FI322 Umoja Payment Processing. Umoja Payment Processing Version 17 1

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FI322 – Umoja Payment

Processing

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Umoja Payment Processing – Version 17 Last Modified: 16-August-13

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Agenda

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Course Introduction

Module 1: Process Outgoing Payments in Umoja

Module 2: Process Incoming Payments

Module 3: Daily Reconciliation of Bank Transactions

Course Summary

Course Assessment

Course Survey

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Please share with us:

• Your name

• Your section/unit

• Years of experience in the field

• An interesting fact about you

Introduction

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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 other’s contribution

• Breaks are included at the discretion of the trainer

Ground Rules

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X

No Phones Do Not Access Participate Ask Questions Breaks E-mail

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Course Overview

The purpose of the Umoja Payment Processing course is to explain how to

process incoming and outgoing payments in the Umoja system. It will also

describe how prior day treasury and operational transactions are automatically

cleared when bank statements are uploaded.

Prerequisite Review

You should have completed the following prerequisite courses:

• Umoja Overview

• Umoja Master Data and Coding Block Overview

• Umoja Cash Management and Treasury Overview

• Umoja ECC Navigation

• Umoja BI Navigation

Course Duration: 6 hours

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Course Objectives

After completing this course, you will be able to:

• Process an outgoing payment

• Process an incoming payment

• Explain the automatic clearance of treasury and operational transactions

• Execute the Payment Processing reports

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Agenda

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Course Introduction

Module 1: Process Outgoing Payments in Umoja

Module 2: Process Incoming Payments

Module 3: Daily Reconciliation of Bank Transactions

Course Summary

Course Assessment

Course Survey

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Module 1 Objectives

After completing this module, you will be able to:

• List the roles involved in the Outgoing Payments process

• Initiate and modify a payment proposal

• Check cash sufficiency

• Create a payment list

• Schedule and execute a payment run

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Cashier

• Submits cash forecast to UN Treasury

• Ensures that that the bank account has sufficient balance to cover the payments

• Generates all payments (using the transaction code- F110 ) in Umoja

• Manages cash control by fund/grant

• Raises issues identified through cash control to Finance Managers for resolution

• Ensures that bank data is reflected accurately in Umoja on a timely basis to allow Front Office to manage daily liquidity

• Verifies that the bank communication files are processed and accepted by SWIFT/banks in a timely manner

Roles & Responsibilities

The following Umoja Enterprise role is involved in the Outgoing Payments process:

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Sources of Outgoing Payments

Outgoing Payments refer to the disbursement of Funds in settlement of requirements

originating from two main sources:

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Accounts Payable (A/P) Payments Treasury Payments

AP payments are transactions that are associated with a vendor and an invoice due, and processed through the AP process (covered in the FI321 Umoja Accounts

Payable Process course).

Treasury payments are initiated based on the settlement instructions for each

treasury transaction. These transactions include:

• Investments

• Foreign Exchange Transactions (Spot) • Internal Bank Transfers (conducted

when accounts are in surplus or deficit)

Note: During Foundation, all UN staff members will be setup and handled as vendors in Umoja. This process will change with the introduction of the Human Resources (HR) module during Extension.

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Outgoing Payments Processing

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Outgoing Payment Processing looks at the various disbursement channels used to make

payments to different payees such as:

Through House Banks

From the Main Imprest Accounts kept by the Cashier

From Imprest Accounts kept by other UN Personnel outside of the Cashier’s Office

e.g. Regional Administrative Officers

From Petty Cash Accounts kept by other UN Personnel in locations away from the

Cashier’s Office e.g. Petty Cash in the Medical Section

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Outgoing Payments Processing through House Banks

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Payments Methods

We’ll first look at Outgoing Payment Processing through House Banks before turning to

the Cash Journal functionality which is used for Imprest and Petty Cash disbursements.

When Outgoing Payments are processed through House Banks, two types of payment

methods are used:

1. Electronic Funds Transfer (EFT) payment methods.

2. Special payment methods.

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Symbol

Description

A

Automated Clearing House (ACH) wire transfers to businesses: Require a

US bank account.

P

Automated Clearing House (ACH) wire transfers to individuals: Require a

US bank account.

S

Single European Payment Area (SEPA) only for Euro wire transfers in the

Euro zone and affiliated countries. Require a valid IBAN in SEPA country.

W

Wire transfers using Swift messages, typically used for local EFT payments.

Require a valid bank account.

Q

Cheque for mailing. Requires a valid street address.

H

Cheque for pickup at Cashier’s office. Has no specific requirements in

terms of mailing address in BP.

