371_Umoja Bank Reconciliation_User Guide_v1.0.pdf

7/26/2019 371_Umoja Bank Reconciliation_User Guide_v1.0.pdf

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[Bank Reconciliation] Version 1 Umoja Training 1/86

Participant Guide

Bank Reconciliation

Participant Guide

Umoja Instructor-Led

Training

Umoja Bank Reconciliation course

Version: 01

Course Duration: 9 hours


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Bank Reconciliation

Table of Contents

Module 1 : Introduction to Bank reconciliation ...................................................................... 3

Module 2 : Outgoing payments ................................................................................................


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Course Overview

The purpose of the Umoja Bank Reconciliation course is to provide step- by -step guidance on

how to process uncleared transaction items through established sub ledger bank clearing

accounts between a physical bank account maintained by a financial institutionand the

General Ledger nominal bank account maintained in the Umojasystem.

Target audience

This course is intended for the following finance Accounting (FI) roles:

Financial Accounting User: GL

Financial Accounting User: AR

Etc.( add more if any)

Participant Guide

The participant guide will be used in conjunction with the Instructor presentation of the course

as an InstructorLed Training (ILT). It is not suitable for selfstudy

Course objective

The developed course ensures that the end user with an enterprise role to perform bank

reconciliation responsibility is able to do so efficiently and effectively.


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Module 1: Introduction to Bank Reconciliation

Module OverviewThis module explains the UN business and Umoja solution theory of bank reconciliation.

Objectives:

After completing this module, you will be able to:

Define what bank reconciliation is

Understand the theory behind bank reconciliation in the Umoja solution

Know the T_codes relevant for bank reconciliation


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General Definition of Bank reconciliation

Bank reconciliation is a process that explains the difference between the bank balance shown in

an organisation's bank statement, as supplied by the bank, and the corresponding amount

shown in the organisation's own accounting records (General Ledgernominal bank account)at a particular point in time.

Umoja Bank ReconciliationOverview

In Umoja, prior day electronic bank statements are imported into the system daily, for every

bank working day. The system validates each and every transaction on the imported bank

statement to ensure that the transactions have matching operational and/or Treasury items in

the Financial Ledgers. As the transactions are validated and matched, the open items

originating from the Operational and Treasury Transactions are automatically cleared. Items

that are not cleared are to be manually matched and cleared.

Each transaction on the imported bank statement has a direct impact on the balance of the

account that the UN keeps with the bank. Either it results in a reduction in this balance (i.e. the

bank has paid out money from UN account) or in an increase in the money at the bank, (i.e. the

bank has received money into UN account).

The bulk of bank reconciliation activities are based around these two types of transactions

namelyOutgoing and Incoming Payments to a bank account.

The framework in which Outgoing and Incoming Paymentsare manually matched and cleared

is considered in the following successively:

House Banks,

Nominal and Bank Clearing Accounts,

FEBAN T_code

Note

UN Recommended interval for Bank reconciliation for entities

with deployed Umoja solution is DAILY


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1.

Payment Processing through House Banks

The UN treasury with the Umoja solution has introduction the concept of House Banks.

All bank accounts now belong to one of three Treasury Pool Funds as follows:

Operational Funds (e.g. UNIFIL, UNON) no longer have balances in their own bank

accounts. Instead, they have equityin the Treasury Main Pool. The equity of each Fund

in the Pool increases with the Funds incoming payments and falls with outgoing

payments.

Outgoing Payments will be pooled by currency, based on House Bank Determination

logic. Foreign currency payments will be delegated to the appropriate House Bank

account maintained by UNHQ Treasury. Local payments will continue to be the

responsibility of the Business area (entity such as a mission)-based cashiers.

Outgoing Payments will result in a decrease in the equity that Business area fund has in

the Treasury Main Pool 64VQA. Similarly, incoming payments will be recorded in the

Treasury Main Pool Fund 64VQA and will result in an increase in the equity of the

Business area for which the funds are destined.

Example: House Bank - Outgoing Payment

Suppose the UN Mission in South Sudan (UNMISS) purchases goods from a vendor in Lebanon and

payment is by cheque in Lebanese Pounds (LBP). According to the house bank determination logic, the

vendor will be paid from the LBP House Bank Account, managed by the United Nations Interim Force in

Lebanon (UNIFIL). UNMISSs equity in the Treasury Pool will reduce by the amount of the payment.

GL Account Notes

64VQA For all operational in / out Payments

64VQE

64VQZ

Treasury pool funds

Main Pool - Cash & Investments

EUR Pool - Investment

UNSMIS Pool - Investment


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2. Norminal and Bank clearing GL Accounts

In Umoja besides the Nominal Account opened for each physical bank account, there

are seven (7) other GL accounts associated with the same bank account. These eight (8)accounts are used to record the balance and reconciling items linked to the physical

bank account.

Example: The GL accounts of the bank account opened in the books of NY JP Morgan,

Cash HQ New York JP Morgan USD Wire ACH Nominal are as follows:

11##XX10 Cash HQ USD Nominal

11##XX11 Cash HQ USD Cheque Out

11##XX12 Cash HQ USD Cheque In

11##XX14 Cash HQ USD EFT Out

11##XX16 Cash HQ USD EFT In

11##XX17 Cash HQ USD Invest

11##XX18 Cash HQ USD Charges

11##XX19 Cash HQ USD Unidentified

Later, we will see how these clearing accounts ensure that bank-reconciling items do not

appear in the GL Bank Nominal account. This ensures that the balance in the Nominal

GL account is equal to the balance in the physical bank account and is the essence of

bank reconciliation.

3. FEBAN T_code

The T_code used for uploading a bank statement of a physical bank account into Umoja

in order to performed bank reconciliation to equate the balance on the nominal GL

account.

To access the FEBAN Screen

Note: Where ## is 01, 02 or 10 and XX is

unique to a house bank


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Enter the FEBAN T_code in the command.

Click Enter icon

The Selection of bank Screen:

Enter data in the following fields:

Company Code

House Bank

Currency

Click checkbutton at the bottom right corner of the screen to verify input and then

click Executeif no reported errors exist. This opens the Edit Bank Statement screen

explained on the next page.


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Understanding the FEBAN Screen

USCHI is the House Bank for the displayed statement

The No. 1262 is the Bank Statement Number and the amount next to it is the closing

balance

Unreconciled / open outgoing Payment has a yellow status.

Unreconciled /open incoming Payment has a red status.

Reconciled/cleared item has a green status.

Posting Areas is where document numbers generated signify the reconciling itemsstatus as follows for;

Outgoing payments, posting area 1


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Incoming Payments, posting area 2

The field displays theexternal transaction code sent by the bank. The codemapped to SAP posting ruleshelps to identify the posting rule and the type ofactions you have to take. Therefore, when you enter FEBAN, its recommended

that you first check the external transaction code. The following are the posting

rules:

Note:

For FI postings double click the document Numbers for

nominal and clearing accounts (e.g. Fund = 64VQA and

Business Area = S101 UNH treasur


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Other Bank statement displays

Click View > other display,to see statement items in the screen. You can view eternal

transaction code and posting rules. Statement items in other display format can also be

exported to excel file.

