sap fi accounts payable overview

Copyright © United Nations

FI113 – Umoja Accounts Payable Overview

1

Umoja Accounts Payable Overview – Version 11 Last Modified: 14-Aug-13

Copyright © United Nations Copyright © United Nations

Agenda

2

Course Introduction

Module 1: Financial Accounting in Umoja

Module 2: Invoice Processing

Module 3: Other Accounts Payable Activities

Course Summary

Course Assessment

Course Survey



Course Overview

The purpose of the Umoja Accounts Payable Overview course is to explain how Accounts Payable functions and invoice processing in general are affected by the implementation of Umoja.

Prerequisite Review

You should have completed the following prerequisite courses:

• Umoja Overview

• Umoja ECC Navigation

• Umoja Master Data & Coding Block Overview

Course Duration: 2 hours

3


Course Objectives

After completing this course, you will be able to:

• Describe how invoices are processed within Umoja

• List the key roles and responsibilities in Accounts Payable

• Describe the key changes and benefits of Umoja Accounts Payable

• Describe when non-Purchase Order (PO) invoices are applied

4


Agenda

5

Course Introduction




Course Summary

Course Assessment

Course Survey



Module 1 Objectives

After completing this module, you will be able to:

• Define the key terms related to Accounts Payable

• Describe the park and post functionality and when it is used

• Explain how Logistics Invoice Verification is used

6 Copyright © United Nations


Key Term Description

Invoice It is used in Umoja to refer to all payment documents. It is created in Umoja even in cases where no physical commercial invoice is received.

Three-way Matching It is a functionality within Umoja that compares an invoice to the appropriate PO and the amount of goods or services received.

Goods Receipt It is a document in Umoja that is created to acknowledge the receipt of goods, referencing one or more PO’s.

Workflow It refers to invoices or other financial/procurement documents being automatically routed to the appropriate approvers based on the delegations of authority.

Invoice Tolerance It is the maximum amount by which an invoice may differ from the relevant PO for a three-way match to pass ($4000 USD or 10% of PO line item, whichever is lower).

Payment Block It is a block that ensures that the payment for an invoice will not be processed until the payment block is removed.

Key Terminology

7



Down Payment It is an advance payment to any entity. These payments may require a Funds Commitment/PO depending on the type (for example, commercial down payment and salary advance).

Chart of Accounts It is a catalogue of all General Ledger (G/L) accounts available in the Umoja accounting environment.

Subsidiary Ledger It is a secondary ledger that sits under the G/L, to which all operational transactions are recorded or performed.

Reconciliation Account It refers to accounts within the G/L that are automatically modified when posts are made to subsidiary ledgers.

Special GL Indicator It indicates when a transaction should post to a different reconciliation account than indicated for a particular Business Partner Group (used for down payments, for example).

Key Terminology

8


Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Umoja Accounts Payable (A/P) process:

9

Financial Accounting User (A/P)

• Creates vendor invoices and vendor credit memos within the A/P sub ledger. This entails:

Adding VAT Changing payment terms, if needed Adding a payment block, if needed Reducing the invoice, if needed Requesting that PO be modified, if needed

These documents are subject to workflow approval

Financial Accounting Approver (A/P)

• Reviews and approves vendor invoices and credit memos created by the Financial Accounting User (A/P) within A/P sub-ledger


Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Umoja Accounts Payable (A/P) process:

10

Financial Accounting Senior User (G/L /

A/R / A/P / CO)

• Creates and maintains the cost accounting allocation rules, including the statistical key figures used for allocations

• Runs the batch that posts billing documents that come from the Sales and Distribution module

• Inserts a long-text description (occasionally) for incoming payments for voluntary contribution

• Creates and posts G/L documents that are not subject to workflow, such as accruals, reversals and recurring entries

• Clears G/L, Accounts Receivable (A/R) and A/P documents


Key Benefits & Changes of Umoja

As a result of Umoja, the major changes and benefits to the A/P process are as follows:

11

Integration Across Areas

Three-Way Matching One Integrated

Company Code in Umoja


Integration Across Areas

12

Integration Across Areas Three-Way Matching One Integrated Company

Code in Umoja

Integration across areas allows business documents to be linked.