Outgoing Payments Processing through House Banks

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Symbol

Description

Y

Cash payments via cash journal (exempted of cash control): will be

processed through F110/FPRL_LIST and paid from cash journal

R

UNDP Service (exempted of cash control): will be processed through

F110/FPRL_LIST

U

UNDP Pay Agent (exempted of cash control): will be processed through

F110/FPRL_LIST

Outgoing Payments Processing through House Banks

b/ Special Payment Methods

Note: The payment method “1” must not be chosen for vendor payments; this payment method is reserved for Treasury internal transfers and investment related payments.

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Outgoing Payments Processing through House Banks

With the introduction of House Banks, all bank accounts now belong to one of three

Treasury Pool Funds.

1. Main Pool – Cash & Investment

64VQA-> all operational in/out payments

2. EUR Pool – Investment 64VQE

3. UNSMIS Pool – Investment

64VQZ

Operational Funds (e.g. Missions) no longer have balances in their own bank accounts.

Instead they have equity in the Treasury Main Pool. The equity of each Fund in the Pool

increases with the Fund’s incoming payments and falls with outgoing payments.

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

logic.

Foreign currency payments will be delegated to the appropriate House Bank

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

responsibility of the mission-based cashiers.

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Outgoing Payments Processing through House Banks

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Outgoing Payments – House Bank: Example

If the United Nations Mission in the Republic of South Sudan (UNMISS) purchases supplies

from a vendor in Lebanon, then the vendor will be paid from the LBP House Bank Account,

managed by the United Nations Interim Force in Lebanon (UNIFIL). The cash level

documented in the

UNMISS Fund, which is maintained within the USD cash pool, will

reduce by the amount of the payment made. The amount of the payment will have been

preemptively forecasted and, as a result, already deposited into the LBP House Bank

account.

17 Sells supplies Vendor in Lebanon LBP House Bank Account Pays for supplies from its

House Bank Account

UN Treasury Fund Cash Pool

Funding Payment amount deducted

from the balance of the UNMISS fund in the cash pool UNMISS

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Pilot Specific Arrangements

For Pilot only, the UNIFIL Cashier users are setup to run payments for:

a/ Cheques

• LBFS1 – LBP

Q

&

H

for vendors with a valid Lebanese address in the Business

Partner master record (ZIP code not needed, but street and city)

• LBFS2 – USD

Q

&

H

for vendors with a valid Lebanese address in Business Partner

master record (ZIP code not needed, but street and city are required)

b/ Electronic Funds Transfers

• LBCI1 – LBP

W

for vendors with a valid Lebanese bank account

• LBCI2 – USD

W

for vendors with a valid Lebanese bank account

Any other combination has to be processed by a Headquarters Treasury user (test

user-ids starting with 00 instead of LF)

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House Bank Outgoing Payments Processing: End-to-End Process

The end-to-end Outgoing Payment process is as follows:

19 Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

The Outgoing Payments process identifies the steps to create a payment proposal,

conduct required cash sufficiency checks, hold a payment (if necessary) and release the

payment.

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The first step for processing an outgoing payment is to create a payment proposal. To create a payment proposal, you must generate and complete the parameters of that proposal.

Parameters included in a payment proposal are: 1. Accounts to be included in the payment run 2. Account types

3. Desired posting date 4. Payment method 5. Payment currency

6. Date of next payment run

7. Payment grouping when being paid out to the same vendor 8. Netting with Accounts Receivable (A/R)

Create a Payment Proposal

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Create a Payment Proposal

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To access the Automatic Payment Transactions screen, the steps are:

• Log in to Umoja and type F110 in the Command field

• Click the Enter icon

1 2 1 2 Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

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Create a Payment Proposal

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The Automatic Payment Transactions: Parameters screen appears. Populate required details in the following parameter fields:

• Enter the run date in the Run Date field • Enter the current date in the Posting Date

field

• Enter the document entry date in the Docs entered up to field

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Create a Payment Proposal

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• Enter 1000 in the Company codes field

• Enter the Payment Method • Enter the next Posting Date

• Enter payments for a range of vendors in the lists in the Vendor account field

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Note: Each payment method is represented by a

symbol in Umoja. When you scroll over that field in the system, the menu icon will appear. Click the menu icon to view the list of payment codes.

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Create a Payment Proposal

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• Click the Free Selection tab and enter the appropriate selection criteria:

• Click the Document Number from the Mathcode Field Name menu

• Enter the document number in the Values field. Use a comma when specifying more than one document number

Note: Free selection entries are strictly optional and will normally only be used when we want to make a specific payment. Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files 10 11 12 11 12 10

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Create a Payment Proposal

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• Click the Additional Log tab and enter the following data:

• Check the options in the Required logging type section :

• Due date check

• Payment method selection in all cases • Line items of the payment documents • Enter the account number for the vendor being paid in the proposal in the first text box In the Accounts required section. Note: If multiple vendors are being paid, a range can be entered by adding the account number of the last vendor in the second text box.

