FI321 Umoja Accounts Payable Process. Umoja Accounts Payable Process Version 7 1

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1 FI321 Umoja Accounts Payable Process Umoja Accounts Payable Process Version 7 Copyright Last Modified: United 19-June-13 Nations 1

2 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 2

3 Introduction Please share with us: Your Name Your Section/Unit # Years with the UN Interesting Fact About Yourself 3

4 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 or the Internet outside of breaks Participate fully in the training session and respect each other s contribution Breaks are included at the discretion of the trainer X X No Phones Do Not Access Participate Ask Questions Breaks 4

5 Course Overview The purpose of the Umoja Accounts Payable Process is to teach end users how to enter Invoices, Credit Memos, Down Payments and perform all other Accounts Payable (AP) activities in Umoja. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Accounts Payable Overview Umoja ECC Navigation Course Duration: 6 hours 5

6 Course Objectives After completing this course, you will be able to: List the different GL accounts relevant for Accounts Payable Scan, park and/or post an Invoice Process Invoices with or without a Purchase Order Process Invoices applying payment retention Process Invoice reductions Enter and clear Down Payments Enter a Credit Memo 6

7 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 7

8 Module 1 Objectives After completing this module, you will be able to perform the following actions: Identify the purpose of Reconciliation Accounts for Accounts Payable Explain the purpose of Special GL Indicators Differentiate between the different Business Partner Groups in Umoja 8

9 Key Terminology Key Term Chart of Accounts Subsidiary Ledger Reconciliation Account Special GL Indicator Description A catalogue of all General Ledger (GL) accounts available in an accounting environment. A secondary ledger that sits under the General Ledger, to which all operational transactions are recorded or executed. Accounts within the General Ledger that are automatically modified when posts are made to Subsidiary Ledgers. Indicates when a transaction should post to a different reconciliation account than indicated for a particular Business Partner Group (used for Down Payments for example). 9

10 Financial Accounting Module in Umoja In Umoja, the Financial Accounting (FI) module is designed to capture the UN s business transactions in a manner that will satisfy external reporting requirements. A consolidated list of all Umoja GL accounts housed in Umoja is stored in the system s Chart of Accounts. General Ledger Umoja Chart of Accounts GL Accnt 1 GL Accnt 2 GL Accnt 3 GL Accnt 4 GL Accnt 5 GL Accnt 6 GL Accnt 7 GL Accnt 8 GL Accnt 9 GL Accnt 10 GL Accnt 11 GL Accnt 12 10

11 General Ledger vs. Subsidiary Ledgers The Subsidiary Ledger is a supporting ledger that provides detailed information about individual accounts, which are not stored at the detailed level in the General Ledger. Subsidiary ledgers divide financial data into distinct and more manageable categories. The total of all individual account balances in the subsidiary ledger equals the balance of the Reconciliation Account in the General Ledger. General Ledgers Postings to Reconciliation Accounts Subsidiary Ledgers 11

12 AP Subsidiary Ledger The AP Subsidiary Ledger (or Sub-Ledger) is one of three Subledgers in Umoja. General Ledger Accounts Receivable (AR) (contains Customer accounts) Accounts Payable (AP) (contains vendor information) Fixed Assets (FA) (contains assets not recorded in Galileo) 12

13 Reconciliation Accounts Umoja uses Reconciliation Accounts to reconcile financial information contained in the subsidiary ledgers in real-time. The entries in the Reconciliation Account can only come from a Subsidiary Ledger. For example, fuel purchased from a vendor will be recorded in General Ledger as follows: AP Subsidiary Ledger General Ledger Journal Voucher Debit Fuel 2000 Credit Vendor 2000 Vendor Account 2000 AP- Reconciliation Account 2000 Expenses 2000 Fuel In the AP Subsidiary Ledger, the vendor is credited with the amount due In the General Ledger, the AP Reconciliation Account has a corresponding credit entry to reconcile with the AP Subsidiary Ledger. 13

14 GL Accounts used for AP GL Account Reason Entries in the AP Sub-Ledger Reconciliation Accounts Ensures the Sub-Ledger is always reconciled with the General Ledger. Entries for Revaluation of Monetary Balances Revaluation Accounts Revaluation entries cannot be posted to the reconciliation GL accounts. Entries for late audit adjustment Manual Adjustment Accounts Should be recorded at the GL level since the Sub-Ledger may be closed earlier than the GL. 14

15 Recording AP Entries in Umoja GL Accounts For each Business Partner Group, Umoja provides a standard numbering convention for each type of GL Account: Account Type Ending with Digits Reconciliation account 10 Manual Adjustment account 20 Revaluation account 99 15

16 Business Partner Groups in Umoja Member States Non-member States Other Governmental Entities UN Agencies, Funds and Programs Individuals (Staff Members, Retirees, Survivors) Individual Consultants and Contractors NGO s Commercial Vendors 16

17 GL Accounts for AP For standard invoice transactions, the following GL accounts are automatically derived by Umoja based on the Business Partner Group: Business Partner Group Reconciliation GL Account Member States Non-Member States Other Governmental Entities UN Agencies, Funds and Programs Non-Governmental Organizations Commercial Vendors Individuals (Staff Members, Retirees, Survivors and so on) Individual Contractors and Consultants

18 Special GL Indicators Special GL Indicators (SPGL) are used to identify transactions that should be recorded to alternate GL accounts. In Umoja, the following SPGL are used for AP: Transaction Down payments to commercial vendors Advances to implementing partners Travel advance Salary advance Security deposits Loans receivable SPGL A Y T S H X Note: In Umoja, SPGL are used in conjunction with the Down Payment functionality, which is covered later in the course. 18

19 Learning Checkpoint 1 The total of all individual accounts in the Subsidiary Ledger equals the balance which account in the General Ledger. Select the correct option. A. Reconciliation Account B. Revaluation Account C. Manual Adjustment Account D. AP Sub-Ledger 19

20 Learning Checkpoint 1 The total of all individual accounts in the Subsidiary Ledger equals the balance which account in the General Ledger. Select the correct option. A. Reconciliation Account B. Revaluation Account C. Manual Adjustment Account D. AP Sub-Ledger Option A is the correct answer. Reconciliation Accounts are used to reconcile financial information contained in the Subsidiary Ledgers in real-time. 20

