4. Manual drafts

This OP explains the different types of manual drafts and the differences of their postings on SAP. By draft we mean a Bill of Exchange, which is a bank document guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. Thus, there is an agreement between customer and the bank for a future due date of a payment. The customer recognizes its debt and agrees to pay in a future due date. Therefore, OTC BO AR will send to the bank an electronic file with all the drafts information, which will be paid to CICC bank account on the drafts due date.

The Regions with manual drafts or Bills of Exchange are:

4.1 France

Traites are French promising payment (promise of payment) form with an agreement for a future due date of a payment. The customer recognizes its debt and agrees in paying it on future due date. 

We can receive Traites through two different ways:

• Sent by the customers directly to SBS by post
• Sent by Credit manager to AR mailbox

There are 4 types of French drafts: three are manual (paper drafts) and one is automatic. In the case of paper drafts, the Credit Manager sends the drafts to OTC BO AR mailbox in order to be posted. In the case of automatic drafts, all process is automatic through F110 transaction. At the end of the process, OTC BO AR has to create a file with all kinds of drafts (manuals and automatics) together and to send it to the Bank. 

Two of the four types are related to documents issued by Solvay and the other two are directly issued by the customers. See below the difference between them:

1. LCR document issued by Solvay and requiring acceptance by the customer
2. LCR document issued by Solvay but not requiring an acceptance by the customer
3. BOR document issued by the customer
4. LCR document issued by the customer

The following table resumes the different types of Drafts and the posting differences between them.

Posting differences

• Traites types 1, 3,and 4 have to be manually posted using transaction F-36. OTC BO AR can receive the documents by post (sent directly from customer to SBS Lisbon) and sent by Credit Managers to AR mailbox
• Traites type 2 are automatically processed using an automatic program based on transaction F110

4.1.1 Traites

4.1.1.1 Type 1 – LCR avec acceptation

Solvay LCR (Lettre de Change) Avec Acceptance is a document that makes part of the invoice sent to the customers. Check the example below: 

Solvay's LCR is the bottom section of a back page that goes together with the invoice. This section is detached by customers who return it signed to Solvay. An authorization (signing the LCR) from the customer is required in order to allow Solvay France to debit the customer's bank account, and therefore this LCR type is named as "Avec Acceptance".

This document describes, who is the customer, which is the invoice number and due date of the BoE.

Occasionally customers agree on paying but change several features of the original LCR, like the bank account they want to use to make the payment, the amount they will pay or even the due date. It is important, when posting these payments to respect the customer's changes; otherwise, the customer will not accept the Traite to be debited from its bank account. However, authorization from the Credit Manager is required, before posting. 

4.1.1.2 Type 2 – LCR sans acceptation

Solvay LCR sans acceptance is the same document as the one mentioned in point 4.1.1.1. The only difference is that no acceptance is required from the customer. The customer does not need to return signed Solvay's LCR.

Transaction F-36 does not need to be run to create the BoE for these customers, as they are automatically generated by transaction F110. In this case OTC BO AR only needs to run the FBWE (DME files creation) and send it to the Bank. 

4.1.1.3 Type 3 – BOR issued by the customer

BOR is a document issued and signed by the customer, committing itself with the payment on a future due date for specific invoices.

Example:

4.1.1.4 Type 4 – LCR issued by the customer

LCR is a document issued and signed by the customer, committing itself with the payment on a future due date for specific invoices. The difference from the Billet à ordre (BOR) described above is the payment method.

Example:

4.1.2 Traites posting

After receiving the Traites images from Credit Manager or by post, OTC BO AR should post them on their customer accounts using F-36 transaction. It creates the "Bill of Exchange" converting the invoices into BoE (Traites) to be collected from SOGFR (local bank) on their future due dates. F-36 transaction has to be processed by OTC BO AR for each individual "Traite" (types 1, 2, 4 and 5) during the day it is received in OTC BO AR mailbox.

Regarding "Traite" type 3 (Solvay LCR sans acceptance), it does not require manual posting. It is posted automatically (transaction F110) functioning as a direct debit.

4.2 Spain

4.2.1 Pagares

Pagarés are Spanish promising payments under the form of paper drafts, always issued by the debtor (customer) and sent to the Spanish Local Correspondent. The customer recognizes its debt and agrees in paying it on a future due date.

