FI330 Umoja Accounts Receivable FI Process ILT PPT v23

FI330 Umoja Accounts
Receivable (FI) Process
Umoja Accounts Receivable - FI Process Version 23

Last Modified:
Copyright United04- Dec-14
Nations 1
Agenda
Course Introduction
Module 1: Introduction to Accounts Receivable
Module 2: Other Receivables
Module 3: Incoming Payment Processing
Module 4: Write-Offs
Module 5: Accounts Receivable Reports
Course Summary
Course Assessment
Course Survey
Copyright United Nations 2

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

Ground Rules
Please consider the following guidelines during the training session:
Turn your cell phone to silent mode. Please step out of the class to take any
important phone call
Please do not access your e-mail or the Internet outside of breaks
Participate fully in the training session and respect each others contribution
Breaks are included at the discretion of the trainer
X X
No Phones Do Not Access Participate Ask Questions Breaks

E-mail

Course Overview
The purpose of the Umoja Accounts Receivable Process course is to explain how to:
a. Maintain accurate records of the money owed to the UN by its customers,
b. Correctly apply money received from customers to their debtor accounts and,
c. Write-off uncollectible debts.
Prerequisite Review
You should have completed the following prerequisite courses:
Umoja Overview
Umoja Master Data and Coding Block Overview
Umoja Accounts Receivable Overview
Umoja Navigation
Course Duration: 6 hours

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

Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey

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

Key Terminology
Key Term Description
A legally binding document itemizing money owed for products
Accounts Receivable
or services rendered. An AR invoice is not used to record
(AR) Invoice
estimates.
The process of calculating the amount a customer (entity
Billing outside Umoja) owes the UN for services rendered or products
purchased.
It refers to a person or an organization that has a business
Business Partner (BP) interest with the UN. A BP can be a commercial customer that
purchases goods or services from UN and also a UN agency.
A Business Partner (BP) that has been assigned either the role of
UN Customer or FI Customer. Each UN Customer master record
includes three levels of data: general level data, company code
Customer Master
level data and sales organization level data. On the other hand,
a FI Customer only includes the first two levels and may not be
accessed through the Sales and Distribution module.
A GL account that reflects sub-ledger activity in the General
Reconciliation Account Ledger. Each customer (or vendor) is assigned to a reconciliation
account at the time the role is assigned to the Business Partner.

Roles & Responsibilities
The following Umoja Enterprise roles are involved in the AR process:
Creates AR customer invoices and credit memos within
the AR Sub-ledger and submits them into the workflow
Financial Accounting Creates dunning notices for customers when items are
User (AR) overdue
Clears AR customer invoices
Responsible for accuracy of Customer History
Reviews/approves/rejects customer invoices and credit

memos created by Financial Accounting User (AR)
Financial Accounting
within AR Sub-ledger through a workflow
Approver (AR) Reviews/rejects printed dunning notices (manual step)
Posts parked invoices and clears them
Creates and posts FI documents that are not subject to

Financial Accounting workflow, such as accruals, reversals and recurring
(FI) Senior User entries
Clears FI documents

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

Voluntary contributions Sale of Publications
Recovery of: Guided tours
o VAT from host government Sale of audio/visual products
o Vehicle repair charges from UN Lease administration for owned and
Agencies subleased properties
o Advance received for conferences Proceeds from the sale of used and
o Receivables for use of conference surplus property
facilities Transfer of revenue bearing work/service
o Common services used by UN order management to other UN agencies
Agencies outside Umoja and NGOs

Umoja Solution for Accounts Receivable
The AR module in Umoja has the following capabilities:
Umoja introduces the concept Since Sales and Distribution and

of centralized master data, Real Estate are integrated with
eliminating the need to Umoja, customer receivables and
maintain separate customer credit/debit memos are updated as
accounts at each batches through the interface to
Interfaced
respective location. Centralized the
Postings in A/R sub ledger.
Data
A/R
Dunning
The Dunning process creates reminders or notices

automatically based on the scenarios defined in the
Umoja system. The dunning functionality proposes
overdue items based on dunning interval, grace days and
dunning level.
Accounts Receivable Subsidiary Ledger
In Umoja, AR transactions are maintained in the Accounts Receivable sub-ledger. These
transactions are from Business partners with a UN Customer role. Umoja uses three
integrated sub-ledgers Accounts Receivable, Accounts Payable and Asset Accounting,
to organize financial data.
General
Ledger
Accounts Fixed
Receivable (AR) Accounts Assets (FA)
(contains Customer (contains accounts of
Payable (AP) assets not recorded in
accounts) (contains vendor Galileo)
accounts)
Note: Currently, sub ledgers do not exist in Sun systems and IMIS

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

Subsidiary Reconciliation Accounts
General
Ledgers Ledgers

Reconciliation Accounts
Updates to Reconciliation Accounts are done automatically in real-time when postings are
made in the subsidiary ledgers. The entries in the Reconciliation Account can only come
from a Subsidiary Ledger.
AR
Subsidiary Customer A General Ledger
Ledger
2,000 Document 1
In the AR AR- Reconciliation Account
Subsidiary
Ledger, the Customer B 2,000 Document 1
accounts of
the three 5,000 Document 2 5,000 Document 2
customers are
3,000 Document 3
debited by the
amounts of Customer C
sales on
3,000 Document 3
credit.

Accounts Receivable Subsidiary Ledger - Touch Points:
Sales and
Distribution Billing GM
Document
Real Estate Lease FM

Out External
AR
Sub- GL
Manual Customer
ledger
Invoices FV60 CO
Sales and Distribution and Real Estate have interfaces to the AR Sub-ledger
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Accounts Receivable
Relationship between AR and GL
The AR sub-ledger is a real sub-ledger as all documents recorded in AR
sub-ledger are created in real time in the General Ledger. The AR
document updates both the AR and GL tables with the same document
number:
AR Sub-ledger General Ledger

Document 21XXXXXX Document 21XXXXXX
Dr Customer Dr 13101010 AR Recon
Cr Revenue

Determination of GL account for AR documents:
Scenario 1
Business
GL
Partner Master Recon
Record Acct
Scenario 2
Special
Business GL
Partner Master SPGL
Record Recon
Acct
SPGL = Special GL Indicator

When we use SPGL:
To separate types of accounts receivable:
Assessed contribution -> M
Voluntary contributions -> V
Voluntary Contributions in Kind -> K
VAT receivable -> N
Exchange receivable -> No SPGL = Default Recon Acct
To record down payments we (expect to) received
Loans payable -> L (F)
Commercial advances -> A (F)
When SPGL is F it means we have not yet received the downpayment.

