Vous êtes sur la page 1sur 193

FI330 Umoja Accounts

Receivable Process

Umoja Accounts Receivable Process Version 20


Last Modified:
27-September-13
Copyright
United
Nations

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

Introduction
Please share with us:
Your name
Your section/unit
Years of experience in the field
An interesting fact about you

Copyright United Nations

Ground Rules
Please consider the following guidelines during the training session:
Turn your cell phone to silent mode. Please step out of the class to take any
important phone call
Please do not access your e-mail or the Internet outside of breaks
Participate fully in the training session and respect each others contribution
Breaks are included at the discretion of the trainer

X
No Phones

X
Do Not Access
E-mail

Participate

Copyright United Nations

Ask Questions

Breaks

Course Overview
The purpose of the Umoja Accounts Receivable Process course is to explain how to:
a. Maintain accurate records of the money owed to the UN by its customers,
b. Correctly apply money received from customers to their debtor accounts and,
c. Write-off uncollectible debts.
Prerequisite Review

You should have completed the following prerequisite courses:

Umoja Overview
Umoja Master Data and Coding Block Overview
Umoja Accounts Receivable Overview
Umoja Navigation

Course Duration: 6 hours

Copyright United Nations

Course Objectives
After completing this course, you will be able to:
Explain the Umoja solution for AR
Explain the AR processes in Umoja
Report on revenue received by the UN
Process Customer Invoices in Sales and Distribution and Lease Administration
Recover costs due to the UN
Apply incoming payments to the accounts of customers
Perform the write-off of accounts that remain uncollectible

Copyright United Nations

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

Module 1 Objectives
After completing this module, you will be able to:
List the roles in the AR process
Explain the Umoja solution for AR
Explain how the Umoja Solution enables the UN to comply with relevant IPSAS
on Income Reporting.
Describe various document types used in AR processing.
Explain the high-level AR process

Copyright United Nations

Key Terminology
Key Term
Description
Accounts Receivable (AR) A legally binding document itemizing money owed for products
Invoice
or services rendered.
The process of calculating the amount a customer owes the UN
Billing
for services rendered or products purchased.
It refers to a person or an organization that has a business
interest with UN. A BP can be a commercial customer that
Business Partner (BP)
purchases goods or services from UN and also a UN agency or
staff member.
A Business Partner (BP) data record (i.e. with Customer role)
containing all the information necessary to conduct business
Customer Master
with a single customer. Each record includes three levels of
data: general level data, company code level data and sales
organization level data.
An account that reflects sub-ledger activity in the General
Ledger. Details of customer (or vendor) transactions are
Reconciliation Account
recorded in the sub-ledger in reconciliation accounts which are
summarized in the General Ledger. Each customer (or vendor)
is assigned to a reconciliation account at the time of set up.
Copyright United Nations

Roles & Responsibilities


The following Umoja Enterprise roles are involved in the AR process:

Financial Accounting
User (AR)

Financial Accounting
Approver (AR)

Financial Accounting
(FI) Senior User

Creates AR customer invoices and credit memos within


the AR Sub-ledger and submits them into the workflow
Creates dunning notices for customers when items are
overdue
Clears AR customer invoices

Reviews/approves/rejects customer invoices and credit


memos created by Financial Accounting User (AR)
within AR Sub-ledger through a workflow
Reviews/rejects printed dunning notices (manual step)
Posts parked invoices and clears them

Creates and posts FI documents that are not subject to


workflow, such as accruals, reversals and recurring
entries
Clears FI documents

Copyright United Nations

10

Accounts Receivable
Accounts Receivable Recap:
The Accounts Receivable process area is comprised of all business processes
related to recording and tracking receivables from member states, donors,
commercial customers, staff members and any other entity that owes money to
the UN. AR activities are undertaken at both UNHQ and in the field. Examples
include:

Goods sold and services rendered


Recovery of:
o VAT from host government
o Vehicle repair charges from UN
Agencies
o Use of conference facilities
o Advances and other recoveries
from staff members
o Advance to organize programs
o Common services used by UN
Agencies and NGOs
Sale of assets

Catering Services
Sale of Publications
Guided tours
Sale of audio/visual products
Lease administration for owned and
subleased properties
Proceeds from the sale of used and
surplus property
Grants billing to donors, and
Transfer of revenue bearing work/service
order management to other UN agencies

Copyright United Nations

11

Umoja Solution for Accounts Receivable


The AR module in Umoja has the following capabilities:
Umoja introduces the concept of
centralized master data, eliminating
the need to maintain separate
customer accounts at each
respective location.

Since Sales and Distribution and Real


Estate are integrated with Umoja,
customer receivables and credit/debit
memos are updated as batches
through the interface to the
A/R sub ledger.

Centralized
Data

Interfaced
Postings in
A/R

Dunning

The Dunning process creates reminders or notices automatically


based on the scenarios defined in the Umoja system. The dunning
functionality proposes overdue items based on dunning interval,
grace days and dunning level.

Copyright United Nations

12

Accounts Receivable Subsidiary Ledger


In Umoja, AR transactions are maintained in the Accounts Receivable sub-ledger. Umoja
uses three integrated sub-ledgers Accounts Receivable, Accounts Payable and Asset
Accounting, to organize financial data.

General
Ledger

Accounts
Receivable (AR)

Accounts
Payable (AP)

(contains Customer
accounts)

(contains vendor
accounts)

Fixed
Assets (FA)
(contains accounts of
assets not recorded in
Galileo)

Note: Currently, sub ledgers do not exist in Sun systems and IMIS
Copyright United Nations

13

General Ledger vs. Subsidiary Ledgers


The Subsidiary Ledger is a supporting ledger that provides detailed information about
individual accounts, which are not kept in the General Ledger. Subsidiary ledgers divide
financial data into distinct and more manageable categories. The total of all individual
accounts in the subsidiary ledger equals the balance of the Reconciliation Account in the
General Ledger. The Reconciliation Accounts are only updated through the integrated
sub-ledgers. This ensures that sub ledgers always reconcile with the General Ledger.

Subsidiary
Ledgers

Postings from sub ledgers to Control or


Reconciliation Accounts

Copyright United Nations

General
Ledgers

14

Reconciliation Accounts
Updates to Reconciliation Accounts are done automatically in real-time when postings are
made in the subsidiary ledgers. The entries in the Reconciliation Account can only come
from a Subsidiary Ledger.

AR Subsidiary
Ledger

In the AR Subsidiary
Ledger, the
accounts of the
three customers are
debited by the
amounts of sales on
credit.

Customer A

General Ledger
2,000

Customer B

AR- Reconciliation Account


10,000

5,000

Customer C
3,000

Copyright United Nations

In the GL, the AR Reconciliation


A/c has only one entry, which is
the total of the individual debit
balances of the three customer
accounts.

15

AR Reconciliation Accounts in Umoja


AR Reconciliation Accounts in the GL for different kinds of customers are as follows:
Grouping
Z011
Z011
Z011
Z011
Z011
Z012
Z012
Z012
Z012
Z012
Z013
Z013
Z013
Z013
Z014
Z014
Z014
Z014
Z015
Z015
Z015
Z018
Z018
Z018

Account Group
Member State
Member State
Member State
Member State
Member State
Non Member State
Non Member State
Non Member State
Non Member State
Non Member State
Government and Local Authority
Government and Local Authority
Government and Local Authority
Government and Local Authority
UN Agency Fund Programme
UN Agency Fund Programme
UN Agency Fund Programme
UN Agency Fund Programme
Intergovernment and NGO
Intergovernment and NGO
Intergovernment and NGO
Commercial Customer
Commercial Customer
Commercial Customer

AR SPGL
indicator
M
V
K
N
A, F
M
V
K
N
A, F
V
K
N
A, F
V
K
L
A, F
V
K
A, F
V
K
A, F

Description
AR Assessed Contribution
AR Volunt Contribution AR
AR Volunt Contribution In Kind
AR VAT Receivable
Downpayment Received
AR Assessed Contribution
AR Volunt Contribution AR
AR Volunt Contribution In Kind
AR VAT Receivable
Downpayment Received
AR Volunt Contribution AR
AR Volunt Contribution In Kind
AR VAT Receivable
Downpayment Received
AR Volunt Contribution AR
AR Volunt Contribution In Kind
AP Loan Payable
Downpayment Received
AR Volunt Contribution AR
AR Volunt Contribution In Kind
Downpayment Received
AR Volunt Contribution AR
AR Volunt Contribution In Kind
Downpayment Received

Copyright United Nations

Normal Recon SPGL G/L Account


G/L Acct
15101010
13101010
15101010
14101010
15101010
14111010
15101010
15201010
15101010
38501010
15101110
13101110
15101110
14101110
15101110
14111110
15101110
15201010
15101110
3-850-1110
15101210
14101210
15101210
14111210
15101210
15201010
15101210
3-850-1210
15101310
14101310
15101310
14111310
15101310
36201310
15101310
3-850-1310
15101410
14101410
15101410
14111410
15101410
3-850-1410
15101510
14101510
15101510
14111510
15101510
3-850-1510

16

Income Reporting in the UN


The UN reports its income under three sections. The recording of some of these
incomes results in the creation of accounts receivable.
Income Section 1
Income from Staff
Assessment

Income Section 2

Income Section 3

General Income

Services to Public

Income from rental of premises

United Postal Administration


Operations

Reimbursement of services
provided to Specialized Agencies
& Others

Services to Visitors
Revenue Services of DESA

Bank Interest
Sale of Used Equipment
Refund of Previous Year
Expenditures
Contribution of Non-Member
States
Television and similar services

Sales of Gift Items


Newsstand Operations
Garage Operations
Catering Operations
Other Commercial Operations

Miscellaneous Income

Copyright United Nations

17

Income Recognition and Measurement Relevant IPSAS


Prior to reporting, the income must first be recognized and measured. Guidance on
income recognition and measurement is given by two key income relevant IPSAS.
IPSAS 9 Revenue from Exchange Transactions
An exchange revenue transaction for the UN is defined as one where the UN
receives resources, assets or services, or has liabilities extinguished, and directly
gives approximately equal value to the other party in exchange. The value given
by the UN could be in the form of inventory (IPSAS 12), Property, Plant and
Equipment (IPSAS 17), services or the use of assets belonging to the UN.
IPSAS 23 Revenue from non-Exchange Transactions
A non-exchange transaction occurs when the UN either receives value from
another entity without directly giving approximately equal value in exchange, or
gives value to another entity without directly receiving approximately equal value
in exchange. Examples include Assessed Contributions and Voluntary
Contributions.
The Umoja solution provides the means to capture the information that supports compliance
with these standards.
Copyright United Nations

18

Income Reporting Billing/Cost Recovery Methods


Various methods are used in Umoja to capture both Revenue from Exchange Transactions and
Revenue from non-Exchange Transactions. The choice of which method to use is a function of two
factors type of customer and type of income.

