FI321 Umoja Accounts Payable Process. Umoja Accounts Payable Process Version 15 1

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1 FI321 Umoja Accounts Payable Process Umoja Accounts Payable Process Version 15 Copyright Last Modified: United 23-Feb-15 Nations 1

2 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: 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 Reference of transactional steps covered in this course are included in the User Guide. Ensure to review it to learn how to perform the transactions Breaks are included at the discretion of the trainer X X No Phones Do Not Access Participate Ask Questions User Guide 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 (A/P) 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: 12 hours 5

6 Course Objectives After completing this course, you will be able to: List the different G/L accounts relevant for Accounts Payable Scan, park and/or post an Invoice Process Invoices with or without a Purchase Order (PO) Process Invoices applying payment retention Process Invoice reductions Enter a Credit Memo Process payments to Consultants / Ics (Evaluated Receipt Settlement) Enter and clear Down Payments Upload AP Documents List Account Payable Reports 6

7 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: 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 (SPGL) Indicators Differentiate between the different Business Partner Groups in Umoja 8

9 Key Terminology Key Term Chart of Accounts Noted Item Reconciliation Account Special GL (SPGL) Indicator Subsidiary Ledger Description A new Chart of Accounts applies to Umoja. Each GL account is now 8 digit (compared to 4 digits Object of Expenditure). The Chart of Accounts is designed to produce the IPSAS compliant Financial Statements. It refers to documents that are a one-sided memo entry. After 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). Each Subsidiary Ledger will be tied to the General Ledger through a Reconciliation Account; the balance of all entries in the Subsidiary Ledger will reconcile with balance in the General Ledger account. New functionality of SPGL ensures that all Down Payments (advances) are recorded in a different Reconciliation Account instead of regular Reconciliation Account. Umoja introduces Subsidiary Ledgers where all entries for vendors are recorded. 9

10 General Ledger vs. Subsidiary Ledgers The Subsidiary Ledger is a supporting ledger (to the General Ledger) that records transactions in individual accounts and divides 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 10

11 A/P Subsidiary Ledger The A/P Subsidiary Ledger (or Sub Ledger) is one of three Sub Ledgers in Umoja. General Ledger Accounts Receivable (A/R) (contains Customer accounts) Accounts Payable (A/P) (contains vendor information) Fixed Assets (FA) (contains assets not recorded in Galileo) 11

12 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: A/P Subsidiary Ledger General Ledger Journal Voucher Debit Fuel 2000 Credit Vendor 2000 Vendor Account 2000 A/P- Reconciliation Account 2000 Expenses 2000 Fuel In the A/P Subsidiary Ledger, the vendor is credited with the amount due In the General Ledger, the A/P Reconciliation Account has a corresponding credit entry to reconcile with the A/P Subsidiary Ledger. 12

13 G/L Accounts used for A/P Entries in the A/P Sub Ledger Entries for Revaluation of Monetary Balances Entries for late audit adjustment G/L Account Reconciliation Accounts Revaluation Accounts Manual Adjustment Accounts Reason Ensures the Sub Ledger is always reconciled with the G/L. It gets automatic entries from the Subsidiary Ledger and no manual entry can be recorded to these accounts. Revaluation entries are recorded in the Revaluation Account as the individual records in the Sub Ledger are not affected by revaluation run. Should be recorded at the G/L level since the Sub Ledger may be closed earlier than the G/L 13

14 Recording A/P Entries in Umoja G/L Accounts For each Business Partner Group, Umoja provides a standard numbering convention for each type of G/L Account: Account Type Ending with Digits Reconciliation account 10 Manual Adjustment account 20 Revaluation account 99 14

15 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 15

16 G/L Accounts for A/P For standard invoice transactions, the following G/L accounts are automatically derived by Umoja based on the Business Partner Group: Business Partner Group Reconciliation G/L 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

17 Special GL Indicators Special GL (SPGL) Indicators are used to identify transactions that should be recorded to alternate G/L accounts. In Umoja, the following SPGL are used for A/P: Transaction Down payments to commercial vendors Advances to implementing partners Travel advance Salary advance Security deposits Cash Advance for Cash Payments SPGL A Y T S H K Note: In Umoja, SPGL are used in conjunction with the Down Payment functionality, which is covered later in the course. 17