AR Reconciliation Accounts in Umoja
AR Reconciliation Accounts in the GL for different kinds of customers are as follows:
Grouping Account Group AR SPGL Description Normal Recon SPGL G/L Account
indicator G/L Acct
Z011 Member State M AR Assessed Contribution 15101010 13101010
Z011 Member State V AR Volunt Contribution AR 15101010 14101010
Z011 Member State K AR Volunt Contribution In Kind 15101010 14111010
Z011 Member State N AR VAT Receivable 15101010 15201010
Z011 Member State A, F Downpayment Received 15101010 38501010
Z012 Non Member State M AR Assessed Contribution 15101110 13101110
Z012 Non Member State V AR Volunt Contribution AR 15101110 14101110
Z012 Non Member State K AR Volunt Contribution In Kind 15101110 14111110
Z012 Non Member State N AR VAT Receivable 15101110 15201010
Z012 Non Member State A, F Downpayment Received 15101110 3-850-1110
Z013 Government and Local Authority V AR Volunt Contribution AR 15101210 14101210
Z013 Government and Local Authority K AR Volunt Contribution In Kind 15101210 14111210
Z013 Government and Local Authority N AR VAT Receivable 15101210 15201010
Z013 Government and Local Authority A, F Downpayment Received 15101210 3-850-1210
Z014 UN Agency Fund Programme V AR Volunt Contribution AR 15101310 14101310
Z014 UN Agency Fund Programme K AR Volunt Contribution In Kind 15101310 14111310
Z014 UN Agency Fund Programme L AP Loan Payable 15101310 36201310
Z014 UN Agency Fund Programme A, F Downpayment Received 15101310 3-850-1310
Z015 Intergovernment and NGO V AR Volunt Contribution AR 15101410 14101410
Z015 Intergovernment and NGO K AR Volunt Contribution In Kind 15101410 14111410
Z015 Intergovernment and NGO A, F Downpayment Received 15101410 3-850-1410
Z018 Commercial Customer V AR Volunt Contribution AR 15101510 14101510
Z018 Commercial Customer K AR Volunt Contribution In Kind 15101510 14111510
Z018 Commercial Customer A, F Downpayment Received 15101510 3-850-1510

Income Reporting in the UN
The UN reports its income under three sections. The recording of some of these
incomes results in the creation of accounts receivable.
Income Section 1
Income Section 2 Income Section 3
Income from Staff
General Income Services to Public
Assessment
Income from rental of premises United Postal Administration
Operations
Reimbursement of services
provided to Specialized Agencies Services to Visitors
& Others
Revenue Services of DESA
Bank Interest
Sales of Gift Items
Sale of Used Equipment
Newsstand Operations
Refund of Previous Year
Expenditures
Garage Operations
Contribution of Non-Member
States Catering Operations
Television and similar services
Other Commercial Operations
Miscellaneous Income

Income Recognition and Measurement Relevant IPSAS
Prior to reporting, the income must first be recognized and measured. Guidance on
income recognition and measurement is given by two key income relevant IPSAS.
IPSAS 9 Revenue from Exchange Transactions

An exchange revenue transaction for the UN is defined as one where the UN
receives cash, assets or services, or has liabilities extinguished, and directly gives
approximately equal value to the other party in exchange. The value given by the
UN could be in the form of inventory (IPSAS 12), Property, Plant and Equipment
(IPSAS 17), services or the use of assets belonging to the UN.
IPSAS 23 Revenue from non-Exchange Transactions

A non-exchange transaction occurs when the UN either receives value from
another entity without directly giving approximately equal value in exchange, or
gives value to another entity without directly receiving approximately equal value
in exchange. Examples include Assessed Contributions and Voluntary
Contributions.
The Umoja solution provides the means to capture the information that supports compliance
with these standards.

Income Reporting Billing/Cost Recovery Methods
Various methods are used in Umoja to capture both Revenue from Exchange Transactions and
Revenue from non-Exchange Transactions. The choice of which method to use is a function of two
factors type of customer and type of income.
Type of Customer Internal or External to Umoja
All entities who buy goods or services from us are classified as either internal or external to
Umoja, depending on whether or not they use the system for their financial reporting.
Internal are entities that are:
a. Already using Umoja e.g. ALL PKMs and SPMs or
b. Are in preparation to deploy the Umoja solution e.g. UNON and UNOG before 1
November 2014.
External are entities that are not using Umoja and do not intend to do so in the near future
e.g. non-Secretariat UN organizations, Military Contingent staff, Permanent Missions,
commercial vendors, non-staff civilians
Type of Income Exchange or non-Exchange
Revenue from Exchange Transactions is subdivided into two categories:
a. Income from the supply of goods and services with the exception of rental services.
b. Income from the rental of premises.
Revenue from non-Exchange Transactions is also subdivided into:
a. Assessed contributions
b. Voluntary contributions

Income Reporting Billing/Cost Recovery Methods
Based on the type of customer and type of income, the following billing/cost recovery
methods are used in Umoja.
Internal External
Other UN related Organizations

UN Staff Members,
UN offices (in (Non-Secretariat), NGOs, Military
Types of Customers UN offices (both Retirees, Individual
transition to Contingents, Member States,
live in Umoja) Consultants and
Umoja) Non-Member States, Permanent
Contractors
Missions, Vendors
Types of Income Billing / Cost Recovery Method

