ceu+bar cash+application+workshop v1%5b1%5d
TRANSCRIPT
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Cash ApplicationAccounts Receivables
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Agenda
Cash Application Overview
Cash Application Process - Demos
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Accounts Receivable Cash Application at McCain
Cash Application occurs:
Receive and applycash (Checks and
EFTs)
Post and matchincoming payments
After the invoicing process is completed
At the time payment is received from the customer
CashApplication
Parallel to the Accounts Receivable Account Analysis
and Collections process
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Accounts Receivable Cash Application at McCain (contd)
Incoming payments from customers can be accepted in the
following formats:
Checks
Via Autocash Lockbox
Manually (Lockbox or live checks)
EFTs and Wire Transfers Via Autocash when supported by EDI
Manually
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SAP Autocash Lockbox Process
SAP Autocash Lockboxes are setup to:
Receive payments
Deposit funds
Eliminate manual cash application (data entry) with
electronic account receivable input
Process large numbers of transactions every day
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SAP Autocash Lockbox Process (contd)
SAP Autocash Overview:
Banks receive the payments and deposit the checks
into McCains bank account.
Bank codes the invoice number, amount, check
number, check date, and external reason code into a
bank file (BAI2 format).
The BAI2 file is transmitted by the bank to McCain
(SAP).
SAP uploads BAI2 file from the bank for pre-
processing.
SAPs lockbox import program posts a general ledger
entry to update the companys cash position and
cash clearing accounts. Another entry is made to
clear items, if applicable, on customer accounts. Manual application of the customer remittance note
will be applied where necessary.
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SAP Autocash Lockbox Process (contd)
The SAP Lockbox import program is configured to post
an entry to cash for the lockbox bank and to the cashclearing account.
When payment advice information is cleared against
customer open items, the open items and the credit
to the customer account are cleared.
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SAP Autocash Lockbox Process (contd)
It is expected that McCain will be able to use the lockboxes to
transmit the customer remittance data to SAP so that it can beauto-applied.
Customer
Payment via
Check
Bank
Lockbox
Information
Keyed by
Bank in BAI2
Format
SAP - Import
Lockbox File
(FLB2)
SAP Post
Processing of
Exceptions
(FLB1)
There will be an effort to harmonize bank instructions for
keying files for all business units so business rules can be
applied on similar sets of data.
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Wire Transfers
Wire Transfers and/or EFTs that are supported by an
EDI Remittance advice are available for autocashprocessing.
Any payments received via EFT and/or wire transfer
that are not supported via EDI are applied manually
to the respective customer accounts.
Payment Remittance details can be sent to
McCain via the following options:
Email
Fax
Mail
EDI
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Manual Cash Application
The manual cash process is used in the following
situations:
SAP cannot fully post a check through auto-cash
processing, and it stays in the SAP post-processing
screen.
Wires are received at a bank and are notified to
McCain via NON-EDI remittance advice.
All live checks received at a NA McCain office are
forwarded to the bank lockbox. Once monies are
deposited, the payment is applied to the customers
account.
All Checks in the US will be applied manually.
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Manual Cash Application (contd)
There are two transactions that can process manual cash entries.
This transaction manually applies cash for allincoming payment types from either hard copychecks or wire transfers.
F-28
This transaction is used when the SAP autocashlockbox program cannot post a check to theaccount.
FLB1
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Manual Cash Application (contd)
Another method for clearing a customer account is through assigning
debits to credits.
F-32 is used to assign debits to credits.
Is used to:
Assign Debits to Credits Clear Open Items on a CustomerAccount
Split Residuals
Transfer posting (i.e. move a residual to another customer)
F-32
I t ti ith D d ti M t P
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Integration with Deductions Management Process:Payment Differences
A payment difference normally occurs during the clearing
of an open item.
The payment difference can be:
Within the tolerance amount
Too high and outside the tolerance limits
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Integration with Deductions Management Process:Reason Codes
Reason codes are used to describe the reason for
payment differences.
