner function IP at Purchasing organization level in production system).

If address OK: End of process, the check is sent to the existing remit-to.

• Step 2: Check if address already exists as vendor in PRS

The AP operator checks if a vendor already exists in PRS with the exact name and address as the remit-to mentioned on the invoice. This search has to be done in PF1_050 (PRS) through transaction XK03, using an appropriate match-code.

If vendor exists, go to step 7. Otherwise, go to step 3

• Step 3: Ask SBS HD to do the outbound

The AP operator blocks the payment of the invoice and creates a case in Freshdesk for asking HD to require the vendor's confirmation of the new remit-to address.

• Step 4: Outbound process

The outbound process for remit-to will be almost the same as for bank details.

HD will ask the vendor:

• if the remit-to address mentioned on invoice is correct
• if the remit-to address used in the past (and registered in our master data) is still usable for another invoice or another subsidiary of the vendor.

This request for confirmation by HD is based on a communication template.

If the vendor doesn't answer in a 3 days time limit, a second mail or phone call will be done by HD.

If the vendor doesn't answer to the second request in a 3 days time limit, the case is escalated to FO.

• Step 5: Receive confirmation

When D&A receives the answer from the vendor, they enter the response in Freshdesk (remit-to confirmed or not, previous remit-to to be kept or not).

If the vendor indicates that the new remit-to address is a false one, the case is first escalated to FO in order to investigate if it is a tentative of fraud or an error. 

• Step 6: Check if previous address has to be kept or changed

The vendor currently assigned as IP partner can be modified only if clearly mentioned by the vendor that it will no longer be used.

According to this information indicated in Freshdesk, AP will create a request to Locals for creating an new vendor.

• Step 7: Change IP partner in PF1_020

D&A executes the transaction MK02 in PF1_020 for the concerned purchasing organization, provided a purchase order is referenced for the related invoice

6. Intermediate Vs Final Bank

Has to be entered in the master data the final bank and NOT the intermediary bank.  The intermediary bank is used by CICC based on the information indicated on the invoice.

Example:

An invoice may show 2 bank accounts on the invoice:

In such a case, only the first bank account (in RU) has to be entered in the vendor master data and not the intermediate (or correspondant) account. Should this not be the case, CICC will have to face a refund.

What to do?

When SBS D&A records new bank details in the system and when they see that there is an intermediate bank, they will inform CICC Team, allowing the addition of the intermediary bank in PI1 (through FIBPU transaction).

7. Creation of New Vendor

With the New Vendor WF Request, the VWF creator has the possibility to request supplier to insert his company details and bank account in a secure Web Page.

For these cases, no outbound process is trigger and we consider the bank account provided as valid.

8. Particular Situations

• Notes:

Re-introduction of a previously bank account that was removed after data cleaning: Bank accounts removed as a consequence of a data cleaning can be re-introduced when there is a request stating that this account is still valid.

Correction of a bank account at the request of our banks (BNP-Paribas-Fortis; JP Morgan):Letters or e-mails received from our banks, informing us about a change of a bank account belonging to a vendor, are sufficient proofs to proceed with the change without additional controls. The proof should be attached in the request.Note: An e-mail can be attached once it is saved as RTF or MSG document.

China Administrative Region:For China, Hong-Kong and Macau, China's banking authorities perform controls on all the bank details prior to any authorization of transfer, to determine if the bank details belong to the entitled owners. China's banking industry remains under the goverments' scope (as approved by Data & Analysis Process Leader 28th of July 2014)

BR suppliers: For Brazil, no outbound for bank confirmation will be required, as based on the official doument:  http://www.bcb.gov.br/pre/normativos/circ/1993/pdf/Circ_2362.pdf , published by Brazil Central Bank, as approved by POW-AP Ricardo Nunes and GAC-BAM POW Pierre Boyer (11th June 2012).

Bank key and Control Key correction updates for customers

D&A accepts emails from Credit Management team to update bank keys and control keys, whenever the update request is based on original bank information as provided by the bank (e.g. bank document), namely from the Group's bank . Note: if any reference occurs to update bank account(s), these must follow the standard outbound confirmation procedure

IT (Italy) Customers Bank details update: Data Control When inserting Bank details for Italy, the Internal Requesters must activated the field "CollectAut."

US suppliers :

For Checks > we have Positive Pay + Positive Payee for which we send the information to the bank and the check needs to match with the info we provided to the bank.

For Wire > Control is in place when making the transfer

For ACH > verifies if the routing number or account is incorrect

Whenever a request is received to insert bank details (local or supplier) in an existing or new vendor, the bank details must be for ACH transfer and not WIRE.

If WIRE bank details are received, the request should be sent back to the requester clarifying that in the US it is more expensive to send wire payments so we would rather send ACH payments. 

If requester reconfirms WIRE bank details, proceed with bank data insertion/update.

 As agreed, no-outbound is required for US suppliers upon Creation of New Suppliers

9. Payment to Customers

• Main principle: Check bank accounts when we have to pay the customers.
• Credit Management will not any longer be authorized to introduce workflow requests.
• Checking bank account in customer master is crucial in order to ensure the validity of the bank account indicated.
• Scope: Blue Legacy

Update Bank details:

• Cash In

D&A accepts to insert the bank details in the customer if there is an indication of 'Cash In' clearly stated in the request. 

Note: D&A team accepts that RIBA for Italy is considered as Cash-In, following the instruction of WW Process Expert Meire Santos 

• Direct Debit

If the customer pays by Direct Debit there is no need to contact the customer to approve the update since there is no risk for incoming payments

DC action: In case of Direct Debit payment method a Customer Bank Accounts is mandatory, in case of update requirement, D&A will go to PI1 and check that the Payment Method defined for the Customer is DD and no outbound process will be initiated.

The Credit Management when contacting the Customer, providing our e-mail address can also inform the same to add on the Subject of the e-mail that Payment is DD (similar to what we have in the Cash In Procedure) in order to simplify the process.

Exception: D&A accepts bank account update based on document received by CM from either the bank or via e-mail from the customer to present the DD linked to a new bank. This new Bank Data Information must be forwarded to payment security mailbox.

• FEBA

If the bank account of the ordering party (the customer) can be evidenced on the account statement received (FEBA), then no need to contact the Customer.

Note: According to OtC, only for DE and BE they can identify this information.

In order to check that the Bank Account is the same used by the Customer to perform payment, D&A team will access Z_FLAG_CODA, to cross check with the FEBA image sent by the Credit Management.

• Process Triggered by Credit Management Team

For the cases where there is the need of a refund, CM will request Customer to send the Bank Data todatamanagement.3s-pt@solvay.comadding the same e-mail in CC.

D&A Team will close the case until new e-mail is received from the Customer with the information required. Both request will be linked and Bank Account will be inserted, without outbound confirmation.