18 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. A/P Sub Ledger 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. A/P Sub Ledger Option A is the correct answer. Reconciliation Accounts are used to reconcile financial information contained in the Subsidiary Ledgers in real-time. 19

20 Learning Checkpoint 2 Down Payments to commercial vendors are recorded using a particular type of. Select the correct option. A. General Ledger Account B. A/P Sub Ledger Account C. SPGL Indicator D. Business Partner 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. A/P Sub Ledger Account C. SPGL Indicator D. Business Partner Options C is the correct option. SPGL Indicators are used to identify transactions, including Down Payments, that should be recorded to alternate G/L accounts. 21

22 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 A/P Subledger SPGL 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 22

23 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 23

24 Module 2 Objectives After completing this module, you will be able to: Identify the roles and responsibilities in the Accounts Payable process Explain the concept of Three-Way Match in Umoja ECC List the main steps to process an Invoice with a PO Explain the key action in the MIR7 transactions 24

25 Key Terminology Key Term Three-Way Match Workflow Park Document Post Document Invoice Tolerance Description Umoja compares the quantity/amount in Purchase Order, Goods Receipt and Invoice. Umoja process 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 to other colleague for review/completion. The parked documents do not have any financial impact. 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 to pass the budget check ($4000 or 10% of PO, whichever is lower) 25

26 Key Terminology Key Term Payment Block Goods Receipt Service Entry Sheet (SES) Movement Type Description A block entered in the document that ensures an invoice cannot be paid until the payment block is removed A document entered to record 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 entered to record 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 (seen in Purchase Order) identifying type of transactions against a PO (for example, Return Delivery to Supplier) 26

27 Roles & Responsibilities The following Umoja Enterprise roles are involved in the A/P process: Financial Accounting User (A/P) Creates vendor Invoices and vendor Credit Memos within the A/P subledger. This entails: Adding VAT Changing payment attributes, 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 (A/P) Reviews and approves the vendor Invoices and Credit Memos created by the Financial Accounting User (A/P) within the A/P subledger Reviews and provide comments when rejecting the document back to AP user. Close the record after which users can not attach any further supporting documents 27

28 Roles & Responsibilities The following Umoja Enterprise roles are involved in the A/P process: Financial Accounting Senior User (G/L, A/R, A/P and CO) Reverses the Posted documents Clears G/L, A/R and A/P documents 28

29 Invoice Transactions in Umoja 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 (obligation document such as MOD) In this module, we will cover the MIR7 transaction. 29

30 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 delivered are derived automatically Parking the document will trigger workflow and send to the A/P Reviewer for completion/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 Parking the document will save for later completion but will not trigger workflow No Hold functionality 30

31 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 If the documents cannot be matched within the Invoice Tolerance, the system won t allow the invoice to be forwarded to the appropriate approvers If the documents do match, the A/P User will be able to Save as Complete, which will forward the Invoice to the A/P Approver, who can make the financial posting 31

32 Three-Way Match Enter Invoice with PO (MIR7) Cont d If physical discrepancies (for example, physical damage) are found during goods receipt, a appropriate movement type is recorded on the goods, resulting in no financial posting. This blocked status is removed by appropriate movement type accepting the goods resulting in financial posting 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. Only after the inspection is complete should the Invoice be posted. Note: This will require coordination between the operations and the accounts payable unit 32

33 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 ME23N (Display Purchase Order) transaction. You can also review all PO s for a vendor using the ME2N transaction. Displaying PO s can provide valuable information such as Delivery Status, Payment Attributes, Line Item quantity/price, Movement Types, among others. You can also view the Purchase Order History tab, It displays a full history of receipts, returns and any other actions that have occurred for each line item. For step-by-step instructions on how to review a Purchase Order, please refer to Module 2 of the 321 Accounts Payable Process User Guide 33

34 Review Purchase Order 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) Note: Payment should only be made for movement types 101 and