Reason codes can be assigned to:
Trade Deductions
Non-Trade Deductions
Unknown Deductions Advanced Payments
Payments on Account
Legacy Trade Claim
Over Credits
Over Payments
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Customer Payments with Cash Discounts
McCain sells products on cash discount terms, where the
customer can deduct a stated percentage of the invoice ifthey pay within the stated number of days.
Triggers for this process include:
. Check Direct Debit
Wire TransferCheck sent to
McCain
Customer Payment via Check
Customer Payment via EFT or Wire Transfer
Customer Payment - Check Sent to McCain Facility
Customer Payment terms include cash discount
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Manual Cash Application Process
Manual Cash Application processes include the
following activities:
Apply payments manually by clearing existing
open items
Apply payments manually by placing the
remittance on account
Clear existing open items with offsetting debits
and credits
Clear existing items when customer payments
do not match billing documents and are outside
tolerance
Real-time payment data after rework of
payment is processed
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Agenda
Cash Application Overview
Cash Application Process - Demos
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Instructor Demonstration
Post Incoming Payment Manually Payment in Full - F-28
Scenario:
A customer has sent a payment by check with a list of invoices he is
paying. The payment check is lying in the SAP post-processing screen as
SAP could not post the check through auto-cash processing. You need to
post this payment manually in full.
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Instructor Demonstration
Post Incoming Payment Short Pay - F-28
Scenario:
A customer has sent a payment to settle two invoices. The remittance
contains two deductions. One Deduction is created with reference to
one of the invoices and the other is a deduction without reference.
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Instructor Demonstration
Post Unapplied Cash
Scenario:
A payment is received but we are unable to determine the Customer
who sent the payment.
In this situation we post the Payment to the Unapplied Cash G/L accountand then undertake an investigation to determine the payers identity.
This same process is used for posting Farmer A/R loan repayments (non-
AR Cash).
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Instructor Demonstration
Cash in Advance (No Open Items to Pay)
Scenario:
A payment is received from a Cash In Advance customer. Post the
payment to the customers account.
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Instructor Demonstration
Single Payment for Multiple Invoices on Multiple Customer #s
Scenario:
A corporate entity is paying invoices belonging to its subsidiaries. This
single payment will clear multiple invoices while also creating multiple
residuals on those customer accounts.
Use Other Accounts selection
Use Distribute Difference to post residuals to multiple customer
accounts
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Instructor Demonstration
Apply Debits to Credits and Clear Items - F-32
Scenario:
After posting payments (either through Auto Cash or Manually) it may
be necessary for the Cash Applicator to assign a debit to a credit.
This transaction assigns debits to credits on the Customer AR.
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Instructor Demonstration
Post Non-AR Cash
Scenario:
We have received payment for a non-AR Trade related matter (i.e. Jury
Duty, Employee returning Cash Advance, etc.)
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Instructor Demonstration
Balance the Days Cash Posting
Scenario:
Use FBL3N to reconcile the Days payments against the Banks
statement.
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Questions?
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Instructor Demonstration
Display Payment Advice Created via EDI FBE3
Scenario:
You want to view the payment advice created through EDI.
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Instructor Demonstration
Post Incoming Payment with Payment Advice - F-28
Scenario:
A customer has sent a wire transfer and the corresponding remittance
advice is sent via EDI resulting in creation of a payment advice. You need
to post this payment manually with the payment advice.
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Instructor Demonstration
Lockbox Post-Processing (FLB1)
Scenario:
When the Lockbox file is imported into SAP based on the information
provided by the customer, the checks will be in applied, partially
applied or unprocessed status.
FLB1 is used for partially applied and unprocessed payments.
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Instructor Demonstration
Lockbox Reporting FOEBL1
Scenario:
This transaction is used to generate a report with the lockbox activity
for a given day.
i
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Course Review
Cash Applications Manual Cash Applications
Assigning Debits to Credits
Auto Cash
Posting Cash on behalf of another McCain Company
In this course you have learned about:
N d H l ?