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Create a Payment Proposal

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Propose the payment run

• Click the Save icon to save all the parameters entered

• Click the Status tab

• Click the Proposal button

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Create a Payment Proposal

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Activate the Payment Release List. The Information dialog box appears stating that the payment release list is activated.

• Click the Checkmark button

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Create a Payment Proposal

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Schedule the payment release list. • Click the Status button.

The first time you click the Status button, the Schedule a Proposal pop-up window appears.

The user can either schedule the proposal to run at a certain date and time or run it immediately by

clicking the Start immediately check box. In this example:

The proposal will run immediately as the Start immediately checkbox has been selected.

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Create a Payment Proposal

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• Click the Status button until the message “No parameters entered as yet” appears in the status tab

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Create a Payment Proposal

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After the payments release list is proposed, the items in the list are further grouped into smaller lists according to different payment criteria. The sub-lists are then approved and released for payment.

The steps to follow are:

• Enter FPRL_LIST in the Command field • Click the Enter icon

The settlement and item data in the payment proposals created in the Automatic Payment Program are

displayed as open items in a list of unassigned items.

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Create a Payment Proposal

All payment proposals must be assigned to a Payment Release List in order to be processed and released in Umoja.

The FPRL_List screen displays the last Payment Release List created by the user. If no Payment Release Lists have been created, the screen appears blank.

To create a Payment Release List, the following steps must be executed: • Click the Create New List button.

Note: It is recommended that a new payment list is created every time

FPRL_LIST is run. This will assist the user in keeping track of what has and has not been processed. One list should be made for each type of payment. Ex: USDchequepayments

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Create a Payment Proposal

The List Attributes window appears.

• Enter a list name in the List Description field • Select the correct user ID in the Processor field • Press the Enter icon

Note: Selecting a processor enables the system to pull all payment proposals created by that user into the list being created. 25 26 27 25 26 27

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Create a Payment Proposal

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The steps to assign the payments to be made to the current list are: • Click the Unassigned tab

• Select the payments to be made by clicking on the button on the left side of each row. Use Ctrl-Click or Shift-Click to select multiple rows.

• Click the Assign Items icon

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Create a Payment Proposal

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The steps to approve payments to be made are:

• Click the Assigned tab

• Select the payments to be made by clicking on the button on the left side of each row. Use Ctrl-Click or Shift-Ctrl-Click to select multiple rows. When all desired rows desired are selected, then they will be highlighted

• Click the Approve Items icon

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Create a Payment Proposal

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The steps to make payments are:

• Select the payments to be made by clicking on the button on the left side of each row. Use Ctrl-Click or Shift-Ctrl-Click to select multiple rows.

• Click the Pay Items icon

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Check Cash Sufficiency at the Account Level

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After creating a payment proposal, the user must

conduct a cash sufficiency check to ensure that the cash balance in the identified account is sufficient to cover the proposed payment.

Navigate to the Overview Values for Cash Control Account Assignments.

• Type FMCCAVCOVERVIEW in the Command field • Click the Enter icon

1 2 1 2 Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

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Check Cash Sufficiency at the Account Level

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Enter the data required to run the cash sufficiency check.

• Enter 1000 in the Company Code field • Enter 9P in the Control Ledger field. If

appropriate, enter the fund to narrow down your selection

• Click the Execute icon to run the report

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Cash Control Overview

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The Cash Control Overview Report for the selected Ledger appears.

Review the report. Expand the necessary folders and double-click amounts to see the desired information.

Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

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Schedule Payment Run

39 Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

After checking the cash sufficiency at the account level, the user merges payments and schedules a payment run.

Navigate to the Creation of Cross-Payment Run Payment Media screen

• Type FBPM1 in the Command field • Click the Enter icon

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Note: Payments are batched according to currency first, then vendor.

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Schedule Payment Run

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Specify the selection criteria for the payments to be included and create the payment media.

• In the Pymt.runs section, enter the processing date in the Run Date field (do not enter the value date)

• Enter House Bank

• Enter Payment Method • Enter Currency

• Click the Execute icon

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It is advisable to run payment batching at the end of the day once all payments have been entered (prior to

applicable bank deadlines)

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Schedule Payment Run

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A dialog box will display stating the number of payments selected, the medium run created and an indication that the program has started as a separate job.

