Abb Latam - CRP Accounts Receivable

MARCH 28, 2024
ABB ANDES Project

CRP1 – ACCOUNTS RECEIVABLE
Marcos Borri, Wipro Consultant
Sensitivity: Internal & Restricted
Agenda
ACCOUNTS RECEIVABLE
Master Data
Process Accounts Receivable
Credit management
Business Partner
Disput Case
Promise to pay
Allowance for bad debts
Dunning
Reports
March 28, 2024 Slide 2

ACCOUNTS RECEIVABLE
Master Data
Create Customer – Standard tcode XD01
Business area registers customer in SAS

Solution 3 (Lotus Notes base) and sends it for
SAS approval.
SAS sorts documents
Analyst registers the client at Tcode XD01 and

generates SAP code.
The tax analyst registers the taxes and sends

them for credit analysis.
Credit analyst checks the client's financial

documentation and determines the credit limit
in the register.
Information returns to the business area.

ACCOUNTS RECEIVABLE
Master Data
Address: Name, Address,

Communication, etc..

ACCOUNTS RECEIVABLE
Master Data

ACCOUNTS RECEIVABLE
Master Data
Payment transactions : Customer bank

account.

ACCOUNTS RECEIVABLE
Master Data
Accounting Information:
Reconciliation accouting.

ACCOUNTS RECEIVABLE
Master Data
Payment methods
List of Respected Payment
Methods
.

ACCOUNTS RECEIVABLE
Master Data
For each procedure is defined:
•Dunning frequency
•Amount limits
•Texts for the dunning notices

ACCOUNTS RECEIVABLE
Master Data
This indicator is used to classify the

different types of withholding tax.

ACCOUNTS RECEIVABLE
Master Data
Interface ICV and R-Box

ABB global solution
.

ACCOUNTS RECEIVABLE
Master Data
Interface ICV and R-Box

ABB global solution
.

ACCOUNTS RECEIVABLE
Master Data
Change / Display Customer – Standard tcode FD02 / FD03
The tax analyst registers the taxes and sends

them for credit analysis.

ACCOUNTS RECEIVABLE
Master Data
Confirm change single / list –– Standard tcode FD08 /FD09
At the end, the system displays the

customer's number
and also a message that the customer

needs to be confirmed

ACCOUNTS RECEIVABLE
Master Data
Display changes – Standard tcode FD04

ACCOUNTS RECEIVABLE
Master Data
Block/Unblock customer – Standard tcode FD05
- All company codes blocked for posting.

- Only for specified CoCd blocked for posting.

ACCOUNTS RECEIVABLE
Credit Management
Customer credit management
TCode : FD32
Credit analyst checks the client's

financial documentation and
determines the credit limit in the
register.
Slide 17
March 28, 2024 Sensitivity: Internal & Restricted
ACCOUNTS RECEIVABLE
Credit Management
Credit Control Area
-Credit limit is defined by Credit Control Area
-A credit control area can have more than one
company
-The risk class is manually changed by the user
according to credit analysis
Credit exposure
-Sales order and Invoice
Credit Block
Customer is blocked for all credit management
business transactions (order acceptance,
delivery, goods issue). You can still, however,
post invoices for goods which were already
delivered.

ACCOUNTS RECEIVABLE
Accounts receivable process
ADVANCE FROM CUSTOMER WITHOUT EXTERNAL PROJECT

Customer Down Payment - Standard tcode F-37
Area creates down payment request

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE
Clear Customer Down Payment - Standard tcode F-39
SAS settles down payment requests based

on receipt entry in ABB bank accounts
In this step, it relates the down payment and

the item in accounts receivable.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE PROCESS
ADVANCE FROM CUSTOMER WITH EXTERNAL PROJECT
Create Billing Document– Standard tcode VF01
Enter invoice document (SD)
The area invoices the down

payment item and it generates
Memo departure

ACCOUNTS RECEIVABLE
Customer Down Payment - Standard tcode F-37
Area creates down payment request

ACCOUNTS RECEIVABLE
Clear Customer Down Payment - Standard tcode F-39
SAS settles down payment requests based

on receipt entry in ABB bank accounts
In this step, it relates the down payment and

the item in accounts receivable.

ACCOUNTS RECEIVABLE
Automatic Payment Transactions - Standard tcode F110
Customer's register define the payment

method (bank or wallet collection)
Periodically, SAS creates payment proposals

in transaction F110, to be sent to the bank,
determining the titles for bank collection to
customers.
A file is generated and transmitted to the

bank, which in turn issues "billing document "
and sends them to customers.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE
Bank Statement - Standard tcode FF_5
-The SAS analyst checks the bank statements

daily to verify the deposits received.
-Banco makes available the files of statements

that are received and processed by the SAS
(FF_5.
-Through the customer's identification, it is

possible to check the customer's account in
SAP, to identify which title should be cleared.