Note:

To verify that all bank statements have been uploaded, ensure the

closing balance of the last statement (in FEBAN) match with the

balance of the Nominal GL account (use tcode FAGLL03)


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Module 2: Outgoing Payments

Module OverviewThis module explains the processing of outgoing paymentswithin the integrated Umoja

Accounts payables and Treasury payments system solution with focus on how to perform

reconciliations for items that do not automatically clear when cashiers generate those outgoing

payments.

Objectives:


Know the FI created document types for outgoing payments

Understand the ideal FI accounting entries associated with outgoing payments

Confirm automatic cleared items and perform manual clearance of open items

Learn different reasons why automatic clearing for items between the physical bank

and GL Nominal and bank clearing accounts entries may not happen

AP outgoing paymentscreation

An outgoing payment is the amount of money or its equivalent issued by the UN entity to pay

for goods or services. The payment is normally created in the Accounts payable / Vendors Unit

or its equivalent by an AP User role.

At the time an accounts payable is established through either T_ code MIR7 (payment with

Purchase order)or FV60 (Payment without a purchase order), a vendors invoice KRdocument

type) is created with these FI General Ledger or sub ledger accounting entries:

Dr. GR-IR or Expense Account

Cr. Vendor

Example 1: $1400.00 Outgoing payment to BP Ayaydin Ercan

The screen shows:

Debit to Consu. PreFab GL Expense account (77143050), $1400.00

Credit to Vendor AP sub ledger account (2080001758), - $1400.00

KR Document number 3100000288 created by the Umoja system


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Cashiers office

When the cashier generates payment through T_codes F110 and FPRL_LIST, an Outgoing

Payment KZdocument type is created with these entries:

Dr. Vendor Cr. Cash EFT AP

The screen shows:

Debit to Vendor AP Sub Ledger account (2080001758), $1400

Credit to Cash HQ USD EFT AP account (110 11014), -$1400

KZ Document Number 3300000272 created by the Umoja system

When an Outgoing PaymentKZis matched to an open payable itemKR, this clears the

vendors account for that item. In the case of the example above, outgoing payment KZ

3300000272is created to settle vendors invoiceKR 3100000288. The status of both the KR

and KZdocuments turns is green with a zero balance displayed for the Vendor as shown in

the Vendor line item report screen below.


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Cashier outgoing paymentscreation

When the cashier generates payments in Umoja (creates Outgoing Payments with

document type KZ), the nominal bank account or cash is not immediately credited in the

General Ledger. Instead, the credit is temporarilybooked to one of two bank-clearingaccounts for Outgoing Payments:

1.

Cash Cheque Out (for payments by cheque) or

2.

Cash EFT AP (for payments by Wire)

These are two of the seven GL accounts created to record balances and reconciling items

for each UN House Bank. The task of reconciling transactions with the bank, which result

from created Outgoing Payments, is essentially the processing of the credits that are

temporarily booked to these clearing accounts when the cashier generates payments.

While some of the transactions will reconcile automatically, others will have to be clearedmanually. Whether a bank transaction resulting from Outgoing Payment will be reconciled

automatically or manually depends on what happens when bank statements are uploaded

into Umoja.

Outgoing PaymentsBank Statement Upload

1. Bank statements upload into Umoja is on a daily basis. A statement will show any prior

days Outgoing Payments paid out from the House Bank as well as Incoming Payments

received by a House Bank.

2.

For each Outgoing Payment listed in an uploaded bank statement, Umoja will generate

a ZRdocument with the following entries in the General Ledger:

Dr. Cash EFT AP (or Cheque Out)

Cr. Bank Nominal

This reflects the fact that the bank has debitedthe UN account for the disbursement they

made on behalf. Umoja thus reduces the balance of the Bank Nominal in the General Ledger

to synchronize it with the balance held by the bank. Any Outgoing Payments generated by

UN but for which the bank has not yet made disbursements will appear in the General

Ledger Cash EFT AP (or Cheque Out) and not in the GL Bank Nominal.

Outgoing PaymentsAutomatic Clearance

As stated earlier, when the cashier generates an Outgoing Payment, Umoja creates a KZ

document clearing the credit to the vendors account(document Type KR) i.e.:

Dr. Vendor

Cr. Cash EFT AP (or Cheque Out)


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When an uploaded bank statement shows a debit in UN account at the physical bank,

Umoja creates a ZR document crediting the UN General Ledger Bank Nominal i.e.:


Cr. Bank Nominal

Umoja will attempt to establish a link between the credit in the KZ document and the debitin the ZR document. Two possible outcomes exist.

1. If both entries relate to the same transaction, Umoja will establish a match and

use the ZR document to clear the KZ document. In this case, the ZR document

could be considered as confirmation that the instruction given in the KZ

document has been executed successfully and therefore, no bank reconciliation

work is needed for this Outgoing Payment.

2.

If a link cannot be established, automatic clearance will fail. The ZR document

will have to manuallybe applied the to the KZ document. Otherwise, both

documents will remain open as un-reconciled items (open items).

The match between the KZ and KR documents is established by two elements:

KZ document number. This is the Payment Doc. Number generated by the system after

the cashier has successfully executed the process steps using T_codes F110 and FPRL_List

(Assign, Approve and Pay). This number is included in the instructions that go to the bank.

In return, the bank is required to reference the number in their bank statement against the

corresponding disbursements made

Amount. A match will not be established if there is a discrepancy between the amounts

in both documents, whatever the magnitude of the difference.

Example 2: Automatic clearingAP to BP Ayaydin Ercan

What happens when a bank statement is uploaded in the following scenario?

A payable of $1,400 was established for Vendor 2080001758 through KR 3100000288. The

cashier generated payment (KZ 3300000272) via House Bank JPM Chase US with credit to

clearing A/c 11011014 Csh HQ USD EFT AP. The bank paid out the money and debited our

account in their books by $1,400, as well as included the ref.3300000272in bank statement

#13283.


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Bank Reconciliation

Using the FEBAN T_code, review the uploaded bank statement for the relevant house bank

> enter FEBAN on the SAP Easy Access Command field and click the enter icon

At the Selection of Bank Statement by Bank and Account Nos. screen, >enter: House Bank ,

Bank statement # and currency

Click execute Button

Review the Edit Bank Statement screen

The statement no. is 13283, for House Bank USCH1, currency USD, closing bal. $3,100.

The transaction uploaded has reduced the UN bank nominal balance, Outgoing Payment

(Negative sign)

The transaction status is green, therefore, the debit of the ZR document (6300000416)

created by Umoja when the statement was uploaded automatically cleared with the

credit of the existing KZ document (3300000272).

Double click the ZR document # to see accounting entries.