After scheduling a payment run, the payment batch is automatically sent to the SAP Bank

Communication Management (BCM) program to be released. The batch will not be released from BCM until it has been approved by the bank signatories associated with the House Bank account the money is being withdrawn from.

Let’s take a closer look at the BCM and review the process followed by the bank signatory to approve (and ultimately release) the payment batch.

Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

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Release Payment Files

42 Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

The following steps are conducted by the bank signatories to review, approve and release a payment batch:

Access the Payment Batches Screen:

• Enter BNK_APP in the Command field • Click the Enter icon

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Release Payment Files

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The Payment Batches screen appears displaying all payment batches created in the system. A batch can be easily located by referencing its run date or its three letter identification.

As stated in each line item, a batch requires approval by two separate bank signatories.

Create a payment proposal Check cash sufficiency at the account level Schedule payment run Release payment files

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Release Payment Files

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The Payment Batches screen groups batches into separate tabs based on status:

Batches waiting for approval from first

bank signatory

Batches awaiting approval from

second bank signatory

Batches that have already been

released

Payments that have been dropped and must be recreated/

reprocessed

List of changes made to batches

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Release Payment Files

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Process the payment batch • Highlight the correct

batch

Click the Approve icon

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Note: Only a bank signatory can review and approve the list of batches being paid from the House Bank Account for which s/he has been delegated authority to serve as bank signatories.

Dual approval requires two different bank signatories to approve the batch.

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Release Payment Files

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A pop-up box appears prompting the user to confirm that the batch is being approved. • Click the Enter button or press the Enter key to confirm.

The batch line item is moved to the Additional Release Steps tab and is now ready for approval by the second bank signatory.

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Release Payment Files

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Second Bank Signatory in the Additional Release Steps Tab, • Highlight the appropriate batch line item

• Click the Approve button

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Release Payment Files

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A pop-up box appears prompting the user to confirm that the batch is being approved. • Click the Enter button or press the Enter key to confirm.

The second Bank Signatory approval triggers the automatic release of the batch. For batches containing electronic payments, a SWIFT202 message is automatically generated and sent to notify the bank that the specified amount must be drawn and deposited in the vendor’s bank account. For cheques, the second Bank Signatory approval triggers cheque printing. It is thus important that the second approver coordinates with the Cashier’s Office where the cheque printer is installed.

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The Batch and Process Monitor screen is a component of the Bank Communications Management program and is used to conduct the following activities:

• Review SWIFT messages sent to banks following batch approval • Manage cheque log and print cheques

Let’s explore the Batch and Process Monitor in greater detail. Access the Batch and Process Monitor screen:

• Type BNK_MONI in the Command field • Click the Enter button

Release Payment Files or Print Cheques

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The Batch and Payment Monitor screen appears. Enter the following information:

• Company Code • House Bank • Run Date

Release Payment Files or Print Cheques

Note: This is an inquiry screen that provides the user with filtered views of system data. Each additional field populated increases the specificity of the data by filtering it.

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Release Payment Files or Print Cheques

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The Batches screen appears displaying all batches created in Umoja within the parameters entered on the Batch and Monitor screen (e.g. House Bank Account).

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A consolidated list of all batches is displayed in the “All” tab. Batches are also listed in separate tabs according to status:

Release Payment Files or Print Cheques

Lists batches that have been created

Lists batches that are being approved

by the bank signatory

Lists batches that have been approved by the bank signatory Lists batches that have been released

(SWIFT payment sent to bank)

Ack/nack received from bank

Batches have been reconciled against bank

statements (automatic reconciliation)

Lists batches that could not be processed (e.g. error in pay, approver

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Release Payment Files or Print Cheques

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Additional information can be retrieved from the Batches page for each batch line item listed in the tabs. • Highlight the appropriate line item

• Click the FILES button

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Release Payment Files or Print Cheques

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The FILES button displays two menu options. The File for this batch menu option displays the SWIFT MT202 message sent to the bank for completed electronic batch line items.

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Check Management

As mentioned earlier, the second Bank

Signatory approval triggers the automatic

release of the batch. This release initiates

Cheque printing.

A sample of the cheque layout is displayed on

the right.

Positioning the second bank signatory in the

office where the cheques are printing allows

that signatory to needed troubleshooting and

modification of payments immediately

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Check Management

Cheques can be viewed and modified on the Check Register screen displayed below. This

screen is accessed by running the FCHN t-code.

Please refer to the Payment Processing: Modifications and Troubleshooting Job Aid to review

the processes followed to modify, void or reprint a cheque in Umoja.