• A single document gives an end-to-end trail (For example, a user can see if goods have been received from a PO)

• The system checks and informs the user if a down payment to the vendor has already been processed. After the invoice is posted, the down payment is settled. Any amount that needs to be retained as a performance guarantee (for example for construction contracts) will be withheld from payment




Three-Way Matching

13


Code in Umoja

Three-way matching is used to automatically check consistency of documents.

• When entered into Umoja, the invoice amount is checked against the PO and Goods Receipt. If they do not match, appropriate action may need to be taken (for example reduce invoice or issue credit memo)

• The system allows payment processing to move forward if the invoice amount is within the set tolerance of the PO and the amount of goods received

• Differences between the amount of goods received and amount invoiced do not accumulate because they are automatically reconciled



One Integrated Company Code in Umoja

14


Code in Umoja

One integrated company code in Umoja replaces multiple instances of Sun/IMIS.

• Provides consolidated reports and faster access to information from a central source

• Decreases manual effort in obtaining information from multiple sources

• Integrated Vendor Master Data allows the same vendor to be used across missions, eliminating duplication of records


Umoja Main Ledgers

15

Each module also maintains a ledger and generates documents that make use of the coding block elements. These are the four main ledgers of Umoja:

• General Ledger (maintained in the FI module)

• Controlling Ledger (maintained in the CO module)

• Funds Management Ledgers (maintained in the FM module)

• Grants Ledger (maintained in the GM module)

General Ledger (G/L)

FM Ledger

G/L only records actual postings. Every financial transaction conducted in Umoja has a corresponding posting within the G/L.

The FM ledger records budget-relevant transactions such as budget, consumption, budgetary resources, etc., and provides budget availability.

Grants Ledger

The Grants ledger records grant-relevant transactions (trust funds).

Controlling Ledger

The Controlling ledger records postings used for cost and management accounting.


General Ledger in Umoja

G/L is the central accounting record for Umoja. It contains the balances of all offsetting credit and debit accounts. Every financial transaction conducted in Umoja has a corresponding posting within the G/L.

G/L accounts form the basis of segregating financial data into the following accounting groups (IPSAS elements of financial statements):

Transactions that are performed in external legacy systems are brought into Umoja via an interface. These transactions are then posted to the G/L. For example, payroll is performed in Progen, then uploaded into Umoja via an interface.

16

Liabilities Income Expenses Fund

Balances Assets


General Ledger (G/L) Accounts

17

A consolidated list of all G/L and subsidiary ledger accounts housed in Umoja is stored in the system’s Chart of Accounts. Account numbers and corresponding accounts used in Umoja are listed below:

• 1xxxxxxx – Current Assets

• 2xxxxxxx – Non-current Assets

• 3xxxxxxx – Current Liability

• 4xxxxxxx – Non-current Liabilities

• 5xxxxxxx – Net Assets

• 6xxxxxxx – Revenue

• 7xxxxxxx – Expenses

• 88xxxxxx – Memo Accounts + Excluded from F/S

To make a posting in Umoja, a posting key is used for each line item to define:

• Side of the account the line item is posted to, debit or credit

• Type of account the line item is posted to

• Fields contained in the entry screens


General Ledger

Financial Accounting Module in Umoja

Note: Budget-relevant transactions are recorded in a separate budgetary ledger in the FM module, parallel to the G/L.

18

In Umoja, the Financial Accounting (FI) module is designed to capture UN’s business transactions in a manner that will satisfy external reporting requirements.

A consolidated list of all Umoja G/L accounts housed in Umoja is stored in the system’s Chart of Accounts.

Umoja Chart of Accounts

G/L Accnt 1

G/L Accnt 2

G/L Accnt 3

G/L Accnt 4

G/L Accnt 5

G/L Accnt 6

G/L Accnt 7

G/L Accnt 8

G/L Accnt 9

G/L Accnt

10

G/L Accnt

11

G/L Accnt

12


General Ledger vs. Subsidiary Ledgers

19

Subsidiary Ledgers

General Ledger

The subsidiary ledger is a supporting ledger that provides detailed information about individual accounts, which are not stored at the detailed level in the G/L.