21 Learning Checkpoint 2 Down Payments to commercial vendors are recorded using a particular type of. Select the correct option. A. General Ledger Account B. AP Sub-Ledger Account C. Special GL Indicator D. Business Partner 21

22 Learning Checkpoint 2 Down Payments to commercial vendors are recorded using a particular type of. Select the correct option. A. General Ledger Account B. AP Sub-Ledger Account C. Special GL Indicator D. Business Partner Options C is the correct option. Special GL Indicators (SPGL) are used to identify transactions, including Down Payments, that should be recorded to alternate GL accounts. 22

23 Module 1 Summary The key points covered in this module are listed below: Reconciliation Accounts are used to update the General Ledger based on postings to the AP Subledger Special GL Indicators are used to make postings to accounts outside of the standard Reconciliation Account (for example, for Down Payments) Business Partner Groups in Umoja each have their own set of Reconciliation Accounts 23

24 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 24

25 Module 2 Objectives After completing this module, you will be able to perform the following actions: Enter an Invoice with reference to a Purchase Order (PO) Calculate and apply Value Added Tax (VAT) to an Invoice Hold an Invoice for later completion Simulate Invoice posting Save Invoice as Parked (for Review) Post Invoice Approve or reject a parked Invoice Review a Purchase Order Reverse an Invoice 25

26 Key Terminology Key Term Three Way Match Workflow Park Document Post Document Invoice Tolerance Description The capability provided by Umoja to compare an Invoice to the corresponding PO and Goods Receipt. A workflow that automatically routes Invoices or other financial/procurement documents to the appropriate persons for approval and/or review. A process that forwards a financial document in Umoja for Invoices through a workflow to the AP Approver for review. The parked documents do not have any financial impacts. A process that posts a financial document to a particular subledger. This results in the relevant financial impacts to the G/L accounts. The maximum amount by which an Invoice may differ from the PO total and each PO line for the LIV to pass ($4000 or 10% of PO, whichever is lower). 26

27 Key Terminology Key Term Payment Block Goods Receipt Service Entry Sheet (SES) Movement Type Description A block that ensures an invoice cannot be paid until the payment block is removed. A document in Umoja entered to acknowledge receipt of goods, referencing one or more PO s. Goods receipt creates a financial document to record expense and accrued liability in GR-IR account. A document in Umoja entered to acknowledge receipt of services, referencing one or more PO's. SES creates a financial document to expense services and record an accrued liability in GR-IR account. A three-character field in the Umoja ECC system used to process transactions against a PO (for example, Return Delivery to Supplier). 27

28 Roles & Responsibilities The following Umoja Enterprise roles are involved in the AP process: Financial Accounting User (AP) Creates vendor Invoices and vendor Credit Memos within the AP subledger. This entails: o o o o o Adding VAT Changing payment terms, if needed Adding a payment block, if needed Reducing the invoice, if needed Requesting that PO be modified, if needed These documents are subject to workflow approval Financial Accounting Approver (AP) Reviews and approves the vendor Invoices and Credit Memos created by the Financial Accounting User (AP) within the AP subledger Reviews and provide comments with rejection when there is no Three Way Match 28

29 Roles & Responsibilities The following Umoja Enterprise roles are involved in the AP process: Financial Accounting Senior User (G/L, A/R, AP and CO) Creates and maintains the cost accounting allocation rules, including the statistical key figures used for allocations Runs the batch that posts the billing documents coming from the Sales and Distribution (SD) module Inserts a long-text description for incoming payments for voluntary contributions Creates and posts GL documents that are not subject to workflow, such as accruals, reversals and recurring entries Clears GL, AR and AP documents 29

30 Invoice Transactions in Umoja Recall that there are two main transactions within Umoja ECC to enter an Invoice: MIR7 is used for standard invoices for goods and services in reference to a PO FV60 is used in cases when there is no PO. Invoices processed with FV60 may refer to a Funds Commitment In this Module, we will cover the MIR7 transaction. FV60 will be discussed in detail later in the course. 30

31 Invoice Transactions in Umoja Below are key differences between the two Invoice transactions in Umoja, Invoices with or without PO: MIR7 Invoice entered with reference to a PO Line items are derived automatically Document will automatically be posted if within Invoice Tolerance Parking the document will trigger workflow and send to the AP Approver for review Holding the document will save for later completion but will not trigger workflow FV60 Invoice entered without reference to a PO Line items must be entered manually or through an Excel file Document must be approved by AP Approver to be posted Parking the document will save for later completion but will not trigger workflow No Hold functionality 31

32 Three Way Match Umoja ECC performs Three Way Match Invoice Goods Receipt Umoja ECC Purchase Order Enter Invoice with PO (MIR7) Umoja ECC s automated Three Way Match enables the cross-check of Purchase Order, Goods Receipt and Invoice documents o If the documents cannot be matched within the Invoice Tolerance, the system won t allow the invoice to be forwarded to the appropriate approvers o If the documents do match, the AP User will be able to Save as Complete, which will forward the Invoice to the AP Approver, who can make the financial posting 32

33 Three Way Match Enter Invoice with PO (MIR7) Cont d If physical discrepancies (for example, physical damage) are found during goods receipt, a blocked status can be placed on the goods, resulting in no financial posting. This blocked status will be placed by the R&I team or SAU team If good are subject to inspection, the goods receipt is performed upon delivery. Since the inspection is performed subsequently and may highlight some items are missing or don t meet the specifications, a payment block should be placed on all invoices for which inspection is relevant. Only after the inspection is complete should the Invoice be posted. This will require coordination between the operations and the accounts payable unit 33

34 Review Purchase Order After receiving an Invoice from a vendor, it may be necessary to view details about a PO. To view a PO, use the Display Purchase Order (ME23N) transaction. You can also review all PO s for a vendor using the ME2N transaction. To enter a PO number, select the Other Purchase Order in the menu or using the icon. A pop-up window will appear where you can enter the PO number. You may also click the Matchcode icon to search for a particular PO by vendor, cost center or many other criteria. 34

35 Review Purchase Order The Display Purchase Order screen has three main sections: Header Data tabs Item Overview Item Details Each one of these sections can be expanded or collapsed by clicking the button next to their label. 35