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Introduction of the Cash Journal

The Cash Journal is a functionality in Umoja that is used to record the following types of

cash transactions:

The introduction of the Cash Journal represents a large step in streamlining the process

currently used by UN field missions to document the receipt and disbursement of cash and

cheques. Currently, receipts are documented in paper form. With the implementation of

the Cash Journal, this manual task will be eliminated. Petty Cash and Imprest Custodians

will henceforth make entries directly in Umoja at the time they disburse cash.

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• Main Cashier's Imprest Disbursements • Imprest Disbursements

• Petty Cash Transactions

Outgoing Payments

• Cash Receipts • Cheque Receipts

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Outgoing Payments Processing through the Cash Journal

Three types of Outgoing Payments can be processed through the Cash Journal functionality. 1. Main Cashier's Imprest payments

2. Imprest Account payments 3. Petty Cash payments

As mentioned earlier, custodians of the Imprest Account and Petty Cash Accounts are not part of the Cashier’s Office. However, as all three accounts are used to disburse funds, we’ll examine each in turn, beginning with the Main Cashier's Imprest. For each account, we’ll examine:

1. The accounting entries passed in Umoja to:

• Setup the account and subsequently replenish it • Make disbursements from the account

• Close the account as part of Year End closing activities

2. The step-by-step process in Umoja to record Outgoing Payments from the account

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Posting Disbursement from Main Cashier's Imprest Account

The establishment of a Main Cashier's Imprest Account at a mission’s HQ remains the sole authority of the Controller. When such authorization has been given, the Main Cashier's Imprest Account will be setup with an amount equivalent to the level indicated in the authorization (usually USD 25,000) as follows:

1. Accounts Payable Unit will raise a payable using FV60 • Dr. Cash Journal Clearing Account (a/c 1-171-1000)

• Cr. Accounts Payable – Vendor (Staff Member - GL Recon A/c 3-510-1610) 2. Treasury will generate the payment through F110

• Dr. Accounts Payable – Vendor (Staff Member - GL Recon A/c 3-510-1610) • Cr. Bank EFT Out (a/c 1-101 -XX 14)

3. Custodian collects cash from the bank and brings to Main Cashier Imprest (FBCJ) • Dr. Main Imprest Account (a/c 1-171-1XXX)

• Cr. Cash Journal Clearing Account (a/c 1-171-1000)

The same entries will be passed when replenishing the Main Cashier's Imprest, but this time only with the amount necessary to bring the Imprest to the level authorized by the Controller.

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Posting Disbursement from Main Cashier's Imprest Account

Disbursements from the Main Cashier's Imprest Account shall remain on exceptional basis where it is not practical to process outgoing payments through a House Bank as described earlier. For

instance, it may become necessary to medically evacuate a staff member on a weekend when banks aren’t open.

Whatever the reason to make an outgoing payment through the Cashier’s Main Imprest, Accounts Payable must first raise a payable (using FV60 or MIR7) as follows:

• Dr. Expense (7-4XX-XXXX) or Asset (2-7XX-XXXX) • Cr. Accounts Payable - Vendor(3-51X-XXXX)

The Cashier references the Document Number generated from the entry above in the Assignment

Field of the Cash Journal when making the disbursement. The entries passed are:

• Dr. Accounts Payable – Vendor (3-51X-XXXX) • Cr. Main Imprest Account (a/c 1-171-1XXX)

N.B. The Assignment Field is the main link between the Cash Journal and Accounts Payable.

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As part of the closing instructions from Accounts Division in HQ, all mission Main Cashier's Imprest Accounts have to be closed. On the cut-off date for Year End Closing, the remaining cash held by the Main Cashier's Imprest Account Custodian must be deposited into the House Bank. This enables Certifying and Approving Officers to verify physical cash counts.

When the Main Cashier's Imprest Account Custodian deposits cash in the bank, the following entries are passed:

1. In the Cash Journal (FBCJ)

• Dr. Cash Journal Clearing Account (1-171-1000) • Cr. Main Cashier Imprest (1-171-1XXX)

2. When the bank statement is uploaded (FF.5) • Dr. Bank Nominal (1-101-XX10)

• Cr. Bank EFT In (a/c 1-101 -XX16)

3. In Accounts Unit, F-03 is used to clear the Bank Clearing A/c • Dr. Bank EFT In (a/c 1-101 -XX16)

• Cr. Cash Journal Clearing Account (1-171-1000)

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Year End Closing

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Posting Disbursement from the Main Cashier's Imprest

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Having looked at how the Main Cashier's Imprest is setup, how disbursements are made from it and how the account is closed at Year End, we can now look at the step-by-step process for making an outgoing payment from the account.