Note that PmtAcc field is empty because the item is not a reconciling item


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Review ZR Document:

The ZR document Debits EFT APand Credits Bank Nominal. Both accounts are in the

General Ledger, hence the 50 and 40 posting keysused respectively. Note that the Ref.

generated by the system is a combination of the House bank, currency and bank statement

number. Note that both bank accounts belong to the Treasury Main Pool and they have the

same Fund (64VQA) and Business Area (S101). This information is helpful when manually

applying the ZR to a KZ document during bank reconciliation.

Review EFT AP A/c

Use T_code FAGLL03 to view access the G/L Account line item Display G/L view screen

Enter 11011014 in the GL account field.

Select Cleared Items in Line Item Selection.


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Enter the date the item was cleared in the Clearing Date field.

Click Execute icon to run the search. The screen below opens to reveal the search

Results.

Note that effectively, the Credit of the KZ documenthas been cleared by the Debit of the

ZR document. This is attested by the green status that both lines now have. The clearing

document number is 6300000416, which is the ZR document number

Outgoing PaymentsManual Clearance

Automatic clearance of Outgoing Payments when bank statements are uploaded is the ideal

transaction processing. However, this will not always be the case for a number of reasons:

a) The cashier may have indeed generated an Outgoing Payment and therefore a KZ

document exists. However, the bank may incorrectly quote either the KZ document

number or amount of the Outgoing Payment on the bank statement. As a result,

when the statement is uploaded Umoja will be unable to establish a match between

the KZ and ZR documents and thus fail to clear them automatically

b) An Outgoing Payment does not exist i.e. the bank has Debited the UN account when

the cashier has not generated payment and sent them an instruction to disbursefunds on UN behalf. This could be due to a number of reasons such as:

The bank Debited UN account in error

Bank charges and other fees that the bank directly imputes to UN account but

for which there is no need to raise a payable and generate an Outgoing Payment

The disbursement by the bank is legitimate but it was made before raising the

payable and the cashier generating an Outgoing Payment.


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Whatever the reason, each time the bank Debits UN account, Umoja will always create a ZR

document Crediting GL Bank Nominal at the time the bank statement is uploaded i.e.:


Cr. Bank Nominal

Bank reconciliation in this case is all about how we manually clear this Debit of the Cash EFT

AP (or Cheque Out) Account before books of accounts are closed at the end of the month.

How this is done depends largely on the reason why automatic clearance failed in the first

place.

Example Case scenarios

Case 1: The bank wrongly references a disbursement they made in executing an

instruction for an Outgoing Payment.

Suppose the cashier generated Outgoing Payment (KZ document # 3300000267) for $500

via House Bank JPM Chase. However, the bank incorrectly quoted the KZ Document # on

the bank statement. The effect when the statement was uploaded includes:

Automatic clearance failed.

A ZR document was created with Credit to Bank Nominal and Debit to Cash EFT AP.

The Debit is an open item and has to be manually applied to the credit of the

existing KZ document through bank reconciliation.

Transaction process review


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To manually clear an item, first locate the bank statement on which it is found through

FEBAN as described earlier. In this case, we are looking for statement 23 of House Bank

USCH1.

Double click the item. This brings up the ZR doc# but this time it appears in the PmtAcc

field. When manual clearance is completed another ZR document will be generated in the

now empty Doc. Field.

Double click the PmtAcc Doc#. It will show the Debit to Cash EFT AP and Credit to Bank

Nominal

Click Statement Items and select Post

Post with clearing items screen review

Note that all open items are displayed and selected by default. Match the remaining

Debit line of ZR 6300000420 to the open Credit line of KZ 3300000267.

To deselect the amounts not required, double click these amounts

For the selected open item, amount Entered and Assigned fields in the section below

will be both zero. This means that the sum of Debits equals the sum of Credits.

Click on Document in the menu bar and select Simulate.


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Post with clearing items display overview screen review

The document type is ZR. This is the second ZR document. The first (6300000420) was

created by the system with credit to Bank Nominal and two debits to EFT AP.

The reference and Doc. Header Text are system generated. The Reference # is a

combination of House Bank, Currency of account and bank statement number.

Both lines relate to the same GL account, Cash EFT AP, the Debit being the second

Debit line of ZR 6300000420 and the Credit being the Credit line of KZ 3300000267.

The sum of debits is equal to the sum of credits.

Click on the Save icon to post the document.


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A message with a green status appears at the bottom of the screen informing that the

document has been posted. Note the document number.

Return to FEBAN and double click the item just reconciled. Note that the status has

changed from yellow to green

In Posting Area 1 there is a second ZR doc (6300000421) shown in the Doc field. It is

the document that carries the entries of the reconciliation performed.

Double click on both ZR 6300000420 and 6300000421 to review their entries.

Document ZR 6300000420 Review


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Dr. Cash EFT AP - 11011010

Cr. Bank Nominal-11011014

The generated entry each time a bank statement is uploaded in Umoja to show that the

bank Debited UN account, whether an Outgoing Payment was generated or not.

Document ZR 6300000421 Review

Dr. Cash EFT AP -11011014

Cr. Cash EFT AP - 11011014

Both the Debit and Credit are in the same account but not matched to each other. Manual

reconciliation is essentially pairing the two entries in order to clear the open item.

Review EFT AP A/c

Using the T_code FAGLL03to display G/L Account Line Item for 11011014note the postings:

There are two ZR documents, 6300000420and 6300000421. We now have four

clearing entries, instead of two as we did for automatic clearance.

The Debit of the first ZR document 6300000420and Credit of KZ document

3300000267were cleared by the second ZR document 6300000421


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Case 2: The bank debits UN account when no instruction to disburse funds on UN behalf

was issued

There could be instances when the bank Debits UN account in their books when UN have

not and do not intend to create an Outgoing Payment. E.g. for a bank Debit of $2,000 inhouse bank USCH1, when the bank statement #117 is uploaded the following is expected:

Automatic clearance fails.

A ZR document is created with a Credit to Bank Nominal and a Debit to Csh EFT AP.

Manual reconciliation will be required to move the Debit from the Csh EFT AP a/c to Cash

Unidentifieduntil the bank clarifies the situation.

Manual Clearance Steps

Using FEBAN T_code, locate the bank statement, i.e. statement #117 for house bank USCH1.

Double click the open outgoing payment item to access the ZR document # and notethat this time it appears in the PmtAcc field. When manual clearance is completed

another ZR document will be generated and will appear in the now empty Doc. Field.

Double click the PmtAcc Document #. It will show the Debit to Cash EFT AP and Credit

to Bank Nominal.

Click Statement Items and click Post.


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Post with clearing items display overview screen review

All open items are displayed and selected by default

Click the Charge off diff. button. This brings you to the Post with Clearing Display

Overview screen where the system posting will clear the Debit balance in GL a/c

11011014 with a Credit the same GL a/c 11011014 and manually a Debitwill be

posted to the Bank Unidentified A/C associated with the House Bank.

Enter posting key 40 in the PstKy (Posting key) field to Debiting

a GL account.


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Bank Reconciliation

Enter GL a/c 11011019in the Account field (Unidentified a/c of this House Bank:

USCH1) where the unrecognized charge will remain until clarification is obtained from

the bank why they debited UN account without an instruction from UN representative.