36 Review Purchase Order In the Item Data section, the Purchase Order History tab displays a full history of receipts, returns and any other actions that have occurred for each line item. The MvT field displays all the Movement Types that have occurred. The relevant Movement Types in Umoja are: 101 Goods Receipt for Purchase Order 102 Cancellation or reversal of Goods Receipt 103 Goods moved into blocked stock 105 Goods moved from blocked stock into unrestricted stock 122 Return Delivery to Supplier ZP1 Virtual Goods Receipt (Goods received through a freight forwarder) The Account Assignment tab contains other useful information, such as Cost Center, GL Account and Funds Center. 36

37 Invoice Process Steps (MIR7) The main steps to process an Invoice with a PO are: Add Header Data Calculate VAT Add PO Reference Add Payment Terms and Unplanned Delivery Costs Simulate and Post Document 37

38 Add Header Data Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Step 1: Enter the MIR7 Transaction Code. The Park Incoming Invoice: Company Code 1000 screen appears. The top half of the screen contains tabs for data about the Invoice, such as Payment Terms and Tax Information. The bottom half of the screen shows which PO's are being referenced in the Invoice. 1 2 Populate the following fields in the Basic Data tab: Invoice Date: The Invoice date provided by the vendor 1 2 Posting Date: The date on which the Invoice will be posted (usually today s date) 38

39 Add Header Data Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Populate the following fields in the Basic Data tab: 3 Amount: The total amount on the Invoice including VAT and all charges. 4 Currency: Currency of the Invoice 5 Reference: The vendor Invoice number 6 Text: A free text field used to convey any particular information about the document (in case of review)

40 Calculate VAT Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Step 2: To add tax information, click the icon next to the Tax Amount field. This will let you change the Reporting Country. If you do not know the Country Code for your Country, click the icon to see a full list. After selecting the reporting country, a list of Tax Codes will be available to select from the dropdown menu. Choose the appropriate Tax Code. After the PO information is loaded, the Tax Amount will be automatically calculated. 40

41 Calculate VAT Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post The selected Tax Code will allow Umoja to calculate the tax amount and determine in which GL Account to record the VAT. The three Tax Code options available (for applicable countries) are: 1. L1 (Input VAT 10% Reimbursable) Records VAT on Balance Sheet 2. L2 (Input VAT 10% Non reimbursable) VAT recorded on the same expense line as the underlying amount 3. V0 (Zero Tax) 41

42 Add PO Reference Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Step 3: To create the link between the Invoice and PO, enter the PO number referenced in the Invoice in the field next to the Purchase Order/Scheduling Agreement drop-down menu. When you hit Enter, the vendor information appears on the top right side of the screen. In addition, the line items from the PO will populate in the table below. 42

43 Add PO Reference Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Items that have been received are highlighted in yellow. If you scroll to the right, you will see the number of items received under the Received field. If you would like to add an additional PO to the Invoice: Click the yellow arrow button next to the PO number field A pop-up window will appear where you can enter more PO numbers Click the Execute icon to return to the MIR7 screen 43

44 Add PO Reference Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post In addition to adding the Tax Code at the Header level, it must also be entered for each line item. To do this, in the PO Reference section, scroll over to the right until you see the Tax Code field. Enter the Tax Code for each line item. 44

45 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Step 4: Next, the payment terms may be modified. Payment terms are defaulted from the Vendor s Business Partner information and can be overwritten from the They can also be overwritten by editing the information in the Payment tab in MIR7. 1 The following fields may be edited: 1 Payment Terms: A key that defines what set of payment terms will be used, including discount percentages and payment periods. Example: 0002 = To be paid within 14 days at 2% cash discount or within 30 days due net 45

46 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post 2 Baseline Date: Date used to track the different payment terms. If the Invoice is received significantly later than the Invoice date listed, you may wish to baseline the payment terms to a different date 3 Payment Method: Specifies the way payment will be made to the vendor. The Vendor Business Partner must be set up to accept this type of payment in order for the payment to be made. If overwriting a default Payment Method, use the BP Transaction to ensure that Payment Method is set up for that Business Partner

47 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Umoja automatically determines the House Bank which will make the payment using multiple factors. One of these is Payment Method. Therefore, make sure the appropriate Payment Method is selected prior to clicking Save as Complete. Common Payment Methods are: A Bank Transfer (ACH-CCD): For payee bank in the US S SEPA: (Single Euro Payments Area) For payee bank in Eurozone and currency of payment is Euro W Wire (SWIFT MT103): Used in all other regions Y for payments in cash from Cashier s imprest U UNDP Pay Agent: Used in situations where UNDP is a Pay Agent or is paying a Travel Advance R UNDP Service: Used in situations where UNDP is procuring goods or services on behalf of an Umoja entity 47

48 Add Payment Terms Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post 4 Payment Block: Denotes why a payment block is placed on the Invoice. Payment blocks must be manually removed for an Invoice to be paid 5 Partner Bank: A vendor may have multiple banks accounts in separate currencies. The partner bank field should be selected to tell the system which payee bank payment should be sent. Also, this must match the Payment Method selected

49 Process Payment Retention For purchases that are subject to payment retention, the standard MIR7 transaction is used Add the PO Reference. When the PO reference is added, a message will appear: Item is relevant to retention, see message log 1 To add the due date for payment to be made, find the relevant line item(s) in the PO Reference section 2 Scroll far to the right until you find the Due Date field. Enter the desired payment retention due date 3 Simulate the document and check the retention amount is credited to the Vendor account 4 5 Click Save as complete

50 Process Payment Retention After the Invoice has been posted, there will be two corresponding accounting documents created: one for the Invoice and one for the Retention. To view these documents, first open the Invoice using the Display Document (T-Code FB03) Transaction. Click the Follow-On Documents button to open a list of all relevant financial documents for the invoice, including the Invoice and Payment Retention documents. Double-click any of these documents to display them. 50

51 Process Payment Retention Below, you can see an example Invoice processed with retention. In this example, the full amount is credited to the Vendor account, while only a portion of the payment is debited according to the agreed retention rules. 51