As indicated earlier, cash can only be disbursed from the Main Cashier's Imprest if a payable is raised by Accounts Payable for the required amount. The document number generated when the payable was posted is entered in the Assignment Field in the Cash Journal.

Let’s walk through the process followed to post a disbursement from the Main Cashier's Imprest. Access the Cash Journal in Umoja

• Enter FBCJ in the Command field • Click the Enter button

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Posting Disbursement from the Main Cashier's Imprest

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• Enter 1000 in the Company Code field

• Select the appropriate Main Cashier's Imprest journal • Click the Enter button

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Posting Disbursement from the Main Cashier's Imprest

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The Main Cashier's Imprest appears.

• Click the Today button to ensure that the available balance of the journal is up to date

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Entries into the Main Cashier's Imprest are made in the Cash Payments tab. • Enter the following information:

• Select Paid to Vendor in the Business Transaction column • Enter the transaction amount

• Select the vendor being paid

• Enter the document number of the associated approved payable in the Assignment field

• Press the Enter key to auto-populate remaining required fields. Remaining required information is auto populated in each respective column and the red status light appears in the document status column.

• Highlight the transaction • Click the button

Posting Disbursement from the Main Cashier's Imprest

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The status light in the Document Status column turns green indicating that the transaction has been posted to the Main Cashier's Imprest.

The amount posted can now be disbursed by the cashier.

This transaction has now been matched with the approved invoice and posted, but both documents will be automatically clear if the Assignment Field is correctly filled in. In case automatic clearing fails manual clearing will be used. This is explained later.

For now, lets review the process followed to view the transaction outside the cash journal.

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The document view and general ledger view of this transaction can be viewed from the cash journal screen.

• Click the Follow-on doc.button The List of Documents in Accounting pop-up window appears.

• Double-click the Accounting document row

Posting Disbursement from the Main Cashier's Imprest

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Posting Disbursement from the Main Cashier's Imprest

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The Document Display View shows one line item crediting the vendors account and one line item debiting the appropriate UN account.

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Posting Disbursement from the Main Cashier's Imprest

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The General Ledger View shows the transaction line item posted to the Accounts Payable Subsidiary Ledger and the transaction line item posted to the Reconciliation Account.

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Posting Disbursement from the Main Cashier's Imprest

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The Vendor Line Item Display provides additional details on the transaction, including: • The corresponding invoice

• The cashier’s imprest payment transaction

Note: In this example, we see that the cash imprest payment has been posted, but not cleared along with the payable listed.

Once both line items have been cleared, they will move to the table at the bottom of the screen.

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Posting Disbursement from Imprest Account

Unlike the Main Cashier's Imprest Account the Controller delegates authority to the DMS/CMS to: (i) to establish new Imprest Accounts except Main Cashier's Imprest Account ; and

(ii) to approve Imprest Account holders (FRR 104.8, 104.9 and ST/AI/2004/1) The entries to setup the Imprest Account are same for the Main Cashier's Imprest:

3. Custodian collects cash from the bank and brings to Imprest A/c (FBCJ) • Dr. Imprest Account (a/c 1-172-1XXX)

The same entries will be passed when replenishing the Imprest Account, but this time only with the amount necessary to bring the account to the authorized level.

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Posting Disbursement from Imprest Account

Imprest Accounts are usually established for a Mission’s Regional Offices with Regional

Administrative Officers as custodians. Disbursements from the Imprest Account are of two types: 1. Payments as instructed by the CFO on the basis of a payable raised by Accounts Payable. This

is similar to disbursements from the Main Cashier Imprest.

2. Payments for which no payable has been raised but for which specific delegation has been given to the custodian to undertake e.g. settlement of utilities.

The amount disbursed from the Imprest A/c can’t exceed the low value procurement threshold of USD 4,000.00 per transaction.

The accounting entries are the same as for the Main Cashier's Imprest Account. 1. Raising of payable

• Dr. Expense (7-4XX-XXXX)

• Cr. Accounts Payable – Vendor (3-51X-XXXX) 2. Disbursement of Cash

• Dr. Accounts Payable – Vendor (3-51X-XXXX) • Cr. Cash (1-171-2XXX)

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Posting Disbursement from Imprest Account

The Imprest Account Custodian is also required to deposit remaining cash in the House Bank on the cut-off date for Year End Closing.

When the Imprest Account Custodian pays cash in the bank, the following entries are passed: 1. In the Cash Journal (FBCJ)

• Dr. Cash Journal Clearing Account (1-171-1000) • Cr. Imprest Account (a/c 1-172-1XXX )

N.B. If the Imprest Custodian had deposited a cheque and not cash, the debit and credit entries in (1) and (3) above would have been

• Bank Clearing Cheque In (1-101-XX12)

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Posting Disbursement from Imprest Account

The step-by-step process to follow to disburse cash from the Imprest Account depends on whether or not a payable has been raised in Accounts Payable.