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Need Help?
1. Help yourself first
One McCain Help in SAP One McCain BPP Portal
2. Ask your local Super-User
Super-user contact Super-user contact
Super-user contact
Super-user contact
http://namf216232.mccain.com/gm/workplace
R i h i l i R d d AMS
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Reporting technical issues Remedy and AMS
Use the Remedy portal
http://serviceit.mccain.com Supported by AMS
Expect a call-back from AMS!
Super-Users submit tickets
for SAP incidents
End-Users submit tickets for
issues NOT related to SAP
C A di
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Course Appendix
Course Appendix
NOTE:
The following slides are optional
they may be reviewed on anad-hoc basis, or printed and posted on the classroom wall for
reference during the training session.
N T i C h A li ti
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New Terms in Cash Applications
Term Description
Customer Ledger The customers A/R account that can be viewed for open items only,cleared and closed items only, or both
Line Item An individual item on the customer ledger, such as an Invoice orPayment
Note to Payee The text information provided with each Auto Cash remittance,describing the source and purpose of the payment
Clearing Document An accounting document that clears/closes one or more offsettingdocuments. In A/R, clearing documents are usually payments, but can
be other types as well
Posting Key A two-digit numeric key that determines the way line items are posted;this key determines several factors including account type, type of
posting (debit/credit), and layout of the screens
N T i C h A li ti ( td)
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New Terms in Cash Applications (contd)
Term Description
Tolerance The amount that payments may differ from the open amounts.Differences within tolerance are written off automatically in Auto Cash
and Manual Cash application
Short Payment A short payment may be within, or out of, tolerance. Short paymentsout of tolerance are not automatically cleared. A short payment may be
manually processed by the user as a partial payment, a residualpayment, or a payment on account
Partial Payment A partial payment is an open credit line item on the customer ledgerthat is associated with an open Invoice
Residual Payment A residual payment is the balance of an open Invoice remaining afterthe original Invoice is partially cleared by a short payment
Payment on Account An open credit or debit amount may be posted to the customer ledgeras a new line item
S li t th P
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Suppliers to the Process
Direct customer of McCain. This can be adistributor, a re-distribution center, a retailer, acentral customer warehouse or an operator.The payment is made successfully
Customers
Bank sends electronic file to SAP with therelevant check information
Bank
SAP sends the direct debit payment informationto the bankSAP
Inputs to the Process
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Inputs to the Process
Inputs
Customer Payment (Check) Customer sends the check to the bank.
If the check is directly sent to the McCain facility, McCain sends the check
to the bank
Electronic File from bank
for checks received
After the customer sends the check to the bank, the bank inputs the
relevant information in electronic file format that will be uploaded into
SAP for further processing
Batch file from bank Once the funds are transferred into the McCain bank account, the bank
sends a batch file which will be validated against the payments that have
been processed as a part of lockbox processing
Customer Payment (Wire
Transfer)
Customer sends the payment via wire transfer
Remittance Advice From
Customer
Customer sends remittance advice to McCain in regards to the wire
transfer madeCustomer Payment (Direct
Debit)
Customer authorizes McCain to withdraw funds from their bank account
Direct debit file from SAP After the payment program is executed, SAP will generate a file with
customers payment and bank information which will be sent to the bank
Outputs
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Outputs
Outputs
Clear customer invoice Customer open items/invoices cleared as a result of applying thepayments
Residual items created Customers short payment or overpayment result in creation ofresidual items
SAP posting log After the open items/invoices are cleared, a posting log is
generated in SAP, which will be validated with the file receivedfrom bank
Payment by Check Business Process Flow
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Payment by Check - Business Process Flow
Direct Debit Process Business Process Flow
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Direct Debit Process - Business Process Flow
Wire Transfer Business Process Flow
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Wire Transfer - Business Process Flow