52 Apply Vendor Cash Discount Payment terms drive whether there will be a discount taken if the invoice is paid within the discount period Payment terms are maintained on the Business Partner master record and the invoice will automatically inherit payment terms maintained on the BP If payment terms are entered on the PO, they will override payment terms from the Business Partner master record and the invoice will automatically inherit payments terms from the PO. Payment terms inherited from the BP master record or the PO can be overwritten by the AP User at the time the invoice is created Payment terms appear on the Payment tab of the MIR7 screen. The system adds payment terms to the Baseline Date (also on the Payment tab of the MIR7 screen) to calculate the Due Date. 52

53 Unplanned Delivery Costs Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post If there are unplanned costs associated with a purchase, they may be entered in the same MIR7 transaction. Unplanned costs could be delivery, shipping, handling, packaging or any other incidental cost that don t appear on the PO and are added by the vendor to the invoice (subject to 10% of PO or USD 4,000 whichever is less). Procurement must approve these charges and Certifying Officer must certify this invoice. 53

54 Add Unplanned Charges To enter Unplanned Charges: 1. Enter full invoice amount (including the unplanned charges). When the PO is entered, the document is unbalanced due to unplanned charges 2. In the Details tab, enter the unplanned charges in the Unpl. Del. Csts field. The document will become balanced as signified by the green light 3. Click Simulate to simulate the document postings 4. Click Save as Complete to submit for approval 54

55 Add Unplanned Charges Below is an example of a simulated Invoice with unplanned charges. The unplanned charges are debited to the expense account in proportion to the original charges and vendor is paid full amount. 55

56 Enter Invoice Reduction Invoice Reductions are entered with the original Invoice in MIR7, only after you have received approval to enter an Invoice Reduction. In addition Invoice Reductions can only be entered if they fall within Invoice Tolerance (4000 USD or 10% of PO, whichever is lower) To do this: Enter the Amount as it appears on the Invoice along with all other required fields (such as Payment Terms) Add the PO Number as the PO Reference As you can see below, the Invoice Amount is $5 more than the amount of the PO and Goods Received. The results in a positive balance. The red light indicates that the Invoice cannot be Saved as Parked 56

57 Enter Invoice Reduction In the drop-down menu next to Layout, select Invoice reduction. This will restrict the number of columns to just those that are relevant for Invoice Reductions Scroll to the right until you find the Correctn ID field. For the line item that should be reduced, select the Vendor error: reduce invoice option 57

58 Enter Invoice Reduction Next, under the Invoice Amount Acc. To Vendor field, enter the amount that the Vendor invoiced for this line item You will see a pop-up window that shows how much the Invoice was reduced. The balance of the invoice will also be corrected. The Invoice can now be Simulated 58

59 Enter Invoice Reduction In the Simulate pop-up window, you can preview how the documents will be posted. In this example, the Invoice was reduced by $10 USD. Only $480 USD of the $490 USD Invoice sent by the vendor is being posted to the AP Subledger. If you are satisfied with the results, click the X icon to close the pop-up window, then click Save as Complete to submit for approval. 59

60 Key Actions for MIR7 (Simulate) The MIR7 transactions provides several actions that can be taken on an Invoice. It is important to understand the function for each of the following functions in order to properly process an Invoice with a PO. Simulate Document Save as Completed Save as Parked Hold Before parking a document, the creator should always simulate the document to review for accuracy and completeness. Clicking the Simulate button will display a simulated financial posting in USD to the Vendor and GL accounts. 60

61 Key Actions for MIR7 (Save as Complete) Simulate Document Save as Completed Save as Parked Hold The Save as Completed button is used to post the Invoice if it is within the Invoice Tolerance. In detail, clicking the Save as Completed button will cause the Umoja system to: Perform edit checks to ensure period is open and coding block is valid Verify budget availability (AVC) to ensure budget is sufficient to absorb VAT (when not reimbursable) or differences due to changes in exchange rates. Budget consumption is updated Attempt Three Way Match If all checks are successful, document is routed through workflow 61

62 Key Actions for MIR7 (Save as Parked) Simulate Document Save as Completed Save as Parked Hold If the Invoice fails any of the checks, it cannot be Saved as Complete and needs to be either put on Hold or Saved as Parked. Clicking the Save as Parked button will send the Invoice to the AP Approver for review through Workflow. There will be no edit check, budget check or an attempt at Three Way Match at this time. 62

63 Key Actions for MIR7 (Hold) Simulate Document Save as Completed Save as Parked Hold Finally, you may click the Hold button to save the Invoice to complete at a later time. Clicking the Hold will not trigger any automated checks. It will not trigger workflow and will be viewable only to the original creator of the document. 63

64 Simulate & Post Document Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post Step 5: If there is a red light symbol next to the Messages button, click the button to see a list of any errors or warnings on the document. When you feel the document is ready to post, click the Simulate button at the top of the screen. A popup screen will appear showing the results of the simulated postings from a document perspective. In this example, the vendor account is being credited while the GR/IR account is being debited. Here you will also see any postings related to VAT, Invoice Reduction or unplanned delivery costs. 64

65 Simulate & Post Document Add Header Data Calculate VAT Add PO Reference Add Payment Terms Simulate and Post If you are satisfied with the results, click the Save as Completed button to send the Invoice for approval. If successful, a message will appear on the bottom of the screen with the document number of the parked Invoice. 65

66 Look Up Document Approver If the document wasn t posted and was sent through workflow for approval instead, you can look up the workflow approvers. Using FBV3, enter the invoice document number and fiscal year. The system will bring up the document. Click the Services for Object icon and select Workflow / Workflow Overview. Scroll down to the account payable line and double click the information cell. A list of approvers will be displayed and you will see whether these are intermediate approvers or approving agents. In this example there is only one approver. 66

67 Reverse Invoice If an invoice was posted erroneously, it can be reversed using the Cancel Invoice Document (MR8M) transaction. However, only the Financial Accounting Senior User has the access to execute this transaction. It should be executed after thorough review of the invoice and circumstances requiring reversal. To reverse an Invoice, the following fields are required: Invoice Document No. Fiscal Year Reversal Reason: The Reason Code that describes why the Reversal is required. In this field you can enter if the Reversal is required in the current or previous period Posting Date 67