Subsidiary ledgers divide financial data into distinct and more manageable categories. The total of all individual account balances in the subsidiary ledger equals the balance of the reconciliation account in the G/L.

Postings to Reconciliation Accounts


A/P Subsidiary Ledger

20

Accounts Receivable (A/R) (Contains customer

accounts)

Accounts Payable (A/P) (Contains vendor

information)

Fixed Assets (F/A)

(Contains assets not recorded in Galileo)

The A/P subsidiary ledger (or sub ledger) is one of three sub ledgers in Umoja.

General Ledger


Reconciliation Accounts

Umoja uses reconciliation accounts to reconcile financial information contained in the subsidiary ledgers in real time. The entries in the reconciliation account can only come from a subsidiary ledger. Direct postings are not allowed in G/L.

For example, fuel purchased from a vendor will be recorded in G/L as follows:

21

A/P- Reconciliation Account

2000 Expenses

Fuel 2000

Vendor Account

2000

General Ledger

In the A/P subsidiary ledger, the vendor is

credited with the amount due

In G/L, the A/P reconciliation account has a corresponding credit entry to reconcile with

the A/P subsidiary ledger.

Journal Voucher

Debit Fuel 2000 Credit Vendor 2000

A/P Subsidiary Ledger


G/L Accounts used for Accounts Payable

22

Entries in the A/P Sub-Ledger

Entries for Revaluation of Monetary Balances

Entries for late audit adjustment

G/L Account Reason

Reconciliation accounts Ensures that the sub ledger is

always reconciled with G/L

Revaluation accounts Revaluation entries cannot be

posted to the reconciliation G/L accounts

Manual Adjustment accounts Should be recorded at the G/L level since the sub ledger may be closed earlier than the G/L


Recording A/P Entries in Umoja G/L Accounts

For each Business Partner Group, Umoja provides a standard numbering convention for each type of G/L account:

23

Reconciliation account

Account Type

Manual Adjustment account

Revaluation account

Ending with Digits

10

20

99


Business Partner Groups in Umoja

24

Member States Non-member States

Other Governmental

Entities

UN Agencies, Funds and Programs

Individuals (Staff Members,

Retirees and Survivors)

Individual Consultants and

Contractors

NGO’s Commercial Vendors


G/L Accounts for Accounts Payable

For standard invoice transactions, the following G/L accounts (current liability) are automatically derived by Umoja based on the Business Partner Group:

25

Business Partner Group Reconciliation G/L Account

Member States 33201010

Non-Member States 33201110

Other Governmental Entities 35101210

UN Agencies, Funds, and Programs 35101310

Non-Governmental Organizations 35101410

Commercial Vendors 35101510

Individuals (Staff Members, Retirees, Survivors, etc.)

35101610

Individual Contractors and Consultants 35101810


Special GL Indicators

Special GL Indicators (SPGL) are used to identify transactions that should be recorded to alternate G/L accounts instead of the automatically derived Reconciliation account. In Umoja, the following SPGL are used for A/P:

26

Note: In Umoja, SPGL are used in conjunction with the Down Payment functionality, which is covered later in the course.

Down payments to commercial vendors

Advances to implementing partners

Travel advance

Salary advance

Security deposits

Loans receivable

A

Y

T

S

H

X

Transaction SPGL


Balancing FI Dimensions Through Document Splitting

27

Umoja contains a specific functionality that assists users in managing the G/L. One key functionality is document splitting. Umoja performs document splitting for all inter-fund entries to ensure that these entries are balanced at the fund, business area, grant and segment level. Document splitting achieves this balance by automatically generating additional line items for transactions that must be divided amongst multiple dimensions. There are four splitting dimensions for Umoja as shown in the diagram below:

Fund Business

Area Grant Segment


Document Splitting in Umoja

The concept of document splitting is demonstrated in the tables below:

A vendor invoices $100 for a service provided for two separate UN missions. The payable appears in the G/L as one line item because one invoice was provided by the vendor for the service delivered.