ACCOUNTS RECEIVABLE
Incomig Payments Fast Entry - Standard Tcode F-26
After the values have been identified, SAS

clears (Bank X Customer).

ACCOUNTS RECEIVABLE
Financial Supply Chain Management
Schedule and organize collection tasks
Customer contact management
Monitor scheduled tasks
History of collection actions performed

ACCOUNTS RECEIVABLE
Business Partner
1º Step
Create Business Partner – Tcode: UDM_BP
Business Partner is automatically generated when the

Customer is created.

ACCOUNTS RECEIVABLE
Business Partner
2º Step
Set "Collections Management" Function Tcode:
UDM_BP
Fill the function "collection management"

"Collection Profile" guide.

ACCOUNTS RECEIVABLE
Business Partner
3º Step
Set “Credit Management" Function Tcode: UDM_BP
Fill the function "Credit Management".

"Credit Profile" guide

ACCOUNTS RECEIVABLE
Receivables Management
Worklist - Tcode: UDM_SPECIALIST
All customers that invoices overdue.
If the customer has history of invoice overdue

(defined in the score), it will also be listed in the
worklist.
The order of display of the worklist is defined

according priority (strategy definition

ACCOUNTS RECEIVABLE
-When selecting a specific customer in

the worklist, all overdue invoices for
that customer are displayed.
-Also shown are invoices that are not

overdue but that the customer scores
according to the strategy definition.

ACCOUNTS RECEIVABLE
-Example of an ABB Brazil strategy
-Structure for defining the "Strategy" is

shown below

ACCOUNTS RECEIVABLE
Structure Collection
Example of an ABB Brazil strategy
Segment
(one per company)
ABB_BR30
Collection Collection Collection

Collection Collection Group Collection Collection Collection Collection Group Collection Group
Collection Collection Group Group
Oil, Gas, Group Group Group Paper And Group Discrete & Motion
Group Group Group Account
Chemical and Mills, Turbocharge Transmission, Panels, Low Voltage
Builders, Financial, Metallurgy, Cellulose Managers
Petrochemical Agribusiness and and Transport Distribution, Installers, and Instrumentation
Contractors Insurance Mining and Group
Food Telecom, E. Wind Engines,
and Associations Steel
Sanitation Machines and
Engineering and Media Equip.
Rule Rule Rule Rule Rule Rule Rule Rule Rule Rule Rule Rule

ACCOUNTS RECEIVABLE
Structure Collection ABB BRAZIL

ACCOUNTS RECEIVAB
-If the sum of all conditions is greater than

the maximum value (170), the base value
to compose the priority calculation is the
maximum value (170)
-If the sum of all conditions is less than

170, the base value to compose the
priority calculation is same to the sum

ACCOUNTS RECEIVAB
Calculation
Example:
- Base value = 70
- Maximum value = 170
- 70 is 41% of 170
- 41% = Priority Low
- The priority determines the sequence that the client

will be viewed in the Worklist.

ACCOUNTS RECEIVABLE
Receivables Management - Dispute Case
Create Dispute Case - Tcode: UDM_SPECIALIST
Internal communication
Dispute Cases are created due to business
problems that, for the customer, justify the non-
payment of the debt (wrong invoice, wrong tax,
wrong address, goods not received, etc.)
Select a line from the Worklist and "Create

Dispute Case

ACCOUNTS RECEIVABLE
Disput Case
-Email is sent to ABB

technical staff
-Technical team analyzes

the case
-After solving the case, the

Dispute case will be
returned to the SAS, which
will continue the collection
process

ACCOUNTS RECEIVABLE
Disput Case

ACCOUNTS RECEIVABLE
Disput Case
ZFI_FSCMRESP
Definition of Analyst and Supervisor by

Profit Center to which emails will be sent

ACCOUNTS RECEIVABLE
Disput Case
ZFI_FSCMLOGICA
When creating the dispute case the FSCM include checks the Profit Center for the Dispute Case. This profit
center is the filtering criterion in zfi_fscmlogica to obtain the search logic that will be applied.
T1-Checks directly responsible for the ZFI_FSCMRESP table

O1-Checks the responsible person based on the responsible for the Sales Order
P1-Verifies the responsible person based on the responsible for the Project
-If the rule is T1 - Use the Table zfi_fscmresp to define the person in charge.
-If the rule is 01 + T1 - The responsible person is sought via the Internal Order of the match. If
it has not yet been possible to define the person in charge, use the Table zfi_fscmresp to define the
person in charge.
-If the rule is 01 + P1 + T1 - The responsible person is sought via the Internal Order of the
match. If the responsible person is not defined, then the person responsible for the Project is sought.
If it has not yet been possible to define the person in charge, use the Table zfi_fscmresp to define the
person in charge