Type of Customer Internal or External to Umoja


All Business Partners with a customer role are classified as either internal or external to
Umoja, depending on whether or not they use the system for their financial reporting.
Internal Customers are entities that are:
a. Already using Umoja e.g. UNIFIL, UNSCOL or
b. Are in preparation to do so e.g. PKMs before 1 November 2013.
External Customers are entities that are not using Umoja and do not intend to do so in
the near future e.g. non-Secretariat UN organizations, Military Contingents, Permanent
Missions, commercial vendors, civilians

Type of Income Exchange or non-Exchange

Revenue from Exchange Transactions is subdivided into two categories:


a. Income from the supply of goods and services with the exception of rental
services.
b. Income from the rental of premises.
Revenue from non-Exchange Transactions is also subdivided into:
a. Assessed contributions
b. Voluntary contributions
Copyright United Nations

19

Income Reporting Billing/Cost Recovery Methods


Based on the type of customer and type of income, the following billing/cost recovery
methods are used in Umoja.
Internal

Types of Customers

UN offices (both
live in Umoja)

Types of Income

Exchange
Transactions

Real Estate (LeaseRent, Utilities & Other


Out) Internal
Lease-related Charges Posting (Internal
Revenue)

Non-Exchange
Transactions

Voluntary
Contributions

UN offices (in
transition to
Umoja)

Other UN related Organizations


(Non-Secretariat), NGOs, Military
Contingents, Member States, UN Staff Members
Non-Member States, Permanent
Missions, Vendors

Billing / Cost Recovery Method

Cost Recharge with


inter-fund JV and
Direct Costs, Static
immediate cash
Pricing (Standard
settlement through
Rates)
cash pool (Internal
Rev. Spendable)

Assessed
Contributions

External

Inter-Office
Voucher (IOV)

Sales and Distribution (Standard


Order) Billing, (External Revenue
- Spendable)

Real Estate
(Lease-Out)
Real Estate (Lease-Out) External
External Billing
Billing, (External Revenue (Internal
Spendable or Non-Spendable)
Revenue)

n/a

Copyright United Nations

Direct Recording of receivables


in the AR Sub-ledger
SD (Standard Order) Billing as
part of Grants Billing)

Accounts Payable
Subledger Credit
Memo (-ve Exp
Account)

n/a

20

Billing/Cost Recovery and Accounts Receivable


Not all the transactions to bill or recover cost create AR. The only transactions which
result in receivables are:
1. Sales and Distribution (Standard Order) Billing
2. Real Estate (Lease-Out) External Billing
3. Direct recording of receivables in the AR Sub-ledger.
The following Business Partner Groups - Commercial Vendors UNGM, Individuals
external (Retirees, Consultants, Independent Contractors, Survivors etc) with index
numbers, UN Staff Members, Military and Police - do not have customer roles. They
only have vendor roles.
Accordingly, any cost recoveries from them e.g. telephone bills, fuel, liberty hours etc.
are done by debiting their vendor accounts through a credit memo in the Accounts
Payable Sub-ledger. The Accounts Receivable Sub-ledger is only used to record
receivables for Business Partners who have a customer role in Umoja.
In the next three modules, well examine how receivables are created in AR using each
of the three transactions above. For now, lets look at key document types used in AR.

Copyright United Nations

21

AR Document Processing Customer Invoices


A number of documents are used in Umoja to process Accounts Receivable. Well briefly look at
these documents in the remainder of this module before we examine the actual AR processes in the
next modules.
Future Term

Customer Invoice
Document (DR)

Current Term

Billing Document

Definition
Accounts receivable documents created directly in the AR sub ledger:

Requires a Business Partner with Customer Role

Dr Accounts Receivable

Manual entry or Excel document load file

Can be open or cleared

Customer Credit
Memo Document
(DG)

In AR, a Customer Credit Memo is a posting that reduces the balance of receivables. It is
normally created if the goods or services provided are returned or a discount is given on
the price charged.
Credit Memo documents are created directly in the AR sub ledger:

Require a Business Partner with Customer Role

Cr Accounts Receivable

Manual entry or Excel document load file

Can be open or cleared

Incoming Payment
Document (DZ)

Document recorded either automatically by Cash Management or manually by user


Cr Accounts Receivable Customer open item
Dr Bank Clearing
Reset and reverse FBRA

Noted Items

Documents that are one-sided memo entry. A subsequent event will update the noted
item and create a normal two-sided financial document. Noted items dont appear in
financial reports (e.g. trial balance).

Copyright United Nations

22

AR Document Processing Customer Invoices


Future Terms
Customer Down
Payment Request
(DA)

Current Terms
Advances from
Other

Definition
This document creates a noted item to tell Cash Management module to expect a specific
amount from a specific Customer. Once payment is received, an Incoming Payment
document (DZ) is created to record cash and a liability on the Customers account in AR sub
ledger.

Entry View

If you choose document display, the document is first displayed in the entry view. This view
contains the line items originally entered. Typically the Customer number is shown on the
first line of the document.

General Ledger
View

In the General Ledger view, a document contains the line items originally entered and split
line items generated by document splitting. Documents in the General Ledger view always
apply to a specific ledger. Typically we see GL accounts and all coding block that has been
derived instead of the Customer number.

Parked Document
Save as Parked

Unapproved
Document

Used to store (park) incomplete documents without carrying out extensive edit and budget
checks. Parked documents can be completed, checked, and then posted at a later date; if
necessary, by a different user.

Parked Document
Save as
Complete

Unapproved
Document

Used to carry edit checks. Only documents with successful checks can be saved with status
Save as Complete. If checks are failed, document can be saved with status Save as
Parked. Saving as Complete triggers workflow.

Posted Document

Approved
Document

Document that has been approved through workflow. With the exception of payment
method, payment terms, and long text, document information can no longer be changed.

Reversal
Document

Documents that have been posted and contain an error can be reversed. The reversal
document will refer to the original document while the original document will be updated
to reference the reversal document number.

Special GL
Indicator

Attribute of a posting which instructs Umoja to swap the default GL account for a special GL
account. SPGL are only available in AR and AP sub ledgers. E.g. VAT receivable.
Copyright United Nations

23

AR Document Processing Customer Invoices


Future Terms

Zero Balance
Clearing Account

Current Terms

Inter-fund
Account

Definition
If the balancing dimensions in a document do not produce a balance of zero, the system
creates additional lines to balance the document for each splitting dimension (Fund,
Business Area, Grant, Segment). The default Zero Balance Clearing Account is the Equity in
Pool account (requirement with Cash Control).
Note: Creation of AR documents will not hit Zero Balance Clearing Account .
Umoja has been configured to automatically balance a document along 4 dimensions: Fund,
Business Area, Grant and Segment. This can be accomplished in two ways:
1. Account assignment is copied from the income statement line to the balance sheet line
2. Additional lines are added to the Zero Balance Clearing Account
Allows you to display document line items split according to selected dimensions (i.e. Fund,
Business Area). In this way, you can draw up a complete trial balance for the selected
dimensions at any time. The Split Processor balances inter-fund documents to the Equity in
Pool account.
N.B. Clearing documents have no transaction lines when the clearing does not cross
dimensions.

Document
Splitting

This document associates a receivable document (DR or DG) with an incoming payment
document (DZ). Clearing documents have no transaction lines. Clearing can be done
automatically when bank file includes a recognizable reference with the incoming
payment. Otherwise, user will create and clear incoming payment with account receivable
document manually (F-28).

Customer
Clearing
Document (DC)

Open Item

Outstanding
Receivable

Cleared Item

Recovered
Receivable

Account Receivable document which doesnt have a clearing document.


Account Receivable document which has a clearing document.

Copyright United Nations

24

High-level Accounts Receivable Process


The Umoja Accounts Receivable solution includes the following processes:

Customer Invoice
Processing

Incoming
Payment
Processing

Collections and
Write-Offs

Customer Invoice Processing will be covered in the next three modules in line with the
three ways through which receivables are created in the AR Sub-ledger namely:
1. Sales and Distribution (Standard Order) Billing
2. Real Estate (Lease-Out) External Billing
3. Direct recording of receivables in the AR Sub-ledger.

Copyright United Nations

25

Touch Points
Touch points are those instances where one process or functionality interacts with another
process or functionality. These touch points seen between Accounts Receivable and other
functionality are outlined in the diagram below:
General Ledger
(FI)

Business Partner
Master Data
(system-wide)

Sales and
Distribution
(SD)

Accounts
Receivable
(FI)

Real Estate
Module
(RE)

Copyright United Nations

Grants
Management
(GM)

26

Learning Checkpoint 1
All of the following are capabilities of the Umoja Solution, EXCEPT:
Select the correct option.
A.
B.
C.
D.

Centralized Data
Automatic posting in A/R
Siloed functionality by functional area
Dunning

Copyright United Nations

27

Learning Checkpoint 1
All of the following are capabilities of the Umoja Solution, EXCEPT:
Select the correct option.
A.
B.
C.
D.

Centralized Data
Automatic posting in A/R
Siloed functionality by functional area
Dunning

Option C is correct. The key benefit of Umoja is


the integration of data and functionality under
one roof.

Copyright United Nations

28

Module 1 Summary
The key points covered in this module are listed below:
The AR process area comprises all business processes related to recording and
tracking receivables from Member States, Donors, commercial customers and any
other entity that owes money to the UN
The UN reports its income in compliance with IPSAS 9 Revenue from Exchange
Transactions and IPSAS 23 Revenue from non-Exchange Transactions.
There are several methods used for cost recovery/billing in Umoja
The AR relevant roles that can be assigned to a Business Partner include FI
Customer, UN Customer (i.e. Customer with a Sales and Distribution view), UN
Tenant with Vendor Account and Sponsor

Copyright United Nations

29

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

30

Module 2 Objectives
After completing this module, you will be able to:
Explain the Services to Public and Staff process
List the Master Data elements in the SD module of Umoja
Identify the Sales Area associated to your operation
Describe the Billing of Services process
Describe the Sale of Inventory/Assets process
Describe the Third-party Procurement process
Explain the steps involved in creating customer invoices in Sales and Distribution

Copyright United Nations

31

Key Terminology
Key Term
Material
Item Category

Condition Types
Plant

Sales Area
Sales Organization

Description
It refers to all products and services procured, sold, charged and
delivered by UN.
It is an essential part of a sales order that generally controls the
behavior of an item in a sales order, such as pricing.

It is a set of variables that applies when price is calculated.


It is a location where materials are produced, purchased, stored,
inventoried, shipped, received and valuated or from which services
are provided (Mission/Support Center in Peacekeeping, Country for
HQ and OAHs).
It is the combination of a distribution chain (a sales organization
and a distribution channel) and a division. It is used to determine
the sales price calculation schema in Sales Pricing.
It is the overarching sales body, in this case UN.

It determines how materials or services are sold and how they are
Distribution Channel distributed to customers, for example, retail, wholesale or selfcollection.

Copyright United Nations

32

Key Terminology
Key Term
Division

Business Area
Profit Centre
Funds Center
Fund
Functional Area
Cost Center

Description
It is an organizational unit that establishes responsibility for profits
from materials and services. It can be used to organize materials or
services, for example to form product groups or lines.
It is a classification of UN entities operating in Umoja. Examples of
business areas include Peacekeeping Missions, Special Political
Missions and Offices Away from Headquarters.
It represents a business function in Umoja.
It is an organizational unit within the FM module that controls a
budget. It is time dependent and has the valid from and to dates.
Every Funds Center corresponds to a Cost Center.
It represents the foundation for tracking, controlling and reporting on
available financial resources in Umoja.
It is a Master Data element that is maintained within the FM module.
It is also used in FI and CO to classify revenues and expenditures of an
organization by function.
It is an organizational unit that collects costs and revenues for ongoing
operations or functions.
Copyright United Nations

33

Services to the Public in the SD Module


The Umoja Sales and Distribution (SD) module is used to manage the services that the UN
provides to entities that do not use Umoja for their Financial Reporting purposes. These
entities include amongst others, UN non-Secretariat agencies, NGOs, Military Contingents,
Member States, Non-Member States, Permanent Missions, Commercial Customers etc.
The services provided to the public and processed in the SD module can be grouped into
three main categories:

Billing of UN Common
Services

Sales or Donation of UN
Asset and Inventory

Third-party Procurement

When services to the public are processed in the SD module, invoices are raised to request
payment from customers. The raising of an invoice also establishes a receivable in the
customers account in the AR Sub-ledger.
Copyright United Nations

34

Services to the Public - Billing of UN Common Services


The Umoja SD module is used when billing or seeking cost reimbursement for services
provided to parties external to Umoja. These services include:

Conference, media, television, broadcast, special events and security


Occasional rental or use of UN spaces
Ad-hoc facility, engineering and maintenance

Travel, visa, Laissez Passer (LP), freight, mail and insurance


Aviation, transport and movement control
Medical, personnel, training, legal, contractual and document
Technology, information and communication

Copyright United Nations

35

Billing of Common Services Process


The overall steps in the Billing of Services process are as follows:

Customer

SD User

Verify BP and
Pricing
Conditions

Request a
Quotation

Customer

SD User

Place Order

Steps performed outside Umoja

SD User

Create
Standard
Order

SD Approver

Create
Quotation

SD Approver

Approve
Quotation

AR User

Approve
Standard
Order

AR User

Create and
Issue Invoice

Steps performed in Umoja ECC

Process
Incoming
Payment

Optional Steps performed in Umoja ECC

Umoj
a
Copyright United Nations

36

Services to the Public - Sale of Inventory/Assets


In Peacekeeping Missions, the Self Accounting Units (SAUs) can identify inventory/assets
to be disposed through sale, donation or other methods. The Property Disposal Unit
(PDU) of the missions Property Management Unit consolidates the list of
inventory/assets to be disposed and submits it for the approval of the Local or
Headquarter Property Survey Board. This activity is currently carried out in Galileo
WODM.
After the list of assets and inventory is approved for disposal by sales, an unfunded
Shopping Cart is created and approved in Umoja Supplier Relationship Management
(SRM) for procurement action. The Shopping Cart should contain the line item(s)
associated with the material(s), asset(s) or lot(s) to be disposed.
The Procurement team conducts solicitation to seek bidders for the goods to be
disposed. The offers are then evaluated and lots are awarded to the highest bidder. At
this point, the process is moved into the SD module and the steps are listed in the
subsequent slide.