35 Invoice Process Steps (MIR7) After reviewing a PO, we can begin processing the Invoice using the MIR7 transaction. The main steps to process an Invoice with a PO are: Add Header Data Calculate VAT Add PO Reference Add Payment Attributes and Unplanned Delivery Costs Simulate and Post Document 35

36 Invoice Process Steps (MIR7) Add Header Data Calculate VAT Add PO Reference Add Payment Attributes Simulate and Post To process an Invoice with a PO, follow the below steps within the MIR7 transaction: 1. Add Header Data: Header Data includes general information such as Invoice Amount, Date, etc. 2. Calculate VAT: The selected Reporting Country will populate a list of applicable tax codes to select from. The selected Tax Code will allow Umoja to calculate the tax amount and determine in which G/L Account to record the VAT 3. Add PO Reference: Entering the PO number referenced in the Invoice allows the system to create the link between the Invoice and PO, automatically populating the Vendor and Line Item information 4. Add Payment Attributes: Payment Attributes are defaulted from the Vendor s Business Partner information and can be overwritten in the Payment tab 5. Simulate and Post: The Simulate button will display a simulated financial posting in USD to the Vendor and G/L accounts. Invoices should always be simulated before submitting for posting. For step-by-step instructions on how to process an invoice using the MIR7 transaction, please refer to Module 2 of the 321 Accounts Payable Process User Guide 36

37 Invoice Process Steps (MIR7) 1 2 Add Header Data Calculate VAT Add PO Reference Add Payment Attributes Simulate and Post

38 Key Actions for MIR7 (Hold) The MIR7 transactions provides several actions that can be taken on an Invoice once all information as been entered. It is important to understand the function for each of the following functions in order to properly process an Invoice with a PO. Hold Simulate Document Save as Parked Save as Completed 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. A document number will be generated at this point. 38

39 Key Actions for MIR7 (Simulate) Hold Simulate Document Save as Parked Save as Complete 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 G/L accounts. 39

40 Key Actions for MIR7 (Save as Parked) Hold Simulate Document Save as Parked Save as Complete 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. A reference PO is not required to Park an Invoice. Clicking the Save as Parked button will send the Invoice to the next immediate approver, but it is still considered unfinished. There will be no edit check, budget check or an attempt at Three-Way Match at this time. A document number will be generated at this time. 40

41 Key Actions for MIR7 (Save as Complete) Hold Simulate Document Save as Parked Save as Complete 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 System will Generate the Document number. 41

42 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 42

43 Activity 1 Transaction Name: Process Invoice with PO Transaction Code: MIR7 Link to the uperform simulation: 77c140f5a52afc2ef _en- US/sim/html/sim_auto_playback.htm Refer the 321 Accounts Payable Process User Guide for more detailed transactional steps. 43

44 Add Unplanned Charges There may be instances where Procurement has agreed to other expenses and did not issue a Revision to the original PO; OR vendor has send invoice with additional charges to which Procurement agrees. Umoja allows payment of these expenses as Unplanned Charges provided these are within the tolerance of 10% or USD 4,000 whichever is lower. There is a special field, Unpl. Del. Csts, which is used to enter these charges and will balance the invoice document. For step-by-step instructions on how to add unplanned charges to an invoice, please refer to Module 2 of the 321 Accounts Payable Process User Guide 44

45 Enter Invoice Reduction Invoice more than PO In cases where the invoice is more than PO, Invoice Reduction option is used to settle the invoice. In addition, Invoice Reductions can only be entered if they fall within Invoice Tolerance (4000 USD or 10% of PO, whichever is lower). For each line item that should be reduced, it is possible to select the actual amount and quantity that should be invoiced, rather than the information listed on the original PO. For step-by-step instructions on how to enter invoice reduction, please refer to Module 2 of the 321 Accounts Payable Process User Guide

