DART Project

Cash and Banking FI Team, January, 2006Version Boot Camp V1

Framework

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Understand:DART Template for Cash and BankingAS-IS Cash and BankingAny Legal Requirements

Objectives and Desired Outcome

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

DART Global Template ScopeIn scopeManual Processing (paper based)Bank statementsCredit card statementsElectronic Processing (file)Bank statementsCredit card statements

Out of scopeOn line Liquidity forecastingTreasury functionality ie financial derivatives, FX

Introduction & Session Objectives (II)Goods Issue (A)AA

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Key DART Concepts and Design PrinciplesA part from debtors, a site (service station) is created as a customer record (i.e. sub-ledger account) in DART to which all relevant financial transactions are posted to.

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Credit Card Processing (I)Card receivables posted with the Tenders Interface need to be reconciled with the data from the Credit Card Companies.A Custom Program is developed in order to process electronic/manual statements from Credit Card Companies.This program will:Check the Opening Balance of each Credit Card Statement with the Closing Balance of the previous statementLoad the data into the standard SAP tables for BankingCreate the Batch Input with the FI documentsPost the FI documents

Credit Card Processing (II)In order to process the Credit Card file the defined accounts need to be assigned to each Credit Card process.Example of Account Assignment in UK:Account Symbol determine the Credit Card process (like AMEX, DINERS)Account Assignment together with Posting Rules determine the nature of the postings which will be automatically done at the time of executing the Custom Program for Credit Card Statement processing.

Credit Card Processing (III)Example of Posting Rules for UK for AMEX CARD:Posting Key which determines the credit or debit postingAccount Symbol determines to what account automatic postings will be doneDocument type of the accounting document

Credit Card Processing (IV)Posting Rules are assigned to the external transaction types included in the Credit Card Statement file and indicate the nature of the transaction.Examples of assignment of External Transaction Types to Posting Rules for AMEX in UK:

Credit Card Processing (V)Posting to the Credit Card account will be done at the site level and the total amount will be posted to the Credit Card suspense account.We have following accounting entries:

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Credit Card Data Reconciliation (I)Postings from the Tenders Inbound Interface and the Credit Card Statement need to be checked and reconciled.Reconciliation will depend on local requirements, but it should be based on:SiteBatch ID (Transaction ID)For automatic clearing, site and Batch ID need to be populated consistently in the same fields in the FI document.The automatic clearing program can be scheduled for daily clearing of entries which either have no difference or have a difference within the predefined tolerance (in customizing). Entries which cannot be automatically cleared need to be checked and cleared manually using a standard SAP transaction.

Credit Card Data Reconciliation (II)UK example of clearing the Credit Card account:Assignment field containing the Batch IDEntries for the same site with the same Batch ID

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Bank Statement Processing (I)SAP provides a standard program for processing Manual or Electronic Bank Statements.Bank Statements require a standardized format so that they can be transferred to SAP.SAP supports following electronic bank statements:SWIFT MT940 in EU,MULTICASH in EU,LOCKBOX in USA,BACS in UK,ETEBAC in France,And some other country specific bank files.

Bank Statement Processing (II)As with Credit Card processing the standard program for Bank Statements will perform following steps:Check the Opening Balance of each Bank Statement with the Closing Balance of the previous statementLoad the data into the standard SAP tables for BankingCreate the Batch Input with the FI documentsPost the FI documentsWithin the FI documents created and posted, certain fields need to be populated with the Batch ID data to allow automatic clearing of the entries.

Bank Statement Processing (III)As with Credit Card processing, the defined accounts need to be assigned to each Bank Statement transaction (e.g. Cash from site, Vendor Payment, Credit Card) in order to allow automatic posting.UK example of account assignment:

Bank Statement Processing (IV)Account Assignment, together with Posting Rules and External Transaction Keys assigned to Posting Rules, will determine the automatic postings performed at the time of processing the Bank Statement.There will be the following postings:

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Bank Statement Credit Card Data (I)Data posted with the Credit Card Statement needs to be reconciled against the data in the Bank Statement.The appropriate settings (Account Assignment, Posting Rules) will be defined for correct processing.Example of settings for Bank Statement data for Credit Cards in UK:

Bank Statement Credit Card Data (II)We have following accounting entries:

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Bank Statement Cash Data (I)Data posted with the Tenders Inbound Interface (information from UD 16 file) needs to be reconciled against the data in the Bank Statement.The appropriate settings (Account Assignment, Posting Rules) will be defined for correct processing.Example of settings for Bank Statement data for Cash and Cheques in UK:Posting Keys assigned to External Transaction Keys in the bank file

Bank Statement Cash Data (II)We have the following postings:

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Bank Statement Payment Data (I)The bank statement file also contains information concerning payments made to vendors or received from customers.This data needs to be reconciled with the vendor payment postings.Vendor payment is explained in a separate presentation. As with credit card and cash transactions, certain settings need to be configured in order to allow automatic postings at the time of processing the bank file.These settings are:Account Assignments,Posting Rules,Assignment of Posting Rules to the External Transaction Types,

Bank Statement Payment Data (II)We have following postings:

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Bank Statement Data Reconciliation (I)All the data posted with the bank statement needs to be reconciled with the data previously posted from:Tenders inbound interfaceCredit card statementVendor paymentAny other data for which an offsetting posting will be made within the bank statementDART allows two ways of reconciling and clearing:Automatic clearing,Manual clearing.

Bank Statement Data Reconciliation (II)A Standard SAP program is used for automatic clearing of the accounts.The program clears the accounts based on the configured fields in the FI document.Example of the clearing procedure:It is essential that only the defined data is populated in each of the field types.

Bank Statement Data Reconciliation (III)An automatic program checks the FI documents based on the criteria and where there is no difference or the difference is within tolerance, the Program creates the clearing document and marks the FI documents as cleared.One to one, one to many, many to one or many to many matching is possible and automatically done by the system.An automatic clearing program can be scheduled as a daily job if required.

Bank Statement Data Reconciliation (IV)If automatic clearing is not possible (difference too large, not the same data populated in the clearing fields in FI documents) then manual clearing can be applied.Manual clearing is carried out at the G/L account level.Certain selection criteria (e.g. site, posting date, document date etc.) are allowed in order to limit the number of FI documents.Manual clearing allows the posting of differences to selected G/L accounts at the time of clearing the document.For both automatic and manual clearing SAP creates the clearing document and where no difference exists that document will not have any line items or value linked to it.

Bank Statement Data Reconciliation (V)Example of manual clearing screen layout:

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Key Reports and InterfacesKey ReportsBank Statement Report (FF_6)Account Balances Reports (FS10N, FBL3N)Customer Balance Reports (FD10N, FBL5N)Key Interfaces/DevelopmentsCredit Card InterfacesElectronic Bank Statement Manual Bank Statement

AgendaObjectives and Desired OutcomeDART Global Template Scope Key DART Concepts and Design PrinciplesCredit Card ProcessingCredit Card Data ReconciliationBank Statement ProcessingBank Statement Credit Card dataBank Statement Cash dataBank Statement Payment dataBank Statement Data ReconciliationKey Reports and InterfacesLessons LearnedWrap-up

Lessons Learned Issue: Bank Statement files do not have consecutive file numberingImpossible to check the opening balance by the standard programDART recommendation:Try to get the consecutive numbering, otherwise development is needed

Appendix: Key ReportsBank Statement :

Points removed for Boot Camp presentation: Identify Gaps, Issues and RisksAgree on actions going forwardAssess Organizational Change Opportunities