Click the Enter icon to get to Post with Clearing Add G/L Account Item screen whereadditional data for the Debit line will be entered.

Confirmation of entries to Debit line

Enter the amount to be cleared in the Amount field or * for the balance

Enter a clear descriptive text in the Text field.

Click More Datafor additional data fields from the Coding Block screen

Enter the Business Area in the Business Area field. Since Unidentified a/c is an account

of the Treasury Main Pool, the Business Area to enter is S101.


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Enter the Fund in the Fund field. The Fund 64VQA is for Treasury Main Pool.

Enter GMNR in the Grant field.

Click the Enter icon to go back to the Post with Clearing Add G/L AccountItem Screen.

Click Document in the menu bar and select Simulate. This opens the Post with Clearing

Correct G/L Account item.

The document type is ZR, the second ZR document. The first ZR document.

(6300126747) was created by the system with Credit to Bank Nominaland Debit to

EFT AP


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Both the Reference and Doc. Header Textare system generated. The reference is a

combination of House Bank, Currencyand Bank statement number.

The Credit of the Cash EFT APclears the un-reconciled Debit from the first ZRdocument 6300126747. Cash Unidentified is now Debited.

The sum of debits is equal to the sum of credits.

Click on the Save icon to post the document.

A message with a green status appears at the bottom of the screen informing that the

document has been posted. Note the document number.

Return to FEBAN and double click the item just reconciled. Note that the status

changed from yellow to greenIn Posting Area 1, there is now a second ZR document (6300180159) shown in the Doc

field. It is this document that carries the entries of the reconciliation we just performed.

Double click both ZR6300126747 and 6300180159to review their entries.


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ZR document # 6300126747 Review

Cr. Bank Nominal

Dr. Cash EFT AP

As indicated earlier, this entry will always be generated each time an uploaded bank

statement shows that the bank has debited UN account, whether an Outgoing Payment or

not.

ZR document # 6300180159 Review

Dr. Cash Unidentified

Cr. Cash EFT APThe debit in ZR 6300126747 has now been transferred to Cash Unidentified temporarily

pending clarification from the bank.

EFT AP A/c 11011014 Review

Both ZR documents (Debit and Credit) are cleared and the status is green. The balance on

the account is Zero


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Case 3: The bank correctly charges UN account but for expenses where there is no need

to raise Accounts payable and generate an Outgoing Payment (e.g. bank charges).

At times the bank may correctly charge our account but for expenses for which we do not

have to raise a payable and generate an Outgoing Payment. This will be the case with bankcharges and other commissions that bank directly charges to UN account.

As before, at the time the bank statement is uploaded, Umoja creates a ZR document to

post the bank charges:

Dr. Cash EFT AP

Cr. Bank Nominal

Since a payable will not be established and consequently neither an Outgoing Payment (KZ

document) will be generated, bank reconciliation in this case will consist of:

Raising a JV to transfer the Debit from the Cash EFT AP accountto an expense account.

Ensuring that the assignment of both the Debit(from the bank statement, doc type ZR) and

the Credit(from the JV, doc type SA) have the same assignment or clear them using F-03

T_ code (in case there are many debits to be cleared).

Bank charges are usually not cleared using FEBAN as it has been designed that these

transactions (they might be many lines) will appear as cleared in FEBAN (but still open in the

GL). With a JV many lines could be cleared in one posting.

Posting scheme for Outgoing Payments

Module 2 Exercises

Exercise 1 - outgoing payments ref KZ documents

Exercise 2 - unidentified charges


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Module 3: Incoming Payments

Module Overview

This module explains the processing of Incoming paymentswithin the integrated Umoja

Accounts Receivable and Treasury Funds receipt system solution with focus on how to perform

reconciliations for items that do not automatically clear when a Bank statement is uploaded to

match Accounts Receivableswith those Incoming payments.

Objectives:


Know the FI created document types for Incoming payments

Understand the ideal FI accounting entries associated with Incoming payments

Confirm automatic cleared items and perform manual clearance of open items

Learn different reasons why automatic clearing for items between the physical bankand GL Nominal and bank clearing accounts entries may not happen

Incoming PaymentsOverview

The revenue the UN receives either comes from exchange transactions (when there has

been sell of goods or services and recovery of costs for services rendered) or from non-

exchange transactions (e.g. assessed and voluntary contributions). Ideally, receivables or

recoverable amounts need to be established prior to the receipt of any type of revenue.

For revenue received through Electronic Funds Transfer, the Umoja solution is configured toensure that the Incoming Payment is automatically applied to the open Accounts

Receivable/Recoverable of the Debtor/Creditor ( Customer/ Vendor),if certain conditions

are met. Bank reconciliation will not be needed in this case. In the majority of cases though,

the conditions for automatic clearance will not be met. In such instances, Incoming Paymets

will manually be applied to the accounts of the relevant Customer or Vendor. This is the

focus of this module.


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Bank Reconciliation

Identifying Open Customer Items

Open Customer Items can be identified as follows:

Using T_code ZARFBL5N, open the Financial Accounting Accounts Receivable screen.

Keep the Customer accountfield open.

Enter the Business Areafor the UN entity Customer items need to be identified.

In Line Item Selectionchoose Open Items.

For a more refined specification of the search criteria, click Dynamic Selections icon .

Click Execute icon to run the search.

A listing of all customer open itemsthat meet the search criteria is displayed. Note that all

open items below have a red status. See the screen on next page.


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Bank Reconciliation

Incoming PaymentsBank Clearing Account

As explained earlier, with the introduction of House Banks, all bank accounts of missions

now belong to one of the three Treasury Pool Funds64VQA: Main PoolCash &

Investment. As a result, all Incoming Payments are recorded in 64VQA. This leads to two

sets of entries (after bank reconciliation): An increase in the equity of the entity in 64VQA for which the money is destined i.e.

the entity expecting the Incoming payment.

A decrease in the amount outstanding on the customer account who made the

payment by automatically or manually clearing the open Accounts Receivable /

recoverable in the AR sub Ledger.

When an EFT Incoming Payment is received, the customers account is not immediately

credited in the GL. Instead the credit is temporarily booked to the EFT In a/c. This is one ofthe seven GL accounts created to record balances and reconciling items for each House

Bank that UN Treasury maintain.

The task of reconciling transactions with the bank, which result from the Received Incoming

Payments, essentially consists of moving these credits from the EFT In account to the

respective accounts with open items. This may be processed automatically by Umoja

solution or manually through bank reconciliation.


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Bank Reconciliation

Whether a bank transaction resulting from Incoming Payments will be reconciled

automatically or manually depends on what happens when bank statements are uploaded

into Umoja.

Incoming PaymentsAutomatic Clearance Steps

1.

Bank Statement Upload

When the Bank Statement of the previous day is uploaded into Umoja, a Bank EFT-In

clearing account will be Creditedby the Debit of EFTsreceived as follows:

Dr 64VQA Bank Nominal (GL A/c 11011X10)

Cr 64VQA Bank EFT In Clearing (GL A/c 11011X16)

The credit is next moved to a customer/vendors account

2.