46 Cases where the invoice is lower than GR There may be times when the Invoice is less than the Goods Receipt. In such cases, the matter should be raised with Procurement to find out reason for discrepancy. After the matter is discussed with Procurement and decision is made to pay the reduced amount on the invoice, an Invoice Reduction can be made using the same MIR7 transaction. This is done by manually adjusting the amount on each line item in the PO Reference section as necessary. For step-by-step instructions on how to enter an invoice lower than GR, please refer to Module 2 of the 321 Accounts Payable Process User Guide 46

47 How to pay the balance amount on the invoice that was reduced earlier In case Procurement informs that the amount less paid earlier should be paid, option MIR7 with Subsequent Debit is used. Header information can be entered as usual, and manual adjustments to the amount/quantity are made at the line item level. For step-by-step instructions on how to pay the full balance on a reduced invoice, please refer to Module 2 of the 321 Accounts Payable Process User Guide 47

48 Look Up Document Approver Invoices and other Financial documents which are sent through workflow for approval can be viewed by the processor who submitted them through the MIR4 transaction. The Accounts Payable has 2 levels of approval; After first review document is routed to Approving Officer for posting. For step-by-step instructions on how to look up document approvers, please refer to Module 2 of the 321 Accounts Payable Process User Guide 48

49 Reverse Invoice If an invoice was posted erroneously, it can be reversed using the MR8M transaction Cancel Invoice Document. 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. The reversal and original documents should then be amended and text inserted for audit trail. For step-by-step instructions on how to reverse an invoice, please refer to Module 2 of the 321 Accounts Payable Process User Guide

50 Changes to 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 currency other than the PO currency Payment block Assignment Long Text (Fields that can be changed will be in white. Fields in grey cannot be changed.) Umoja also allows insertion of free text 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. For step-by-step instructions on how to modify a posted invoice, please refer to Module 2 of the 321 Accounts Payable Process User Guide 50

51 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. You can view your items organized by content or tasks. For step-by-step instructions on how to approve or reject an Invoice or other FI document, please refer to Module 2 of the 321 Accounts Payable Process User Guide 51

52 Workflow Approval & Rejection When you are ready to take action on the document, following options are displayed.: 1 Approve 2 Refuse requires reason for rejection 3 Cancel and keep work item in inbox does not replace it back in the workflow. It remains with the Approving Officer until it is replaced back in the workflow

53 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 53

54 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. Three-way matching is used to compare the Invoice to the PO and the goods receipt. 54

55 Learning Checkpoint 2 Which of the following buttons lets the User (A/P) preview financial postings before clicking Save as Complete? Select the correct option. A. Add PO B. Preview Posting C. Check D. Simulate 55

56 Learning Checkpoint 2 Which of the following buttons lets the User (A/P) 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. 56

57 Module 2 Summary The key points covered in this module are listed below: There are three roles involved in the Accounts Payable process Three-Way Matching is used to compare the Invoice to the PO and the goods receipt. System allows payment more than purchase order as Unplanned Charges subject to tolerance level of USD 4,000 or 10% whichever is lower The five main steps to process an Invoice with a PO are: 1. Add Header Data 2. Calculate VAT 3. Add PO Reference 4. Add Payment Attributes 5. Simulate and Post The key actions in the MIR7 transactions are: 1. Hold 2. Simulate 3. Save as Parked 4. Save as Completed 57

58 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 58

59 Module 3 Objectives After completing this module, you will be able to: Identify the scenarios to process Invoices without a PO Identify the T-code and steps to process invoice without a PO List the key actions for the FV60 transaction Explain the Reversal of Invoice without a PO 59

60 Review Fund Commitment Just as PO s should be reviewed before processing invoices with the MIR7 transaction, it is recommended to review the relevant Funds Commitment document before processing an Invoice without a PO using the Display Funds Commitment Document FMZ3 transaction. Note down the document and item number you need to use to charge the budget, the GL Account number, and the Vendor number, if any, 60

61 Process Invoice Without PO The FV60 Transaction is used to process Invoices referencing a Funds Commitment. The Basic Data tab is used to enter information such as Vendor (if any), Invoice Date, and any necessary Reference Text. 61