Cost Recharge with
inter-fund JV or CO
Direct Costs, Static allocation and Sales and Distribution (Standard
Inter-Office
Pricing (Standard immediate cash Order) Billing, (External Revenue
Voucher (IOV)
Rates) settlement through - Spendable)
Accounts Payable
cash pool (Internal
Exchange Subledger Credit
Rev. Spendable)
Transactions Memo (-ve Exp
Real Estate Account)
Real Estate (Lease-
(Lease-Out) Real Estate (Lease-Out) External
Rent, Utilities & Other Out) Internal
External Billing Billing, (External Revenue -
Lease-related Charges Posting (Internal
(Internal Spendable or Non-Spendable)
Revenue)
Revenue)
Assessed Direct Recording of receivables

Non-Exchange Contributions in the AR Sub-ledger
n/a n/a
Transactions Voluntary SD (Standard Order) Billing as
Contributions part of Grants Billing)
Billing/Cost Recovery and Accounts Receivable
Not all the transactions to bill or recover cost create AR. The only transactions which
result in receivables are:
1. Sales and Distribution (Standard Order) Billing
2. Real Estate (Lease-Out) External Billing
3. Direct recording of receivables in the AR Sub-ledger.
The following Business Partner Groups - Commercial Vendors UNGM, Individuals

external (Retirees, Consultants, Independent Contractors, Survivors etc) with index
numbers, UN Staff Members, Military and Police - do not have customer roles. They
only have vendor roles.
Accordingly, any cost recoveries from them e.g. telephone bills, fuel, liberty hours etc.
are done by debiting their vendor accounts through a credit memo in the Accounts
Payable Sub-ledger. The Accounts Receivable Sub-ledger is only used to record
receivables for Business Partners who have a customer role in Umoja.
In the next three modules, well examine how receivables are created in AR using each
of the three transactions above. For now, lets look at key document types used in AR.

AR Document Processing Customer Invoices
A number of documents are used in Umoja to process Accounts Receivable. Well briefly look at
these documents in the remainder of this module before we examine the actual AR processes in the
next modules.
Future Term Current Term Definition
Accounts receivable documents created directly in the AR sub ledger:

Requires a Business Partner with Customer Role
Customer Invoice
Billing Document Dr Accounts Receivable
Document (DR)
Manual entry or Excel document load file
Can be open or cleared
In AR, a Customer Credit Memo is a posting that reduces the balance of receivables. It is
normally created if the goods or services provided are returned or a discount is given on
the price charged.
Customer Credit
Credit Memo documents are created directly in the AR sub ledger:
Memo Document
Require a Business Partner with Customer Role
(DG)
Cr Accounts Receivable
Manual entry or Excel document load file
Can be open or cleared
Document recorded either automatically by Cash Management or manually by user
Incoming Payment Cr Accounts Receivable Customer open item
Document (DZ) Dr Bank Clearing
Reset and reverse FBRA
Documents that are one-sided memo entry. A subsequent event will update the noted
item and create a normal two-sided financial document. Noted items dont appear in
Noted Items
financial reports (e.g. trial balance). However, noted items (planning type MP) are included
in cash position and liquidity forecast reports

Future Terms Current Terms Definition
This document creates a noted item to tell Cash Management module to expect a specific
Customer Down
Advances from amount from a specific Customer. Once payment is received, an Incoming Payment
Payment Request
Other document (DZ) is created to record cash and a liability on the Customers account in AR sub
(DA)
ledger.
If you choose document display, the document is first displayed in the entry view. This view
Entry View contains the line items originally entered. Typically the Customer number is shown on the
first line of the document.
In the General Ledger view, a document contains the line items originally entered and split
General Ledger line items generated by document splitting. Documents in the General Ledger view always
View apply to a specific ledger. Typically we see GL accounts and all coding block that has been
derived instead of the Customer number.
Used to store (park) incomplete documents without carrying out extensive edit and budget
Parked Document Unapproved
checks. Parked documents can be completed, checked, and then posted at a later date; if
Save as Parked Document
necessary, by a different user.
Parked Document Used to carry edit checks. Only documents with successful checks can be saved with status
Unapproved
Save as Save as Complete. If checks are failed, document can be saved with status Save as
Document
Complete Parked. Saving as Complete triggers workflow.
Approved Document that has been approved through workflow. With the exception of payment
Posted Document
Document method, payment terms, and long text, document information can no longer be changed.
Documents that have been posted and contain an error can be reversed. The reversal
Reversal
document will refer to the original document while the original document will be updated
Document
to reference the reversal document number.
Special GL Attribute of a posting which instructs Umoja to swap the default GL account for a special GL
Indicator account. SPGL are only available in AR and AP sub ledgers. E.g. VAT receivable.

Future Terms Current Terms Definition
If the balancing dimensions in a document do not produce a balance of zero, the system
creates additional lines to balance the document for each splitting dimension (Fund,
Zero Balance Inter-fund
Business Area, Grant, Segment). The default Zero Balance Clearing Account is the Equity in
Clearing Account Account
Pool account (requirement with Cash Control).
Note: Creation of AR documents will not hit Zero Balance Clearing Account .
Umoja has been configured to automatically balance a document along 4 dimensions: Fund,
Business Area, Grant and Segment. This can be accomplished in two ways:
1. Account assignment is copied from the income statement line to the balance sheet line
2. Additional lines are added to the Zero Balance Clearing Account
Document Allows you to display document line items split according to selected dimensions (i.e. Fund,
Splitting Business Area). In this way, you can draw up a complete trial balance for the selected
dimensions at any time. The Split Processor balances inter-fund documents to the Equity in
Pool account.
N.B. Clearing documents have no transaction lines when the clearing does not cross
dimensions.
This document associates a receivable document (DR or DG) with an incoming payment
Customer document (DZ). Clearing documents have no transaction lines. Clearing can be done
Clearing automatically when bank file includes a recognizable reference with the incoming
Document (DC) payment. Otherwise, user will create and clear incoming payment with account receivable
document manually (F-28).
Outstanding Account Receivable document which doesnt have a clearing document.
Open Item
Receivable
Recovered Account Receivable document which has a clearing document.