1. When a payable already exist and the Imprest Custodian is instructed to make the

disbursement, the steps to follow in Umoja will be the same like those followed by the Main Cashier's Imprest Custodian. The Accounts Payable Unit will communicate the Document Number generated when the payable was raised to the Imprest Account Custodian so that it can be referenced in the Assignment Field of the transaction line of the Cash Journal.

2. In the case a payable has not be raised, the Imprest Account Custodian will enter the details in the Cash Journal and wait for an Approving Officer in the Finance Section to post the entry before disbursing the cash. We discuss the process in detail when looking at how outgoing payments are disbursed from Petty Cash.

N.B When selecting the appropriate journal ensure that the Imprest Account is picked. Also note that disbursements from the Imprest Account are considered low value procurement and capped at USD 4,000.00.

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Posting Disbursement from Petty Cash Account

Petty Cash Accounts are established under the authority of the DMS/CMS in the same way as Imprest Accounts. The maximum amount per Petty Cash Account is usually set at USD 5,000.00. The accounting entries are equally similar, except for the Petty Cash Account number.

3. Custodian collects cash from the bank and brings to Petty Cash A/c (FBCJ) • Dr. Petty Cash Account (a/c 1-172-5XXX)

The same entries will be passed when replenishing the Imprest Account, but this time only with the amount necessary to bring the account to the authorized level.

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Posting Disbursement from Petty Cash Account

Payments from the Petty Cash Account are only for small expenses and are capped at USD 350 per transaction.

The only accounting entries for each disbursement are made in the Cash Journal as follows: • Dr. Expense Clearing Account with FSG requiring Cost Object (7-XXX-XXXX)

• Cr. Cash (1-171-5XXX)

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Posting Disbursement from Petty Cash Account

The Petty Cash Account Custodian is also required to deposit remaining cash in the House Bank on the cut-off date for Year End Closing.

When the Petty Cash Account Custodian pays cash in the bank, the accounting entries are once more the same as for the Imprest Accounts:

1. In the Cash Journal (FBCJ)

• Dr. Cash Journal Clearing Account (1-171-1000) • Cr. Petty Cash Account (a/c 1-172-5XXX)

N.B. If the Petty Cash Custodian had deposited a cheque and not cash, the debit and credit entries in (1) and (3) above would have been

• Bank Clearing Cheque In (1-101-XX12)

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Posting Disbursement from Petty Cash Account

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The step-by-step process begins once the user has logged into Umoja.

To access the Cash Journal in Umoja, the steps are:

• Enter FBCJ in the Command field • Click the Enter icon. The Cash Journal

Screen appears and the Cash Journal Specification window pops-up

• Enter 1000 in the Company code field

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Posting Disbursement from Petty Cash Account

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Cash journals are organized by:

• Type (petty cash, imprest, cashier’s imprest)

• Business Area • Currency

• Functional Area

• Select the appropriate Petty Cash journal • Click the Enter icon

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The Selected Petty Cash Journal appears displaying the available balance.

• Click the Today button to ensure that the current available cash balance appears Petty cash transaction entries are entered in the Cash Payments tab of the cash journal.

Posting Disbursement from Petty Cash Account

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Posting Disbursement from Petty Cash Account

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Now that the available petty cash balance has been confirmed, the disbursement can be documented and posted.

• Select the Expense Business Transaction

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Posting Disbursement from Petty Cash Account

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• Enter the disbursement amount in the Amount column • Enter the appropriate G/L number in the G/L column

• Press the Enter key to auto populate remaining required fields in the transaction row

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Posting Disbursement from Petty Cash Account

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Remaining required information is auto populated in each respective column and the red status light appears in the document status column.

• Click the Save sel. Button

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Posting Disbursement from Petty Cash Account

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The status light in the Document Status column turns yellow indicating that the petty cash transaction has been saved in the Petty Cash Journal.

• Click the Post sel. button

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Posting Disbursement from Petty Cash Account

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The status light in the Document Status column turns green indicating that the petty cash transaction has been posted to the Petty Cash Journal.