62 Process Invoice Without PO The appropriate document type must be selected (from drop down menu) for processing. Document type Purpose KE For charges with Fund Commitments (obligations) KR For direct expenses that require certification KH For charges not requiring certification (e.g. refund of security deposit) For a full list of Document Types, please refer to Module 1 of the 321 Accounts Payable Process User Guide 62

63 Process Invoice Without PO Other key fields that need to be confirmed include: Fund Commitment number and General Ledger account (which should be same as in the Fund Commitment that was reviewed previously. Payment Attributes are defaulted from the Vendor s Business Partner information and can be overwritten in the Payment tab. Baseline Date: Date from which system will calculate and derive due date to send outgoing payment with appropriate discount. System copies the invoice date as Baseline date by default Payment Method: Specifies the way payment will be made to the vendor. Note: Umoja determines the House Bank from where the payment is sent using three parameters; Currency, Payment Method and Beneficiary bank location. For Cheques the determination is done from Accounting Clerk field in BP. For step-by-step instructions on how to process an invoice without a PO, please refer to Module 3 of the 321 Accounts Payable Process User Guide 63

64 Key Actions for FV60 Park Simulate Document 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 A/P Approver. In effect it is identical to the Hold button in MIR7. 64

65 Key Actions for FV60 Park Simulate Document 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. 65

66 Key Actions for FV60 Park Simulate Document Save as Completed Save as Complete should be used once the A/P User would like to post the Invoice. This will trigger workflow and will forward the document to the A/P Approver for review. Once the A/P Approver approves the Invoice, it will be posted to the relevant accounts. 66

67 Workflow Approval & Rejection Invoices created using the FV60 are routed through workflow approval in the same way as MIR7 invoices. This is handled in the Umoja system using the SBWP Business Workplace transaction. See Module 2 for more detail on Approving or Rejecting documents in Business Workplace. 67

68 Reverse a Non-PO Invoice If a non-po invoice was posted erroneously, it can be reversed using the FB08 transaction Cancel Invoice Document. 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. The reversal and original documents should then be amended and text inserted for audit trail. For step-by-step instructions on how to reverse an invoice without a PO, please refer to Module 3 of the 321 Accounts Payable Process User Guide 68

69 Activity 2 Transaction Name: Post Invoice without PO Transaction Code: FV60 Link to the uperform simulation: ?mode=EU Refer the 321 Accounts Payable Process User Guide for more detailed transactional steps. 69

70 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 70

71 Module 4 Objectives After completing this module, you will be able to: Identify the exceptions to Three-Way Match Identify the transactions used to enter a Credit Memo referencing a PO Identify the transactions used to enter a Credit Memo without a PO 71

72 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. Unplanned Charges These charges are paid through the Details tab using the Unpl. Del. Csts field Invoice Reduction If the User (A/P) 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. Credit Memo In other cases, users can issue a Credit Memo on a specific purchase order and link it to the invoice for settlement. 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). 72

73 Credit Memo for PO related transactions Credit Memos for PO-related transactions are submitted using MIR7, but with the Credit Memo option selected in Transaction dropdown menu. Linking Credit Memos to PO's ensures history is maintained at PO level for analysis and audit trail. When you input the PO number in PO Reference and hit enter, all the lines on the PO that were delivered will be displayed and highlighted in yellow. Remove highlight from lines not required for credit memo. In the required lines, change the quantity of items and amount, change VAT field. For step-by-step instructions on how to process Credit Memo with a PO, please refer to Module 4 of the 321 Accounts Payable Process User Guide

74 Subsequent Credit The process to enter subsequent credit is similar to regular credit memo, again using the MIR7 transaction. This time, the Subsequent Credit option should be selected in Transaction drop-down menu. This is used for amount options only and no quantity is involved. This credit memo is linked to purchase order. This option also applies to bulk discounts on quarterly purchases for Rations. For step-by-step instructions on how to process Subsequent Credit, please refer to Module 4 of the 321 Accounts Payable Process User Guide 74

75 Credit Memo Without Purchase Order The FV65 Park Vendor Credit Memo transaction is used to enter Credit Memos without reference to a PO. It is to be used for recoveries from staff, consultants, etc. If any Fund Commitment is involved, the EMF can be used to automatically derive Coding Block information for the Credit Memo. For step-by-step instructions on processing a Credit Memo without PO, please refer to Module 4 of the 321 Accounts Payable Process User Guide 75