28

Account Mission/Fund Amount

Vendor Payable (100.00)

Account Mission/Fund Amount

Payable 0001 (40.00)

Payable 0002 (60.00)

Using document splitting, the first line item is separated into two separate line items, each assigned to the appropriate fund for the amount due from that fund.


Touch Points

The Umoja system is an integrated system and its modules integrate with each other to complete a process. Touch points refer to these integration points across Umoja modules, processes and activities.

29

General Ledger

Accounts Payable

Asset Accounting

Treasury

Accounts Receivable

Grant/Fund Management

Controlling

Sales and Distribution

Real Estate Material

Management


Learning Checkpoint 1

Invoices are parked by the ____________.

Fill in the blank with the correct option.

A. Financial Accounting User (A/P)

B. Financial Accounting Approver (A/P)

C. Cashier

D. Financial Accounting Senior User (G/L, A/R, A/P and CO)

30



Invoices are parked by the ____________.


A. Financial Accounting User (A/P)


C. Cashier

D. Financial Accounting Senior User (G/L, A/R, A/P and CO)

31

Option A is the correct answer. Invoices are parked by the Financial Accounting User.



Which of the following transactions require a Special GL Indicator?

Select all that apply.

A. Commercial Invoice

B. Commercial Down Payment

C. Salary Advance

D. Travel Advance

E. Security Deposit

32



Which of the following transactions require a Special GL Indicator?

Select all that apply.

A. Commercial Invoice

B. Commercial Down Payment

C. Salary Advance

D. Travel Advance

E. Security Deposit

33

Options B, C, D and E are the correct answers. Only commercial invoices do not require a Special GL Indicator.


Module 1 Summary

The key points covered in this module are listed below:

• G/L is the central accounting record for Umoja

• A consolidated list of all Umoja G/L accounts housed in Umoja is stored in the system’s Chart of Accounts

• Reconciliation accounts are used to reconcile (update in real time) the G/L based on postings to the A/P sub ledger

• Special GL Indicators are used to make postings to accounts outside of the standard Reconciliation account (for example for down payments)

• Business Partner Groups in Umoja each have their own set of Reconciliation accounts

34


Agenda

35

Course Introduction




Course Summary

Course Assessment

Course Survey



Module 2 Objectives


• Identify the effect of tolerances on invoice processing

• Describe when non-PO invoices are applied

• Describe how credit memos and down payments are implemented in Umoja




Goods Receipt/Invoice Receipt (GR/IR) Account

It is the temporary payable account used to compare goods/services received versus invoice (or amount) received. This account is credited when goods are received. When the invoice is posted, this account is debited and the corresponding line items are cleared.

Credit Memo

It is a document used to adjust the amount due to a vendor as a result of damaged goods, errors or allowances. These are sometimes referred to as credit notes.

Payment Retention It is a payment that can be applied when a pre-determined portion of an invoice is retained until a defined due date and until confirmation that conditions for retention have been met.

Special GL Indicator

It is assigned to certain A/P and A/R transactions to segregate postings through the use of alternative Reconciliation accounts. For example, these are used for specific types of down payments, such as a salary advance.

Key Terminology

37



Invoice Reduction

It is used to lower the amount of an invoice due to a vendor in comparison to the physical invoice received (in case of missing/damaged goods or invoice error).

Unplanned Charges

It is used to add charges to an invoice that is not captured in the Goods Receipt or PO (in case of unplanned delivery/freight charges for example).

Key Terminology

38


Accounts Payable Document Types

Document Type Code Description

Invoice (with PO) RE • A/P document that links to a PO and matches against Goods Receipt using Logistics Invoice Verification (LIV)

• Credits A/P sub ledger vendor account

Non-PO Invoice below $4000 USD with Certification

KR

• A/P document used for non-PO payables • Credits A/P sub ledger vendor account • Entered manually or through an Excel file

Non-PO Invoice with Earmarked Fund

KH

Non-PO Invoice above $4000 USD without Certification

KE

Down Payment Request KA • Used for advance payments • May or may not reference a PO

Vendor Credit Memo KG • A/P document to reduce amount payable to a vendor or record amount recoverable from a vendor