We can receive Pagarés through two different ways:

• Sent by the customers directly to SBS by post
• Sent by local contact to AR mailbox

To prepare Pagarés received by post, the following steps should be followed:

• AR on a daily basis pick in the 2^nd floor all the correspondence received by post
• AR verifies the Pagarés received and write in the back of the Pagarés "Solvay CICC"and sign it (the signature should be requested to Paula, Tiago, Angela or Diogo)
• The Pagarés should be scanned and a case created in Salesforce with customer number and amount.
•  Fill the deposit slip with the Pagarés to deposit. See example below with the instructions to fill BNP form (BNP IBAN is 0010901391600351):

•  Remove the duplicate to keep for future reference (the one that mention "Cópia para o cliente") and scan and attach to the Salesforce case. This will be used for future reference whenever we need to check the date in which the Pagaré was sent
• Put the Pagarés inside the envelope and close it.
• Send an email to the person responsible to deliver the cheques & Pagarés in BNP (machel.domingos-ex@solvay.com) through the case created in Salesforce and close it

• If the TI enters in sub-account 50514EUR15, the person doing the sub-accounts reconciliation should process FB05 transaction (procedure described below)*. If the TI enters in 50514EUR16 and appears in FEBA transaction, we should enter in the payment, change the "Posting mode" to "In Foreground", change "type" to "DE" and clear the invoice(s). See example below:

*FB05 procedure

The followins screen should be filled as below:

Document date: Document date of the TI
Posting date: Document date of the TI
Type: DE

"Choose Open items"

Insert the Portugal sub-account and choose "Account Type" S. Then, select the correct TI and go back, insert customer account and clear the invoices.

To prepare Pagaré received by email from local contact, the following steps should be followed:

• Local contact send by email to AR mailbox the copy of the Pagarés
• OTC AR process F-36 transaction
• The case should be classified with the total amount of the Pagaré on the subject, the customer accounts numbers and the case should be closed.

There are three types of Pagarés as BBVA (Spanish Bank) treat them differently. Two of them are cheque documents with a "bar code" (IBAN) on it and are always issued by a Bank. The difference between them is the Bank: BBVA bank and non BBVA bank. The 3^rd type of Pagaré does not have a cheque format, nor contains a "bar code" (IBAN) on it and is not issued by a Bank.

4.2.1.1 Pagaré with Check Format paid by BBVA Bank

All BBVA Pagarés are "cheque" format type as they are always issued by the BBVA bank.

Example:

Legend:

Bank Details Information (same as in the Bar Code/IBAN area)

4.2.1.2 Pagaré With Check Format paid by non BBVA bank

Example:

4.2.1.3 Pagaré without Check Format

Example:

4.2.2 Pagarés posting

As soon as we received the Pagarés, we should post them on their customer accounts using F-36 transaction. This transaction creates the "Bill of Exchange", converting the invoices into BoE (Pagarés) to be collected from BBVA (local bank) in their future due dates. F-36 transaction has to be run for each individual Pagaré by OTC BO AR on the day it was received.

Open F-36 transaction:

The above screen should be filled in as follows:

• Document date: Pagaré's due date ("Fecha de Pago")
• Posting date: Pagaré's due date ("Fecha de Pago"). However if its due date is in the past, use the current entry date (today's date)
• Type: DE
• Company code: WARP
• Currency/Rate: EUR
• Reference: Pagaré's number (7 numbers, for example: PGR: 289163-5)
• Account: Customer number account
• SGL Ind: B

After filling in all the information details, press "Enter" 2 times.

The following screen appears:

The above screen should be filled in as follows:

• Amount: Pagaré's amount
• Due on: Pagaré's due date (Fecha de Pago) Use this date, even if it is in the past
• Issue date: Pagaré's creation date (Fecha de Expedicion). If there is no creation day, use todays' date
• Payment Method: F
• Bank Key: if the customer has different bank accounts a "*" sign shows up in the bank key field. Double click on this field. A message box is shown with a list of different customer's bank accounts available. Choose the bank account the customer is using for this Pagaré and then click on the button.