Copyright United Nations

37

Sale of Inventory/Assets Process


The overall steps in the Sale of Inventory/Assets process are as follows:
External Role
Identify
Assets and
Inventory to
be disposed
(in Galileo)
SD User

Create
Standard
Order

Requisitioner/
Approver
Create/Approve
Shopping
Cart

SD Approver

Approve
Standard
Order

Buyer

Buyer

Conduct
Solicitation

Issue Award
or Bill of
Sales (in
Galileo)

AR User

AR User

Create and
Issue Invoice

Steps performed outside Umoja

Buyer
Create Sales
Contract
(Optional
Step)

SD User

Verify
Business
Partner

Process
Incoming
Payment

Steps performed in Umoja ECC

Steps performed in Umoja SRM

Copyright United Nations

38

Services to the Public - Third-party Procurement


Third-party procurement occurs when a UN agency or any other entity external to Umoja
requests UN to procure services or materials on its behalf. UN may agree to purchase
and pay for the goods or services on the condition that reimbursement is received
before or after the goods/services are delivered.
UN recovers the cost of the purchase, plus any other applicable fees, by issuing an
invoice to the concerned UN agency or entity. For this purpose, the SD User creates a
Standard Order with the item category of the relevant material changed to TAS Third
Party Items.
While creating a Standard Order, the system automatically creates a Purchase
Requisition, which will be transferred to SRM for procurement to create a Purchase
Order (PO).

When goods are delivered and the Goods Receipt is posted to enable the vendor
payment, the goods will not be transferred to Galileo and therefore will not become part
of the UN stock. However, the UN counterpart needs to perform good receipt or certify
the service received before the invoice can be paid.

Copyright United Nations

39

Third-party Procurement
The overall steps in the Third-party Procurement process are as follows:
External Role

SD User

SD User

Place Order

Verify BP and
Pricing
Conditions

Buyer

AR User

Treasury

Create and
Issue Invoice

Make Payment
to Vendor &
Receive Money
from Customer

Conduct
Solicitation &
Create a PO

Steps performed outside Umoja

Create
Standard
Order

SD Approver

Approve the
Standard Order

AR User

Process
Incoming
Payment

Steps performed in Umoja ECC

SRM Approver
Approve the
Shopping Cart
automatically
created

External Role

Deliver Order

Steps performed in Umoja SRM

Note: The Third Party Procurement Process is rarely used in Peacekeeping missions. If
the process does occur it requires ad hoc authorization from the Procurement division
Copyright United Nations

40

Customer Invoices in the SD Module


The AR Senior User only comes in at the time an invoice is issued because it is at this
moment that a receivable is booked against the customer in the AR Sub-ledger.
Business Partner
(Customers)

Pricing Conditions

Material Master
(Services)
Material Master
(Goods)

Reference Data
Currencies,
Country Codes
and Commodity
Codes

Quotation
Sales
Contract

General Master Data


SD Specific Master Data

Return Order
Standard/Sales
Order

Credit/Debit Memo
Request

Delivery
Document
Post
Good Issue

Delivery
Document
Good Receipt

SD Specific Processes

Invoice

Shared Processes

Credit/Debit Memo

---- Applicable for UNHQ & OAHs only

Copyright United Nations

Financial
Document

41

Sales Organization, Distribution Channel & Divisions


Before the AR Senior User can issue an invoice in SD (thus creating a receivable in the AR
Sub-ledger), s/he must specify the Sales Area for which they are responsible. For each
Peacekeeping mission, this will be a combination of the Sales Organization, Distribution
Channels and Divisions.
Divisions
00 General Services & Others
Sales Organization
1000 - UN
01 UN Postal admin
02 Bookshop services
Distribution Channels
03 Visitors services
01 Retail
04 Publications
02 Distributor
05 Properties & Equipment
03 Online
06 Statistics
04 Direct Sales
07 Conf, Media & Events
05 Stock Transport - STO
08 Facility & Engineering
06 Grants
09 Travel & Transportation
07 Billing/Cost Recovery
10 Aviation & MovCon
08 Subscription
11 Personnel & Training
12 Inventories & Supplies
13 Legal, Contract & Document
14 ICT services
Copyright United Nations

42

Invoice Management Processes


Issuing an invoice in SD is only one of the many processes that the Senior AR User can
perform on invoices. S/he can also display, change, print or cancel invoices.
Customer

SD User

SD Approver

Create
Standard
Order

Place Order

Approve
Standard
Order

Steps performed outside Umoja


FI Senior or any
other FI User

Display &
Review
Standard
Orders

FI Senior User

Issue Single
or Combined
Invoice

FI Senior User

FI Senior User

Execute
Financial
Postings

Treasury

Receive
Payment

Issue Invoice

Steps performed in Umoja ECC

FI Senior User

Cancel
Invoice

FI Senior User

Display/
Change
Invoices

FI Senior User

Print Invoices

Umoj
Note: The remainder of this module looksaat the SAP steps to perform the various invoice
management processes.
Copyright United Nations

43

Issue an Invoice in Sales and Distribution


The process begins when the user has logged into Umoja.

Step 1: Access the Maintain Billing Due List Page.


a Enter VF04 in the Command field
b Press the Enter button

Copyright United Nations

44

Issue an Invoice in Sales and Distribution


The Maintain Billing Due List screen appears.
Step 2: Enter the appropriate data.
Enter 1000 in the Sales Organization
c
Field
d
Enter relevant Distribution Channel,
Divisions and/or Shipping Point to limit
the display to the relevant Sales Area and
site location
e
Click the Order-related since invoices
to be issued from SD are usually orderrelated

1000

Step 3: Click the DisplayBillList button.


d

Copyright United Nations

45

Issue an Invoice in Sales and Distribution


The Billing Due List is populated with bills due based on the criteria entered on the
previous screen.

Step 4: Select the appropriate document number, then click the Individual billing
document button. [Note: Click the Combine billing document if consolidated
billing is required]

Step 5: Click the Save button to create an invoice.


Step 6: Record the invoice number for use later in the process.
Note: The system will copy everything from the Sales order to the Invoice. Relevant financial posting will
automatically take place. To issue a combined billing documents, all customer, sales area and site
information of the selected SD documents have to be the same.
Copyright United Nations

46

Cancel an Invoice in Sales and Distribution


Generally, financial postings will be executed automatically when an invoice is issued in
the SD Module. In case this fails to happen, the Senior AR User should investigate (using
the Failure Log) and fix the problem causing the failure. This may require the cancellation
of the invoice issued, which in turn will restore the Standard Order to its original state.
To cancel an invoice, follow the steps below:

Step 1: Access the Cancel Billing Page.


a Enter VF11 in the Command field
b Press the Enter button

Copyright United Nations

47

Cancel an Invoice in Sales and Distribution


Step 2:
c Enter the number of the invoice to
cancel in the Document Field.
d Press Enter
The Billing Document Cancel: Billing
Document Overview screen will display,
showing two lines: one for the original
invoice and the other for the cancellation.

Step 3:
e Click on the Save icon and note the
document number shown at the
bottom of the page.
f Click on the Back icon (or type /n in
the Command Field) to return to the
SAP Easy Access Screen. Type VF04
and press Enter. It will be noticed that
the Standard Order for the invoice
cancelled is ready for invoicing.

Copyright United Nations

48

Display/Change Invoice in Sales and Distribution


Step 1: Access the Change Billing Document screen.
a Enter VF03 (Display) or VF02 (Change) in the Command
Field.
b Press the Enter button

The Display/Change Billing Document Screen appears.


Step 2: Enter the invoice number in the
Billing document field.
Step 3: Click the Billing items button.

Copyright United Nations

49

Display/Change Invoice in Sales and Distribution


The Overview of Billing Items screen for the invoice entered appears.
Step 4: Click the Display doc. Header details icon to display invoice header detail.

Copyright United Nations

50

Display/Change Invoice in Sales Distribution


The Header data for the Billing invoice
being reviewed appears.
Step 5: Review the information for
accuracy.
Step 6: Click the Accounting icon for a List
of Documents in Accounting.

Copyright United Nations

51

Display/Change Invoice in Sales Distribution


A List of Documents in Accounting opens.
Step 7: From the list double click the document
number of the Accounting document.
The Data Entry View of the invoice appears. This
gives another view of the same invoice.
Once the review is done the invoice can then be
printed.

Copyright United Nations

52

Printing an Invoice in Sales Distribution


Invoices can be printed from the Header
Data screen by executing the following
steps:

Step 1: Click the Output icon.


The Output page for the invoice being
Reviewed appears.
Step 2: Enter ZRD0 in the Output
column of the Output table.
Step 3: Press the Enter key.
The ZRD0 output row is automatically
populated with the appropriate information.
Step 4: Click the

icon located above the Output table.

Copyright United Nations

53

Printing an Invoice in Sales and Distribution


The Printing Information screen of the Output page appears.
Step 5: Enter LOCL in the Logical
Destination field.
Step 6: Select the checkbox next to the
Print Immediately and Release
after output options.
Step 7: Click the Back button to return
to the main Output screen.
Step 8: Click the
icon at the
top of the screen.

Copyright United Nations

54

Printing an Invoice in Sales and Distribution


The Further Data section of the Output screen appears.
Step 9: Select Send immediately
(when saving the application)
From the Dispatch Time
dropdown menu.
Step 10: Click the back button to
Return to the main Output
page.

Copyright United Nations

55

Printing an Invoice in Sales and Distribution


Step 11: Click the Save button to initiate
invoice printing.
If the invoice does not automatically print,
press the Enter key to validate the Output
page for errors.

Copyright United Nations

56

Grant Billing: Overview


After the Donor agreement or amendment is signed, scanned and uploaded into the
Umoja system, the Grant Billing process is performed through standard accounting
transactions.

For monetary contributions, appropriate


income and ARs are recorded based on
the recognition criteria and in compliance
with the IPSAS requirements.

For goods, the value stated in the agreement is


recorded. If not stated, the Fair Market Value
will be recorded as income and expenditure.
For services, only rights-to-use will be recorded
as income and expenditure. All other services
will be recorded through memorandum
accounts.

Note: The detailed Grant Billing Process is similar to the SD Billing Process and can be found in FI311
Umoja Grants Management Process ILT Framework 1

Copyright United Nations

57

Touch Points
The Umoja system is an integrated system and most of its modules integrate with each
other to complete a process. Touch points are those instances where one process, subprocess or activity interacts with another process, sub-process or activity.