• Debits A/P sub ledger vendor account

Goods Receipt WE • Created when goods or services are received in Umoja

39

In Umoja, most transactions output a specific type of document, such as an invoice, with a unique ID. Below are the different document types relevant for A/P in Umoja:


Accounts Payable Document Types

Document Type Code Description

Outgoing Payment KZ • Automatically created by Cash Management when payment is sent

• Debits A/P sub ledger vendor account

Vendor Clearing Document KC • Clears a payable document (KR, KG, RE) with an Outgoing Payment (KZ)

40


Processing an Invoice

Although the general process for managing invoices remains the same under Umoja, the following distinctions can be highlighted:

41

Workflows reduce the need to follow up manually with individual approvers

Financial Accounting User (A/P) enters/types the invoice in Umoja, attaching a scanned copy

Invoices are generally posted after Goods Receipt (GR) has been entered for each invoiced item. They can also be posted before the Goods Receipt. In this case, the invoice is parked and sent to the Certifying Officer who will process the invoice after the GR is entered. The invoice will then be approved by the Approving Officer

Three-Way Match links the invoice to the PO and Goods Receipt to ensure there is no mismatch. The process ensures payment for more than goods received is not made until all three documents match


Invoices without PO's

Umoja introduces the concept of creating invoices with reference to a Funds Commitment instead of a PO. This applies in the following scenarios:

42

• Consultants/Individual Contractors

• Grants process for implementing partners

• Official Travel

• Entitlement Travel

• Miscellaneous Obligating Documents

• Fellowship Study Tour

• Education Grant

• Self-Insurance (unless treated as special PO)

• Appendix D Claims – All Fund Types

• PK Local TCC / PCC payments


Invoice Transactions in Umoja

There are two main transactions within Umoja ECC to enter an Invoice:

• MIR7 is used for standard invoices for goods and services in reference to a PO

• FV60 is used in cases when there is no PO. Invoices processed with FV60 may refer to a Funds Commitment

43

MIR7 FV60

Invoice entered with reference to a PO Invoice entered without reference to a PO

Line items are derived automatically Line items must be entered manually or through an Excel file

“Saving the document as Complete” will automatically post the invoice if three-way match is successful

“Saving the document as Complete” will forward the invoice to be approved and posted by A/P Approver

“Parking” the document will trigger workflow and send to A/P Approver for review

“Parking” the document will save for later completion but will not trigger workflow

“Holding” the document will save for later completion but will not trigger workflow

No “Hold” functionality


Invoice Processing Scenarios

44

All PO’s over the low value threshold of $4,000 originate from a Shopping Cart created in the Umoja SRM system. Invoices are then entered against these PO’s.

Low Value Purchase Order

Under $4000 USD

Non-PO Invoices Over $4000 USD

Purchase Requisition/ Shopping Cart

Purchase Order

Goods Receipt

Invoice

Purchase Order

Goods Receipt

Invoice

Earmarked Funds Document (if required)

Manual Invoice

Three-Way Match

Standard process for

goods/services

For requisitions less than the threshold, a Low Value Acquisition can be created instead, eliminating the need for a Shopping Cart.

Non-PO Invoices Under $4000 USD

Manual Invoice


Three-Way Match

45

Umoja ECC’s automated Three-Way Match enables the cross-check of PO, Goods Receipt and invoice

• If the documents cannot be matched within the Invoice Tolerance, the system automatically blocks the payment

• If the documents do match or are within the Invoice Tolerance, payments are automatically processed according to payment terms

If physical discrepancies (for example physical damage) are found during Goods Receipt, a “blocked” status can be placed on the goods, resulting in no financial posting.

Financial Implications

Umoja ECC

Umoja ECC performs three-way matching

Purchase Order

Goods Receipt

Invoice


Umoja Three-Way Matching process allows the comparison of quantities, price per unit, terms, etc. that appear on the vendor’s invoice with the information on the PO and Goods Receipt.

Three-Way Match

46

Purchase Order Goods Receipt (GR) Invoice

Item 1 Material: -------- Quantity: -------- Item 2 Material: -------- Quantity: -------- Contract terms




The LIV process is depicted in the following diagram:

The Three-Way Match process is used to match goods/services received with invoices. The GR/IR account is credited when good are received and debited (that is cleared) when

the relevant invoice is posted.