The Bank details should be inserted as below:

If the customer makes the payment through a bank account that is not yet created in the system, FI-AR-BO can manually insert the references mentioned in the Pagaré image..
 

Verify if all the information is correct and then press the button. 

The following screen pops up:

Click on the button. 

Afterwards, select the invoice (s) mentioned in the Pagaré image. 

The "Not Assigned" field is now zero. Press the "Save" button.

Risk Cancelation procedure

 Whenever a BoE is created in a customer account, automatically it is created a DY/DW in g/l 2210000000 - NOTES RECEIVED

The DY/DW will be cancelled with the Risk cancellation (DA) at invoice due date as below:

Whenever we run FBWE transaction to send the DME files to the Bank, a G1 document is created in 2211003416 -Notes for collection-Banco Bilbao Vizcaya (depending on the country a different g/l is used).

The Risk Cancelation (DA) will then cancel the DY in 2210000000 and the G1 in 2211003416. See below:

Posting result on the WARP customer's account:

In this screen we can see the clearing document – 7610000309 which has cleared the invoice with the a DE document.
Click twice on the clearing document, click on the button and then enter on the line corresponding to the draft as below:

In this screen we are able to check all the information regarding the Pagaré and if we click on "Environment" on the top of the screen and then on the "Payment usage", we will see the invoice(s) cleared with the draft.

When an invoice is cleared by a Pagaré, a document will remain open on customer account with a special GL ind B until the Pagaré is paid:

Posting result in the affiliate customer account:

 When we look at the customer account in local system the invoice is cleared:

And replaced by a DS document with Special GL Ind. 4 :

4.2.3 Recibos

Recibos are a Spanish payment method, directly debiting customer's bank accounts for payment collection.

Types of Recibos:

"Recibos" can be "Domiciliated" (payment method M) or "Non Domiciliated" (payment method N), depending respectively on the fact if the customer's bank account data is known or not known. When the bank account data is known, it takes 8 calendar days to collect the cash. If the customer's bank data is unknown, it takes 12 calendar days to collect the cash as Solvay's bank will need additional time to contact customers and to confirm their bank data. 

4.2.4 Recibos posting

Normally the Recibos are created automatically using F110 transaction and OTC AR only needs to prepare the DME file to be sent to the Bank. However, occasionally OTC BO AR may be requested to manually process a Recibo. This happens when it is not possible to request the payment through the automatic process (transaction F110) because the customer usually does not use the Recibo payment method and exceptionally requires Solvay to directly collect money from his bank account. Therefore, we perform a Recibo upon Credit Manager's request which should mention the customer's account, the invoices to be paid and the due date.

By definition, as the customer provides the bank details, we are always facing a "Domiciliated Recibo" (payment method M).

Open F-36 transaction:

The above screen should be filled in as below:

• Document date: Recibo's due date; If in the Credit Manager's request due date is mentioned as "A la Vista", today's date should be inserted
• Posting date: Recibo's due date (the same as "Document date")
• Type: DY
• Company code: WARP
• Currency/Rate: EUR
• Account: Customer's account number

Afterwards, click on "Enter" button. The following screen is open:

The above screen should be filled in as below:

• Amount: Recibo's amount
• Due on: Recibo's due date (Equal to "Document date")
• Issue date: Recibo's creation date (Today's date)
• Accepted: Tick this box
• Payment Method: M or N (M if bank account inserted (we don't change Bank account, unless we are asked to)/ N if no bank details are available)

Press "Enter" to see if the inserted information is correct.

After press and then . Choose the invoice mentioned and if The "Not Assigned" field is equal to zero, click on the "Save"  button.

Posting result on the customer's account:

The invoice is now cleared with a DY document.

Click twice on the clearing document, click on the button and then enter the line corresponding to the draft as below:

In this screen we are able to check all the information regarding the Recibo and if we click on the "Environment" on the top of the screen and then on the "Payment usage", we will see the invoice(s) cleared with the draft.

When an invoice is cleared by a Recibo, a document will remain open on customer account with a special GL Ind. W until the Recibo is paid:

When we look at the customer account in local system the invoice is cleared:

And replaced by a DS document with Special GL Ind. 4 :

5. Spain Confirmings

5.1. Antecipating Confirmings on Bank websites

In Spain, for some customers it is accepted the Confirming specificity. This procedure explains how to handle this payment method.

