Process Map Procedure Manual - Auto-IT - Creditors Payments.pdf · Procedure Manual [Client Trading...

Process Map

Pickerings Auto Group

Procedure Manual

[Client Trading Name]

Administration Module

Process Code: A130 Creditors Payments

[Business Area] Module

Process Code: [Process Code] [Process Name]


Administration Module Process Map - A130 Creditors Payments

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Contents

High Level Process Definition .............................................................................................................. 4

Business Policies ................................................................................................................................. 5

Creditor Invoice Reconciliation ................................................................................................... 5

Creditor Class .............................................................................................................................. 5

Procedures .......................................................................................................................................... 6

Creditor Invoice Reconciliation ....................................................................................................... 6

Creditor Cash Requirements Report ............................................................................................... 7

Creditor Release Adjustments ........................................................................................................ 7

Direct Bank Transfer ....................................................................................................................... 8

Creditor Remittance Distribution .................................................................................................... 8

Statement of Work ............................................................................................................................. 9

Creditor Invoice Reconciliation ....................................................................................................... 9

Creditor Invoice Reconciliation ................................................................................................. 10

Creditor Cash Requirements Report ............................................................................................. 13

Automatic Payment Release ......................................................................................................... 15

Creditor Release Adjustment ........................................................................................................ 16

Direct Bank Transfer ..................................................................................................................... 18

Creditor Class ............................................................................................................................ 19

Creditor Remittance Distribution .................................................................................................. 22

Creditor Remittance tab ........................................................................................................... 23

Remittance Distribution tab ...................................................................................................... 24

Process Flowchart ............................................................................................................................. 25

Creditor Invoice Reconciliation ..................................................................................................... 25

Creditor Cash Requirements Report ............................................................................................. 26

Creditor Release Adjustments ...................................................................................................... 27


Creditor Remittance Advice Distribution ...................................................................................... 29

Program Parameters ......................................................................................................................... 30

Creditor Invoice Reconciliation ..................................................................................................... 30

Creditor Release Adjustment ........................................................................................................ 30



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Creditor Remittance Distribution .................................................................................................. 31



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High Level Process Definition

Process Name Creditors Payments

Process Intent To manage the various aspects of the overall payment process from Creditor Statement Reconciliation to Remittance Distribution

Process Owner Financial Controller

Process User Accounts Payable

Process Starts with Receipt of Creditor Statement

Process Ends with Reconciled Invoices processed and paid in line with appropriate authorisation and Creditor advised of payment by way of Remittance Advice

Process Customer Creditors Dealer Principal / Owner



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Business Policies The following Business Policies are applicable to the execution of the processes defined and referred to in this Process Map.

Business Policy – A130-01

Creditor Invoice Reconciliation

Utilise the electronic Invoice Reconciliation program for all large Creditor accounts (i.e. greater than 50 monthly invoices).

Request electronic statements from suppliers whenever possible.

Process to be trialled at PAG

Process Owner: Accounts Payable


Creditor Class

Creditors will be classified as follows, depending on their payment schedule:

7 / 14 / 30: Payment cycle (days)

M: Part of Month End process

Process Owner: Accounts Payable, Senior Accountant



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Procedures

Process Description: Creditor Invoice Reconciliation

Process (Major) Steps Procedure Internal Policy

1. Prepare for Transaction

Objective: To prepare the system for importation of the Creditor Invoice File

a. Receive and load the Creditor Statement File to the

Server – refer Statement of Work for detailed

description of this procedure.

b. Open the Creditor Invoice Reconciliation window

c. Enter / Browse For Creditor Statement file

d. Enter / Adjust the Variance Write Off Limit (if

Required) and Enter a reference for this

transaction

e. Select the Variance Write Off Account

f. Click Import

A130-01

2. Review Process Output

Objective: To review the results of the Creditor Invoice Reconciliation with the Creditor Statement

a. Review Reconciliation

i. Select Reconciliation tab

ii. Review process results and define required

action according to Matched Status

Matched Matched within variance Matched outside variance Unmatched in file Unmatched in System

b. Review Summary

c. Review Detail Report

d. Determine any requirements for printed or saved

Reports and action accordingly

e. Click Save



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Process Description: Creditor Cash Requirements Report