Sales/Donation
of UN Assets

Third Party
Procurement

Billing of UN
Common
Services

Customer
Invoice
Processing
Grants
Management

Copyright United Nations

58

Simulation Activities
Throughout this training, users will have the opportunity to
conduct activities in the form of simulations. Simulations
are interactive recordings of the Umoja system used to
help facilitate a handson learning experience. The
simulation links are provided on the corresponding activity
slides.
Users can access simulations in three different modes:
Show me: Users view a video of an entire transaction
being conducted
Lets do it together: Users will be prompted to input
data at key points during the transaction
(recommended)
Try it: Users can complete an entire transaction on their
own, with no additional instructions provided

Copyright United Nations

59

Activity 1
Transaction Name: Create an invoice originating from SD
Transaction Code: VF02, VF04
Link to the uPerform simulation:
https://www.unumoja.net/share/page/site/OCM/docum
entdetails?nodeRef=workspace://SpacesStore/e819cec827d7-4f53-8f19-346198883a5f

Copyright United Nations

60

Learning Checkpoint 1
The SD module is used to raise invoices for which of the following services?
Select the correct option.
A. Conference, media, television, broadcast, special events and security to a
Permanent Mission
B. Recovery of phone bills from Military Observers
C. Ad-hoc facility, engineering and maintenance services to the Host Government
D. Medical, personnel, training, legal, contractual and document the Red Cross
E. Recovery of liberty miles from staff members

Copyright United Nations

61

Learning Checkpoint 1
The SD module is used to raise invoices for which of the following services?
Select the correct option.
A. Conference, media, television, broadcast, special events and security to a
Permanent Mission
B. Recovery of phone bills from Military Observers
C. Ad-hoc facility, engineering and maintenance services to the Host Government
D. Medical, personnel, training, legal, contractual and document the Red Cross
E. Recovery of liberty miles from staff members

Option A, C and D are correct. The SD module is


used to raise invoices for services rendered to
customers who are external to Umoja. Military
Observers and Staff Members only have vendor
roles in Umoja. Recoveries from them are done
through credit memos in the AP Sub-ledger.

Copyright United Nations

62

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

63

Module 3 Objectives
After completing this module, you will be able to:
Define Lease Administration
Describe the lease types identified for UN
Explain the Lease Administration lifecycle
Describe the integration of Real Estate with Funds Management
Explain how the Financial Accounting Senior User creates receivables in the
tenants account

Copyright United
Copyright
UnitedNations
Nations

64

Key Terminology
Key Term
Lease-in

External Lease-out

Internal Lease-out

Sales-based Lease-out

Business Partner (BP)

Description
This lease type is used when the space is leased from an external party
and is used by UN for its own use. This lease type represents the UN as
the Tenant.
These are leases where the space is leased to a UN agency external to
Umoja or to any other commercial entity. For example, UNDP, UNICEF
or JP Morgan Chase.
These are leases where the space is leased to an entity internal to
Umoja. The amounts owed are paid by the tenant via an internal debit
to the tenants expense and credit to the landlord's revenue.
These are leases with a commercial entity where all or a portion of the
rent is based on the amount of revenue generate by the tenant. It may
also include other tenant charges.
This refers to a person or an organization that has a business interest
related to real estate property with UN. A Business Partner can be an
owner, tenant, property manager, lease administrator, staff member,
consultant or other affiliate that uses UN premises to perform their
activities. These Business Partners may have one or more of the
following roles in Umoja Real Estate: Facilities Manager, Facilities
Planner, Lease Processor, Contract Approver, Landlord, Tenant or a
Contact Person.
Copyright United Nations

65

Key Terminology
Key Term
Building
Land/Property
Pooled Space
Rental Space
WBS Element

Description
It refers to any building structure occupied by UN (owned, leased or
right-to-use).
It refers to any parcel of property occupied by UN, be it owned, leased
or occupied on a right-to-use basis.
It refers to a flexible object that an be leased out either as whole or
divided into rental spaces. Pooled space cannot be leased out in their
own right.
It refers to a flexible object that is a space extracted from a pooled
space mainly for the purpose of leasing out.
A Master Data element that represents a project with its
structure. This is covered in the Project Management Process course.

Copyright United Nations

66

Lease (Contract) Administration: Definition


, Lease
renewals,
lease termination
andiscritical-date
(Contract)
Administration
used for thetracking.
management of leases and it involves
creating, managing, renewing and terminating real estate leases for both owned
property and rented premises.
It is the process of creating and maintaining leases from initial setup through billing and
lease management.

Copyright United Nations

67

Lease Types
The main lease types identified for the UN are:

Lease Types

Lease-in

Lease-out

Where the UN is
occupying a space
that is not owned by
the UN.

Where the UN is
leasing space
(owned or not
owned by the UN) to
a third party, such as
another UN agency,
host government,
commercial entity,
NGO or other
organization.

Copyright United Nations

68

Lease-In Types
Financial (lease) arrangements of the real estate object have to be indicated in the Usage
View.
Lease Arrangements, as per IPSAS:

Finance Commercial: When the UN pays market rental rate and the leases meet one or
more of the following finance criteria: ownership transferred to the UN by the end of the
lease term; UN has the option to purchase the asset at lower than fair market value; lease
term is for the major part of the life of the asset, i.e. greater than 35 years; the present value
of the minimum lease payments, at the inception of the lease, amounts to substantially all of
the fair value of the leased asset (PV 90% of the fair value).

Finance Right-to-Use/InKind: When the leases meet one of the finance criteria and use of
the premises has been granted at no cost to the UN.
Finance Right-to-Use Nominal: When the leases meet one of the finance criteria and use of
the premises has been granted at nominal cost ( USD 1 per year) to the UN.
Finance Subsidized: When the leases meet one of the finance criteria and the rent is
subsidized. Sometimes the UN receives government funding to cover rental costs or in some
other cases, non-profit organization (like FIPOI in Geneva) provides rent that are not
profitable or below than market rate for the sake of a specific group.
Copyright United Nations

69

Lease-In Types
Financial (lease) arrangements of the real estate object have to be indicated in the Usage
View.
Lease Arrangements, as per IPSAS:

Operating Commercial: When the leases do not meet any of the finance criteria and the UN
pays market rental rates.

Operating Right-to-Use/In-kind: When the leases do not meet any of the finance criteria and
use of the premises has been granted at no cost to the UN.

Operating Nominal: When the leases do not meet any of the finance criteria and use of the
premises has been granted at nominal cost (USD 1 per year) to UN.
Operating Subsidized: When the leases do not meet any of the finance criteria and the rent is
subsidized. Sometimes the UN receives government funding to cover rental costs or in some
other cases, non-profit organization (like FIPOI in Geneva) provides rent that are not
profitable or below than market rate for the sake of a specific group.

Copyright United Nations

70

Lease-out Types
The various Lease-out types are:
Lease-out types

External: These are leases where the space is leased to an UN agency external to Umoja or to
any other commercial entity. For example, UNDP, UNICEF, JP Morgan Chase.
Internal: These are leases where the space is leased to an entity internal to Umoja. For
example, a Peacekeeping Mission or Special Political Mission.
Sales-based: These are leases with a commercial entity where all or a portion of the rent is
based on the amount of revenue generated by the tenant. It may also include other tenant
charges.

Copyright United Nations

71

Lease Administration Lifecycle


At the UN, real estate leases (Lease-ins) are negotiated by the Procurement Office and
customer contracts (Lease-outs) may be negotiated by Facilities Management,
Engineering Unit or General Services. For External Lease-outs, Procurement and
Contract Management may also play a role.
After the lease is agreed upon and signed by both parties, the lease is entered into the
Umoja system with lease terms, conditions, renewal and notice terms. Contract types
are the key attributes used to classify different types of leases.
Lease-in Contracts

Lease-out Contracts

Procurement Office

Facilities Management

Copyright United Nations

72

Real Estate & Funds Management Integration

The processing of real estate lease contracts includes an integration of Real Estate with
the Funds Management (FM). There are two types of contracts:
Vendor Contracts
(Lease-in)

Customer Contracts
(Lease-out)

For Lease-in contracts, a funds


commitment is generated by creating
a Purchase Order through
Procurement.

For Lease-out external the posting


parameters for revenue are
maintained on the portfolio usage
object. For Lease-out internal, a
funds commitment is generated by
the Tenant and assigned to the Leaseout internal contract.

Copyright United Nations

73

Real Estate Contract Accounting


Real estate contract accounting is closely integrated with Umoja Financials and Umoja
Controlling modules.
Financial Business Partners for real estate processes Tenant and Landlord are linked
to accounts in Accounts Receivable and Accounts Payable respectively.
Each building owner from whom space is leased-in is created as a UN Landlord
Business Partner in RE-FX. The Business Partner has a corresponding vendor
master record in Accounts Payable
Each external third-party tenant (to whom space is leased-out) is created as a UN
Tenant Business Partner with a customer account in RE-FX. The Business Partner
has a corresponding customer record in Accounts Receivable
Internal tenants are created as UN Tenant Business Partners without customer
accounts. They will not have a customer record in Accounts Receivable

Copyright United Nations

74

Key Elements of Real Estate Lease


The key elements of a lease include the following:

Term
Renewal/ Notice

Conditions &
Adjustments

Refers to the length of


the contract.
Renewal rules, rent
escalations
and
Term
termination options are
required for setting up
a UN lease.

Conditions contain the


amounts due to the
landlord or from the
tenant. For
example:
Term
base rent, utilities,
rental of furniture.

Copyright United Nations

Posting Parameters
Positing Parameters
include information on
payment terms,
payment frequency and
Term
organizational
assignment (profit
center and business
area)

75

Term, Renewal & Notice


Term
Renewal/
Notice

Conditions &
Adjustments

Posting
Parameters

The contract term stipulating the beginning and end of the rental period prevents
the system from creating overlapping rental periods for a rental unit.
Renewal rules are used to renew fixed-term contracts.
A number of renewal rules are delivered as standard by Umoja and will remain
unchanged
During the creation of contracts, end-users select the renewal rule that applies
to their contract and can also create user-specific rules at the same time
A termination notice is used to terminate a contract on a specific date. They may
only be given on contracts that have been set up with an early termination clause.
When the notice is given, the reason to exercise the notice needs to be provided.
This justification is then used for notice reporting.

Copyright United Nations

76

Conditions & Adjustments


T
Term
Renewal/
Notice

Conditions &
Adjustments

Posting
Parameters

Conditions are an Umoja terminology that refer to types of rent and are key in capturing
the rent variations. Conditions provide UN with the capability to track updated
information about revenue generated from rental of premises across geographical
areas. Conditions include:
Base Rent
Cleaning
Rent Escalation
Pest Control
Admin Charges
Elevator use
Operating Expense
Provision/Rental of furniture
Electric
Provision/rental of video
Water
conference
Gas
Comp/phone and other IT
Sewer
equipment
Misc Charges
Sales-Based Rent
During the life cycle of a lease, the conditions may need to be adjusted based on terms
or clauses of leases.
Copyright United Nations

77

Posting Parameters
Term
Renewal/
Notice

Conditions &
Adjustments

Posting
Parameters

Posting Parameters, which are used in Umoja only in association with Internal and
External Leaseout contracts, outline agreements on postings, frequency and
organizational alignment in SAP.
Postings are used for Lease-out external to capture the
Landlord (UN entity) House Bank and Account information
which is used by the Tenant to send electronic payments and
for Lease-out internal, to specify the Tenants cost center for
posting of the Tenants lease expense
Frequency deals with the payment frequency and form for
objects in the contracts.
Organizational alignment defines the profit center and
business area for the objects in the contracts and it is used
for Lease-out internal to record the coding block of the
Tenant

Copyright United Nations

78

External and Internal Lease-out: Process Steps


The end-to-end steps required to create a Lease Contract in Umoja SAP are displayed
below. Our interest is only on the last two steps, where postings are done and invoices
created.
Facilities Planner

Facilities Planner

Create Architectural
and Usage Objects

Lease Processor

Create /Update
Lease-out Contract

Create Pooled Space


Extract Rental Space

Lease Contract Approver

Approve Lease-out
Contract

Facilities Planner

Approve AO and
Approve/Release
Usage Objects
Financial Accounting
Senior User

Periodic Posting:
Simulation,
Execution and
Reversal

Lease Processor

Check Business
Partner
Financial Accounting
Senior User

Invoice: Create &


Reversal

Steps performed in Umoja ECC


Copyright United Nations

79

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

In Umoja, the Lease Processor and the Financial Accounting Senior User can simulate
periodic postings to check for errors.
If the check reviews no errors, the Financial Accounting Senior User will create a
receivable in the tenants customer account. These financial postings represent the
revenue due from the tenant and include the associated coding block (fund, grant and
so on).
The steps to simulate a periodic postings are:
11.