Cleared Item
Receivable

High-level Accounts Receivable Process
The Umoja Accounts Receivable solution includes the following processes:
Customer Incoming
Bank Collections/D
Invoice Payment Write-Off
Reconciliation unning
Processing Processing
Customer Invoice Processing will be covered in the next three modules in line with the
three ways through which receivables are created in the AR Sub-ledger namely:
1. Sales and Distribution (Standard Order) Billing
2. Real Estate (Lease-Out) External Billing
3. Direct recording of receivables in the AR Sub-ledger.

High-level Accounts Receivable Process Document flow
The Document Flow that must be respected is as follows:
Customer Incoming Bank

Invoice Payment Reconciliation
Document Document Document
DR DZ ZR
DC ZR
Customer Collections/Dun Write-Off

Invoice ning Document
Document
DR No document DW
DC

Learning Checkpoint 1
All of the following are capabilities of the Umoja Solution, EXCEPT:
Select the correct option.
A. Centralized Data
B. Automatic posting in A/R
C. Siloed functionality by functional area
D. Dunning

All of the following are capabilities of the Umoja Solution, EXCEPT:
A. Centralized Data
B. Automatic posting in A/R
C. Siloed functionality by functional area
D. Dunning
Option C is correct. The key benefit of Umoja is

the integration of data and functionality under
one roof.

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

Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey

Module 2 Objectives
Manually create receivables directly in the AR Sub-ledger using both the Single
Line and Excel Upload Methods
Describe the process to establish VAT Receivables
Explain the process to establish receivables for Assessed Contributions
Explain how documents are reviewed and approved in Workflow
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Direct Creation of Receivables in the AR Sub-ledger
Receivables not related to sales
So far, the receivables we have established in the AR Sub-ledger either originated from
the SD module (sale of goods or services to the public and external entities outside
Umoja or from Lease Administration ( lease -out contracts ).
Often though, we do have other receivables that we need to set up but for which there
is no sale of goods or services. In this case, the receivables are directly created in the AR
Sub-ledger. Examples include:
VAT Receivable
Assessed Contributions due
Loans received from parties external to Umoja.
There are two ways to directly create receivables in the AR Sub-ledger manually i.e.
1. Manual Entry - Single line
2. Manual Entry - Upload from an Excel Spreadsheet
We will illustrate both methods by raising receivables for VAT and Assessed
Contributions respectively.

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

Single Line Manual Entry VAT Receivable
As mentioned earlier, the UN pays VAT in the Accounts Payable Sub-ledger when a
vendors invoice is settled. The AP ledger is configured to record VAT recoverable in GL
account 15201020. The AR User periodically prepares the VAT Declaration. Upon
completion of the VAT declaration, the AR User transfers the VAT claimed from the VAT
recoverable to the VAT Receivable using the VAT Receivable Man. Adjustment.
The VAT Receivable is established in the Accounts Receivable Sub-ledger linked to the
control account 15201010. The link between the control account and the recoverable
account is GL account 15201014 - AR VAT Receivable Manual Adjustments.
The process steps to establish a VAT Receivable are as follows:

Prepare VAT Review and Review and
Declaration Create Invoice Approve Create JV Approve
(Return) Invoice JV
Dr Customer Dr 15201014 VAT Man Adj.

Cr 15201014 VAT Man Adj. Cr 15201020 VAT Recoverable
Steps performed in Umoja ECC

Single Line Manual Entry VAT Declaration (Return)
Prepare VAT Review and

Declaration Create Invoice Approve
(Return) Invoice
At the time a vendors invoice is paid in the Accounts Payable module, the following entries are
passed:
Debit: 35401010 Goods Received - Invoice Received (GR-IR)
Debit: 15201020 AR VAT Recoverable
Credit: Commercial Vendor (Recon a/c 35101510)
The amount accumulated in the AR VAT Recoverable Account (15201020) is used to prepare the
quarterly VAT Return. To determine this amount, a report is run as follows:
Access the Advance Return for Tax on Sales/Purchases screen.

1 Enter S_ALR_87012357 in the Command Field
2 Click the Enter icon
2 1

(Return) Invoice
The Advance Return for Tax on

Sales/Purchases screen opens.
3 Click the Further Selections button
4 Enter 1000 in the Company Code field 4
5 Enter the relevant date in the Posting

date field 5
6 Enter relevant detail in the Tax return
3
Country field
7 Enter relevant detail in the Tax on 6
sales/purchases field
8 Click the Execute icon
7
This will generate the VAT Report.

(Return) Invoice
The report has sections for both Input Tax (VAT paid for purchases) and Output Tax (VAT
received from sales). A claim for a reimbursement from the Government is made for
the amount by which Input Tax exceeds Output Tax.
All invoices for which VAT was paid to the selected Country will appear on the
report irrespective of the Fund or Business Area!

(Return) Invoice

Single Line Manual Entry Create Invoice
(Return) Invoice
Once the amount of recoverable VAT is determined, an invoice for the Government can now be
prepared. This will create a VAT Receivable as follows:
Debit: Customer (Government)
Credit: 15201014 AR VAT Recoverable
Since the normal Reconciliation Account for the Business Partner (Government) is 15101010, the N
Special GL Indicator is used to re-route the amount of the debit to the GL Account 15201210 - AR
VAT Receivable.
The invoice is created using FV70 as follows:
Access the Park Customer Invoice Page. 1

1 Enter FV70 in the Command field 2

(Return) Invoice
The Park Customer Invoice page

appears.
3 On the Basic Data tab, enter the
relevant details in the following
fields:
Customer number
SGL Indicator
Invoice Date 3
Reference
Posting Date
Amount
Currency
Text

(Return) Invoice
4 Enter individual line items, comprising the invoice , as follows:

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

(Return) Invoice
Review the entries to ensure the

fields were filled correctly.
7 If the invoice is to be processed
further, go to Document on the 7
menu bar and choose Park.
Alternatively, if the document is
ready for approval, click the
Save as Complete button.
The invoice then enters workflow for

an A/R Approver to review and post.
A document number appears at the
bottom of the screen. Note it down.