Matching to Clear

If the incoming payment contains information e.g. invoice number, which identifies an

existing receivable (customer) or recoverable (vendor) for the same amount, Umoja will

establish a match between the two. The receivable or recoverable will be automatically

cleared by the incoming payment.

Dr 64VQA Bank EFT In Clearing (GL A/c 11011X16)

Cr 20OLA Customer/Vendor Open Item

3.

Equity Increase in Treasury Pool

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

Incoming PaymentsManual Clearance

There are a number of cases where manual bank reconciliation for Incoming Payments is

undertaken, the following cases are considered:

Case 1: Incorrectly Reference on the Bank Statement

When the Incoming Payment hits the Nominal Account, an EFT-In account is initially

Creditedi.e.

Dr 64VQA Bank Nominal

Cr 64VQA Bank EFT In Clearing


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Bank Reconciliation

The task of the bank reconciler is to move the funds from the EFT-In account to a

Customer/ Vendors account when the system fails to do so automatically. One of the

reasons why automatic clearance will failis when the reference on the bank statement for

the Incoming Payment does not match an open receivable or recoverable item in thesystem.

To illustrate how manual clearance is done in this case, the following data set is used:

Customer: 1111000010Government of Belgium

Outstanding Amount: US$ 15,700

Being: Sale of Publications

AR Document #: 2200000485

To manually clear the item, first locate the bank statement on which it is found through

FEBAN as described earlier. In our case, we are looking for Item #11 of statement 13282 ofHouse Bank USCH2.

Double-click the open item you intend to reconcile. Note that a document number

appears in Posting Area 1 only. This is the reconciliation doc ZR showing:

Dr. Bank Nominal

Cr. EFT In

Click Post icon. This starts the process to move the funds from EFT In (Debit)to the

customers A/c (Credit).At the end of the process a document number will appear in

Posting Area 2.


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In the Post with Clearing Select Open Items screenthat opens, undertake the following:

Enter the Customers Accountin the Account Field.

Enter Din the Account Type Field.

Select the Amountbutton from Additional Selections.

Click Process Open Items, this opens the Post with Clearing Enter Selection Criteria

screen.

Enter the amount you intend to clear in the From field of the Amount Section.

Click Process Open Items. This opens the Post with Clearing Process Open Itemsscreen.

A list of open items with the amount specified earlier is displayed. Their total is shown in

the Assigned field in the Processing Status section (bottom right).


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De-select (by double clicking) the amounts not intended to match to the Incoming

Payment until the Amount entered = Amount Assigned.

Click on Document in the menu bar and select Simulate, this opens the Post with

Clearing Display Overview screen. Take note of the following:

Document type is DZ, Incoming Payment. The posting keyfor the Debit entry is 40

because it is a Debit to a GL account, while 15is a Credit to a Customer a/c.

The sum of Debitsequals the sum of Credits.


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Click Save iconto Post the document, a message appears at the bottom of the screen

with the posted document number.

Return to the bank statement and double click the item you just reconciled. Note the

following:

The status is now green.

A document number now appears in Posting Area 2

Double click each of the two document numbers in turn.

Review ZR document # 6300000288

Dr. Bank Nominal

Cr. Cash EFT In

This entry will always be generated each time an uploaded bank statement shows that the

bank has credited our account for an Incoming Payment, whether we established a

receivable or not.


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Bank Reconciliation

Review DZ document # 2400000204

Dr. Cash EFT In

Cr. Customer

Note the differences in posting keys, Business Area and Fund, as we Debited a GL a/c and

Credited an AR Sub ledger a/c. Further, P003 ensures UNIFILs equity increases in 64VQA by

amount received.

Review EFT In A/c 11012716

On review of the EFT In a/c 11012716, observation made is that though the credit that was

temporarily booked there to the account of the customer who made the payment was

moved, the two entries in the EFT In a/c still have a red status. The status will change to

green and a document number will appear in the now empty Clrng Doc field when the

documents are matched against each other as part of batch clearing process


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Bank Reconciliation

Case 2: Partial Payments

The bank may correctly reference an Incoming Payment on the bank statement. However,

automatic clearing may still fail because the amount on the statement is different from the

amount in the customer open item. For instance, UN might receive a lesser amount thanexpected. This could be due to exchange rate differences, bank charges or because the

customer disputes parts of the invoice. Whatever the reason, when the bank statement is

uploaded, the system will:

Dr. Bank Nominal

Cr. EFT In A/C

It will then be the duty of the bank reconciler in collaboration with the Accounts Receivable

Unit to move the funds from EFT In A/C to the customers account. If the difference is due

to bank charges or exchange rate fluctuation, a JV should be raised to clear it.

Scenario to illustrate case 2

Customer 1111000026Municipality of Deir Mimas used UN air asset in June 2013.

They were invoiced on 08 Oct. 13 for the full amount of $4,500. The customer however

contested this amount because food was not served on board. They only paid $4,000

directly into UN account on 08 Oct. 13. The AR document number was correctly

referenced in Bank Statement # 13282 of House Bank USCH2. However, when the

statement was uploaded on 09 Oct. 13 automatic clearance failed because of

differences in amount between the Incoming Payment and customer open item. In such

instances, manual reconciliation is required to clear the open item.

The first step is to find the bank statement on which the open item is located through use of

T_code FEBAN. In this case its item # 2 of statement 13282 for House Bank USCH2.


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Double-click the open item you intend to clear. Note that the Doc Field in Posting Area

2 is empty.

Click Save icon to post (can also do via Ctrl + S), this opens the Post With

Clearing Select Open Items screen

Enter the Customers Account in the Account Field.

Enter D in the Account Type Field

In Additional Selections, maintain the defaulted Noneoption.

Click the Process Open Items icon. This opens the Post with Clearing Process Open

Items Screen.


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The Post with Clearing Process Open Items screen opens with the Standard tab open

by

default. Since we are not clearing the full amount of an open item, click on the Partial

Pmt Tab.

Double click the amount of the item you intend to clear. This highlights the amount

and also duplicates it in the Payment Amount.

Delete the amount in the Payment Amount field and replace it by the partial payment

you intend to make.

Press Enter to validate. Note that the Not Assigned becomes zero.

Click on Document on the menu bar then Simulate.


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When the Post with Clearing Display Overview screen opens, note that the doc type DZ

- Incoming Payment, corresponds with the posting key for line 2 i.e. credit of a

customer account for an Incoming Payment.

Click the Save icon to post and note the document number that displays at the bottom

of the page when posting is done.

Return to FEBAN and double click on the Incoming Payment that was just applied to a

Customer A/c. It now displays a green status.

Note that the document carrying the reconciliation entries now appears in Posting

Area 2. Double click the documents in Posting Areas 1 and 2.