Enter RERAPP in the Command field or click the SAP menu and select the Accounting >
Flexible Real Estate Management > Accounting > periodic postings > periodic posting:
Contracts menu item

Copyright United Nations

80

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

In the Contract Selection section, enter details in the following fields:


Company Code: The Company Code used in Umoja is 1000
Contract from and to: This allows you to run the periodic posting for multiple contracts by
entering a range of contract numbers

Copyright United Nations

81

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

In the Period section, enter details in the following fields:


Month for Posting Run: The month the tenant receivables are due
Year for Posting Run: The year the tenants receivables are due
Due Date: The date less than or equal to the date through which conditions due on the
contract will be collected. For example, if the conditions are due in June, this date will
be less than or equal to 30 June

Copyright United Nations

82

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

In the Posting section, enter details in the following fields:


Document Header Text: This is the text displayed at the top of the posting report upon
execution. This should be updated as appropriate for Lease-out internal certifications
Posting Date: The reference date for when the financial documents will be recognized

Document Date: The date the financial documents are created in the system

Copyright United Nations

83

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

Posting Period: The current open financial period for the financial records
Posting Run Mode: During a periodic posting simulation, the Posting Run Mode is always
Simulation
Type of Posting Run: This is always an Integrated Posting. The integrated posting accrues
the revenue due to the tenant, directly to the rental object

Copyright United Nations

84

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Confirm the Posting Run mode is set to Simulation

Click the Execute icon

Invoice: Create &


Reverse

Copyright United Nations

85

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

After running the simulation, the first screen displays a summarized listing of the run results.
7

Select the Documents button to view the simulated debits and credits with the complete
financial coding block of each
7

For example:

Copyright United Nations

86

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

8
9

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

After simulating and reviewing the posting, the Financial Accounting Senior User re-executes
periodic postings, but this time changes the Posting Run Mode to Update Run
Click the Execute icon or select to Program -> Execute
9

Note: In the event of an error, the Financial Accounting Senior User can reverse the periodic
posting.

Copyright United Nations

87

Periodic Posting, Simulation, Execution & Reversal


Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

The first screen to appear will display a summarized listing of the run results.
10

Select the Documents icon which will show a popup from which you can navigate and display
the financial documents created
10

For example:

Copyright United Nations

88

Create an Invoice
Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

The Lease Processor can also simulate invoices but only after the Financial Accounting Senior User has
run the periodic posting
The steps to simulate an invoice are:
1 Enter RERAIV in the Command field or click the SAP menu and select the Accounting > Flexible
Real Estate Management > Accounting > Invoices > Create Invoices menu item

Copyright United Nations

89

Create an Invoice
Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

In the Contract Selection section, enter details in the


following fields:

Invoice: Create &


Reverse

Company Code: 1000 is the Company Code used in


Umoja

Contract Number from and to fields: This allows you


to create invoices for multiple contracts by entering
a range of contract numbers

Copyright United Nations

90

Create an Invoice
Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

In the Selection of Invoice Terms section, enter details


in the following fields:

Invoice: Create &


Reverse

Selection Type: Always select Only Items from FI


documents

Due Period From and To: The dates that correspond


with the conditions

Note: These fields specify whether or not to pick up


items on the invoice that are the result of the
periodic posting run execution and/or cash flow
forecast in the contract.

Copyright United Nations

91

Create an Invoice
Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

In the Invoice Creation section, enter details in the


following fields:

Invoice: Create &


Reverse

Execution Mode: Always select Simulation to


review the invoice before executing

Title: The title of the run


Summarize: Always select Per Contract

Note: These fields specify whether or not we need pick up items on the invoice that are the
result of the periodic posting run execution and/or cash flow forecast in the contract.

Copyright United Nations

92

Create an Invoice
Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,

Invoice simulation

Click the Execute icon or go to Program > Execute


5

Select an invoice and click the Preview button

Copyright United Nations

93

Create an Invoice
Create Lease-out
Contract

Update Lease-out
Contract

Periodic Posting,
Simulation,
Execution &
Reversal

Invoice: Create &


Reverse

Review the invoice to ensure that it is correct


7

Copyright United Nations

94

Simulation Activities
Throughout this training, users will have the opportunity to
conduct activities in the form of simulations. Simulations
are interactive recordings of the Umoja system used to
help facilitate a handson learning experience. The
simulation links are provided on the corresponding activity
slides.
Users can access simulations in three different modes:
Show me: Users view a video of an entire transaction
being conducted
Lets do it together: Users will be prompted to input
data at key points during the transaction
(recommended)
Try it: Users can complete an entire transaction on their
own, with no additional instructions provided

Copyright United Nations

95

Activity 1
Transaction Name: Periodic Posting Execution
Transaction Code: RERAPP
Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.3845?mode=EU&originalContext=1.11.3790

Copyright United Nations

96

Learning Checkpoint 1
The Financial Accounting Senior User can simulate periodic postings for rents due from
External Lease-Outs in which Umoja module?
Select the correct option.
A. Cost Accounting
B. Financial Accounting
C. Funds Management
D. Flexible Real Estate Management
E. Accounts Receivable

Copyright United Nations

97

Learning Checkpoint 1
The Financial Accounting Senior User can simulate periodic postings for rents due from
External Lease-Outs in which Umoja module?
Select the correct option.
A. Cost Accounting
B. Financial Accounting
C. Funds Management
D. Flexible Real Estate Management
E. Accounts Receivable
Option D is the correct answer. Periodic postings
for rents due from External Lease Outs are done by
the Financial Accounting Senior User in the Flexible
Real Estate Management Module.

Copyright United Nations

98

Module 3 Summary
The key points covered in this module are listed below:
Lease administration is used for the management of leases and involves creating,
managing, renewing and terminating real estate leases for both owned property
and rented premises
In Umoja, a lease is classified into two lease types - Lease-in and Lease-out
At UN, real estate leases (Lease-ins) are negotiated by the Procurement division
and customer contracts (Lease-outs) are negotiated by Facilities Management,
Engineering, or General Service
The Financial Accounting Senior User is responsible for creating receivables in the
customer accounts of Lease-out external after simulating periodic postings and
checking for errors.
For Lease-out internal, a funds commitment is generated by the Tenant and
assigned to the Lease-out internal contract

Copyright United Nations

99

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

100

Module 4 Objectives
After completing this module, you will be able to:
Manually create receivables directly in the AR Sub-ledger using both the Single
Line and Excel Upload Methods

Describe the process to establish VAT Receivables


Explain the process to establish receivables for Assessed Contributions
Explain how documents are reviewed and approved in Workflow

Copyright United
Copyright
UnitedNations
Nations

101

Direct Creation of Receivables in the AR Sub-ledger


Receivables not related to sales
So far, the receivables we have established in the AR Sub-ledger either originated from
the SD module (sale of goods or services with the exception of rental services) or from
Lease Administration (rental of premises).
Often though, we do have other receivables that we need to set up but for which there
is no sale of goods or services. In this case, the receivables are directly created in the AR
Sub-ledger. Examples include:
VAT Receivable
Assessed Contributions due
Loans to parties external to Umoja.
There are two ways to directly create receivables in the AR Sub-ledger manually i.e.
1. Manual Entry - Single line
2. Manual Entry - Upload from an Excel Spreadsheet
We will illustrate both methods by raising receivables for VAT and Assessed
Contributions respectively.

Copyright United Nations

102

Value Added Tax (VAT) Receivable


The UN Charter recognizes that the UN is exempt from direct taxes; however, this is
interpreted differently by the Host Countries. In countries where VAT applies, the UN tax
exemption varies. In some instances the UN is exempt from the VAT process altogether. In
others, it can be exempt from certain material transactions or it can have VAT
Reimbursement Status. In this instance, the VAT is levied and is recovered at a later date
through a VAT reimbursement cycle.
The AP module is used to pay invoices which include VAT and record the taxes paid. There are
three scenarios for an invoice that includes VAT.
The invoice includes VAT and the VAT is not reimbursable; consequently the VAT is paid and
expensed and the UN does not try to recover the amount.
The invoice includes VAT. The UN only processes the invoice for the net amount (excluding the
VAT) and informs the Vendor (a copy of VAT exemption can be sent to the vendor for their
records).
The invoice includes VAT, which is reimbursable. When VAT is paid with the invoice, we
establish a receivable for the equivalent amount and provide appropriate reports to support
the VAT recovery process. Normally, the UN requests VAT reimbursement on a quarterly basis.
Copyright United Nations

103

Single Line Manual Entry VAT Receivable


As mentioned earlier, the UN pays VAT in the Accounts Payable Sub-ledger when a
vendors invoice is settled. However, the VAT Receivable is established in the Accounts
Receivable Sub-ledger. The link between the two sub-ledgers is GL account 15201020 AR VAT Recoverable.
The process steps to establish a VAT Receivable are as follows:
Prepare VAT
Declaration
(Return)

Create Invoice

Review and
Approve
Invoice

Steps performed in Umoja ECC

Copyright United Nations

104

Single Line Manual Entry VAT Declaration (Return)


Prepare VAT
Declaration
(Return)

Review and
Approve
Invoice

Create Invoice

At the time a vendors invoice is paid in the Accounts Payable module, the following entries are
passed:

Debit: 35401010 Goods Received - Invoice Received (GR-IR)

Debit: 15201020 AR VAT Recoverable

Credit: Commercial Vendor (Recon a/c 35101510)

The amount accumulated in the AR VAT Recoverable Account (15201020) is used to prepare the
quarterly VAT Return. To determine this amount, a report is run as follows:
Access the Advance Return for Tax on Sales/Purchases screen.
1

Enter S_ALR_87012357 in the Command Field

Click the Enter icon


2

Copyright United Nations

105

Single Line Manual Entry VAT Declaration (Return)


Prepare VAT
Declaration
(Return)

Review and
Approve
Invoice

Create Invoice

The Advance Return for Tax on


Sales/Purchases screen opens.
3

Click the Further Selections button

Enter 1000 in the Company Code field

Enter the relevant date in the Posting


date field

Enter relevant detail in the Tax return


Country field

Enter relevant detail in the Tax on


sales/purchases field

Click the Execute icon

5
3
6

This will generate the VAT Report.

Copyright United Nations

106

Single Line Manual Entry VAT Declaration (Return)


Prepare VAT
Declaration
(Return)

Create Invoice

Review and
Approve
Invoice

The report has sections for both Input Tax (VAT paid for purchases) and Output Tax (VAT received
from sales). A claim for a reimbursement from the Government is made for the amount by which
Input Tax exceeds Output Tax.

Copyright United Nations

107

Single Line Manual Entry Create Invoice


Prepare VAT
Declaration

Review and
Approve
Invoice

Create Invoice

(Return)

Once the amount of recoverable VAT is determined, an invoice for the Government can now be
prepared. This will create a VAT Receivable as follows:

Debit: Customer (Government)


Credit: 15201020 AR VAT Recoverable
Since the normal Reconciliation Account for the Business Partner (Government) is 15101010, the N
Special GL Indicator is used to re-route the amount of the debit to the GL Account 15201010 - AR
VAT Receivable.
The invoice is created using FV70 as follows:

Access the Park Customer Invoice Page.


1

Enter FV70 in the Command field

Click the Enter icon

1
2

Copyright United Nations

108

Single Line Manual Entry Create Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

The Park Customer Invoice page


appears.
3

Enter the relevant details in the


following fields:
Customer number
SGL Indicator
Invoice Date
3

Reference
Posting Date
Amount
Currency

Copyright United Nations

109

Single Line Manual Entry Create Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

4 Edit (as needed) individual line items, comprising the invoice , as follows:
GL Account Number

Line item amount


Business Area
Grant
5 Press the Enter key to validate the information entered in the invoice
6 Navigate to the following menu item: Document > Simulate General Ledger View
navigate to Document and select Simulate General Ledger the menu,
navigate to Document and
4
select Simulate General Ledger View.

Copyright United Nations

110

Single Line Manual Entry Create Invoice


Prepare VAT
Declaration

Review and
Approve
Invoice

Create Invoice

(Return)
Review the entries to ensure the
fields were filled correctly.
7

If the invoice is to be processed


further, go to Document on the
menu bar and choose Park.