1. Create Report to facilitate review of Cash to meet liability

Objective: To manage the release of Creditor Invoices for Payment ensuring that funds are available to meet the financial commitment

a. Open Creditor Cash Requirements Report Window b. Define Report Generation criteria

Sort by; Account Number from / to; Date Range or Released Invoice Only; Contact Class

c. Select Page Break if required

d. Click Create Report

A130-02

2. Perform review and identify any adjustments required

Objective: To identify any invoices to be excluded from payment or paid in part for subsequent adjustment

a. Review Creditor Invoices due for payment vs. Available Cash to meet liability

b. Approve, as required, invoices that are to be paid c. Define any invoices to be excluded from payment

by way of Creditor Release Adjustments Process

Process Description: Creditor Release Adjustments


1. Perform Adjustments as per

approvals

Objective: To perform adjustments to released invoices to comply with approvals for payment

a. Open Release Adjustment window and perform any adjustments to comply with approved value

b. Open Creditor Cash Requirements window, define generation criteria selecting Released Invoices Only, Generate Report

c. Review Creditor Invoices released for payment vs. Available Cash to meet liability and compliance with prior approval

d. Communicate readiness to proceed with payment



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Process Description: Direct Bank Transfer


1. Receive ‘trigger’ to generate EFT Payments

Objective: To ensure that approved Creditors Invoice payments are processed in a timely manner

a. Receive or identify ‘trigger’ to initiate payment by EFT

b. Open Creditor Direct Bank Transfer window c. Complete Bank Details d. Complete Criteria details e. Click Proceed

2. Transfer File and distribute Remittance Advices

Objective: To transfer payments file to Financial Institution and distribute Payment Advice to Creditors

a. Access EFT Software and complete file transfer to Financial Institution

b. Distribute Remittance Advices

Process Description: Creditor Remittance Distribution


1. Review Creditor Remittance Advices

Objective: To review output from Creditor Payment process and assess the Remittance Advice Distribution Requirements

a. Ensure that Creditor Payment Process has been completed

b. Open the Creditor Remittance Distribution window c. Complete selection criteria as required d. Click Create Report e. Select Creditor Remittance tab and review output

if required

2. Perform Remittance Advice

Distribution

Objective: To issue Remittance Advices to Creditors via preferred method

a. Select Remittance Distribution tab b. Select the Distribution Type c. Review output as displayed d. Select Distribute

i. If Distribution Type is Email indicate if Receipt is required

ii. Click Distribute iii. If Distribution Type is Postage click Distribute

to Print Remittance Advices for subsequent mailing

iv. If Distribution Type is FAX click Distribute to transmit Remittance Advice by fax



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Statement of Work


The Creditor Invoice Reconciliation application allows the import of a comma separated value (.csv) file containing the data included in the Creditors Monthly Statement.

This file should be available, on request, from most Suppliers or by extraction of data into the appropriate format from the Suppliers intranet site.

Where the Supplier provides the file, if it is not already in the required format, action must be taken to perform the conversion before saving the file to the server for subsequent use.

If the user is required to manage the download and formatting of the file there needs to be adequate training and back up to ensure the process is completed in a timely and accurate manner every month.

The file format for input to Creditor Invoice Reconciliation is as follows.

Doc Date Document Number Amount Account No

NNNNNNNN

(ddmmyyyy) Char (20) Numeric (12, 2) Integer

Example:

24082009 11223344 1000.99 123456

Save the file in .csv format and, if the person creating the input file is not performing the Creditor Invoice Reconciliation, notify the relevant person of the availability of the file and its location.



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When the Creditors Statement file is available for use in this application open the Creditor Invoice Reconciliation window.

Enter the input path and file name or browse to locate the file.

