Tasks to be completed when creating an operating procedure (from creation to publication)
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Table of contents
By default the table of contents displays Heading 2 & Heading 3 (other levels can be added)
Objective and Scope
The purpose of this document is to explain how to perform the internal controls for Accounts Receivable process.
The Internal Controls mentioned in this OP aims to ensure:
- Compliance with AR procedures
- Application of Process Expert’s instructions and guidelines
- Assure the mitigation of financial risk in key tasks
This operating procedure (OP) applies to all companies and customer payments for invoices factored to Solvay Financial America (4044) and reversal factoring for company 7424 in WP1.
Definitions
- SC: In the current document, “Service Center” will be replaced by its abbreviation “SC”.
- OP: Operating procedure
- SFA: Solvay Financial America
- SSA: Solvay SA
- CM: Credit Manager
- DA: Doubtful invoice
- NAM: North America (US; Mexico; Canada; Puerto Rico).
- PE: Process Expert
Scope
1. Remove the icon(s) when not applicable
2. Add countries when the procedure is for a specific country (optional)
ERP
3. Remove the icon(s) when not applicable
References
4. Add the link to SAP procedures (when it exists) |
Attachments
5. Add the link to attachments (to be stored in AODocs or GDrive) or external links
1. INTERNAL CONTROLS
1.1 Daily review of Unallocated Payments
The control of the unallocated cash is done in order to ensure that no payment received is open on the sub-account without having been correctly addressed and escalated asking more details.
In PI1:
We have two transactions that should be checked. The first one is FEBA and the second one is FLB1.
FEBA – FORNA PAYMENTS: Open FEBA transaction and choose the following criteria’s:
Company code: 4044
House Bank: FORNA
Statement date: Statement date of the payments
Statement status: 7
Execute 
Afterwards, click on each unallocated (red entries), click on the 900… document, choose 
and go to the “Attachment list” to check the case number. Then, go to Fresh Desk and check if the case was correctly created and sent to the correct entity (Credit Manager, Collections Team and Treasury).
FLB1 - LOCKBOX: Open FLB1 transaction and choose the following criteria’s:
DATE: Day of our last working day then execute .
Afterwards, click on each unallocated (red entries), click on the 900… document, choose and go to the “Attachment list” to check the case number. Then, go to Fresh Desk and check if the case was correctly created and sent to the correct entity (Credit Manager, Collections Team and Treasury).
In WP1:
The cash allocation for Reversal Factoring Customers is all manual, we should check the G/L accounts and in case of an open item, a case number should be find on text field. Then, go to Fresh Desk and check if the case was correctly created and sent to the correct entity (Credit Manager, Collections Team and Treasury).
Open FBL3N transaction in 7424 and chose the following variant:
Execute
The following screen appears as below:
After we check the two systems, the report “Unallocated” should be retrieved from Fresh Desk as below:
Open Fresh Desk, go to Tickets Tab and choose the following criteria’s:
On a daily basis the following file is updated:
Note: Only authorized users can access the file.
Warning
All cases should be justified with the reason and mention to whom it was escalated as below