Alternatively, if the document is


ready for approval, click the
Save as Complete button.
The invoice then enters workflow for
an A/R Approver to review and post.
A document number appears at the
bottom of the screen. Note it down.

Copyright United Nations

111

Single Line Manual Entry Create Invoice


Prepare VAT
Declaration

Review and
Approve
Invoice

Create Invoice

(Return)
To see the users named in the workflow table who can
review or approve this document:
8

Access the Command Field and type the Workflow tcode: SBWP then press Enter.

When your SAP Business Workplace Screen opens


navigate to Outbox, Started Workflows. This will
display the documents you have introduced into
workflow with the most recent at the top.

10

Click the document to highlight it. At the lower part


of the screen the text: Current data for Started
Workflow AR Approval 2200000271 appears.

8
8

10

Copyright United Nations

112

Single Line Manual Entry Create Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

11 With the document


still highlighted scroll
down to the end of
the lower part of the
screen, then click on
Information.
12 This will display the
list of users named in
the Workflow Table
who can approve this
document.

11

12

Copyright United Nations

113

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

To review and post the invoice:


1 Enter SBWP in the Command Field to
access the Business Workplace screen

2 Click the Enter icon


3 Navigate to Inbox, Workflow, Grouped
According to task, AR Document
Approving Agent.
3

Copyright United Nations

114

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Create Invoice

(Return)
4

Then click the


document to
review and
approve. The
parked
document
number will
appear at the
lower part of
the screen. The
CC (1000) and
year (2013) will
be added to
the document
number in front
and at the end
respectively.

Review and
Approve
Invoice

Copyright United Nations

115

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Review and
Approve
Invoice

Create Invoice

(Return)
5

The document will open with


its attachments. Review it to
ensure key data like
Customer account,
Reference, Amount, GL
account etc. are correctly
inputted.

When the review is


completed, click on Back
(Green arrow icon) to return
to the workplace.

Double click on document


title to go to Decision
Options.

Copyright United Nations

116

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

Once the document title is double clicked,


the user claims the document. As a result,
it becomes unavailable to any other user
named in the Workflow Table.

Three actions are possible:


8

Cancel If the Approver wants to


return the document to workflow so
that another user can take action on it.

Refuse if the Approver is not satisfied


with the document and wants to return
it to the Transaction Entry Agent
(originator). A reason must be given.

10

Approve if the Approver is satisfied


with the document and wants to post
it.
Copyright United Nations

117

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Review and
Approve
Invoice

Create Invoice

(Return)
After the invoice is posted, confirm this by
reviewing the customers account as follows:
1

Enter FBL5N in the Command and click the


Enter icon. This opens the Customer Line
Item Display.

Enter the Customer account

In the Line Item Selection, click Open Items.

In Type, uncheck Normal items and check


Special G/L transactions.

5
2

Click on the Execute icon to run the search.

1
4

Copyright United Nations

118

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

The Customers open items with SPGL are displayed. Note that the posted document
(2200000271) is one of them.

Copyright United Nations

119

Single Line Manual Entry Review and Approve Invoice


Prepare VAT
Declaration

Create Invoice

(Return)

Review and
Approve
Invoice

When the invoice is approved, the customers account in the Accounts Receivable
Subsidiary Ledger is debited. This triggers an automatic update of the AR
Reconciliation Account in the General Ledger. The approval process is the same as
that for creating invoices directly in the AR sub-ledger through Excel Uploads
(explained shortly).
Once the invoice is approved, account 15201020 should be allocated to clear the
amount of recoverable VAT that has now been transformed into a receivable VAT.
This is done using the T-code F-03. An example of how this t-code is used to clear a
GL account is as follows:

Copyright United Nations

120

Allocating a G/L Account


Access the Clear G/L Accounts screen:
1

Enter F-03 in the Command field

Click the Enter icon. The Clear G/L


Account: Header Data page appears

Enter required details in the following


fields:

Customer account number in the


Account field
3

1000 in Company Code field

Account currency in Currency field

4 Click the Enter icon

Note: Clearing Date and Period populate


automatically.

Copyright United Nations

121

Allocating an Account in Umoja


The Clear G/L Account Process Open Items screen appears displaying accounting line items
belonging to the account entered on the previous screen.
5

Double-click the two


matching line items
(debit/credit)

The amount for each line


item in the matching pair
turns blue.
6

Navigate to the following


menu item: Document >
Post

Copyright United Nations

122

Receivables from Assessed Contributions


Member States assessments for the Working Capital Fund, Regular Budget(RB),
Peacekeeping Operations(PK), Tribunals and Capital Master Plan(CMP) will continue to
be calculated in a legacy system as done currently. Once the RB & PK scales and
budgeted amounts for RB, PK, Tribunals and CMP are adopted, the appropriated
amounts are apportioned using the applicable scale of assessments. This is done using
Excel spreadsheets.
The apportioned amounts (Gross, Staff assessment and Net components) will then be
uploaded from the Excel Spreadsheets into Umoja, which will automatically create
parked invoices for assessments and credit notes for peacekeeping credits. When the
invoices and related credits are approved for posting, the system will also post
automatic journal entries by recognizing the revenue and posting relevant entries in the
AR sub-ledger.

Copyright United Nations

123

Manual Upload - Overview


Assessed Contributions will be used to illustrate the upload method. As explained
earlier, Excel spreadsheets are used to calculated Assessed Contributions. The figures
can then be uploaded into Umoja as follows:

Upload Assessments
and Credit
Calculations

Review and
Approve
Invoice

Steps performed in Umoja ECC

Copyright United Nations

124

Manual Upload - Upload Assessments and Credit Calculations


Upload Assessments
and Credit
Calculations

Approve
Invoice

The process begins when Assessments and credit calculations are uploaded into Umoja. The system
parks the invoices or credit notes, so they can be reviewed and posted.
Access the Accounts Receivable Doc Upload page.

Enter ZARdocload in the Command field

Click the Enter icon


2

Copyright United Nations

125

Manual Upload - Upload Assessments and Credit Calculations


Upload Assessments
and Credit
Calculations

Approve
Invoice

The AR Document Upload page appears.


3

Select the document in the File Path field

Click the Execute icon

Copyright United Nations

126

Manual Upload - Upload Assessments and Credit Calculations


Upload Assessments
and Credit
Calculations

Approve
Invoice

The Upload is first executed in the Test Mode. If no errors are reported it is next repeated and Saved
as Completed. This initiates the workflow process. The invoice is sent to the inbox of the AR
Approver for review and posting.

Copyright United Nations

127

Manual Upload Review and Approve Invoice


Upload Assessments
and Credit
Calculations

Review and
Approve
Invoice

The Invoice is reviewed and posted following the same process described above for the
Single Manual Entry Method.

Copyright United Nations

128

Touch Points
The Umoja system is an integrated system and most of its modules integrate with each
other to complete a process. Touch points are those instances where one process, subprocess or activity interacts with another process, sub-process or activity.

Assessed
Contributions

Tax Accounting

Customer
Invoice
Processing
Loans to Parties
external to
Umoja

Copyright United Nations

129

Simulation Activities
Throughout this training, users will have the opportunity to
conduct activities in the form of simulations. Simulations
are interactive recordings of the Umoja system used to
help facilitate a handson learning experience. The
simulation links are provided on the corresponding activity
slides.
Users can access simulations in three different modes:
Show me: Users view a video of an entire transaction
being conducted
Lets do it together: Users will be prompted to input
data at key points during the transaction
(recommended)
Try it: Users can complete an entire transaction on their
own, with no additional instructions provided

Copyright United Nations

130

Activity 2
Transaction Name: Allocate a GL Account in Umoja
Transaction Code: F-03
Link to the uPerform simulation:
https://www.unumoja.net/share/page/site/OCM/docum
entdetails?nodeRef=workspace://SpacesStore/249d750dc2af-4530-87df-4a32e6cf4382

Copyright United Nations

131

Activity 3
Transaction Name: Park a Customer Invoice and Approve
in Business Workplace

Transaction Code: FV70


Link to the uPerform simulation:
https://www.unumoja.net/share/page/site/OCM/docum
entdetails?nodeRef=workspace://SpacesStore/783a7c3cfe48-4614-a4cd-86b15643d75e

Copyright United Nations

132

Learning Checkpoint 1
The Accounts Receivable process covers the creation of all of the following automatic
and manual customer invoices, EXCEPT:
Select all that apply.
A.
B.
C.
D.

Lease Administration
Leave Administration
Grants Management
Transactions from revenue bearing work

Copyright United Nations

133

Learning Checkpoint 1
The Accounts Receivable process covers the creation of all of the following automatic
and manual customer invoices, EXCEPT:
Select all that apply.
A.
B.
C.
D.

Lease Administration
Leave Administration
Grants Management
Transactions from revenue bearing work

Options B is the correct answer. The Accounts


Receivable process covers the creation of Lease
Administration, Grants Management and
Transactions from revenue bearing work.

Copyright United Nations

134

Module 4 Summary
The key points covered in this module are listed below:
Customer invoices are directly created in the AR Sub-ledger when they do not
originate from the sale of goods or services .
Customer invoices can be created manually or uploaded into Umoja from an Excel
File or legacy system via an interface.
VAT is paid in the AP Sub-ledger at the time vendor invoices are paid. However, VAT
Receivables are established in the AR Sub-ledger.
Assessed contributions are calculated in a legacy system and interfaced into Umoja
Customer invoices created directly in the AR Sub-ledger are approved via workflow.

Copyright United Nations

135

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

136

Module 3 Objectives
After completing this module, you will be able to:
Explain how to move Incoming Payments from EFT-In to either Customers'
Accounts or the Unapplied Cash Account
Describe how to move Incoming Payments from the Unapplied Cash Account to
Customers Accounts
Describe how to apply a partial payment to a Customers Account
Explain how to raise a Credit Memo

Copyright United Nations

137

Incoming Payments Processing - Overview


Inasmuch as it is important for AR staff members to correctly record the amounts owed the UN in
the different debtor accounts of customers, it is equally important that Incoming Payments are
correctly applied to the accounts of the customers who made them. This is the focus of this module.
Incoming Payments come as cash, cheques or as Electronic Funds Transfer (EFT). With the
introduction of House Banks, all bank accounts of missions now belong to one of the three Treasury
Pool Funds 64VQA: Main Pool Cash & Investment. As a result, all Incoming Payments are
recorded in 64VQA. This results in two sets of entries:
1. An increase in the equity of the mission in 64VQA for which the money is destined i.e. the
mission that was owed money.
2. A decrease in the amount owed by the customer who made the payment. In some cases the
customers account will be automatically credited by the system when bank statements are
uploaded. This module looks at how AR staff will manually apply Incoming Payments to a
customers account when the automatic application doesnt take place.
In addition to an Incoming Payment, a customer's receivable may also be reduced by a Credit
Memo. This will be the case if the UN decides to reduce the amount owed by the customer because
of reasons such as defective products, overcharging etc. This module will equally look at how Credit
Memos are raised.

Copyright United Nations

138

Display of Open Items


Before proceeding to discuss how open items are cleared with Incoming Payments, well first
examine how the items can be identified. At any time, receivables from customers can be displayed
using FBL5N or ZARFBL5N. The former shows parked, posted and noted items, while the latter
shows posted items per Fund or Grant.

FBL5N

ZARFBL5N

FBL5N

Copyright United Nations

139

Display of Open Items


Open items for all the customers specified in the FBL5N are displayed with a red ball status. When
the items are eventually cleared the ball will turn to green.