68 Change Posted Invoice Using the Change Posted Document transaction (FB02), Umoja allows for the following fields to be changed after a document is posted through workflow approval: Payment method Payment block Assignment Long Text To access the document, enter the document number and the fiscal year and click enter. If you don t know the document number, click the Document List button and enter parameters such as document type, posting date, my own documents and so on. 68

69 Change Posted Invoice To change the Payment Method, Payment Block or Assignment: Once the document appears, double click the vendor line (the first line in the document) and another screen will pop up Fields that can be changed will be in white. Fields in grey cannot be changed. Once the change is made, click the Save icon and ensure you receive the system message Changes have been saved The Assignment field is used for the automatic clearing of Invoices. It is populated with the Document Number, the Line Item and the Fiscal Year. This field should not be modified 69

70 Change Posted Invoice (Payment Long Text) The Payment Long Text allows us to insert comments and explanations on the document in addition to the Document Header Text and the Text on each document line. For example, it can be used to give a full description for why an Invoice has been reversed. The Long Text is optional. To modify the Long Text, click the Extras menu and click Text. In the pop-up window that appears, enter the explanation next to the Correspondence field. Return to the document and click the Save icon to make your changes. 70

71 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 hands-on 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 Let s 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 71

72 Activity 1 Transaction Name: Process Invoice with PO Transaction Code: MIR7 Link to the uperform simulation: ?originalContext=

73 Learning Checkpoint 1 Which of the following processes is used to compare the Invoice to the PO and the goods receipt? Select the correct option. A. Three Way Matching B. Down Payments process C. Outgoing Payments process D. All of the above 73

74 Learning Checkpoint 1 Which of the following processes is used to compare the Invoice to the PO and the goods receipt? Select the correct option. A. Three Way Matching B. Down Payments process C. Outgoing Payments process D. All of the above Option A is the correct answer. The automated Logistics Invoice Verification (LIV) process is used to compare the Invoice to the PO and the goods receipt. 74

75 Learning Checkpoint 2 Which of the following buttons lets the User (AP) preview financial postings before clicking Save as Complete? Select the correct option. A. Add PO B. Preview Posting C. Check D. Simulate 75

76 Learning Checkpoint 2 Which of the following buttons lets the User (AP) preview financial postings before clicking Save as Complete? Select the correct option. A. Add PO B. Preview Posting C. Check D. Simulate Options D is the correct option. All Invoice postings should be simulated before being Saved as Complete. 76

77 Module 2 Summary The key points covered in this module are listed below: There are two methods (transactions) for processing an Invoice: entering an Invoice with a PO and entering an Invoice without a PO. This module covered Invoice with PO Sales tax and Retention is applied in the invoice process Documents should be simulated before Saving as Complete to trigger workflow Three Way Matching is used to compare the Invoice to the PO and the goods receipt You can change certain fields on the document after an Invoice is posted You can look up the Approver (AP) names from the Invoice document 77

78 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 78

79 Module 3 Objectives After completing this module, you will be able to: Process Invoices without PO Reversal of Invoice without a PO 79

80 Invoices without PO's Umoja introduces the concept of creating invoices with reference to a Funds Commitment instead of a PO. This applies in the following scenarios: 1. Grants process for implementing partners 2. Official Travel 3. Entitlement Travel 4. Miscellaneous Obligating Documents 5. Fellowship Study Tour 6. Education Grant 7. Self-Insurance (unless treated as special PO) 8. Appendix D Claims All Fund Types 9. PK Local TCC/PCC payments 80

81 Process Invoice Without PO To create a non-po Invoice: 1 Use the FV60 transaction code to access the Park Vendor Invoice screen. Entering an Invoice using this screen is identical to entering one using MIR7 except for the fact that every line item must be entered instead of automatically derived 2 Enter the details in the Basic Data and Payment tabs as you would with an Invoice using MIR7 l 2 81

82 Process Invoice Without PO For each line item, enter information for each of the following fields: G/L acct The account that will be to post D/C Whether the posting is a Debit or Credit Amount Fund Business Area Cost Center Functional Area Grant (if applicable) Earmarked Fund G/L Line Text VAT 82

83 Process Invoice Without PO For Invoices that reference a Funds Commitment (obligation), the document number of the Funds Commitment should be entered in the Earmarked funds field. In addition, the line item within that Funds Commitment must also be entered in the Earmarked funds: Document Item field 83

84 Process Invoice Without PO When all fields are complete 1 Click the Simulate button to view the simulated postings if the Invoice would be approved. If you would like to save the document for later completion, click the Document menu, then select Park 2 Click the Save as completed button to forward the Invoice for approval and posting Since Invoices without PO s cannot undergo Three Way Matching, all documents created using FV60 must be reviewed and approved/rejected by the Approver (AP). l 2 84

85 Key Actions for FV60 It is important to note the differences in actions that can be taken in the FV60 transaction as opposed to the MIR7 transaction. These actions include: Simulate Document Park Save as Completed The Simulate Document function is identical to MIR7. Before attempting to post the Invoice, the Simulate button should be clicked to ensure the correct accounts are being posted to. 85

86 Key Actions for FV60 Simulate Document Park Save as Completed Parking a document using FV60 saves the Invoice for later completion. However, it does not forward the document using workflow to the AP Approver. In effect it is identical to the Hold button in MIR7. 86

87 Key Actions for FV60 Simulate Document Park Save as Completed Save as Complete should be used once the AP User would like to post the Invoice. This will trigger workflow and will forward the document to the AP Approver for review. Because FV60 does not use Three Way Matching (as there is no PO), all Invoices entered using FV60 must be approved before they can be posted. Once the AP Approver approves the Invoice, it will be posted to the relevant accounts. 87

88 Workflow Approval & Rejection In Umoja, documents that require review or approval(s) are automatically routed to the correct approvers based on the Delegation of Authority tables. This is handled in the Umoja system using the Business Workplace. The Business Workplace (t-code SBWP) screen is organized in a similar way to an application. It has sections for the Inbox, Outbox and private/shared folders. All approvals and reviews will be routed through the Inbox in the Workflow section. You can view your items organized by content or tasks. 88

