Accounts Receivable

SAP-ERP

Accounts Receivable
Version 1.0 Unit 5: Financial Transactions, EFT and Lockbox

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Course Agenda
Topic 1: Introduction Topic 2: Customer Master

Topic 3: SAP Documents

Topic 4: Accounts Receivable Functions Topic 5: Financial Transactions, EFT and Lockbox

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Electronic Funds Transfer (EFT)

Customers who remit via EFT have been assigned to specific AR staff members The remittance advices are received each morning, and researched. The appropriate changes are made to the advice the same day in advance of the payment The payment is processed that evening by SAP and applied according to the advice. The designated AR staff member reviews the system application the following morning, makes corrections where necessary and forwards the completed payment to the appropriate Collections personnel Reference field is a common value between the Remittance advice and payment Idocs

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EDI Structure
PAYEXR IDOC with Remittance Advice information

Customer

SAP BANK
Payment IDOC

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EFT Scenarios

Remittance Advice Received from Payment IDOC Received from

Scenario I Customer Bank x x

Scenario II Customer Bank x x

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Payment Advice

Payment Advice can be received from

Customer Bank

We can make changes to the Payment Advices to improve the hit ratio using the Payment Advice Change Transaction (FBE2)

The changes to payment advice should be done, before the payments are applied automatically via EFT or Lockbox

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Payment Advice Overview (S_ALR_87012203)

1) Use the S_ALR_87012203 report to get a overview of Payment Advices for a customer or for a particular company code, date and /or customer.
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Payment Advice Overview (S_ALR_87012203)

Payment Advice Number

2) Print the report every day for future reference and use this report to edit payment advices using Transaction FBE2.

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Change Payment Advice (FBE2)

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Change Payment Advice (FBE2)

Double click on the Payment Advice Item to get the details

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Change Payment Advice (FBE2)

Click on the next item icon to display other line items

You can

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EFT Bank posting

Check #

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Lockbox Payments
The Accounts Receivable Department, on a daily basis, processes the nightly lockbox transmissions.

Each days cash must be completely applied within 2 business days. This will insure that the monthly cash is applied prior to the close of the accounting period

Lockbox payments are applied either

Systematic SAP identifies the payment to the customer account and applies it to specific items within that account Manual AR staff applies a payment that was identified but not applied by SAP AR staff identifies and applies a payment not identified and applied by SAP

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Systematic Identification
SAP accepts nightly transmissions of check detail from four different paper lockboxes and one electronic (EFT) lockbox strategically located throughout the United States The transmitted data includes:

The MICR number of the check Document numbers/amounts supplied by the customer

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MICR Number
The MICR number is programmatically compared to the MICR numbers on the customer master records within SAP MICR match is found: the payment is posted to the appropriate customer account as

On account if the system is unable to clear the payment against the referenced items Applied,if the system is able to clear the payment against the referenced items, Part applied if the system is able to clear some of the referenced items, but not all of them

MICR match is not found: the system will try to match document numbers supplied on the remittance

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Document Number
The document numbers on the remittance are programmatically compared to document numbers on the customer line item displays located in SAP Document match is found: the payment is posted to the appropriate customer account as one of the following:

On account if the system is unable to clear the payment against the referenced items Applied if the system is able to clear the payment against the referenced items Part applied if the system is able to clear some of the referenced items, but not all

Document match is not found: the payment is assigned an unprocessed status

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Manual Cash Identification and/or Application

If the system is unable to identify the customer by either the MICR number or the document number, the payment remains in the clearing account until manually identified by an AR representative. To manually identify or apply items posted on account by SAP, via the SAP system, transaction code ZLB1 is used. This brings up the Post Processing Lockbox Data Screen

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Lockbox Post- Processing (ZLB1)

Enter: 1) Destination 2) Origin: Bank # (Exhibit: Regional Remittance Addresses) 3) Lockbox: Corresponding Lockbox # (Exhibit: Regional Remittance Addresses) Enter leading zeros for a total of 7 characters, with the exception of Northern Trust, Lockbox EF1. Date: Date of the deposit being worked

Batch#: Leave blank

Check Status: 1 (All checks)

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Lockbox Post-Processing (ZLB1)

1) Click Lbox Overview Icon the screen will display all batches for that particular days deposit for the lockbox selected. Click on the Lockbox overview Icon

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Lockbox Processing (ZLB1)

2) Select each batch containing the checks by clicking on it and select the batch by click once and on the details 3) The screen shows the total checks and the number of checks applied, Part. Applied, posted on account and Unprocessed

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Lockbox Processing (ZLB1)

3) Select the Lockbox totals icon to display the Lockbox totals

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Lockbox Data Overview (ZLB1)

3) Select the batch and click the Batch totals Icon for Batch totals

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Lockbox Data Overview (ZLB1)

4) Click on Details button to see the check numbers and details

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Lockbox Data Overview (ZLB1)

5) Click on Details button to see the check numbers and details

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Lockbox Data Overview (ZLB1)

6) Financial document posted Lockbox Total posted

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Lockbox Data Overview (ZLB1)

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Questions and Answers

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