Copyright United Nations

140

Incoming Payments Processing Automatic Clearing


Bank Statement Upload
Automatic clearing of AR items is not done by the AR staff. When the Bank Statement of the
previous day is uploaded into Umoja, a Bank EFT-In clearing account will be credited by the debit of
EFTs received as follows:
Dr 64VQA
Bank Nominal (GL A/c 11011X10)
Cr 64VQA
Bank EFT In Clearing (GL A/c 11011X16)

Matching to Clear
If the incoming payment contains information e.g. invoice number, that identifies an existing
receivable for the same amount, Umoja will establish a match between the two. The receivable
will be automatically cleared by the incoming payment.
Dr 64VQA
Bank EFT In Clearing (GL A/c 11011X16)
Cr 20OLA
Customer Open Item (GL A/c 15101XXX)

Equity Increase in Treasury Pool


At the same time the equity of the Fund for which the incoming payment was meant will increase
in the Treasury Pool.
Dr 20OLA
Equity in Pool
Cr 64VQA
Equity in Pool
Copyright United Nations

141

Automatic Clearance Edit Bank Statement


To see which items cleared automatically and which didnt when the bank statement was uploaded
is through use of the Edit Bank Statement screen.
It is accessed as follows:
1
2

Enter FEBAN in the Command


field
Click the Enter icon

This opens the Selection of Bank


Statements by Banks and Account Nos.
screen.
Enter data in the following fields:
3
Company Code
House Bank
Currency
4
Click on the Check button at the
bottom right corner of the
screen to verify input, then
execute if no errors are
reported.

Copyright United Nations

142

Automatic Clearance Edit Bank Statement


When the Selection of Bank Statements by Banks and Account Nos is executed, the Edit Bank
Statement screen is displayed.
The two postings mentioned earlier result in two documents.

Posting Area 1 shows the document


created for the entries to record the
incoming payment in UNs bank
account (Doc # 6300000002).
Dr 64VQA Bank Nominal
Cr 64VQA Bank EFT In Clearing
Posting Area 2 shows the document
created to clear the receivable account
of the customer who made the
payment (Doc # 2400000001).
Dr 64VQA Bank EFT In Clearing
Cr 20OLA Customer Open Item
N.B. FEBAN is also used to manually
clear the items that are not cleared
automatically. We see this later.

Copyright United Nations

143

Incoming Payments Processing Manual Clearing


a) Cash and Cheques
The Cashier uses the Cash Journal to record cheques and cash receipts. In most instances,
especially in Field Missions, the purpose of the receipt will be known at the time the cash/cheque
receipt is recorded in the Cash Journal. When a receivable (DR doc type) already exists in the
account of the customer making the payment, the Cashier will record the receipt and reference the
document number of the receivable in the Assignment Field of the Cash Journal. The system will
create an Incoming Payment (DZ doc type) with the following entries:
Dr. Cash Cashier Incoming (1-172-100X generated by system)
Cr. Customer Open Item (GL A/c 15101XXX)

AR staff can then manually allocate the customers account i.e. match the DR doc to the DZ doc
using t-code F-32.
Exceptionally, the cash/cheque may be received prior to a receivable being set up. In this case,
there will be no Customer Open Item to credit. Instead the money should be credited to G/L
account 39201020 Unapplied Cash and later transferred via Journal Voucher (using t-code FV50)
to a Customers Account when a receivable is set up.

Copyright United Nations

144

Incoming Payments Processing Manual Clearing


b) Electronic Funds Transfer (EFT)
For Incoming Payments received through EFT, the manual clearing process is done daily using the tcode FEBAN. As shown earlier, when the Incoming Payment hits the Nominal Account, an EFT-In
account is initially credited i.e.
Dr 64VQA
Bank Nominal (GL A/c 11011X10)
Cr 64VQA
Bank EFT In Clearing (GL A/c 11011X16)
The task of AR staff is to move the funds from the EFT-In account to a Customers account i.e.
Dr 64VQA
Bank EFT In Clearing (GL A/c 11011X16)
Cr 20OLA
Customer Open Item
When this second entry is posted, the system will increase UNIFILs balance in the Treasury Pool, as
the receivable was due to the Fund 20OLA.
To illustrate the use of FEBAN to apply an Incoming Payment to a Customers Account, well use the
following data set.

Customer:
Outstanding Amount:
Being:
AR Document #:

1111000016 Government of France


US$ 69,000
VAT Receivable
2200000201

Copyright United Nations

145

Incoming Payments Processing Manual Clearing - FEBAN


1

3
4

At the Command Field type


FEBAN and press Enter. This
opens the Selection of Bank
Statements by Banks and
Account Nos Screen.
Click on the Execute icon at the
bottom right corner. This opens
the Edit Bank Statement Screen.
Double-click the open item you
intend to clear.
Go to the menu, click Statement
Items and select Post (can also
be done via Ctrl + S or by right
clicking and selecting Post
Items). This opens the Post With
Clearing Select Open Items
screen.

Copyright United Nations

146

Incoming Payments Processing Manual Clearing - FEBAN


5

6
7

Enter the Customers


Account in the Account
Field.
Enter D in the Account
Type Field.
Click the Back icon to go
to the Post With Clearing
Display Overview
Screen.

Copyright United Nations

147

Incoming Payments Processing Manual Clearing - FEBAN


In the Post With Clearing Display
Overview Screen take note of the
following:
a Doc Type. This is an Incoming
Payment (DZ).
b Reference. This the number of the
uploaded bank statement which
carried this Incoming Payment.
c Period. The posting date and period
refer to the time the bank statement
was uploaded.
d Line 1. Automatically generated by
the system, this is the debit entry to
a GL account EFT-In. Hence posting
key 40 (GL debit).
To create the credit line,
8 Enter posting key 15 (Customer
Incoming Payment) in the PstKy
Field.
9 Enter the Customer Number again in
the Account Field.
10
Click Enter.

10

a
c
b

Copyright United Nations

148

Incoming Payments Processing Manual Clearing - FEBAN


In the Post With Clearing
Correct Customer Item
Screen:
11
Enter the amount of the
credit line.
12
Enter the Business Area.
Enter the number of the
13
AR document in the
Assignment Field.
14
Add a description of the
transaction in the Text
Field.
15
Click the More Data Field
to input data in the Fund
and Grant Fields.
In the Menu Bar, click
16
Document and click
Simulate. The Post With
Clearing Display Overview
Screen opens.

16

15

11

12

13
14

Copyright United Nations

149

Incoming Payments Processing Manual Clearing - FEBAN


Review the entries in the Post
With Clearing Display Overview
Screen. Ensure that:
a
b

17

The credit line shows the


desired Customer A/c.
The sum of debits equal the
sum of credits i.e. the balance is
zero.

To post the document:


Click the Post icon.
17

N.B. Posting an Incoming Payment


through FEBAN as described above
is not subject to workflow.
b

Copyright United Nations

150

Incoming Payments Processing Manual Clearing - FEBAN

18

19

20

In the Command
Field type
FEBAN and then
click on Execute
to return to the
Edit Bank
Statement
Screen.
Double click on
the Incoming
Payment that
was just applied
to a Customer
A/c. It now
displays a green
status.
Review the
document
number in
Posting Area 2
(FB03 or double
click the doc#)

19

20

Copyright United Nations

151

Incoming Payments Processing Manual Clearing F-28


Unapplied Cash
EFT-In being a transitory account, only holds Incoming Payments briefly until they are moved to
the accounts of the customers who made the payments. Prior closing books at the end of the
month, the EFT-In must be reduced to a zero balance.
Thus, even if an Incoming
Payment cant be directly
applied to a customers
account, FEBAN will still
be used to remove it from
the EFT-In account.
However this time, the
credit will go the GL
Account 39201010 AP
Unapplied Cash. Once
the customer account has
been identified, the item
will then be moved from
Unapplied Cash to the
customer account using tcode F-28.
Copyright United Nations

152

Incoming Payments Processing Manual Clearing F-28


Partial Payments
At times the amount of an Incoming Payment is less than the amount due. The difference could be
attributed to reasons such as exchange rate losses, disputes over the amount owed, inability to
clear the outstanding balance in full etc.
As long as the UN has not decided to write off part or all of a receivable, any partial settlement
of the receivable will be manually applied to the customers account in such a way that the
difference will remain outstanding on the same payment terms.
Where the shortfall in the Incoming Payment is due to exchange losses or bank fees, F-28 will
be used to apply the Partial Payment to the Customers Account and a JV raised using t-code
FV50 to expense the difference.

Scenario
The UN supplies Fuel to ICAO Montreal (A/c 1114000000). Our records show that ICAO still owes
us for fuel supplied and invoiced in May 2013. ICAO contends that payment was made in May 2013.
After reviewing bank statements for May, it is discovered that a payment was indeed received from
ICAO but because the amount was less than expected, the money was instead credited to
Unapplied Cash. Other details are as follows:
Customer Inv# (DR): 2200000290
Amount:
$5,000
Date of invoice:
13 May 2013

Inc. Payment# (DZ): 2400000041


Amount:
$4,476.44
Date of receipt:
17 May 2013
Copyright United Nations

153

Incoming Payments Processing Manual Clearing F-28


1

4
1

At the Command Field type F-28


and press Enter. This opens the
Post Incoming Payments:
Header Data Screen.
2 Enter data in the following fields:
Document Date
Reference
Doc. Header Text
Clearing Text
Bank Data Account
Bank Data Amount
Bank Data Text
Open Item Selection A/c
3 Ensure that the Account Type in
Open Item Selection is D
4 Click on Enter or Process Open
Items

Copyright United Nations

154

Incoming Payments Processing Manual Clearing F-28


Given that the amount owed
($5,000) exceeds the Incoming
Payment ($4,476.64) that was
initially booked in the Unapplied
Cash A/c, a partial payment will be
applied to the customers a/c.
1

At the Post Incoming Payments


Process Open Items Screen that
displays, click Partial Pmt. This
opens the Post Incoming
Payments Enter Partial
Payments Screen.
The system selects all open
items by default. De-select
(double click) each amount
except the one you intend to
apply the Incoming Payment to.
As the items are de-selected this
reduces the Payment Amount
(narrows the difference between
Amount entered and Assigned)

Copyright United Nations

155

Incoming Payments Processing Manual Clearing F-28


With all other open items
de-selected:
3 Delete the Payment
Amount $5,000 for
Invoice 2200000290
and type the partial
amount of $4,476.44.
4 This reduces the Not
Assigned to zero,
indicating that debits
equal credits.
5 From the menu bar,
click on Document,
then Simulate.

Copyright United Nations

156

Incoming Payments Processing Manual Clearing F-28


When the Post Incoming
Payments Display Overview
Screen opens, note that:
a The posting key for the
debit line is 40 because
the account involved is in
the GL.
b The posting key for the
credit line is 15 because
the account involved is in
the AR Sub-ledger.
c The sum of debits equals
the sum of credits.
6 Click the post icon to post
the transaction. The
posting is not subject to
workflow.
The posted document can be
reviewed using t-code FB03
(doc # 2400000119).

a
b

Copyright United Nations

157

Incoming Payments Processing Credit Memo


1

In addition to an Incoming
Payment, the amount a
customer owes may also be
reduced through a Credit
Memo issued by the UN.
1 In the Command Field
enter the t-code FV75 and
press Enter. This opens the
Park Customer Credit
Memo: Company Code
1000 Screen.
2 Enter data in the relevant
fields and click Enter.
3 Follow the same procedure
for simulating and
introducing an invoice into
workflow described earlier.

Copyright United Nations

158

Incoming Payments Processing Credit Memo


When posted, the Credit Memo (DG) can be used to manually clear the
Customer Invoice (DR) as follows.
1 In the Command Field enter the t-code FBL5N and press Enter. This
opens the Customer Line Item Display Screen.
2 Enter the customers number in the Customer Account Field. Select
Open Items and click Execute. Note the DR and DG docs to clear.

2
2

Copyright United Nations

159

Incoming Payments Processing Credit Memo


3

In the Command Field


enter the t-code F-32
and press Enter. This
opens the Clear
Customer: Header
Data Screen.
Enter the customers
number in the
Account Field.
Select Amount in the
Additional Selections
section.
Click on Process Open
Items. This opens the
Clear Customer:
Selection Criteria
Screen.

6
4

Copyright United Nations

160

Incoming Payments Processing Credit Memo


7
8
9

Type the amount of the Credit Memo you intend to allocate to the Customer Invoice in the From
and To fields of the Amount (USD) section.
Click on Process Open Items. This opens the Clear Customer: Process Open Items Screen. The
system displays all documents with the amount (selected by default) specified.
De-select (double click)all the amounts you dont intend to allocate in this transaction. Only the
debit (DR) and credit (DG) docs should remain selected.