Single Line Manual Entry Create Approve Invoice
(Return) Invoice
To see the users named in the workflow table who can

review or approve this document: 8
8 Access the Command Field and type the Workflow t- 8
code: SBWP then press Enter.
9 When your SAP Business Workplace Screen opens
navigate to Outbox, Started Workflows. This will
display the documents you have introduced into
workflow with the most recent at the top.
10 Click the document to highlight it. At the lower part
of the screen the text: Current data for Started
Workflow AR Approval 2200000271 appears.
10

(Return) Invoice
11 With the document

still highlighted scroll
down to the end of
the lower part of the
screen, then click on
Information.
12 This will display the

list of users named in
the Workflow Table
who can approve this 11
document.
12

Single Line Manual Entry Review and Approve Invoice
(Return) Invoice
To review and post the invoice:
1
1 Enter SBWP in the Command Field to 2
access the Business Workplace screen
3 Navigate to Inbox, Workflow, Grouped
According to task, AR Document
Approving Agent.

(Return) Invoice
4 Then click
Display Parked
Document to
review. The
parked
document
number will
appear at the
lower part of
the screen. The
CC (1000) and
year (2013) will
be added to
the document 4
number in front
and at the end
respectively.

(Return) Invoice
5 The document will open 6 5

Review it to ensure key data
like Doc Type, Invoice Date,
Posting Date, Currency,
Customer account,
Reference, Amount, GL
account, Payment Terms,
Baseline Date are correctly
inputted.
6 When the review is
completed, click on Back
(Green arrow icon) to return
to the workplace.
7
Double click on document
title to go to Decision
7
Options.

(Return) Invoice
Once the document title is double clicked,

the user claims the document. As a result,
it becomes unavailable to any other user
named in the Workflow Table.
Three actions are possible:

8 Cancel If the Approver wants to
return the document to workflow so
that another user can take action on it.
9 Refuse if the Approver is not satisfied
with the document and wants to return
it to the Transaction Entry Agent
(originator). A reason must be given.

10 Approve if the Approver is satisfied
with the document and wants to post
it.

(Return) Invoice
After the invoice is posted, confirm this by

reviewing the customers account as follows:
1 Enter ZAPFBL5N in the Command and click 5
the Enter icon. This opens the Customer Line 2
Item Display.
2 Enter the Customer account
3 In the Line Item Selection, click Open Items.
4 In Type, uncheck Normal items and check
Special G/L transactions. 3
5 Click on the Execute icon to run the search.

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

(Return) Invoice
When the invoice is approved, the customers account in the Accounts Receivable
Subsidiary Ledger is debited. This triggers an automatic update of the AR
Reconciliation Account in the General Ledger. The approval process is the same as
that for creating invoices directly in the AR sub-ledger through Excel Uploads
(explained shortly).
Once the invoice is approved, a JV is needed to reclassify amounts recoverable that

have now been claimed and recorded as part of the Customer Invoice receivable.
Dr 15201014 Match the assignment generated by the FV70 document
Cr 15201020
Account 15201020 cannot be posted to from FV70 due to its special configuration as
the VAT account in the AP sub-ledger. After the JV is recorded, accounts 15201020
and 15201014 should be cleared to offset the amount of recoverable VAT that has
now been transformed into a receivable VAT. This is done using the T-code F-03. An
example of how this t-code is used to clear a GL account is as follows:

Allocating a G/L Account
Access the Clear G/L Accounts screen:
1 Enter F-03 in the Command field
2 Click the Enter icon. The Clear G/L 2 1
Account: Header Data page appears
3 Enter required details in the following
fields:
Customer account number in the
Account field
3
1000 in Company Code field 3
Account currency in Currency field

4 Make sure the Clearing Date matches
the posting date of the latter of the
documents being cleared!
Click the Enter icon
Note: Clearing Date and Period populate

automatically and often need to be
changed manually.

Allocating an Account in Umoja
The Clear G/L Account Process Open Items screen appears displaying accounting line items
belonging to the account entered on the previous screen.
5 Double-click the two

matching line items
6
(debit/credit)
The amount for each line
item in the matching pair
turns blue.
Ensure amounts selected net
to zero in the lower right 5
section of the screen.
6 Navigate to the following
menu item: Document >
Simulate General Ledger

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

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

and Credit Approve
Calculations Invoice
Steps performed in Umoja ECC

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

1 Enter ZARdocload in the Command field
2 1

Upload Assessments
Approve
and Credit
Invoice
Calculations
The AR Document Upload page appears.

3 Select the document in the File Path field
4 Select Test Mode, Posted or Save as Complete
5 Click the Execute icon

Upload Assessments
Approve
and Credit
Invoice
Calculations
The Upload is first executed in the Test Mode. If no errors are reported it is next repeated and Saved
as Completed. This initiates the workflow process. The invoice is sent to the inbox of the AR
Approver for review and posting.
AR User should NEVER upload multiple documents in Post or Save as Complete

without asking the AR Approver to review the template!

Manual Upload Review and Approve Invoice
Upload Assessments Review and

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

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

Contributions without invoices SPGL L SPGL N
AR
GL FM
Module
CO
GM

Activity 7
Transaction Name: Allocate a GL Account in Umoja
Transaction Code: F-03
Link to the uPerform simulation:

Allocate a GL Account in Umoja

Activity 8
Transaction Name: Park a Customer Invoice and Approve
in Business Workplace
Transaction Code: FV70

Park a Customer Invoice and Approve in Business
Workplace

The Accounts Receivable process covers the creation of all of the following automatic
and manual customer invoices, EXCEPT:
Select all that apply.
A. Lease Administration
B. Leave Administration
C. Grants Management
D. Transactions from revenue bearing work

The Accounts Receivable process covers the creation of all of the following automatic
and manual customer invoices, EXCEPT:
A. Lease Administration
B. Leave Administration
C. Grants Management
D. Transactions from revenue bearing work
Options B is the correct answer. The Accounts

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

Module 2 Summary
Customer invoices are directly created in the AR Sub-ledger when they do not
originate from the sale of goods or services .
Customer invoices can be created manually or uploaded into Umoja from an Excel
File or legacy system via an interface.
VAT is paid in the AP Sub-ledger at the time vendor invoices are paid. However, VAT
Receivables are established in the AR Sub-ledger.
Assessed contributions are calculated in a legacy system and interfaced into Umoja
Customer invoices created directly in the AR Sub-ledger are approved via workflow.

Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey

Module 3 Objectives
Explain how to move Incoming Payments from EFT-In to either Customers'
Accounts or the Unapplied Cash Account
Describe how to move Incoming Payments from the Unapplied Cash Account to
Customers Accounts
Describe how to apply a partial payment to a Customers Account
Explain how to raise a Credit Memo

Incoming Payments Processing - Overview
Inasmuch as it is important for AR staff members to correctly record the amounts owed the UN in
the different debtor accounts of customers, it is equally important that Incoming Payments are
correctly applied to the accounts of the customers who made them. This is the focus of this module.
Incoming Payments come as cash, cheques or as Electronic Funds Transfer (EFT). With the
introduction of House Banks, all bank accounts of missions now belong to one of the three Treasury
Pool Funds 64VQA: Main Pool Cash & Investment. As a result, all Incoming Payments are
recorded in 64VQA. This results in two sets of entries:
1. An increase in the equity of the mission in 64VQA for which the money is destined i.e. the
mission that was owed money.
2. A decrease in the amount owed by the customer who made the payment. In some cases the
customers account will be automatically credited by the system when bank statements are
uploaded. In many cases the Bank Reconciler will clear the Customers Account. When the Bank
Reconciler does not know to what AR documents the incoming payment relates to, s/he will
refer the case to the AR User.
3. This module looks at how AR staff will manually apply Incoming Payments to a customers
account when the automatic application doesnt take place or the Bank Reconciler does not
have enough information to clear the Customers account.

Incoming Payments Processing - Overview
In addition to an Incoming Payment, a customer's receivable may also be reduced by:
1. A Credit Memo. This will be the case if the UN decides to reduce the amount owed by the
customer because of reasons such as defective products, overcharging etc. This module will
equally look at how Credit Memos are raised;
2. The netting against an Accounts Payable document on the Vendors account when the Business
Partner has both roles (Customer and Vendor) or when we have two Business Partners in the
case of a Commercial entity.

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

Display of Open Items
Open items for all the customers specified in the ZARFBL5N are displayed with a red ball status.
When the items are eventually cleared the ball will turn to green.

Incoming Payments Processing Automatic Clearing
Bank Statement Upload
Automatic clearing of AR items is not done by the AR staff. When the Bank Statement of the
previous day is uploaded into Umoja, a Bank EFT-In clearing account will be credited by the debit of
EFTs received as follows: Doc. Type ZR
Dr 64VQA Bank Nominal (GL A/c 11011X10)
Cr 64VQA Bank EFT In Clearing (GL A/c 11011X16)
Matching to Clear
If the incoming payment contains information e.g. invoice number, that identifies an existing
receivable for the same amount, Umoja will establish a match between the two. The receivable
will be automatically cleared by the incoming payment. Doc. Type ZR
Dr 64VQA Bank EFT In Clearing (GL A/c 11011X16)
Cr 20OLA Customer Open Item (GL A/c 15101XXX)
Equity Increase in Treasury Pool

At the same time the equity of the Fund for which the incoming payment was meant will increase
in the Treasury Pool. TBD
Dr 20OLA Equity in Pool (GL A/c 11701010)
Cr 64VQA Equity in Pool (GL A/c 11701010)

Automatic Clearance Edit Bank Statement
To see which items cleared automatically and which didnt when the bank statement was uploaded
is through use of the Edit Bank Statement screen.
It is accessed as follows:
1 Enter FEBAN in the Command
field 3
This opens the Selection of Bank 3

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

Automatic Clearance Edit Bank Statement
When the Selection of Bank Statements by Banks and Account Nos is executed, the Edit Bank
Statement screen is displayed.
The two postings mentioned earlier result in two documents.
Posting Area 1 shows the document

created for the entries to record the
incoming payment in UNs bank
account (Doc # 6300000002).
Dr 64VQA Bank Nominal
Cr 64VQA Bank EFT In Clearing
Posting Area 2 shows the document

created to clear the receivable account
of the customer who made the
payment (Doc # 2400000001).
Dr 64VQA Bank EFT In Clearing
Cr 20OLA Customer Open Item
N.B. FEBAN is also used to manually

clear the items that are not cleared
automatically by the Bank Reconciler.

Incoming Payments Processing Manual Clearing
a) Cash and Cheques
The Cashier uses the Cash Journal to record cheques and cash receipts. In most instances,
especially in Field Missions, the purpose of the receipt will be known at the time the cash/cheque
receipt is recorded in the Cash Journal. When a receivable (DR doc type) already exists in the
account of the customer making the payment, the Cashier will record the receipt and reference the
Assignment number of the receivable in the Assignment Field of the Cash Journal. The system will
create an Incoming Payment (DZ doc type) with the following entries:
Dr. Cash Cashier Incoming (1-172-100X generated by system)
Cr. Customer Open Item (GL A/c 15101XXX)
AR staff can then manually clear the customers account i.e. match the DR doc to the DZ doc using
t-code F-32.
Exceptionally, the cash/cheque may be received prior to a receivable being set up. In this case,
there will be no Customer Open Item to credit. Instead the money should be credited to G/L
account 39201020 Unapplied Cash Journal and later transferred by the AR User via a Payment
Document (using t-code F-28) to a Customers Account after a receivable has been set up.