Three-Way Match

47

FI Posting FI Posting FI Posting

GR/IR X

Expense X

A/P X

GR/IR X

Cash X

A/P X

Purchase Request

Purchase Order

Goods Receipt

Invoice Verification

Vendor Payment


Invoice Tolerances

48

If the invoice is within the Invoice Tolerance ($4,000 USD or 10% of the PO Line Item, whichever is lower), the User (A/P) may enter an invoice reduction, credit memo or unplanned charges

If the difference between the documents is more than the Invoice Tolerance, the User (A/P) will not be able to post the invoice and must send for review using automated workflows

Invoices can be posted by the User (A/P) only if there is a successful Three-Way Match. The match is not successful:

If the Invoice is within Tolerance If the Invoice is Incorrect


Workflow Approvals

49

Workflows are used to forward financial documents for review to the appropriate Approvers. Certain documents (credit memos, down payment requests) require the

Approver (A/P) to approve before they can be posted.

In the example below, Umoja automatically routes the document to the appropriate certifying and approving officers based on the account assignment. The approvers will see the invoice in their inbox in Umoja after it is ready for review.

The User (A/P) Saves the

document as Complete

The Approver (A/P) approves the document

The document is posted.


VAT Process

50

If an invoice is received with Value Added Tax (VAT), there are three possibilities based on the host country:

The UN is exempt from taxes altogether and the vendor is informed of the exclusion.

The Financial Accounting User (A/P) chooses a tax code for non-reimbursable tax.

The Financial Accounting User (A/P) chooses a tax code for reimbursable tax.


VAT Process: Example

51

In the example below, the invoice has been posted with the full amount and the appropriate VAT tax code selected.

The full amount (that is` amount including VAT) is credited to the Vendor Reconciliation account. The net amount is debited to GR/IR and VAT amount to VAT Recoverable. Both these amounts are calculated by Umoja depending on the VAT code selected.

GR/IR

1000

VAT Recoverable

200

Vendor

1200

Automatically posted

by selecting

the VAT code


Credit Memos

Credit Memos reduce the amount payable to a vendor or record amount recoverable from a vendor as a result of damaged goods, errors or allowances.

52

• Credit memos are entered by the User (A/P) with or without reference to a specific PO

• All credit memos must be submitted for approval through workflow. The Approver (A/P) reviews the credit memo and approves or rejects as necessary

• Upon approval, the credit memo will be picked up in the next Payment Run made to the vendor. The credit amount will be automatically subtracted from the amount being paid to the vendor


Down Payments

The following steps explain how down payments are processed in Umoja:

53

The Financial Accounting User (A/P) creates a down payment request in Umoja.

The Financial Accounting Approver (A/P) approves or rejects the request.

If approved, the payment is made on the Due Date specified in the original request.

When the next invoice against the vendor is entered in Umoja, the system will remind the user about the down payment. The

user can apply/clear the down payment against the invoice.

Down payments are processed using Special GL Indicators (SPGL). The Financial Accounting User (A/P) uses the Special GL Indicator in Umoja to designate which type of down payment is being used. (for example SPGL A = Commercial Down Payment).

1

2

3

4


Down Payments: Budget Consumption

54

Down Payment Types that Consume Budget

Down Payment Types that do not Consume Budget

There are several types of down payments applied to payables in Umoja. Amongst these, some down payments consume budget while some down payments do not

consume budget.

• Salary advance • Security deposit • Loan receivable

• Commercial down payment • Travel advance • Advances to implementing

partners


Payment Retention

55

The process for entering payment retention begins when a retention percentage is entered in the PO. The full invoice is posted at the time of processing.

The retention amount may be automatically posted by a certain date or manually after certain retention requirements are met.


Invoice Processing without a PO

56

Invoices can also be parked and posted without

reference to a PO. For example, invoices for

travel claims and daily allowance of troops can

be parked and posted without reference to a PO.

Example: Travel Claims

Certain types of Non-PO invoices, such as Travel Claims, require a special type of Earmarked Funds Document called a Funds Commitment*.