Use the agreed Variance Write-Off Limit (we suggest $0.05 – refer Program Parameters section later in this document).

Enter a reference for this process.

Click the ‘Import’ button to load the import file data to the application. The Creditor Number and Name will be displayed together with the results of the reconciliation.

The reconciliation should be reviewed to identify any corrective action required before proceeding.



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Three views of the Reconciliation result are available – ‘Reconciliation’ as shown above and summary and Detail shown as follows.

Summary Tab



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Detail Tab

Click Save when you are satisfied with the reconciliation, and ready to proceed with payment.



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Creditor Cash Requirements Report

The Creditor Cash Requirements Report is able to be generated for all Invoices, whether selected (Released) or not, or for only those Invoices that are released. The report is able to be further filtered with a range of Account Numbers, a range of Due Dates and a range of Contact Classes. The user is able to select ‘All’ relative to these filters. (USER MUST SELECT THEIR BRANCH’S CREDITOR NUMBERS OR CONTACT CLASS)

The Creditor Cash Requirements Report is able to be run multiple times and it is an issue of personal preference as to when the report is run – before or after Automatic Cheque (Invoice) Release and after Creditor Release Adjustments have been made (refer next section).

Open the Creditor Cash Requirements Report window.

Determine how the generated report is to be sorted – in numeric or alpha sequence.

If the ‘alpha’ option is selected the Account Number Range filter is replaced with a Contact Code filter.



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Enter the account number or Contact Code Range (if Required) or leave the ‘All’ option checked.

If the Report is required to include both Released and Unreleased Invoices the window will display the Beginning and Ending Due Date filter panel as shown below.

However, if the report is intended to disclose only Released Invoices the requirement for a Due Date filter is eliminated and the option removed from the window as shown below.



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The Cash Requirements Report is summarised on the final page of the output.

Automatic Payment Release

For large creditors, or those classified using a specific ‘Class’ in Creditor Maintenance, a bulk release program allows us to Release / Unrelease a range of invoices. Only experienced users should use this program – remember to verify invoices for payment using the manual process described below – Creditor Release Adjustment.



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Creditor Release Adjustment

There are four objectives for the Creditor Release Adjustment application

To correct incorrectly released invoices

To Place invoices on Hold

To manually release invoices for full or part payment in the next payment run

Alter the amounts to be released for payment

Open the Creditor Release Adjustment window.

Enter / Select / Search for the Account Number / Name for Releases are to be modified.

The outstanding invoices for the Account selected will be displayed for review and adjustment as required.

The Invoice Date and Due Date are able to be adjusted in this window.

The ‘Pay?’ section of the window has four (4) radio buttons on each line – Release, Hold, Locked and None. The following defines the function and effect of each button.

Release - When activated to Release the Invoice Number for payment the ‘Paid Gross’ field will be populated with the Outstanding Gross Amount. This field and the ‘Paid Add. W/Tax’ field are able to be modified by the user.

Hold - The Invoice is on Hold till it is released manually in this program. The Paid Gross Value and Paid W/Tax Values are disabled.

Locked - Used to flag if the invoice selected has been locked for payment release. If this radio button is selected then all column fields in the line item are disabled.

None - The Invoice is not released in this run, but will be released automatically during the next release. The Paid Gross Value and Paid W/Tax Values are disabled.



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Enter a Payment Reference for your records.

When all adjustments have been made click ‘Save’.

This process can be repeated if required.

Revisit the Cash Requirements Report to confirm the correct amounts are going to be paid.



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Direct Bank Transfer

The Direct Bank Transfer application generates the output file that is transferred to the Bank enabling distribution to the nominated Creditors Bank Accounts.

The file can then be uploaded using the Banking Software for direct transfer to the relevant creditor’s bank account.

Open the Creditor Direct Bank Transfer window.

If required, select the ‘Country’ the Bank is situated in.

Select the Bank Account from the drop down list.

Select an ‘Employer’ from the dropdown list. The remaining fields in the upper section of the window will be populated following the ‘Employer’ selection.