ACCOUNTS RECEIVABLE
Disput Case
Status of email sent - Tcode: SOST

ACCOUNTS RECEIVABLE
Disput Case
-Dispute case will be closed when customer

invoice are cleared
-History of the actions performed will be

displayed in the worklist

ACCOUNTS RECEIVABLE
Disput Case
Dispute Case update is done through a program (without manual intervention).
-Eliminate dispute case if Invoice status is "paid“;
-Checks the dispute case's opening date. Checks if it has been updated. If not, send an email to the responsible;
-Check for an update after the deadline. If not, send an email requesting information from the technical area;
-Checks the date of updates and escalations in order to check if there was update after the deadline. If not,
send emails requesting updates;
-Do not repeat send email on the same day of an update email.

ACCOUNTS RECEIVABLE
Receivables Management – Promisse to pay
All invoices for that have not been paid in

the due date.
If the customer has history of late payment
(defined in the score), all invoices for that
customer will be displayed in the Work List.
The order of display of the worklist is

defined according priority

ACCOUNTS RECEIVABLE
Create Promisse to pay - Tcode: UDM_SPECIALIST
Customer communication
Promise to pay are created when there are no
technical and operational details that justify non-
payment
Select a line from the Worklist and "Create

Promisse to pay

ACCOUNTS RECEIVABLE
Promise to pay
Create Promise to pay - Tcode: UDM_SPECIALIST
SAS contacts the customer and determines new

payment date
Create Promise to pay
Program sends email to the customer informing

about the agreed payment promise

ACCOUNTS RECEIVABLE
Promise to pay
Status Promise to pay - Tcode: UDM_SPECIALIST
Analyzes status Promise to pay:

- Open (when not yet due)
- Complied (if paid within the agreed deadline)
- Broken (not paid within the agreed deadline)
If payment is made, it updates the payment promise and links

the payment received to the business partner.

ACCOUNTS RECEIVABLE
Select invoices that have not been paid on due dates
TCODE: ZFI_PDD (ABB Brazil Development)
Selects all customer open items that were not

paid on the due date, according to risk class

ACCOUNTS RECEIVABLE
Selects all customer open items that have not been paid at maturity according to the Risk Class.

ACCOUNTS RECEIVABLE
Items to accounting for selected in

the previous step

ACCOUNTS RECEIVABLE
Customer Account view
Reconciliation Account view

ACCOUNTS RECEIVABLE
PDD Document is recorded in the Original Document

(Customer Invoice)

ACCOUNTS RECEIVABLE
Manual clearing of customer open items
Checks whether PDD document is registered in the original document (customer invoice):
If there is no document PDD, program follows with the transaction
If there is document PDD, program analyzes whether the invoice amount is equal to the clearing document amount:
-If equal values: program performs the clearing of the original document and the accounting for the PDD reversal
-If different values: Difference between the values is not equal to the sum of all taxes, error message.

ACCOUNTS RECEIVABLE
Allowance for bad debts - Reversal Accounting
In this step the program will identify all invoice that

have been accounted for as Allowance for bad debts
and will extract a spreadsheet with those items.

ACCOUNTS RECEIVABLE
Select items with PDD Document

ACCOUNTS RECEIVABLE
Items to accounting for selected in the

previous step

ACCOUNTS RECEIVABLE
Customer Account view
Reconciliation Account view

ACCOUNTS RECEIVABLE
Dunning
Create Dunning - Tcode: F150
It is the process for which

collection letters are sent to
customers with pending payments.

ACCOUNTS RECEIVABLE
Dunning
Tcode: SOST
Status of submitted requests

ACCOUNTS RECEIVABLE
Dunning letter - View dunning printout
Collection letter template - Tcode: SP02
There are two dunning models:
-Invoice with 7 days in arrears (Soft)
-Invoice with 14 days in arrears(Hard)

ACCOUNTS RECEIVABLE
Report
Account balance display - Tcode: FAGLB03

ACCOUNTS RECEIVABLE
Report
Balance display - Tcode: FAGLB03

ACCOUNTS RECEIVABLE
Report
G/L Account line item display - Tcode: FAGLB03

ACCOUNTS RECEIVABLE
Report
General Ledger line items display- Tcode: FAGLB03

ACCOUNTS RECEIVABLE
Report
Customer Line Item Display – Standard tcode FBL5N
This report is run every day by the AR department.
It provides the open items, cleared items and all items for
a customer or a range of customers.
Enter the details for which you want to run this report.