89 Workflow Approval & Rejection To review an item, double-click the selected document in your inbox. If a decision is required, decision options that will display are: Approve Refuse Cancel and keep work item in inbox (to be used when it s determined that another approver in the approver group should review the document) 89

90 Workflow Approval & Rejection Below the decision options, you can view summary information about the document on the left-hand side. On the right-hand side of the screen, under Objects and attachments, you can review whether the SAP parked document was entered correctly: Double-click the link next to Office Document to view the scanned copy of the document Double-click the link next to Display Parked Doc. to view the document as entered in Umoja 90

91 Workflow Approval & Rejection If the Approve option is selected, a system message will appear at the bottom of the screen indicating that the document has been posted. If the Refuse option is selected, the document will no longer be visible in the list and will be sent back to the original AP User who entered it into Umoja. In your Outbox, you can review items that you have previously reviewed along with their final decisions. 91

92 Reverse Non-PO Invoice Reversing Non-PO Invoices can be done using the Reverse Document (FB08) transaction. Similar to the MR8M transaction, this transaction is used to reverse certain financial postings that were made in error. Within Financial Accounting, only the Financial Accounting Senior User has access to this transaction. The transaction should be reviewed carefully before reversing the document. To reverse a financial posting enter appropriate information for the following fields in the Document Details section: Document Number: The Financial Posting Document number Company Code: 1000 Fiscal Year 92

93 Reverse Non-PO Invoice Reversal Reason: The Reason Code that describes why the Reversal is required. In this field you can enter if the Reversal is required in the current or previous period Posting Date A specific date may be required to be entered When you click the Save button, the posting will be reversed. This transaction does not use Workflow and thus does not have to be parked or approved. You should also click Display before reversal to verify the correct document is being reversed. After the reversal is saved, a reversal document number will be created for reference. 93

94 Activity 1 Transaction Name: Post Invoice without PO Transaction Code: FV60 Link to the uperform simulation: ?originalContext=

95 Module 3 Summary The key points covered in this module are listed below: As part of AP process, there may be Invoices without PO's and may related to Funds Commitments This method will be used to pay daily allowance to the troops, settling Travel claims and other payments related to Funds Commitments Once an Invoice is parked, it follows the workflow and is automatically sent to the appropriate AP Approver s inbox Invoices can be reversed and this should be done after careful review of the original transaction and need to revers the original document. The reversal reasons should be documented 95

96 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 96

97 Module 4 Objectives After completing this module, you will be able to: Enter a Credit Memo referencing a PO Enter an Evaluated Receipt Settlement for payment of services to Consultants and Individual Contractors 97

98 Exceptions to Three Way Match As we have seen in Module 1, there are several options to take when an Invoice amount is greater than the amount of Goods Received. In this Module we will examine: Unplanned Charges If you would like to pay the amount on the Invoice (that is, pay more than the amount on the PO/Goods Receipt), then the line items on the MIR7 transaction can be manually edited to reflect this. Invoice Reduction Credit Memo If the User (AP) has received approval, they may enter an Invoice Reduction, which will lower the amount that is paid to the Vendor. This should not be used if a Credit Note is sent to the UN by a Vendor. In other cases, you may wish to process the Invoice and then issue a Credit Memo. In this case, the Invoice can be posted (if it is within the Invoice Tolerance). A subsequent Credit Memo can then be posted referencing the original PO. Note: The amount an Invoice can differ from the PO or Goods Receipt is limited by the Invoice Tolerance ($4000 USD or 10% of PO, whichever is lower). 98

99 Enter Credit Memo Access the MIR7 Transaction 1 In the Transaction drop-down menu select Credit Memo instead of Invoice 2 Add the PO Reference 3 Enter all data in the Basic Data tab 4 Enter all data in the Payment tab The payment term should be Z001 for recovery against next payment 5 At the line item level, modify the Quantity and Amounts as needed to justify the Credit Memo 6 Click Simulate and Park to send the Credit Memo to the Inbox of the AP Approver. They must review and approve the Credit Memo in order for it to be posted

100 Enter Credit Memo Click the Payment tab and enter Baseline Date and other Payment Terms. The Baseline Date and Payment terms should be the same as for the original Invoice. This is necessary to ensure that the credit memo is netted correctly against the invoice at the time of payment. Click Simulate, then Save as Completed to send the Credit Memo for approval. 100

101 Subsequent Credit In addition to a Credit Memo, a Subsequent Credit can also be processed using the MIR7 transaction. Subsequent Credits are used for additional credits that are received for a transaction that has already been invoiced. These are processed similarly to Credit Memo s, as every Subsequent Credit is recorded in the PO history (viewed through ME23N). Note that Subsequent Credits affect value only. If value and quantity must be edited (that is, for returned goods), then a Credit Memo must be used. 101

102 Enter Credit Memo Without PO Just as the FV60 transaction is used to enter Invoices without reference to a PO, the Park Vendor Credit Memo (T-Code: FV65) is used to enter Credit Memos without reference to a PO. 102

103 Enter Credit Memo Without PO As with FV60, enter all accounting fields required for posting, including G/L Account, Amount, Fund, and Cost Center. Also include any Earmarked Funds that are associated with the Credit Memo When all fields are complete, click the Simulate button to view the simulated postings. If you would like to save the document for later completion, click the Document menu, then select Park Click the Save as completed button to forward the Credit Memo for approval and posting 103

104 Evaluated Receipt Settlement For the payment of Consultants and Independent Contractors, the Evaluated Receipt Settlement (ERS) process is used in Umoja. The ERS process is used in situations where it is agreed that the vendor will not submit an invoice in respect of a PO transaction. To perform this process in Umoja, first make sure the Service Entry Sheet has been entered for the service. Then, open the ERS Transaction (T-Code MRRL). Enter the following fields: Company Code 1000 Plant Enter/search for the code for your mission/location Purchasing Document Enter the PO for the Consultant/Contractor Service Doc. Selection Change this value to 4 Test Run Make sure this is checked to perform a Test Run of the posting Click the Execute icon 104

105 Evaluated Receipt Settlement The next screen shows the simulated reference documents for the ERS as well as the relevant PO s. If you are satisfied with the results, click the Back icon to go back to the previous screen. Un-check the box next to Test Run and execute the transaction again. This will create the reference invoices and schedule the payment to the vendor. 105