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It is noted that though the Credit

We note that though we have moved the credit that was temporarily booked there to the

account of the customer who made the partial payment, the two entries in the EFT In a/c

still have a red status. When they are matched against each other as part of batch clearing

process, the status will change to green and a document number will appear in the now

empty Clrng Doc field.

Review Customer Open Item

A review of the customers account# 1111000026for Invoice # 2200000383(DR doc type)

shows that though a partial payment of $4,000was received on 09.10.2013, the invoice is

still outstanding by $500.


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Bank Reconciliation

Case 3: Payments from Vendors

Recoverable amounts from staff members, MILOBs, Commercial Vendors and other

Business Partners who do not have customer roles in Umoja are done through credit

memos established in the Accounts Payable Sub-ledger. Incoming Payments from thesevendors to settle outstanding items will have to be matched and cleared manually.

Scenario

Staff member 1110001280Abou Saleh, owed UNIFIL $100.00 for private telephone calls

he made while on mission there during Pilot Go-live in July 2013. A credit memo (Doc type

KG #3200000063) was raised to record this recoverable on 30 August 2013. The staff

member transferred $100.00 to UN House Bank USUS1. The Incoming Payment was

reflected in UN bank statement #13279 of 09 October 2013. In this instance, perform

manual bank reconciliation.

Vendor Incoming PaymentsManual Clearance

Like all cases for bank reconciliation, to manually clear the Vendor incoming payment, first

locate the bank statement using T_code FEBAN. In our case, we are looking for Item #6 of

statement 13279 of House Bank USUS1.

Double-click the open item you intend to clear. Note; Doc Field in Posting Area 1 has a

number but is empty in posting area 2.

Click Save iconto post (or use Ctrl + S), this opens Post with Clearing Select Open

Itemsscreen


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Enter the Vendors Account#in the Account Field

Enter Kin the Account Type Field.

In Additional selections choose on Document Number.

Click Process Open Items, this opens Post with Clearing Enter selection criteria

Screen.

Enter the KG doc number in the Fromfield of the Document Number section.

Click Process Open Items, this opens Post with Clearing Process Open Items

Screen.


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Since the document number of the open item (credit memo) was entered, only one

result is returned, which matches with the amount of the Incoming Payment and the

processing status for Not Assigned is zero

Select Documenton the menu bar choose Simulate, this opens Post with Clearing

Display overview screen

When Post with Clearing Display Overviewscreen opens, document type DZ

- Incoming Payment, corresponds with the posting key for line 2i.e. credit of a vendor

account for an Incoming Payment.

Click Save iconto post and note the document number that displays at the bottom

of the page when posting is done.


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Confirmation of Manually cleared item

Return to FEBAN and double click on the Incoming Payment that was just applied to a

Customer A/c. It now displays a green status.

Note that the document carrying the reconciliation entries now appears in Posting Area2. Double click the document numbers in Posting Areas 1 and 2 to review the postings.



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Bank Reconciliation

Incoming PaymentsManual Clearance

To manually clear the item, first locate the bank statement using T_code FEBAN as

described earlier. In this case, its Item #7 of statement # 1265 of House Bank USCH1.

Double-click the open item you intend to clear. Note that the Doc Field in Posting Area 2

is empty

Click Save iconto post (or use Ctrl + S). This opens Post withClearing Select open

Itemsscreen.

Click Back icon.This opens Post with Clearing Display Overviewscreen.


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When the Post with Clearing Display Overview screen opens, note that the doc type DZ.

Also note that Line 1, the debit line is automatically generated by the system. We now

have to enter Line 2s

Enter 50 in the Pstky fieldand the 39201010 in the Account field

Click Enter. This opens the Post with Clearing Add Customer Item screen.

Enter the amountin the Amount field.

Enter a descriptive textin the text field.

Click More Data. This opens Coding BlockScreen


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The coding block key elements

Enter Business Area, Fund and Grant.

Click Enter icon.This opens Post with Clearing Correct G/L Account itemScreen.

Go to Documentin the Menu Bar and select Simulate. This opensPost with

Clearing Display Overviewscreen.

Review the two lines, the doc type and the reference (House Bank + Currency + Bank

Statement Number).

Click Saveto post the DZ document and note the number that displays at the

bottom of the screen.


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Review Reconciled item

Return to FEBAN and double click on the Incoming Payment that was just applied to

the Unapplied Cash a/c. It now displays a green status.

Note that the document carrying the reconciliation entries now appears in Posting

Area 2. Double click the documents in Posting Areas 1 and 2.

Case 5: Outgoing Payment rejected by the bank

In some cases, outgoingpayments are rejectedby the bank and are therefore credited to

the UN bank account in a similar manner to incoming payments

Scenario

On 30 August 2013, an Incoming Payment of USD 75.446,42 was included in bank statement

12243 of House Bank USCH1. After communication with treasury department, bank

reconciler found out that the amount had been returned by the bank, being the total for

two payments rejected by the bank

This instance would require a Bank reconciler to transfer the amounts to a clearing account.Account payable would then re-issue the payment.


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Bank Reconciliation

Incoming PaymentsTransfer to clearing account

To transfer the reconciling item, first locate the bank statement on which the item is found

using FEBAN T_code.

Double-click the open item you intend to clear. Note that the Doc Field in Posting Area

2 is empty.

Click on the Save iconto post (or use Ctrl + S). This opens the Post With

Clearing Select Open Items screen.

Click Back icon. This opens Post with Clearing Display Overviewscreen.


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Enter Posting key = 50and Enter GL Account 11479997(Payment Rejected by Bank)

Click enter icon

Enter Amount of the original invoice

Click more datafor the coding block screen

Enter Business Area, Fund and Grantof original invoice and Click enter

Enter Posting Key 40 and G/L account 74251010 for Bank charges

Click on More Data


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Enter Business Area, Cost Center, Fund and Grant of original invoice and Click enter

Click on Overview Icon

Click on Save


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Bank Reconciliation

Remember that whenever an FI document is posting against two different funds, the

system automatically posts another document (17xxxxxx) against the Treasury Pool Fund.

You can see it selecting Environment/Document Environment/Accounting Documents.


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Case 6: Payments received in error

Exceptionally, payments may be made to the UN in error. Prior to closing the month the money

should be moved from EFT In to another GL a/c 39201010Unapplied Cash, where it will

remain until a decision is made on what to do with it. The steps to move the funds from EFT Into Unapplied Cash are the same as those described in Case 5.

Posting Scheme for Incoming Payments

Module 3 exercises

Exercise 3 - incoming payments from customer or vendor

Exercise 4 - incoming payments with no receivable

Exercise 5 - rejected payments


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Bank Reconciliation

Module 4: Transfer to a zero-balance bank account

Objective

This module outlines steps on how to reconcile transfers to zerobalance accounts that the UN

may find necessary to maintain for operational convenience. The transfer to zero balance

account is done automatically by the source bank.

Identify the incoming and outgoing transfer using FEBAN

Source bank

Like in previous modules, the first step is to identify the reconciling item on the bank statementof the source bank as in example below for USCI1 Bank. Double click in the line to see the

details of the transaction.