76 Activity 3 Transaction Name: Apply Credit Memo Transaction Code: MIR7 Link to the uperform simulation: ?mode=EU Refer the 321 Accounts Payable Process User Guide for more detailed transactional steps. 76

77 Learning Checkpoint 1 What options does a User (A/P) 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 77

78 Learning Checkpoint 1 What options does a User (A/P) 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 A/P User can enter a Credit Memo which, when approved, will reference the original Invoice and PO and the amount that has been returned. 78

79 Module 4 Summary The key points covered in this module are listed below: The exception to Three-Way Match include: Unplanned Charges, Invoice Reduction and Credit Memo The transaction to enter a credit memo referencing a PO is MIR7 The transaction to enter a credit memo without a PO is the FV65 Park Vendor Credit Memo transaction 79

80 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 80

81 Module 5 Objectives After completing this module, you will be able to: Evaluated Receipt Settlement for payment to Consultants, Contractors Reverse a ERS (MRRL) document 81

82 Evaluated Receipt Settlement Purchase Orders are used to enter into contractual arrangement with Consultants and Individual Contractors. As these personnel are not expected to submit invoices for their services and payment is based on attendance, Umoja uses the Evaluated Receipt Settlement process to pay them. The time and attendance will be input by Requisitioner and certified by the Personnel Section, which will create document for FI posting. To create the payable for the ERS, first the Plant code will be needed for your office/mission. Also, a unique range of Purchase orders ( to ) is reserved for Consultants and Individual Contractors, which must also be entered. 82

83 Evaluated Receipt Settlement Executing a Test Run on this transaction will display the vendor number, Purchase Document and under Reference Doc, the Service Entry Sheet number. You can see the Purchase order or Service Entry Sheet by clicking on the document number. If the results are satisfactory, the box next to Test Run can be unchecked, and the transaction can be executed again. This will post the payable documents in Vendor account and Debit the GR/IR ( ) account. Note: There is no workflow in this transaction. For step-by-step instructions on how to process ERS s, please refer to Module 5 of the 321 Accounts Payable Process User Guide 83

84 Reverse a ERS (MRRL) document Although the documents created through MRRL are for Purchase Orders, they cannot be reversed using the transaction MR8M. Reversal of MRRL document should be done by issuing a Credit Note on the Purchase Order (MIR7) and selecting appropriate line. In the Assignment field, copy the Assignment number from the original document and Save as Complete for posting. After posting, funds will be returned to the Purchase Order. Finally, the original Service Entry sheet must be reversed which will reverse the original GR/IR posting. 84

85 Module 5 Summary The key points covered in this module are listed below: Umoja uses Evaluated Receipt Settlement process to pay Consultants and Individual Contractors The ERS process is used for payment of Consultants and Individual Contractors 85

86 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 86

87 Module 6 Objectives After completing this module, you will be able to: Determine when to request down payments Enter down payment requests Approve down payment requests Clear down payments against invoice Clear down payments without an invoice Clear down payments against cash received Generate report showing down payments 87

88 Key Terminology Noted Item Key Term Special GL indicator Description It refers to documents that are a one-sided memo entry. After 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). A parameter inserted in the Down Payment (advance) transaction which results in posting in a different General Ledger account compared to standard General Ledger account for a particular vendor group. 88

89 Down Payments Process Overview Down Payments Overview In Umoja, all advance payments to vendors, non-commercial partners or other entities are known as Down Payments. Down payments are processed using the Down Payments functionality and T-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 the Treasury to pay the appropriate amount. 89

90 Down Payments Process Overview Overview Down payments require PO or Funds Commitment for following types: PO or Funds Commitment Down payments to commercial vendors PO Advances to implementing partners PO or FC Security deposits n/a Cash advance for cash payments FC 90

91 Down Payments Process Overview Overview In Umoja, the following Special GL indicators configured for the United Nations are: Special GL Indicator (SPGL) Down payments to commercial vendors A Advances to implementing partners Y Security deposits H Cash advance for cash payments n/a 91