Incoming Payments Processing Manual Clearing
b) Electronic Funds Transfer (EFT)
For Incoming Payments received through EFT, the manual clearing process is done daily using the t-
code FEBAN. As shown earlier, when the Incoming Payment hits the Nominal Account, an EFT-In
account is initially credited i.e.
Dr 64VQA Bank Nominal (GL A/c 11011X10)
Cr 64VQA Bank EFT In Clearing (GL A/c 11011X16)
The task of AR staff is to move the funds from the EFT-In account to a Customers account i.e.
Dr 64VQA Bank EFT In Clearing (GL A/c 11011X16)
Cr 20OLA Customer Open Item
When this second entry is posted, the system will increase UNIFILs balance in the Treasury Pool, as
the receivable was due to the Fund 20OLA.
To illustrate the use of FEBAN to apply an Incoming Payment to a Customers Account, well use the
following data set.
Customer: 1111000016 Government of France
Outstanding Amount: US$ 69,000
Being: VAT Receivable
AR Document #: 2200000201

Incoming Payments Processing Manual Clearing - FEBAN
1 At the Command Field type 1 1 2

FEBAN and press Enter. This
opens the Selection of Bank
Statements by Banks and 4
Account Nos Screen.
2 Click on the Execute icon at the
bottom right corner. This opens
the Edit Bank Statement Screen.
3 Double-click the open item you
intend to clear.
4 Go to the menu, click Statement 3
Items and select Post (can also
be done via Ctrl + S or by right
clicking and selecting Post
Items). This opens the Post With
Clearing Select Open Items
screen.

5 Enter the Customers

Account in the Account 7
Field.
6 Enter D in the Account
Type Field.
7 Click the Back icon to go
to the Post With Clearing
Display Overview
Screen.

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

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

Review the entries in the Post
With Clearing Display Overview 17
Screen. Ensure that:
a The credit line shows the

desired Customer A/c.
b The sum of debits equal the
sum of credits i.e. the balance is
zero.
To post the document:

Click the Post icon.
17 a
N.B. Posting an Incoming Payment

through FEBAN as described above
is not subject to workflow.


18 In the Command
Field type
FEBAN and then
click on Execute
to return to the
Edit Bank 19
Statement
Screen.

19 Double click on
the Incoming
Payment that
was just applied
to a Customer
A/c. It now
displays a green
status.

20 Review the 20
document
number in
Posting Area 2
(FB03 or double
click the doc#)

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

Partial Payments
At times the amount of an Incoming Payment is less than the amount due. The difference could be
attributed to reasons such as exchange rate losses, disputes over the amount owed, inability to
clear the outstanding balance in full etc.
As long as the UN has not decided to write off part or all of a receivable, any partial settlement
of the receivable will be manually applied to the customers account in such a way that the
difference will remain outstanding on the same payment terms.
Where the shortfall in the Incoming Payment is due to exchange losses or bank fees, F-28 will
be used to apply the Partial Payment to the Customers Account and a JV raised using t-code
FV50 to expense the difference.
Scenario
The UN supplies Fuel to ICAO Montreal (A/c 1114000000). Our records show that ICAO still owes
us for fuel supplied and invoiced in May 2013. ICAO contends that payment was made in May 2013.
After reviewing bank statements for May, it is discovered that a payment was indeed received from
ICAO but because the amount was less than expected, the money was instead credited to
Unapplied Cash. Other details are as follows:
Customer Inv# (DR): 2200000290 Inc. Payment# (DZ): 2400000041

Amount: $5,000 Amount: $4,476.44
Date of invoice: 13 May 2013 Date of receipt: 17 May 2013

1 1 4
2
1 At the Command Field type F-28
and press Enter. This opens the
Post Incoming Payments:
Header Data Screen.
2 Enter data in the following fields:
Document Date
Reference
Doc. Header Text
Clearing Text
Bank Data Account
Bank Data Amount
Bank Data Text
Open Item Selection A/c
3 Ensure that the Account Type in 3
Open Item Selection is D
4 Click on Enter or Process Open
Items

Given that the amount owed
($5,000) exceeds the Incoming
1
Payment ($4,476.64) that was
initially booked in the Unapplied
Cash A/c, a partial payment will be
applied to the customers a/c.
1 At the Post Incoming Payments
Process Open Items Screen that
displays, click Partial Pmt. This
opens the Post Incoming
Payments Enter Partial
Payments Screen. 2
2 The system selects all open
items by default. De-select
(double click) each amount
except the one you intend to
apply the Incoming Payment to.
As the items are de-selected this
reduces the Payment Amount
(narrows the difference between
Amount entered and Assigned)

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

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

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

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

3 In the Command Field 3
enter the t-code F-32
and press Enter. This
opens the Clear
Customer: Header
Data Screen.
4 Enter the customers
number in the
Account Field.
6
5 Select Amount in the
Additional Selections
4
section.
6 Click on Process Open
Items. This opens the
Clear Customer:
Selection Criteria
Screen.

7 Type the amount of the Credit Memo you intend to allocate to the Customer Invoice in the From
and To fields of the Amount (USD) section.
8 Click on Process Open Items. This opens the Clear Customer: Process Open Items Screen. The
system displays all documents with the amount (selected by default) specified.
9 De-select (double click)all the amounts you dont intend to allocate in this transaction. Only the
debit (DR) and credit (DG) docs should remain selected.
9
8


10 Check that the 18
Amount Entered
and Assigned both
have a zero value,
such that Not
assigned = zero as
well.

11 From the menu bar
click Document,
then Simulate. This
opens the Clear
Customer Display
Overview Screen.
10

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

Touch Points
Touch points are those instances where one process, sub-process or activity interacts with
another process, sub-process or activity.
The Incoming Payment Processing interacts with the following processes:

Daily Reconciliation of Bank Transactions
Incoming Payment Processing Cheque and Cash
Incoming
Daily
Customer Payment
Reconciliation of
Invoice Processing
Bank
Processing Cheque and
Transactions
Cash

Activity 9
Transaction Name: Display Open Line Items by Customer
Transaction Code: FBL5N

Display Open Line Items by Customer

Which of the following statement is false about the Electronic Funds Transfer (EFT) In
Clearing Account?
A. The EFT-In account is a transitory account.

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

Which of the following statement is false about the Electronic Funds Transfer (EFT) In
Clearing Account?
A. The EFT-In account is a transitory account.