To see the posting of the bank statement (ZR document), double click in the document number

(6300021748) of the posting area 1. The posting of the source bank is:

Credit to the nominal account

Debit to EFT-AP.


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Receiving Bank

The receiving bank, in this case is LBC12

The expected posting for the receiving bank is:

Debit to the Nominal AccountCredit to EFT-in.


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Clear the incoming transfer using FEBAN

Double click in the line already identified (in case the line appears green while the bankaccount GL is not reconciled, refer to Reconciling open items of the bank account GLs which

appear incorrectly reconciled in FEBAN). Click the post icon or select from the main menu

Statement Items/Post, enter the EFT-AP GL account of the source bank in the Account field and

change the Account Type to S. Click Process Open Items.

Select the document related to the outgoing transfer; in this example 6300021748 (selected

line would be light blue while the others, if any, are black).

Select from the main menu Document/Simulate to see the postings.

Note: As FEBAN would be clearing the credit in the EFT-In line of the bank

statement, the system will automatically debit that account. Therefore, the action to be

taken through FEBAN would be to post a credit (posting key=50) to the EFT-AP GL of the

source bank account. Recall that postings to the nominal bankaccount is only through

the u load of bank statements and never throu h FEBAN


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Finally select the post icon.

Clearing document 2400000311 is posted and the line is cleared (green) as in screen shot

below.

Clear the outgoing transfer using FEBAN

Double click in the line already identified (in case the line appears green while the bank

account GL is not reconciled, refer to Reconciling open items of the bank account GLs which

appear incorrectly reconciled in FEBAN). Click the post icon or select from the main menu

Statement Items/Post. The system finds that there is a credit (created by FEBAN in the prior

step) and reconciles it with the debit of the bank statement (clearing document 6300024968 is

posted as in screen shot below).


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Clearing of the GL accounts

Using FAGLL03 you may verify that the assignment of the debit and the credit is the same for

the EFT-In account. Those entries will be cleared with the automatic batch or manually using F-

03.

For the EFT-AP, in which the system automatically reconciled the debit and the credit with

clearing document 6300024968, both lines are already cleared.


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Bank Reconciliation

Module 5: Transfer from a source bank account to a receiving bank account

Objective

This module outlines steps on how to reconcile transfers from an Umoja source bank account

to an Umoja recipient bank account, specifically from a USD bank account to a foreign currency

bank account.

Transfer approved through ZT doc type documents

A transfer from a USD bank account (house bank USCH1) to a GBP bank account (GBCH1) has

been approved and posted with documents 1700020886and 1700020885(doc type: ZT).

Note: With Umoja, the term Remittanceapplies only

in those cases in which the source bank is not in Umo a.


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As you may see, the credit in the source bank (USD) and the debit in the receiving bank are in

GL 11xxxx17. Likewise, the gain/loss in exchange rate is the difference between the debit and

the credit in GL 79611010 (USD 97,546.98100,000). Consequently, there will be no need to

post any exchange rate difference with FEBAN.

Bank statement in the source bank (doc type ZR)

Bank statement 96 (line 1) has been posted with document 6300002667(doc type ZR)

Review the postings

The bank statement (source bank) posts a Creditto the nominal bank account. The Debit could

be in GL 11xxxx17 or 11xxxx14 (EFT-AP). To see the posting, double click in the pmtAcc fieldon

document No. 6300002667in this example.

Note:in case the transfer from a USD bank account is also to another USD

bank account, there will be only one ZT document (debit and credit to 11xxxx17)

and there will be no postings to GL 79611010 (FX Purch Sale Currency).


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Reconciliation (ZT and ZR documents) of the source bank using FEBAN

As seen in the above screenshots, the source bank has a Credit (ZT doc 1700020886) and a

Debit (ZR doc 6300002667) in GL 11011017. Both lines need to be cleared through FEBAN.

Double click in the line and click on the post icon or select from the main menu Statement

items/Post (in case the line appears green while the bank account GL is not reconciled, please

refer to (Reconciling open items of the bank account GLs which appear incorrectly reconciled

in FEBAN).

Select only documents 1700020886and 6300002667(selected lines would be light blue while

the others are black) and click the post icon


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When clearing occurs, as seen in the next screen a new clearing document will be posted. In

this example, clearing document 6300025876 has been posted and the line is now cleared

(green).


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There might be instances in which the bank statement of the source bank debits GL 11xxxx14

(EFT-AP) while the credit of the ZT document is in GL 11xxxx17. In those cases, only the line of

the bank statement should be selected (6300002667). From the main menu, select Edit/Select

more.

Enter the Investment GL account of the source bank in the Account field. Click Process Open

Items.

Select the related ZT document; in this example 1700020886 (selected line would be light blue

while the others, if any, are black as stated earlier).

To review the postings, select from the main menu Document/Simulate. To post select post

icon

Bank statement in the receiving bank (doc type ZR)

As seen in the screen below, Bank statement 108 (line 1) has been posted with document

6300002628(doc type ZR)


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To see the posting, double click in the document number.

Reconciliation (ZT and ZR documents) of the receiving bank using FEBAN

In this case, the receiving bank has a Debit (ZT doc 1700020885) in GL 11011317 and a Credit

(ZR doc 6300002628) in GL 11011316. Both lines need to be cleared through FEBAN using a

similar procedure as described above (in case the line appears green while the bank account GL

is not reconciled, please refer to Reconciling open items of the bank account GLs which

appear incorrectly reconciled in FEBAN):


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Once the post icon is selected, only the line of the bank statement should be selected

(6300002628). From the main menu, select Edit/Select more.

Enter the Investment GL account of the receiving bank in the Account field. Click Process Open

Items.

Select the related ZT document; in this example 1700020885 (selected line would be light blue

while the others, if any, are black).

To review the postings, select from the main menu Document/Simulate.

To post, select the post icon

Posting the ZR document (63xxxxx) if it is not appearing in FEBAN

There might be instances in which the ZR document has not been posted even though the line

appears in FEBAN as seen in screen below:


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To post the ZR document, please select the post icon or from the menu select Statement

Item/Post.

Double click in the line again and FEBAN will show the just posted ZR document.


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Select Remittances. Note that there is one dynamic selection for that variant. Select all items to

see open and cleared remittances i.e. all remittances.

Click the Execute button


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Posting scheme - Transfers in the same currency (one ZT document)

Posting scheme - Transfers from currency A to B (two ZT documents)


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Module 6: Preparation of Month End Bank Reconciliation

Objective

This module outlines steps on how to prepare Month End Bank Reconciliation statement, which is a

critical management reportthat UN entities prepare every month as part of the financial reports to

UNHQ Accounts Division. Bank reconciliation statement is prepared for each bank account the UN

maintains. Steps to undertake are elaborated below:

Run FAGLL03 ReportBank Reconciler Responsible for Bank Account

1. The FAGLL03 G/L Account Line Item Display report is run for the range of GL Accounts corresponding

to a physical bank account. The following parameters are used:

2. Once the report has executed, select the Report Layout /BK REC RPT:


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The report will now show information in the same column order as the Month End Bank

Reconciliation template.