Enter the Cheque/Reference number. This field will accept numeric characters only).

Use the drop-down field to select a single Payment Reference (shown) or select ‘All’.



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Enter a filename to extract the banking file to export to (i.e. *.ABA)

Tick the Include Self Balancing Item checkbox for the file to be self-balanced.

Tick the Print Remittance to File checkbox if you want the remittance advice to be printed in the output file.

Tick the Search By Class checkbox and enter the class range.


Creditor Class

Creditors will be classified as follows, depending on their payment schedule:

7 / 14 / 30: Payment cycle (days)

M: Part of Month End process

Process Owner: Accounts Payable, Senior Accountant

(By having a Class range, the user can select which creditors to pay - Class 1, 2 or 3 etc. - to distinguish which creditors get paid first, second, third and so on. For example the business may release all invoices due in one reconciliation process but has a policy of paying creditors over a three week period. When the first round of direct payments is run, you can select Class 1 only. On the second payment run for the month, select Class 2 etc.)



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Click the ‘Proceed’ button to generate the output file.

In the event that there are no payments to be transferred the system will generate the following message for the user.

Otherwise, an EFT Listing window will appear; this can be emailed/saved/printed etc for reference.



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Click ‘Update’ to proceed.



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Creditor Remittance Distribution

This application is used to send Remittance Advices by Email, fax and post.

Before this application is run, Automatic Cheque (Invoice) Release and Cheque Print or Direct Bank Transfer must have been processed.

Open the Creditor Remittance Distribution window.

The default Doc Branch is displayed. Select from the dropdown list if a change from the default value is required.

The default Bank Acct is displayed. Select from the dropdown list if a change from the default value is required.

The default Cheque No, Account No and Cheque No range is All. To limit output to a specific range, deselect the All checkbox and enter the Cheque Number, Account Number and Cheque Date range respectively in the From and To fields.

Click Create Report button.



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Creditor Remittance tab

A Remittance Advice is printed for each cheque Number and displays the amount paid to the Creditor.



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Remittance Distribution tab

The Remittance Distribution tab displays contact details for any contacts that fall within the range entered.

The Distribution Type dropdown changes the display between All records and those contacts able to receive statements via Email or Fax.

If the Email option is selected, two further options are available:

The Distribute button sends the Remittance Advices to the Email addresses listed. These

addresses can be overwritten at this point.

The ‘Receipt Required’ checkbox prompts the receiver for delivery confirmation upon

viewing the message.



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Process Flowchart




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Creditor Cash Requirements Report



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Creditor Release Adjustments



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Creditor Remittance Advice Distribution



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Program Parameters

The following notes define the parameters applicable to the application described in this Process Map.


Parameter Name Parameter Function

AllowAutoRelease If set to Y then any invoice with match status = "Matched" or "Matched Within Variance" will be released.

Valid Values: Y/N

Default Value: N

AuthorityGroup To show only, and allow use of, the accounts or codes attached to the Authority Group specified

Valid Values: A valid Authority Group

Default Value: Blank

SundryCode Used to default sundry code

Valid Values: Blank to anything valid in Autcode table

Default Value: All

VarianceLimit To limit the variance amount that can be written off between the invoice in the system & that in the input file

Valid Values: Any value > 0

Default Value: 0

Creditor Release Adjustment


ProtectLockedPayments If this is set to Y and if the status = 'L' for a transaction then user is not allowed to change the status at all

Valid Values: Y/N

Default Value: N



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ZAPayment For South Africa users to set up Payment Type

Valid Values: N (Normal) or U (Urgent)


Creditor Remittance Distribution


BankAccount To specify a default Bank Account

Valid Values: A valid Bank Account


DocBranch To specify the default Branch for the Doc Branch dropdown

Valid Values: A valid Branch


Process Map Procedure Manual - Auto-IT - Creditors Payments.pdf · Procedure Manual [Client Trading...

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Transcript of Process Map Procedure Manual - Auto-IT - Creditors Payments.pdf · Procedure Manual [Client Trading...