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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

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Activity 1

Transaction Name: Execute Payment Run

Transaction Code: F110

Link to the uPerform simulation:

http://unsapuperform.umoja.un.org/gm/folder-1.11.2076?mode=EU&originalContext=1.11.2629

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Activity 2

Transaction Name: Check Cash Availability

Transaction Code: FMCCAVCOVERVIEW

Link to the uPerform simulation:

http://unsapuperform.umoja.un.org/gm/folder-1.11.2092?mode=EU&originalContext=1.11.2629

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Activity 3

Transaction Name: Release/Merge Payment

Transaction Code: FPRL_LIST

Link to the uPerform simulation:

http://unsapuperform.umoja.un.org/gm/folder-1.11.2096?mode=EU&originalContext=1.11.2629

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Activity 4

Transaction Name: Release/Merge Payment

Transaction Code: FBPM1

Link to the uPerform simulation:

http://unsapuperform.umoja.un.org/gm/folder-1.11.2084?mode=EU&originalContext=1.11.2629

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Touch Points

The Umoja system is an integrated system and most of its modules integrate with each

other to complete a process. Touch points refer to these integration points across Umoja

modules, processes and activities.

91 Outgoing Payments Master Data Management General Ledger Accounting Daily Reconciliation and Cash Positioning Treasury Transaction Management Accounts Payable (A/P)

For Payee Banks, UN House Banks and Business Partners

Funds Management

Grants Management

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Learning Checkpoint 1

How will payment obligations be assigned to House Banks?

Select the correct option.

A. House Bank Determination Logic

B. Delegation by individual missions

C. Political missions

D. World Bank

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Learning Checkpoint 1

How will payment obligations be assigned to House Banks?

Select the correct option.

A. House Bank Determination Logic

B. Delegation by individual missions

C. Political missions

D. World Bank

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Option A is the correct answer. Payment

obligations will be assigned to House Banks

according to House Bank Determination Logic.

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Learning Checkpoint 2

_______ are transactions that are associated with a vendor and an invoice due.

Fill in the blank with the correct option.

A. A/R payments

B. A/P payments

C. Treasury payments

D. A/P and A/R payments

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Learning Checkpoint 2

_______ are transactions that are associated with a vendor and an invoice due.

Fill in the blank with the correct option.

A. A/R payments

B. A/P payments

C. Treasury payments

D. A/P and A/R payments

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Option B is the correct answer. A/P payments are

transactions that are associated with a vendor and

an invoice due, and are processed through the A/P

Payment process.

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Module 1 Summary

The key points covered in this module are listed below:

• The Umoja Enterprise role involved in the Outgoing Payments process is the

Cashier

• The Umoja subsystems used to process outgoing payments: Financial Payment

Program, Treasury Payment Program and SAP Bank Communications Manager

• The Umoja Outgoing Payments process is comprised of four key steps: Create a

payment proposal, check cash sufficiency, schedule payment run, release payment

file

• The Umoja Cash Journal is used to post 3 types of outgoing payments: petty cash

disbursements, imprest disbursements, cashier’s imprest disbursements

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Agenda

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Course Introduction

Module 1: Process Outgoing Payments in Umoja

Module 2: Process Incoming Payments

Module 3: Daily Reconciliation of Bank Transactions

Course Summary

Course Assessment

Course Survey

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Module 2 Objectives

After completing this module, you will be able to:

• List the roles involved in the Process Incoming Payments – Electronic Funds

Transfer, Cash and Cheques process

• Record incoming payments as Electronic Funds Transfers, Cash or Cheque in the

Umoja Cash Journal

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Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Incoming Payment – Cash and

Cheques process:

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Cashier

• Generates all payments (using the transaction code- F110 ) in Umoja

• Manages cash control by fund/grant

• Raises issues identified through cash control to Finance Managers for resolution

• Ensures that bank data is reflected accurately in Umoja on a timely basis to allow Front Office to manage daily

liquidity

• Verifies that the bank communication files are processed and accepted by SWIFT/banks in a timely manner

Back Office Treasury

User

• Confirms and settles all trades (investments and FX) • Issues Daily Investment reports and ensures distribution

of net income to participating funds and grants in overall IPSAS compliance

• Maintains custodian relationship, and reviews/authorizes treasury related wire transactions

• Provides supporting documentation related to investments for financial reporting

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Incoming Payments Processing – An Overview

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Forms of Incoming Payments

Incoming Payments come in three forms:

1. Electronic Funds Transfers 2. Cash

3. Cheques

All incoming payments are recorded in the Treasury Pool Funds described earlier.

The bulk of incoming payments are received as EFTs. They are brought into Umoja when the prior day bank statement is uploaded into the system. As the process of uploading bank statements also triggers the automatic matching of incoming payments to open Accounts Receivable Items, we have covered it in the next module, where the automatic reconciliation of bank transactions is examined. In the remainder of this module, focus will be on Incoming payments received as cash and cheques. The Cash Journal functionality will be used to record both incoming cash and cheques.