Note: For further explanation of Earmarked Funds Documents, please see the Funds Management Overview course.


Touch Points

57

Processed Invoice

Treasury: Outgoing Payments

If Three-Way Match is successful the invoice is automatically approved and

passed to Treasury for payment.

At this stage the approved invoice is scheduled for payment.

The Umoja system is an integrated system and its modules integrate with each other to complete a process. Touch points refer to these integration points across Umoja modules, processes and activities.



Invoices can be parked for approval (that is posting) if the invoice is within ______or ______of the PO at the line item level, whichever is lower.


A. $3,000 USD; 20%

B. $4,000 USD; 20%

C. $1,000 USD; 10%

D. $4,000 USD; 10%

58



Invoices can be parked for approval (that is posting) if the Invoice is within ______or ______of the PO at the line item level, whichever is lower.


A. $3,000 USD; 20%

B. $4,000 USD; 20%

C. $1,000 USD; 10%

D. $4,000 USD; 10%

59

Option D is the correct answer. Invoices can be parked for approval (that is posting) if the invoice is within $4,000 or 10% of the PO, whichever is lower.



Which of the following down payment types require a Funds Commitment?

Select the correct option.

A. Travel Advance

B. Salary Advance

C. Security Deposit

D. Loan Receivable

60



Which of the following down payment types require a Funds Commitment?


A. Travel Advance

B. Salary Advance

C. Security Deposit

D. Loan Receivable

61

Option A is the correct answer. A travel advance is a down payment type that consumes budget.



An Umoja user wishes to purchase goods worth $1,500. Which is the correct order of activities that must take place?


A. Good received > Manual Invoice entered

B. Shopping cart created in SRM > Invoice entered

C. Low value acquisition PO created in SRM > Goods Received > Invoice entered

D. Shopping cart created in SRM > Low value acquisition created > Invoice entered

62




A. Good received > Manual Invoice entered

B. Shopping cart created in SRM > Invoice entered

C. Low value acquisition PO created in SRM > Goods Received > Invoice entered

D. Shopping cart created in SRM > Low value acquisition created > Invoice entered

63

Option C is the correct answer. For requisitions less than $4,000, a Low Value Acquisition can be created, eliminating the need for a Shopping Cart.

An Umoja user wishes to purchase goods worth $1,500. Which is the correct order of activities that must take place?


Module 2 Summary


• The Three-way Matching process is used to match goods received with invoices received for both goods and services. The GR/IR account is credited when goods are received and debited when the relevant invoice is posted

• Invoices can be parked for approval (that is posting) if the invoice is within $4,000 or 10% of the PO, whichever is lower

• There are several types of down payments applied to payables in Umoja out of which some down payments consume budget while others do not consume budget

• Invoices can also be parked and posted without reference to a PO

64


Agenda

65

Course Introduction




Course Summary

Course Assessment

Course Survey



Module 3 Objectives


• Describe the Local Troop Payment process in Umoja

• Identify the role played by A/P in the Petty Cash process

• Explain the steps to make a payment to another UN agency

• Explain the steps to make a payment on behalf of another UN agency outside of Umoja




Cash Journal It is an online tool in Umoja for recording cash disbursements and cash or cheque receipts. It is used to track petty cash and imprest accounts.

Key Terminology

67


Local Troop Payment Process

The following process is used to cover the daily allowances and leave allowances for local troops:

68

Financial Accounting User

(A/P) creates and parks an invoice without a PO but with reference to a

Funds Commitment.

Payments are made through local bank.

Financial Accounting Approver (A/P) reviews and posts the document.

After posting, the payments are processed by Treasury/Cashier.