106 Evaluated Receipt Settlement Using the ME23N transaction, we can view the PO and related documents for the Consultant/Contractor service. Click the Purchase Order History tab to view the Invoices that were automatically generated using the ERS process. Click each document number to examine that document more closely. 106

107 Activity 1 Transaction Name: Apply Credit Memo Transaction Code: MIR7 Link to the uperform simulation: ?originalContext=

108 Learning Checkpoint 1 What options does a User(AP) have if goods have been returned after the Invoice has already been posted? Select the correct option. A. Enter an Invoice Reduction B. Enter Unplanned Charges C. Enter a Credit Memo D. Enter a Goods Receipt 108

109 Learning Checkpoint 1 What options does a User(AP) have if goods have been returned after the Invoice has already been posted? Select the correct option. A. Enter an Invoice Reduction B. Enter Unplanned Charges C. Enter a Credit Memo D. Enter a Goods Receipt Options C is the correct answer. In this case, the AP User can enter a Credit Memo which, when approved, will reference the original Invoice and PO and the amount that has been returned. 109

110 Module 4 Summary The key points covered in this module are listed below: If an Invoice amount is greater than the expected PO or Goods Receipt, there are several options to reduce the payment that depend on scenarios of when the good was actually returned The AP Approver must review and approve the Credit Memo in order for it to be posted The ERS process is used for payment of Consultants and Individual Contractors 110

111 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 111

112 Module 5 Objectives After completing this module, you will be able to: Determine when to request Down Payments Enter Down Payment Requests Approve Down Payment Request Clear Down Payments against Invoice Clear Down Payments without an Invoice Clear Down Payments against cash received Generate report showing Down Payments 112

113 Key Terminology Noted Item Key Term Description Documents that are a one-sided memo entry. Once payment is executed the noted item will be updated to create a normal two-sided financial document. Noted items don t appear in financial reports (for example, trial balance). 113

114 Down Payments Process Overview Down Payments Overview In Umoja, all advance payments to vendors, non-commercial partners or other entities are processed using the Down Payments functionality and transaction code F-47 whether or not there is a PO. For Down Payments made against a standard PO, a Down Payment Request is made in Umoja ECC. Clearing occurs automatically after goods are received and the Invoice is posted. The payment information is then forwarded to Treasury to pay the appropriate amount. 114

115 Down Payments Process Overview Overview In Umoja, the following items are processed using the Down Payment functionality: Special GL Indicator (SPGL) Down Payments to commercial vendors A Advances to implementing partners Y Travel advance T Salary advance S Security Deposits H Loan Receivables X All other options for the Special GL Indicator field should not be used, as they are not applicable for Umoja. 115

116 Down Payments Process Overview Overview Down Payments require PO or Funds Commitment as follows: PO or Funds Commitment Down Payments to commercial vendors PO or FC Advances to implementing partners PO Travel advance FC Salary advance n/a Security Deposits n/a Loans receivable n/a 116

117 Down Payments Process Overview Overview Down Payments are different than normal documents, as they are Noted Items until they are paid. This is because Umoja doesn t record both a receivable and a payable on the same document. For example, the following posting is not possible: Dr Advance Vendor Cr Accounts Payable - Vendor Instead SAP records a Noted Item until the payment is made. At the time of payment, the system records a financial document as follows: Dr GL account driven from SPGL (for example, Security Deposit) Cr Accounts Payable - Vendor 117

118 Down Payments Process Steps The main steps to process Down Payments are as follows: Enter Down Payment Request Approve Down Payment Request Clear Down Payments 118

119 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Step 1: The Procurement division initiates all commercial Down Payments by sending a request outside of Umoja. The AP User then enters this request using the transaction Down Payment Request (F-47). Populate the following fields on this screen: 1 Document Date: Today s date 2 Type: Keep default value (KA Down Payment) 3 Posting Date 4 Currency 5 Reference: PO Reference Document 6 Doc. Header Text: Free text field used for brief description of the Down Payment

120 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Under the Vendor section: 7 First enter or search for the vendor account. Clicking the Matchcode icon next to the Account field will allow you to search for a vendor account by Country, Material or other specifications 8 For the Trg.sp.G/L ind. field, select the type of Special GL Indicator to use. In this case, a debit will be posted to the Vendor Down Payment account 9 When all required fields have been entered, click the green enter button to proceed to the next screen

121 Enter Down Payment Request Screen 2 Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Under the Item 1 section, enter the following fields: 1 Amount and Currency Tax Code, is mandatory, and check Calculate tax box 2 3 Business Area Due On date (used by Treasury to schedule the payment) 4 5 Payment Method Purch.Doc (if using a PO to obligate funds, enter PO number and PO line in following box. Use the Matchcode icon to look up a PO)

122 Enter Down Payment Request Screen 2 Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice The following fields must be entered only if no reference to a PO or Funds Commitment is entered: Enter Fund Enter Grant or GMNR (Grant Management Not Relevant) if there is no grant Enter Functional Area If using a Funds Commitment to obligate the funds instead of a PO, enter the Funds Commitment number and line in the Earmarked Fund boxes. This will populate all relevant fields Enter Funds Center Enter Text if you want to provide a longer explanation than what is in the Header Text box on Screen

123 Enter Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Click the Save button to submit the Down Payment Request for approval. After the request has been submitted, it will be routed to the appropriate AP Approver through a workflow, appearing in their Business Workplace Inbox. 123

124 Approve Down Payment Request Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Step 2: Down payment requests are approved using the workflow and the Business Workplace (T-Code: SBWP) screen. They are sent to AP Approvers based on their place within Delegations of Authority tables. From a G/L perspective, the Down Payment will appear in the vendor account as a Noted Item (not a credit or debit) before the payment is made. After the payment is processed, it will be converted to a receivable for the vendor. 124

125 Clear Down Payments against Invoice Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice Step 3: Incoming Invoices that have had Down Payments applied are entered into Umoja as standard Invoices using the MIR7 transaction. When a PO is added to the Invoice, a pop-up will appear stating that a Down Payment has been recorded against the PO. Click the button labeled Down Payment Clearing to open a the Clearing pop-up window. 125