Note: Attached to this OP there is a file "Confirming passwords" with the passwords for some customers which anticipate very sporadically. Additionally there is a file with all the cases of Confirmings "Spain Confirmings" and an example of Confirming advise ".

5.2. Bank Bankinter - Customers 22980, 21462 and 4190

For these three customers mentioned in the title the same Bank, procedure and passwords are used. We should only do the same procedure for all the customers.

Bakinter Bank

Follow the steps below:

Go to link: https://empresas.bankinter.com/www/es-es/cgi/empresas+login_confirminet

The above screen should be filled in as follows:

• Usuario: SOLVAYSCI
• Contraseña: SOLVAYCICC

Afterwards the following screen will appear:

Then click on "Anticipar" tab.

Choose then "Factura a factura" and click on . 

Afterwards, choose the option "Por cliente" and click on the customer you are handling. Then on .

After, we need to open customer account in FBL5N and check witch are the invoices that will be due until next Saturday (except if end of month -29,30 and 31 in which we can extend the date to assure we receive payment before end of month).

Therefore check if the invoices due until Saturday on FBL5N are on the Bank and select them. In case the invoice is not on the Bank create a dispute to Collections "Call by collector" so that they can confirm with the customer why that invoice was not assigned to the Bank.

Remark: The credit notes are not to be anticipated (they are not assigned to the Bank).

Then click on .

At this stage we can see already the invoices anticipated the amount of the interests and commissions. Click on "Imprimir"

Save the pdf on your desktop and added it as attachment to the biggest invoice of the Confirming.

Then click on . After select all the invoices in customer account and insert the following text: CONFIRMING/AMOUNT/DIFF. TO AFFILIATE

5.3 Bank Banco Popular - Customer 2780

Banco Popular

Follow the steps below:

Go to the following link: https://confirming.bancopopular.es/

The above screen should be filled in as follows:

• Usuario: SOLVAYSCI
• Contraseña: SOLVAYCICC

Aftewards, choose "Anticipo de facturas"

After, we need to open customer account in FBL5N and check witch are the invoices that will be due until next Saturday (except if end of month 29,30 and 31 in which we can extend the date to assure we receive payment before end of month).

Therefore check if the invoices due until Saturday on FBL5N are on the Bank and click on "SI" option on tab "Anticipar". Automatically "Fecha Anticipo" will be automatically filled with next day date (we should leave it – see first invoice on the example). In case the invoice(s) is not on the Bank create a dispute to Collections "Call by collector" so that they can confirm with the customer why that invoice was not assigned to the Bank.

Remark: The credit notes are not to be anticipated (they are not assigned to the Bank).
Then click on . 

5.4. Bank BBVA – Customer 4190

BBVA Bank

Follow the steps below:

Go to the following link: https://www.bbvanetcash.com/local_tlsb/KDPOSolicitarCredencialesES_pt.html

The above screen should be filled in as follows:

• Cód. Empresa ou Instituição:20034107
• Cód. Utilizador: SOLVAY
• Password de acesso: SOLVAY3

Then click on Entrar

The following screen appears:

We should coose "Cobros", "Confirming Proveedores" and "Anticipos"

Afterwards select "Simular/Solicitar"

Then choose the correct CIF B62278205 and make the selection by Cliente as below:

Then

Afterwards, choose the correct customer. In this case it is customer 4190

Again select

The following screen appears: 

After, we need to open customer account in FBL5N and check witch are the invoices that will be due until next Saturday (except if end of month -29,30 and 31 in which we can extend the date to assure we receive payment before end of month). 

Therefore check if the invoices due until Saturday on FBL5N are on the Bank and select them. In case the invoice is not on the Bank create a dispute to Collections "Call by collector" so that they can confirm with the customer why that invoice was not assigned to the Bank. 

Remark: The credit notes are not to be anticipated (they are not assigned to the Bank).