ACCOUNTS RECEIVABLE
Report
Customer Line Item Display – Standard tcode FBL5N

ACCOUNTS RECEIVABLE
Report
Display document – Standard tcode FBL5N

ACCOUNTS RECEIVABLE
Report
Original document– Standard tcode FBL5N

ACCOUNTS RECEIVABLE
Report
Document Flow– Standard tcode FBL5N

ACCOUNTS RECEIVABLE
Report
Customer Line Item Display – tcode ZFBL5N_NEW
Preview
Company, profit center,
PEP project, document
number

ACCOUNTS RECEIVABLE
Report
Customer Line Item Display – tcode ZFBL5N_NEW

ACCOUNTS RECEIVABLE
Report
GIS – Top Exposure – tcode ZRFI_TOP_EXPOSURE
Net Receivables (Amt. in BRL)
Confirmed Sales Order (Amt. in BRL)
Exposure (Amt. in BRL)
March 28, 2024

ACCOUNTS RECEIVABLE
Report
GIS – Top Exposure – tcode ZRFI_TOP_EXPOSURE

ACCOUNTS RECEIVABLE
Report
GIS Top Net Outstanding Receivables– tcode ZRFI_TOP_NET
Net receivables
Fulll Amt. of Mitigation (Amt. in BRL)
Net Rec After Mitigation (Amt. in BRL)

ACCOUNTS RECEIVABLE
Report
GIS Top Net Outstanding Receivables– tcode ZRFI_TOP_NET

ACCOUNTS RECEIVABLE
Report
GIS Top Overdue– tcode ZRFI_TOP_OVERDUE
Total Overdue (Amt. in BRL)
1-30 Overdues (Amt. in BRL)
31-60 Overdues (Amt. in BRL)
Above 60 Overdues (Amt. in BRL)

ACCOUNTS RECEIVABLE
Report
GIS Top Overdue– tcode ZRFI_TOP_OVERDUE

ACCOUNTS RECEIVABLE
Report
GIS Top Credit Limits– tcode ZRFI_CREDIT_LIMITS
A to E Rating (Risck Class)
Credit Limit (Amt.in BRL)

ACCOUNTS RECEIVABLE
Report
GIS Top Credit Limits– tcode ZRFI_CREDIT_LIMITS

ACCOUNTS RECEIVABLE

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MARCH 28, 2024

ABB ANDES Project

March 28, 2024 Slide 2

Business area registers customer in SAS

SAS sorts documents

Analyst registers the client at Tcode XD01 and

The tax analyst registers the taxes and sends

Credit analyst checks the client's financial

Information returns to the business area.

March 28, 2024 Slide 3

Address: Name, Address,

March 28, 2024 Slide 4

March 28, 2024 Slide 5

Payment transactions : Customer bank

March 28, 2024 Slide 6

March 28, 2024 Slide 7

March 28, 2024 Slide 8

For each procedure is defined:

March 28, 2024 Slide 9

This indicator is used to classify the

March 28, 2024 Slide 10

Interface ICV and R-Box

March 28, 2024 Slide 11

Interface ICV and R-Box

March 28, 2024 Slide 12

Change / Display Customer – Standard tcode FD02 / FD03

The tax analyst registers the taxes and sends

March 28, 2024 Slide 13

Confirm change single / list –– Standard tcode FD08 /FD09

At the end, the system displays the

and also a message that the customer

March 28, 2024 Slide 14

March 28, 2024 Slide 15

- All company codes blocked for posting.

March 28, 2024 Slide 16

Credit analyst checks the client's

March 28, 2024 Slide 18

ADVANCE FROM CUSTOMER WITHOUT EXTERNAL PROJECT

Area creates down payment request

March 28, 2024 Slide 19

March 28, 2024 Slide 20

Clear Customer Down Payment - Standard tcode F-39

SAS settles down payment requests based

In this step, it relates the down payment and

March 28, 2024 Slide 21

March 28, 2024 Slide 22

March 28, 2024 Slide 23

Create Billing Document– Standard tcode VF01

Enter invoice document (SD)

The area invoices the down

March 28, 2024 Slide 24

Customer Down Payment - Standard tcode F-37

Area creates down payment request

March 28, 2024 Slide 25

Clear Customer Down Payment - Standard tcode F-39

SAS settles down payment requests based

In this step, it relates the down payment and

March 28, 2024 Slide 26

Automatic Payment Transactions - Standard tcode F110

Customer's register define the payment

Periodically, SAS creates payment proposals

A file is generated and transmitted to the

March 28, 2024 Slide 27