Export the report output to Excel:


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Indicate where you want the file saved and enter the file name.

Click Save

If you receive the following message, click OK.

When the following message appears in the bottom left corner of the screen, the export is

complete.


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Prepare Month End Bank Reconciliation ReportBank Reconciler Responsible

for Bank Account

1.

Open Excel template and manually enter:

a.

Your mission/office

b.

Month end date

c. Bank Name, Currency and FEBAN bank code

d. GL Account numbers

e. Document currency

f. Name of Preparer

g. Name of Approver

2. Copy and paste FAGLL03 nominal balance and reconciling items for each GL account.


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Sections boxed in blue are copied and pasted into the Month End Bank Reconciliation template;


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Verify Total formula to ensure range includes all relevant cells.

4. Format numbers if needed.

5. Check print range and print preview.

6. Print and attach supporting documents:

a. Printscreen of FEBAN balance at month end showing balance per bank equal to Nominal


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G/L Account

b. Printout of FAGLL03 showing GL account balance for all reconciling GL Accounts for thatbank account (i.e. GL ending in 10 to 19)

c. Printout of bank statement obtained from bank (if available).

7. Sign and date the bank reconciliation

8. Submit Bank Reconciliation and supporting documents to Approving Officer for approval and

signature.

9. Keep report on file for the audit purposes.


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Module 7: Bank reconciliation General Ledger maintenance.

Objective

This module provides useful information on how to maintain some bank reconciliation

transactions at the General Ledger level to facilitate clean financial reporting.

Bank Charges

With Umoja solution, if the Bank external transaction code used by your house bank is properly

mapped, Bank Charges will be displayed with green status to indicate that they are cleared in

FEBAN. However, these entries at General Ledger level will need to be cleared using T_Code F -

03. Below are different forms that Bank Charges will take and related General Ledger postings;

Category Bank Charge Form Financial postings1 Bank charges that are not

associated with a specific

transaction

( typically these charges

appear in the statement

on the last day of the

month)

Involves two-step process:

1. Using F-03, select Charge off diff" button to record

the expense line: Posting key = 40, GL = 74251010,

Cost Centre = 99901 Fund = 64VQA, Business Area =

S101, Grant =GMNR 2. A batch

program (Average Daily Balance) will allocate all Bank

Charges recorded in 64VQA to the pool participants.

2 Bank charges that are

associated with a specific

transaction (for instance

international payment fee)

As for category 1 above

3 Bank charges that are

associated with special

services provided by the

bank ( e.g. transporting

money to remote and safe

areas)

These will be charged to the Fund and Business Area

using the service: 1. Using F-03, select Chargeoff

diff" button to record the expense line: 2. posting Key

= 40, GL 74251010, cost centre = xxxxx, Fund =

, Business Area = , Grant=GMNR. 3. If a Fund commitment for

bank charges has been established, enter the

Earmarked Fund Document N0. and line

4 Bank charges associated

with rejected payments

These will be posted as for category 3 above, however

in case the rejected payment is due to a negligence onthe part of the staff member ( such as not informing

AP user that the bank account has been closed, etc.):

Using FV65, post to staff member account and related

duty entity as follows: Debit Staff Member, Credit GL=

74251010, Cost Centre=xxxxx, Fund=xxxx, Business

Area=xxxx, Grant=GMNR


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Participant Guide

Bank Reconciliation

Clearing: FEBAN vs. F-03 (GL), F-44 (Vendor), F-32 (Customer)

Appears as Openin FEBAN

To becharged

against

Remarks

Banking Clearing

Accounts from

Outgoing

Payments

Another GL FEBAN should be used. Using F-03may clear both lines but the

bank clearing account will be displayed always as open in FEBAN

Banking Clearing

Accounts from

Incoming

Payments

Another GL FEBAN should be used. Using F-03may clear both lines but the


Vendor

Debit

FEBAN should be used. Using F-44may clear both lines but the

bank clearing account will be displayed always as open in FEBANCustomer

Debit

FEBAN should be used. Using F-32may clear both lines but the


Notes:

FEBAN is a T_code to clear open items in bank clearing accounts

FEBAN should be used always before using any of the other T_codes to clear GLs (F-03), Vendors

(F-44)or Customers (F-32).Otherwise, those lines will always appear as open in FEBAN

To check what is actually open in bank clearing accounts, you mustuse FAGLL03

Bank and Unidentified Charges are mapped to appeared green in FEBAN but they are open in

FAGLL03


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Participant Guide

Bank Reconciliation

Typical Bank Reconciler daily maintenance actions

1 Verify whether a Bank

Statement has been uploaded

for each House Bank under duty

entity ( Business Area)

responsibility

Report missing Bank Statement to local Cashier

2 Verify that Nominal GL Account

balance agrees to FEBAN closing

balance

Report issues to local Cashier who will request a Bank to correct

the Bank Statement if needed. Alternatively, if it is an error with

the upload, the Cashier will report the issue to the Umoja

Treasury team

3 Review content of GL account

ending in 19 for unidentified

transactions

Verify transaction type used by the bank, if the bank uses a new

transaction type, request the Cashier to confirm with the bank

what type of transaction will have that code.

Open an iNeed Service Request for this new transaction type to

be added to the Bank Rule Table. Include a description of the

transaction so that the Umoja team can configure correctly.

Note: These transactions will be green in FEBAN based on the Bank Rule Table

but will not be reconciled in GL. Reconcile with JV or F-03 .

4 Using FEBAN, reconcile incoming

payments

Payment from commercial entity or third party:

i)Check AR Reportwith ZARFBL5NT_code

ii)Check AP Reportwith ZAPFBL1NNT_code

Payment from individual:

i)Check AP Reportwith ZAPFBL1NNT_codeNote: Review content of GL account ending in 12 and 16 with FAGLL03 toensure all incoming payments have been cleared.

5 Using FEBAN, reconcile outgoing

payments to the extent they

have not been cleared

automatically

If Cheque number is included in the bank file;

i)Display Cheque Register FCHN

II)Clear with FEBAN

If KZ document number (33xx)is included in the bank file:

i)Display vendor history (ensure KZ is not cleared)

ii)Clear with FEBAN

Note: Review content of GL account ending in 11 for Cheque Payments and 14for EFT Payment to ensure all items are reconciled

6 Review content of GL accountending in 17 for Bank Transfer

Received from another UN Bank

with FAGLL03

Refer to Reconciliation of bank transfers and automatic banktransfers for zero balance account in Module 5above

7 Review content of GL account

ending with 18 for Bank Charges

with FAGLL03

Refer to 4 categories of bank charges reconciliation with different

process respectively.


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Participant Guide

Bank Reconciliation

Revision History (Soft Copy only)

Date Version Prepared by Description

15 Dec 2014 1 Josephine Mwaka Mwambazi Initial Draft

371_Umoja Bank Reconciliation_User Guide_v1.0.pdf

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