126 Clear Down Payments against Invoice Enter Down Payment Request Approve Down Payment Request Clear Down Payments against Invoice In this window, under the Amount entered field, enter how much of the Down Payment to apply to this Invoice. After clicking the Enter icon, you will note that the balance reflects the applied Down Payment. The Invoice can now be processed as normal. 126

127 Clear Down Payments without PO Down Payments that are not linked to a PO or Funds Commitment (such as Security Deposits), are cleared using the Clear Vendor (T-Code: F-44) Transaction. On this screen enter the Account, Clearing Date, Period and Currency. Then enter the Special G/L Indicator referencing the type of Down Payment that was made (for example, H for Security Deposits). 127

128 Activity 1 Transaction Name: Enter Down Payment Transaction Code: F-47 Link to the uperform simulation: ?originalContext=

129 Activity 2 Transaction Name: Post Vendor Down Payments Transaction Code: F-48 Link to the uperform simulation: ?originalContext=

130 Learning Checkpoint 1 Which of the following fields indicates the type of Down Payment? Select the correct option. A. Reference B. Account C. Doc.Header Text D. Trg.sp.G/L ind. 130

131 Learning Checkpoint 1 Which of the following fields indicates the type of Down Payment? Select the correct option. A. Reference B. Account C. Doc.Header Text D. Trg.sp.G/L ind. Option D is the correct answer. The Trg.sp.G/L ind. field indicates the type of Down Payment. 131

132 Module 5 Summary The key points covered in this module are listed below: The AP User enters the Down Payments using the transaction code F-47 The Trg.sp.G/L ind. field in the Down Payment Request: Header Data screen indicates the type of Down Payment The AP Approver makes the approval in the Business Workplace and the Down Payment request is converted into a Down Payment All payments are processed by Treasury over the next Payment Run The payments can be cleared against Invoice, without Invoice or against cash received 132

133 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 133

134 Reports There are several reports available in Umoja ECC which are relevant for AP. These include: Display Vendor BP Used to view the Business Partner Master Data record, including the customer and vendor records. To retrieve information, first select the role that you want to query such as vendor, customer, sponsor and so on. Next, select whether you want to see information that is maintained in General data or at the Company Code level, Sales Org level or Purchasing Org level. 134

135 Reports The reports that are relevant for the Invoicing process are: Display Vendor BP General data includes name, address and language Company code data includes the GL reconciliation account number and payment method(s). Vendor contact information such as name of vendor account payable processor can be maintained. Purchasing org data includes payment terms and default currency on orders. Vendor contact information such as vendor sales representative can be maintained. 135

136 Reports The reports that are relevant for the AP process are: FBL1N Vendor Line Item Report Standard AP sub-ledger report that shows all transactions posted on specific vendors at the company code level. User can select to include: AP documents with a Special GL Indicator AP documents with various status: parked items posted items open, cleared or both noted items (down payments requests not yet processed) overdue for payment blocked payment Note: This report doesn t show documents by Fund. Only noted items appear by Fund 136

137 Reports The reports that are relevant for the AP process are: ZAPFBL1N Vendor Line Item Report by Fund and Grant Custom AP sub-ledger report that shows all transactions posted on specific vendors at the company code level. User can select to include: AP documents with a Special GL Indicator Posted AP documents: Open items, cleared items or both Overdue for payment Blocked payment Note: This report does not show parked documents or noted items. Noted items can be seen on FBL1N report by Fund. On 1 October 2013 a custom report will be available to see parked items by Fund. 137

138 Reports The reports that are relevant for the AP process are: Display Parked Document FBV3 When we have a specific financial accounting document that we want to see, we can enter the document number and fiscal year and the system will display the whole document. You can also click the Document List icon and enter certain parameters such as the user name, posting date, document type, document number range and so on to retrieve a list of document numbers. If you need more parameters use the dynamic selection icon to add parameters. The corresponding FM, CO and GM documents can be accessed from the Document Environment menu and clicking the Accounting Document option. 138

139 Reports The reports that are relevant for the AP process are: Display Posted Document FB03 If you would like to view a specific Financial Accounting Document, you can enter the document number and fiscal year and the system will display the whole document. If you do not remember the document number, click the Document List icon and enter certain parameters such as the user name, posting date, document type, document number range and so on to retrieve a list of document numbers. You can also click the My own document button to restrict the list. Noted items can be included by ticking the Display noted item box 139

140 Reports The reports that are relevant for the AP process are: Display Changes FB04 This report shows changes that have been made after a document was posted. Enter the document number and fiscal year and click the Enter icon (green tick). Click the All changes button. In the example we can see that payment method was changed from blank to Q on 6 May

141 Reports The reports that are relevant for the AP process are: Display Changes FB04 Alternatively, if you want to see changes to all posted documents for a given period, you should not enter a Document Number. Instead, click the Environment menu and then Multiple Display. 141

142 Reports Display Changes FB04 Enter the Company Code, Document Type and Period for which you want to see the change and click the Execute icon. In this example, the user elected to see document type RE (Invoice with PO), KR (Invoice without PO) and KG (Credit Memo without PO) documents changed between 1 May and 7 May

143 Reports Display Changes FB04 The report shows the date, time and user ID of individuals who performed changes. 143

144 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 144

145 Course Summary The key points covered in this course are listed below: The automated LIV process is used to compare the Invoice to the PO and the goods receipt The Invoice is simulated and posted in the Invoice process after which it goes through the workflow approval or rejection The AP Approver makes the approval in the Business Workplace and the Down Payment request is converted into a Down Payment If an Invoice amount is greater than the expected PO or Goods Receipt, there are several options to reduce the payment that depend on scenarios of when the good was actually returned Discounts that are applied to purchases are logged in POs As part of AP process, there may be Invoices without PO's. The AP user may also need to process local troop payments or manage petty cash Invoices without POs typically occur if a payment is being made to another UN entity or if the payment is for goods/services totaling less than $300 (Petty Cash) 145

146 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 146

147 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 147

148 Agenda Course Introduction Module 1: GL Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos and Evaluated Receipt Settlement Module 5: Down Payments Module 6: Accounts Payable Reports Course Summary Course Assessment Course Survey 148

149 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 149

150 Congratulations! You have successfully completed the Umoja Accounts Payable Process course. 150