Copyright United Nations

161

Incoming Payments Processing Credit Memo

10

11

Check that the


Amount Entered
and Assigned both
have a zero value,
such that Not
assigned = zero as
well.
From the menu bar
click Document,
then Simulate. This
opens the Clear
Customer Display
Overview Screen.

18

10

Copyright United Nations

162

Incoming Payments Processing Credit Memo


12 Note the following:
a Doc type is DC
Document Clearing
b Both posting keys
relate to the AR
Sub-ledger since
the clearing is
being done there.
07 is Debit Other
Clearing and 17 is
Credit Other
Clearing.
c The sum of debits
equals the sum of
credits.
Click on the Save icon to
13
post the transaction.
The posting message
displays at the bottom
of the screen.

13

Copyright United Nations

163

Touch Points
Touch points are those instances where one process, sub-process or activity interacts with
another process, sub-process or activity.

The Incoming Payment Processing interacts with the following processes:


Daily Reconciliation of Bank Transactions
Incoming Payment Processing Cheque and Cash

Daily
Reconciliation of
Bank
Transactions

Customer
Invoice
Processing

Copyright United Nations

Incoming
Payment
Processing
Cheque and
Cash

164

Activity 1
Transaction Name: Display Open Line Items by Customer
Transaction Code: FBL5N
Link to the uPerform simulation:
https://www.unumoja.net/share/page/site/OCM/docum
entdetails?nodeRef=workspace://SpacesStore/50bde04fd260-4aee-8ccb-bddfc09b871f

Copyright United Nations

165

Learning Checkpoint 1
Which of the following statement is false about the Electronic Funds Transfer (EFT) In
Clearing Account?
Select all that apply.
A.
B.
C.
D.

The EFT-In account is a transitory account.


Incoming Payments are first credited to the EFT-In account before being moved to
a customers account.
AR staff must always debit the EFT-In account when moving Incoming Payments to
customers accounts.
The EFT-In account must have a zero balance at Month-End Closing

Copyright United Nations

166

Learning Checkpoint 1
Which of the following statement is false about the Electronic Funds Transfer (EFT) In
Clearing Account?
Select all that apply.
A.
B.
C.
D.

The EFT-In account is a transitory account.


Incoming Payments are first credited to the EFT-In account before being moved to
a customers account.
AR staff must always debit the EFT-In account when moving Incoming Payments
to customers accounts.
The EFT-In account must have a zero balance at Month-End Closing

Option C is the correct answer. The EFT-In account


may be debited automatically at the time bank
statements are uploaded if there is a match
between an Incoming Payment and an Open Item
in a Customers Account.

Copyright United Nations

167

Module 5 Summary
The key points covered in this module are listed below:
Incoming Payment processing involves the analysis and reconciliation of all
incoming payments that have not been automatically applied to an open item at
the time bank statements are uploaded.
Payments can be cleared manually against the invoice through multiple options
Inputs in this process include payments under EFT or receipts of cheque and cash
Outputs of this process include a fully or partially cleared invoice and a credit
receipt
Incoming payments process starts with Incoming payments received by Treasury
and transferred over to A/R. Then payments run through an automated clearing
process. If payments meet the automatic criteria for clearing, they are cleared
automatically. If they do not clear automatically, they can be cleared by a manual
process

Copyright United Nations

168

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

169

Module 4 Objectives
After completing this module, you will be able to:
Explain the Write-offs process
Identify the steps involved in the Write-offs process
Create and post the parked document in allowance for bad debt
Create and post the parked document on Write-off
Block a customer
Post general provision (accrual) as a reversal

Copyright United Nations

170

Key Terminology
Key Term

Credit Check

Payment Terms
Partial Payment

Block

Payment Block

Description
A static or dynamic mechanism to block sales orders and
delivery documents automatically if the customer has any
outstanding invoice for a predefined period. In order to classify
customers according to the risk they represent and to trigger
the relevant checks, risk categories are defined and assigned to
customers.
It is the permissible length of time for a customer to pay the AR
Invoice.
A payment that is posted to an account without any open items
being cleared or a portion of an open invoice received.
It is a restriction against a customer master data record that
prevents the customer from any future activity against the
account. There are different types of blocks, such as Posting
Block and Payment Block.
This block stops payments to the customer at the company
code level.

Copyright United Nations

171

Key Terminology
Key Term

Residual Item

Dunning

Description
An item that results when a payment is made for less than the
actual amount outstanding. The original open item is cleared
and the system posts a new open item. This new open item is
for the same amount as the original open item minus the
amount paid.
The process of notifying customers of outstanding debts and
systematically applying penalties to ensure payment.

Dunning Proposal

A report on aging of the open items indicating the items that


will be part of the Dunning process and their levels.

Dunning Letter

A letter that is sent to the customer indicating past due items


and containing a message from the UN.

Dunning Reminder

It is a letter sent to the customers prior to the due date of an


invoice as a reminder that the due date is approaching.

Dunning Level

It indicates the number of times an invoice has already been


included in a Dunning run.

Copyright United Nations

172

Write-Off Process - Overview


The Write-Off process is aimed at identifying the bad debt which has to be written-off and
depicts the process for the write-off approval. It includes requests for blocking customers and
changing credit terms on the customer profile.

The Write-off process is initiated when one of two scenarios take place:
1. An outstanding payment is not collected despite multiple collection efforts
2. The accounting department has prior knowledge of non-recoverability of debt (without any
collection efforts)
It is important to separate Write Offs from Allowance for Doubtful Accounts (AFDA).
AFDA are estimates of the amounts that wont be recovered and are statistical for budget
purposes. They are recorded as accruals at the end of an accounting period and reversed at the
beginning of the next period.
In Umoja, AFDA are recorded at the General Ledger level while Write-Offs are recorded at the
Accounts Receivable sub-ledger level to clear the account receivable open item.
This Module describes how to record Write-Off of balances receivable in Umoja after bad debts
have been identified and all appropriate approvals for write-off have been received.

Copyright United Nations

173

Write Off Open Item


Write Off
Open Item

Change
Credit
Terms

Block the
Customer

Access the Parked Document Entry page:


1
Enter F-63 in the Command field
2
Click the Enter icon. The Parked
Document Entry: Header page displays.
3
In the Header section, enter details in
the following fields: Date write off was
approved, Current date, DC, Reference
of authorizing document
Select the checkbox in the Control table
4
Enter the following information
5
in the First in the following Line Item
section:
Posting Key number
Customer Account Number
6
Press the Enter key

Copyright United Nations

174

Write Off Open Item


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

The Park Document: Change Customer Item screen displays.


7

In the Item 1/Other clearing/17 section, enter information in the following fields:
Amount
Business Area
Assignment (# of original doc)
Reference test

Copyright United Nations

175

Write Off Open Item


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

In the Next Line Item section at the bottom of the screen, enter information in the following
fields:
Posting Key: 40
Account: G/L Write-off Account Number

There are a total of six write-off accounts in Umoja:

Press the Enter key

Copyright United Nations

176

Write Off Open Item


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

The Park Document: Enter G/L Account Item screen displays.


10

11

In the Item 2/ Debit entry / 40 section, enter information in the following fields:
Amount
Business Area
Cost Center
Text
Click the More button

Copyright United Nations

177

Write Off Open Item


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

The Coding Block screen appears.


12

Enter required details the Fund and Grant fields

13

Click the Enter icon

14

Click the Document Overview

icon

Copyright United Nations

178

Write Off Open Item


Review
Customer
Open Items

Check for
Bad Debt

Write Off
Open Item

Block the
Customer

Change
Credit
Terms

The Park Document: Overview screen appears.


The first line with Posting Key 17 will
credit the Customer account and the
second line will record the write off
Expense.
15

Click the Document tab

16

Click Complete

Copyright United Nations

179

Write Off Open Item


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

Once the document has been saved as completed, it is sent through workflow for approval.
To review the steps followed by the approver to view and approve a document in workflow, please
refer to module 4.

Copyright United Nations

180

Block the Customer


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

When a receivable is written off from a customer's account, it is advisable to put a block
on that customer's account. This will ensure that any incoming payments or subsequent
transactions cannot be posted to the account. Because of this a block should only be
placed after all open items have been cleared.
A request for blocking a customer will be prepared by the AR User and forwarded to the
Financial Accounting Approver (AR) for review and approval. If s/he endorses the Users
proposal for blocking the customer with long outstanding balances, notification will sent
to the Business Partner Maintenance team for processing.

Copyright United Nations

181

Change Credit Terms


Write Off
Open Item

Block the
Customer

Change
Credit
Terms

Instead of blocking a customer's account, restrictions should be put on how much they
can buy on credit. The following steps are executed to change credit terms:
The Financial Accounting Approver (AR) reviews the Users proposal for changing
credit terms. The Approver either has the authority to approve the change to credit
terms or obtains the authorization from the applicable authority
If the proposal is rejected, the Requestor is notified of rejection
If the proposal is approved, the approved change requests are forwarded to the
Business Partner Master Data Maintenance team for processing

Copyright United Nations

182

Learning Checkpoint 2
Which of the following is not an output of the Write-off process?
Select the correct option.
A.
B.
C.
D.

Bad debt is written-off


Customer is blocked
Credit terms are changed
Dunning proposal is run

Copyright United Nations

183

Learning Checkpoint 2
Which of the following is not an output of the Write-off process?
Select the correct option.
A.
B.
C.
D.

Bad debt is written-off


Customer is blocked
Credit terms are changed
Dunning proposal is run

Option D is the correct answer. The output of


Write-off process does not include the activity,
dunning proposal is run.

Copyright United Nations

184

Module 6 Summary
The key points covered in this module are listed below:
The Write-off process is triggered when the Write-off Process Requestor identifies
a need for bad debt, write-off, blocking the customer or changing credit terms
The Financial Accounting User (AR) reviews open items for the customer to
determine collection issues
The Financial Accounting Approver (AR) reviews the users proposal for recording
allowances for bad debt and for Write-off at the open item level (specific) and
decides whether to approve it
Approved block requests are forwarded to the Master Data Maintenance Team for
processing
Approved change requests are forwarded to the Business Partner Master Data
Maintenance Team for processing

Copyright United Nations

185

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

186

Reports
Some reports that can be used in Accounts Receivable are:

S_ALR_87012241 - List of Open Items


S_ALR_87012185 - List of Customer Open Items
S_ALR_87009956 - Customer Open Item Analysis(Overdue)
S_ALR_87012198 - List of Cleared Customer Items
S_ALR_87012186 - Customer Sales
S_ALR_87012177 - Customer Payment History
S_ALR_87012184 - Customer Balances in Local Currency
S_ALR_87012199 - Open Down Payments
S_ALR_87012168 - Due Date Analysis for Open Items
S_ALR_87012190 - Open Item Balance Audit Trail from
ZARAGING - Customer Aging Report

Copyright United Nations

187

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

188

Course Summary
In this course we covered:
Review of the Umoja solution for Accounts Receivable
High level overview of the AR process and the roles involved in that process
Key changes to the Cash Management and Treasury process include transition to
cash pooling and House Bank creation
The steps followed to create and process a customer invoice
The steps followed to process an incoming payment
The steps followed to record the write-off of bad debt

Copyright United Nations

189

Course Assessment
Now that you have completed all the modules in this course, you can test your
knowledge by completing the Course Assessment.

To receive credit for completing this course, you must pass this assessment with a
minimum score of 90%.
To complete the assessment you must return to the Learning Management System:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course assessment

5. Click the Submit button once you have completed the assessment

Copyright United Nations

190

Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Customer Invoice Processing Sales and Distribution
Module 3: Customer Invoice Processing Lease Administration
Module 4: Other Receivables
Module 5: Incoming Payment Processing
Module 6: Write-Offs
Module 7: Accounts Receivable Reports
Course Summary

Course Assessment
Course Survey

Copyright United Nations

191

Course Survey
Your feedback is important to the continuous improvement of our training program.
Please complete the evaluation for this course using the following steps:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course survey
5. Click the Submit button once you have completed the course survey

Copyright United Nations

192

Congratulations! You have successfully completed the


Umoja Accounts Receivable Process course.

Copyright United Nations

193