Select the invoices to be anticipate and


Select the item and

Select "Abono en la cuenta" and choose CICC bank account: 0182-4649-83-0201511100

Then

The following screen appears confirming that the invoices were anticipated

Add the text to the invoices: CONFIRMING/AMOUNT/DIFF. TO AFFILIATE 

5.5 Bank Santander - Customer 5450

Santander Bank

Follow the steps below:

Go to the following link: https://secure.santanderfactoring.es/bschfyc/indexc.jsp

The above screen should be filled in as follows:

• User: SOLVAYSCI
• Password: SOLVAYCICC

Afterwards, select "Confirming Proveedores", select Solvay Chemicals as Proveedor and select on the left side and then .

Then click on . The following screen will appear:

After, we need to open customer account in FBL5N and check witch are the invoices that will be due until next Saturday (except if end of month -29,30 and 31 in which we can extend the date to assure we receive payment before end of month).

Therefore check if the invoices due until Saturday on FBL5N are on the Bank and select them. In case the invoice is not on the Bank create a dispute to Collections "Call by collector" so that they can confirm with the customer why that invoice was not assigned to the Bank.

Remark: The credit notes are not to be anticipated (they are not assigned to the Bank).
Afterwards, we should select the line (s) with the invoices to be anticipated and select button .

The following screen will show the bank account to be credited. Choose the CICC Spanish bank account as below:

Press and in the next screen accept the terms and conditions.

A resume of the invoices selected as well as the bank account will be shown:

Confirm all the data and take a print to be attached to the invoice with the highest amount. To finalize the operation select .

The last screen confirms the invoices anticipated:

Add the text to the invoices: CONFIRMING/AMOUNT/DIFF. TO AFFILIATE.

5.6 Bank La Caixa - Customer 5121

La Caixa

Follow the steps below:

Go to the following link: http://empresa.lacaixa.es/home/empresas_es.html

The above screen should be filled in as follows:

• Identificacion: 28000171127
• Nº secreto: 576305

Click on

Then select "Financiación"

Afterwards, choose option "Caixaconfirming" and "Solicitud de anticipos"

Choose the customer CASTELLAR VIDRIO SA on the amount column.

After, we need to open customer account in FBL5N and check witch are the invoices that will be due until next Saturday (except if end of month -29,30 and 31 in which we can extend the date to assure we receive payment before end of month).

Therefore check if the invoices due until Saturday on FBL5N are on the Bank and select them. In case the invoice is not on the Bank create a dispute to Collections "Call by collector" so that they can confirm with the customer why that invoice was not assigned to the Bank.

Remark: The credit notes are not to be anticipated (they are not assigned to the Bank).
Choose the invoice (s) and select

Afterwards, the following screen appear:

We can check the interest and commission amount. Then we should choose

We can see in this screen the amount we will receive: 31.483,39 EUR

Then choose the option

Add the text to the invoices: CONFIRMING/AMOUNT/DIFF. TO AFFILIATE

5.7 Receiving a Confirming payment advise

Confirming is a payment method (U) only used in Spain. The customer allows the Bank to make the payment before the due date if the supplier agrees to pay the interest incurred to the Bank. It is considered as a short term loan. The rule is to not accept Confirming before the due date, except for some customers (check the Customers and Regions specificities database to know the customers for which Sales agreed to use this payment method:

http://teamsites.solvay.com/sites/3Se/Lists/Accounts%20ReceivableCollections%20Specificities/AllItems.aspx?View=%7B5DC607D7%2D69A3%2D48C1%2DAA68%2DDE58808ED1CB%7D&ShowInGrid=HTML

Example of a Confirming case:

In case of Confirming, OTC AR should handle them as normal Remittance Advices with the only exception that the dunning block should be "B". In case of more than one date mentioned in the Confirming, AR should create a different Confirming for each date.

 See example below of a Confirming classification: 
CASE 814579/5.200,00EUR/14.03.20113

 For 2780 - NUTERFEED this rule should be used only for the invoices paid with the delay of more than 30 days

5.8 Receiving a payment for a Confirming

This section explains how to allocate a payment for invoices anticipated previously on the Bank website.

Follow the steps below: 

On Feba transaction select the invoice(s) which was (were) anticipated.

Afterwards, go to Residual items tab and click twice on Residual Items on the invoice. Then insert the reason code AD as below: 

Click on button

6. Appendix

End of document