92 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 Umoja records a Noted Item in which only one line is recorded. At the time of payment, Umoja: Debits the Vendor Credits Cheque / EFT out account Vendor debit appears in different GL accounts compared to standard account. 92

93 Down Payments Process Steps The main steps to process down payments are as follows: Enter Down Payment Request Approve Down Payment Request Post Down Payment with Payment Run Clear Down Payments The three main steps are listed below: 1. Enter Down Payment Request: Using Transaction F-47, the A/P User creates a Down Payment Request using the appropriate Vendor information and Special G/L Indicator 2. Approve Down Payment Request: Down payment requests are approved using the workflow and the Business Workplace (T-Code: SBWP) screen. They are sent to A/P Approvers based on their place within Delegations of Authority tables. 3. Post Down Payment with Payment Run: After the payment is processed, Umoja clears the Noted Item and creates a receivable from the vendor with Special GL Indicator A. 4. Clear Down Payments: Incoming invoices that have had down payments applied are entered into Umoja as standard invoices using the T-code MIR7 (for Purchase Orders) or FV60 (for Fund Commitment documents). For step-by-step instructions on how to Enter Down Payment Requests, please refer to Module 6 of the 321 Accounts Payable Process User Guide 93

94 Activity 4 Transaction Name: Enter Down Payment Transaction Code: F-47 Link to the uperform simulation: ?originalContext= Refer the 321 Accounts Payable Process User Guide for more detailed transactional steps. 94

95 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. 95

96 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. 96

97 Module 6 Summary The key points covered in this module are listed below: The A/P User enters the down payments using the T-code F-47 The Trg.sp.G/L ind. field in the Down Payment Request: Header Data screen indicates the type of down payment All payments are processed by the Treasury over the next payment run The payments can be cleared against the invoice, without invoice or against cash received 97

98 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 98

99 AP Document Upload Process The Accounts Payable Document process is executed automatically via an Accounts Payable voucher excel template. The process followed to automatically upload an Accounts Payable document through a one-time manual entry is outlined below: Review Accounting Details Complete AP Excel Template Upload AP Document Post Document 99

100 AP Document upload Umoja brings in the functionality to upload Accounts Payable documents through Excel spreadsheet. The upload does the same function as FV60 or FV65. Upload can not be done for vendor invoices with a Purchase Order (MIR7 transactions). The Umoja T-code is ZAPDOCLOAD Two versions of Excel spreadsheets have been configured: The AP/AR/GL Template allows users to create the individual documents i.e. each debit has a corresponding credit; multiple documents can be uploaded and each will have three lines. Since data entry is considerable, this option should be used sparingly. The Common Non-Vendor Line Template allows users to create documents which have one line for Expenses and various lines for payables. This spreadsheet is useful for paying staff Danger pay, Mission Subsistence Allowance to uniformed personnel. The Common Non-Vendor Line Template is also used when multiple vendors should be debited with credit going to one General Ledger Account. This is used when creating recoverable for private phone calls from staff members. For step-by-step instructions on how to use the AP Document Upload function, please refer to Module 7 of the 321 Accounts Payable Process User Guide 100

101 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 101

102 Module 8 Objectives After completing this module, you will be able to: List the reports available in Umoja ECC which are relevant for A/P 102

103 Reports There are several reports available in Umoja ECC which are relevant for A/P. These include: FBL1N Vendor Line Item Report ZAPFBL1N Vendor Line Item Report by Fund and Grant ZAPFBL1NN Vendor Line Item Report by Fund and Grant FBV3 Display Parked Document FB03 Display Posted Document FB04 Display Changes FB04 Display Changes 103

104 Reports There are several reports available in Umoja ECC which are relevant for A/P. These include: Display Vendor BP Used to view the Business Partner Master Data record, including the customer and vendor records. Each Business Partner has various roles. E.g. UN Vendor, FI Vendor, Customer, etc. Different information is maintained ; General Information; Vendor role; Company code level; Purchasing; etc. To see the BP information, Tcode BP is used. Select the Vendor, and navigate to see various information for different levels. 104