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

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

Module 3 Summary
Incoming Payment processing involves the analysis and reconciliation of all
incoming payments that have not been automatically applied to an open item at
the time bank statements are uploaded.
Payments can be cleared manually against the invoice through multiple options
Inputs in this process include payments under EFT or receipts of cheque and cash
Outputs of this process include a fully or partially cleared invoice and a credit
receipt
Incoming payments process starts with Incoming payments received by Treasury
and transferred over to A/R. Then payments run through an automated clearing
process. If payments meet the automatic criteria for clearing, they are cleared
automatically. If they do not clear automatically, they can be cleared by a manual
process

Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey

Module 4 Objectives
Explain the Write-offs process
Identify the steps involved in the Write-offs process
Create and post the parked document in allowance for bad debt
Create and post the parked document on Write-off
Block a customer
Post general provision (accrual) as a reversal

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

Key Terminology
An item that results when a payment is made for less than the
actual amount outstanding. The original open item is cleared
Residual Item and the system posts a new open item. This new open item is
for the same amount as the original open item minus the
amount paid.
The process of notifying customers of outstanding debts and
Dunning
systematically applying penalties to ensure payment.
A report on aging of the open items indicating the items that
Dunning Proposal
will be part of the Dunning process and their levels.
A letter that is sent to the customer indicating past due items
Dunning Letter
and containing a message from the UN.
It is a letter sent to the customers prior to the due date of an
Dunning Reminder
invoice as a reminder that the due date is approaching.
It indicates the number of times an invoice has already been
Dunning Level
included in a Dunning run.

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

Write Off Open Item
Change
Write Off Block the
Credit
Open Item Customer
Terms
Access the Parked Document Entry page:

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

Write Off Open Item
Change
Write Off Block the
Credit
Open Item Customer
Terms
The Park Document: Change Customer Item screen displays.
7
In the Item 1/Other clearing/17 section, enter information in the following fields:
Amount
Business Area
Assignment (# of original doc)
Reference test

Write Off Open Item
Change
Write Off Block the
Credit
Open Item Customer
Terms
8 In the Next Line Item section at the bottom of the screen, enter information in the following
fields:
Posting Key: 40
Account: G/L Write-off Account Number
There are a total of six write-off accounts in Umoja:
9 Press the Enter key

Write Off Open Item
Change
Write Off Block the
Credit
Open Item Customer
Terms
The Park Document: Enter G/L Account Item screen displays.

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

11 Click the More button

Write Off Open Item
Change
Write Off Block the
Credit
Open Item Customer
Terms
The Coding Block screen appears.

12 Enter required details the Fund and Grant fields


14 Click the Document Overview icon

Write Off Open Item
Review Change
Check for Write Off Block the
Customer Credit
Bad Debt Open Item Customer
Open Items Terms
The Park Document: Overview screen appears.
The first line with Posting Key 17 will

credit the Customer account and the
second line will record the write off
Expense.

15 Click the Document tab

16 Click Complete

Write Off Open Item
Change
Write Off Block the
Credit
Open Item Customer
Terms
Once the document has been saved as completed, it is sent through workflow for approval.
To review the steps followed by the approver to view and approve a document in workflow, please
refer to module 4.

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

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

Which of the following is not an output of the Write-off process?
A. Bad debt is written-off

B. Customer is blocked
C. Credit terms are changed
D. Dunning proposal is run

Which of the following is not an output of the Write-off process?
A. Bad debt is written-off

B. Customer is blocked
C. Credit terms are changed
D. Dunning proposal is run
Option D is the correct answer. The output of

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

Module 4 Summary
The Write-off process is triggered when the Write-off Process Requestor identifies
a need for bad debt, write-off, blocking the customer or changing credit terms
The Financial Accounting User (AR) reviews open items for the customer to
determine collection issues
The Financial Accounting Approver (AR) reviews the users proposal for recording
allowances for bad debt and for Write-off at the open item level (specific) and
decides whether to approve it
Approved block requests are forwarded to the Master Data Maintenance Team for
processing
Approved change requests are forwarded to the Business Partner Master Data
Maintenance Team for processing

Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey

Module 5 Objectives
Indicate appropriate module 5 objectives

Reports
Some reports that can be used in Accounts Receivable are:
S_ALR_87012241 - List of Open Items
S_ALR_87012185 - List of Customer Open Items
S_ALR_87009956 - Customer Open Item Analysis(Overdue)
S_ALR_87012198 - List of Cleared Customer Items
S_ALR_87012186 - Customer Sales
S_ALR_87012177 - Customer Payment History
S_ALR_87012184 - Customer Balances in Local Currency
S_ALR_87012199 - Open Down Payments
S_ALR_87012168 - Due Date Analysis for Open Items
S_ALR_87012190 - Open Item Balance Audit Trail from
ZARAGING - Customer Aging Report

Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey

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

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

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

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

FI330 Umoja Accounts Receivable FI Process ILT PPT v23

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FI330 Umoja Accounts

Receivable (FI) Process

Umoja Accounts Receivable - FI Process Version 23

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No Phones Do Not Access Participate Ask Questions Breaks

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Course Duration: 6 hours

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Reviews/approves/rejects customer invoices and credit

Creates and posts FI documents that are not subject to

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Goods sold and services rendered Catering Services

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Umoja introduces the concept Since Sales and Distribution and

The Dunning process creates reminders or notices

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Postings from sub ledgers to Control or

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Real Estate Lease FM

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AR Sub-ledger General Ledger

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SPGL = Special GL Indicator

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When SPGL is F it means we have not yet received the downpayment.

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IPSAS 9 Revenue from Exchange Transactions

IPSAS 23 Revenue from non-Exchange Transactions

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Other UN related Organizations

Types of Income Billing / Cost Recovery Method

Assessed Direct Recording of receivables

The following Business Partner Groups - Commercial Vendors UNGM, Individuals

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Accounts receivable documents created directly in the AR sub ledger:

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Recovered Account Receivable document which has a clearing document.

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The Document Flow that must be respected is as follows:

Customer Incoming Bank

Customer Collections/Dun Write-Off

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Select the correct option.

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Select the correct option.

Option C is correct. The key benefit of Umoja is

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The process steps to establish a VAT Receivable are as follows:

Dr Customer Dr 15201014 VAT Man Adj.