1

2

3


Payments to UN Entities outside of Umoja

69

For payments made by other UN entities outside of Umoja (not including UNDP), the following process is followed:

1. Umoja Entity Procures Goods – The Umoja entity follows the standard Procurement process, sending a PO to a Third-party vendor

2. Goods are Received and an Invoice is posted – The invoice is posted as per a standard commercial payment

– Debit: GR/IR

– Credit: Vendor

3. Inter-Office Voucher (IOV) is created – In Umoja, the IOV Financial Authorization document references the PO number. This document notes the entity that will be making the payment

4. Credit Memo is created – The Credit Memo is used to clear the credit from the Vendor account

– Debit: Vendor

– Credit: Special A/R IOV Clearing account for entity

5. No Payment is made – While the non-Umoja entity will pay the vendor, the amount owed to them will be held in the designated Clearing account until the entity is brought onto Umoja


Payments made by UNDP

There are two main scenarios for when the United Nations Development Programme (UNDP) may make a payment on behalf of a UN entity on Umoja:

`

70

Procures and Acts as Pay Agent Acts as Pay Agent

UNDP assists with the acquisition of goods and/or provision of services to support technical cooperation or other Peacekeeping operations that are administered by UN. Following the acquisition of goods and services, UNDP pays the vendor.

UNDP only acts as pay agent. In this case, the procurement process is performed by UN. However, UNDP pays the invoice.

For all UNDP payments, an advance (down payment) is required to be made to UNDP. This is then drawn down for all payments made on behalf of the Umoja entity.


UNDP Procures and Acts as Pay Agent

71

UNDP Procures and Acts as Pay Agent

1. PO created (Vendor is UNDP)

2. IOV Financial Authorization created for UNDP

3. Goods Receipt posted

4. Monthly process of capturing UNDP service fees and adjustments in Service Clearing Account (SCA). This occurs automatically via interface

5. Down payment is made again to UNDP to replenish funding for future purchases


UNDP acts as Pay Agent Only

72

UNDP acts as Pay Agent only

1. PO created (to actual Third-party vendor)

2. Goods Receipt posted

3. Invoice is posted with a special payment method. Since UNDP is paying the vendor this will credit a specific temporary G/L account instead of the Vendor account

4. IOV Financial Authorization created for UNDP

5. Down payment is made again to UNDP to replenish funding for future purchases



________ creates and parks a payable document to the contingent paymaster.


A. Cashier


C. Financial Accounting User (A/P)

D. Treasury

73



________ creates and parks a payable document to the contingent paymaster.


A. Cashier


C. Financial Accounting User (A/P)

D. Treasury

74

Option C is the correct answer. The Financial Accounting User (A/P) creates and parks a payable document with the contingent paymaster.


Module 3 Summary


• The Local Troop Payment process is used to cover the daily allowances and leave allowances for local troops

• There are several scenarios in which another UN agency outside of Umoja may provide services to the secretariat

• The two main scenarios when UNDP may make a payment on behalf of a UN entity are procures and acts as pay agent and acts as pay agents

75


Agenda

76

Course Introduction




Course Summary

Course Assessment

Course Survey



Course Summary

77

The key points covered in this course are listed below:

• The G/L is the central accounting record for Umoja

• A consolidated list of all Umoja G/L accounts housed in Umoja is stored in the system’s Chart of Accounts

• Reconciliation accounts are used to reconcile (update in real time) the G/L based on postings to the A/P sub ledger

• Integration across A/P areas allows business documents to be linked and decreases manual effort in obtaining information

• The Three-way Matching process is used to match goods received with invoices received for both goods and services. The GR/IR account is credited when goods are received and debited when the relevant invoice is posted

• Invoices can also be parked and posted without reference to a PO for non-commercial payments


Agenda

78

Course Introduction




Course Summary

Course Assessment

Course Survey



Course Assessment

Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment.

To receive credit for completing this course, you must pass this assessment with a minimum score of 90%.

To complete the assessment you must return to the Learning Management System:

1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning

3. Search for the name of the course under the My Learning Activities section

4. Click the Start link of the course assessment

5. Click the Submit button once you have completed the assessment

79


Agenda

80

Course Introduction




Course Summary

Course Assessment

Course Survey



Course Survey

81

Your feedback is important to the continuous improvement of our training program.

Please complete the Survey for this course using the following steps:

1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning

3. Search for the name of the course under the My Learning Activities section

4. Click the Start link of the course survey

5. Click the Submit button once you have completed the course survey


Congratulations! You have successfully completed the

Accounts Payable Overview course.

82