105 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 G/L Reconciliation account number and payment method(s); contact information such as name of the vendor account payable processor, etc. Purchasing org data includes payment attributes and default currency on orders. 105

106 Reports FBL1N Vendor Line Item Report Standard A/P sub ledger report that shows all transactions posted on specific vendors at the company code level. User can select to include: A/P documents with a Special G/L Indicator A/P documents with various statuses: Parked items Posted items open, cleared or both Noted items (down payments requests not yet processed) Overdue for payment Blocked payment Note: This report reads from a table in which the Fund field is not always populated. Therefore, it is not advisable to filter by Fund. Use report ZAPFBL1N or ZAPFBL1NN when the fund is a filter criteria. 106

107 Reports ZAPFBL1N Vendor Line Item Report by Fund and Grant UN has prepared a Custom A/P sub ledger report that shows all transactions posted on specific vendors at the company code level. This report open many fields for selection including Spl GL indicator, Fund, Business Area, Document Number, Parked documents, Noted Documents, Spl GL documents, Customer items, etc. This is a very useful report and shows the payables / receivables from vendor for a particular Fund and Business Area. Users can also select only Open items, Cleared items or all items. 107

108 Reports ZAPFBL1NN Vendor Line Item Report by Fund and Grant Another Custom A/P sub ledger is available that shows all transactions posted on specific vendors at the company code level. This report open many fields for selection including Spl GL indicator, Fund, Business Area, Document Number, Parked documents, Noted Documents, Spl GL documents, Customer items, etc. In addition to all the fields available in ZAPFBL1N, this report brings up the names of the vendors when the report is exported to Excel. Other fields such as Vendor name, Accounting Clerk, Name of Accounting Clerk, Bank Branch, Mission and Legacy Id can be seen in the report. These fields can be seen in the Change Layout mode. 108

109 Reports FBV3 Display Parked Document To see a specific financial accounting document, 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. 109

110 Reports FB03 Display Posted Document 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. 110

111 Reports FB04 Display Changes 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

112 Reports FB04 Display Changes 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. 112

113 Reports FB04 Display Changes 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

114 Reports FB04 Display Changes Note: The report shows the date, time and user ID of individuals who performed changes. 114

115 Learning Checkpoint 1 Which of the following reports shows all transactions posted on specific vendors at the company code level? Select the correct option. A. Display Changes FB04 B. Display Vendor BP C. FBL1N Vendor Line Item Report 115

116 Learning Checkpoint 1 Which of the following reports shows all transactions posted on specific vendors at the company code level? Select the correct option. A. Display Changes FB04 B. Display Vendor BP C. FBL1N Vendor Line Item Report Option C is the correct answer. FBL1N Vendor Line Item Report shows every debit/credit transaction that hits the project. 116

117 Module 8 Summary The key points covered in this module are listed below: The Display Vendor BP report is relevant for Invoice processing The reports that are relevant for the A/P process are Vendor Line Item, Display Parked Document, Display Posted Document and Display Changes Reports 117

118 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 118

119 Course Summary The key transactions covered in this course are listed below: List the different G/L accounts relevant for Accounts Payable Scan, park and/or post an Invoice Process Invoices with or without a Purchase Order (PO) Process Invoices applying payment retention Process Invoice reductions Enter a Credit Memo Process payments to Consultants / Ics (Evaluated Receipt Settlement) Enter and clear Down Payments Upload AP Documents List Account Payable Reports 119

120 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 120

121 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 121

122 Agenda Course Introduction Module 1: G/L Accounts for Accounts Payable Module 2: Processing Invoices with a Purchase Order Module 3: Processing Invoices without a Purchase Order Module 4: Credit Memos Module 5: Process payments to Consultants / Ics (Evaluated Receipt Settlement) Module 6: Down Payments Module 7: Document upload Module 8: Accounts Payable Reports Course Summary Course Assessment Course Survey 122

123 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 123

124 Congratulations! You have successfully completed the Umoja Accounts Payable Process course. 124