1. 1  Tata consultancy services Bank and Cash Transactions (Accounts Payable)

2. 2  Tata consultancy services Target Group Audience: Officers responsible for maintaining Bank and Cash accounts.

3. 3  Tata consultancy services Contents u Concept of House Bank u Document Types for Bank & Cash u Vendor Accounts Account Display options Open Item Management Special GL Transactions - Down payments u Payments to Vendors Outgoing payments Down Payments, Clearing Down payments u Other Payments Expenses Employees

4. 4  Tata consultancy services Contents (contd.) Cheque Management - Main activities Manual cheques Automatic cheques –Post and Print subsequently –Post and Print simultaneously –Payment Program u Other Cheque Management activities Entering Cheque lots Voiding Cheques Reprinting Cheques

5. 5  Tata consultancy services Contents (contd.) u Printing Payment Advices u GL Account Balances - Cash and Bank Line Layout Variants Find facility Sort facility u Bank / Cash Book - Report

6. 6  Tata consultancy services Course Objectives u Pass accounting entries for bank and cash transactions u Prepare cheques and maintain cheque details u Print payment advices / bank book At the conclusion of this course, you will be able to:

7. 7  Tata consultancy services HOUSE BANK Bank Master Data: Overview Bank master data is stored centrally in the R/3 system in the bank directory. The following sections describe how you maintain bank master data and what you need to note when transferring bank master data automatically. In addition to bank master data, you must make specifications for your own banks (house banks) and the banks of your customers and vendors.

8. 8  Tata consultancy services Defining Your Own Banks You specify your banks per company code. You enter an abbreviation of your choice for each bank. You select an alphanumeric key for the abbreviation (bank ID). For example, you can store bank data on Bank of Baroda under the abbreviation BOB.

9. 9  Tata consultancy services Document Types for Bank & Cash u New Document Types have been defined for Bank and Cash accounts to ensure different numbering series for different bank accounts to facilitate bank and cash book maintenance

10. 10  Tata consultancy services Document Types DTBank/Cash GL A/cNumber Series B1 BoB133512300000000 B2ICICI-Ahd231012400000000 B3ICICI-Bby231032500000000 B4IDBI133532600000000 B5SBI133542700000000 C1Ahmedabad133012100000000 C2Bombay133022200000000

11. 11  Tata consultancy services Vendor Accounts - Display options To display: u Line items from previous year u Line items from a period u Debit or credit line items from a period u All debit or credit line items u All line items Place cursor on: u Carry forward balance u The required period u The required period in the debits or credits column u The debit or credit total u The current account balance, the last entry in the Account balance column

12. 12  Tata consultancy services Open Item Management u Vendor and Customer accounts are maintained under Open Item Management u Open items represent transactions that are incomplete. For example, an unpaid invoice item is kept as an open item on the vendor account until it is paid. u Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived

13. 13  Tata consultancy services Open Item Management u Open items can be cleared only if an offsetting item of the same amount can be matched to the open items. u Open Items are shown separately in account display

14. 14  Tata consultancy services Special GL Transactions u Down Payments are treated as special GL transactions u Normal transactions hit “Sundry Creditors a/c” in GL while Down Payments hit “Debit Balances in Sundry Creditors a/c” u Facilitates grouping them separately as assets and liabilities in Balance Sheet u Options to view a vendor account Only Down Payments Normal Transactions Both

15. 15  Tata consultancy services Payment to Vendors Menu Path - A/cs -- Fin. A.c -- AP -- Posting -- Outgoing Payment -- Post ( Transaction Code - “F-53” ) u Header Level entries 1 - Document date 2 - Document type - e.g. B1,B2,C1.. 3 - Bank account number 4 - Amount to be paid u Values 1,2,3 can be defaulted for a session by “Hold Data” feature

16. 16  Tata consultancy services Payment to Vendors u Document Header Text Optional field Will be printed in the Bank / Cash Book Will not be printed in the Payment advice

17. 17  Tata consultancy services Payment to Vendors u Open Item Selection Vendor Account No. Account Type (K for vendor would default) – D - Customers, K - Vendors, S - G/L accounts Sp. GL Indi. - ‘A’ for Down payments u Additional Selection - to narrow down selection of open items by : - Amount Document number Posting date

18. 18  Tata consultancy services Payment to Vendors u Open Item Selection Select the Invoice against which payment is to be made and save For part payment, “Goto - Partial payment Screen”, enter amount and save More than one invoice can be selected (both part and full) On selection of an invoice, down payments linked to that invoice (if any) would also get selected automatically

19. 19  Tata consultancy services Down Payments Menu Path - A/cs -- Fin. A.c -- AP -- Posting -- Down Payment -- Down Payment ( Transaction Code - “F-53” ) u Header level entries same as “Outgoing Payments” Additional field - Sp. GL Indic. - “A” u For Down Payments against Down Payment Requests, click on “Requests” button, and select the relevant down payment request u For other Down Payments, enter details incl. purchase order number

20. 20  Tata consultancy services Down Payment - Clearing u Clear Down payment against Invoice Menu Path - A/cs -- Fin. A.c -- AP -- Posting -- Down Payment -- Clearing ( Transaction Code - “F-53” ) u Option to clear down payments through invoice verification in MM Menu Path - Logistics -- MM -- Inv. Verif. -- Inv. Verif. -- Environment -- Clear Down Payment ( Transaction Code - “FBA8” )

21. 21  Tata consultancy services Other Payments u Outgoing Payment against FI Invoice Party defined as Vendor in Master If not, route through One Time Vendor Procedure - same as payment to vendors (p 13-17) u Debit GL Expense account directly Enter Header Details “Goto -- GL Item Fast entry” –Posting Key, GL Account, Amount, Cost centre, Text Posting Key - “40” for Debit entries in GL a/cs Cost centre mandatory for all expense entries (default cost centres can also be assigned)

22. 22  Tata consultancy services Other Payments u Account Assignment Model Models can be created for ease of data entry - containing preset values of GL a/c, cost centres etc. Can be used to enter frequent bank / cash transactions directly debiting more than one GL a/cs

23. 23  Tata consultancy services Other Payments u Travelling Advance to Employee Employees have been defined in the system as vendors with a different number range ( e.g. ‘205136’ - Mr. RR Shah) u Entry Procedure Enter Header details “Goto -- Document Overview” Enter Posting Key - ‘25’ and Account No. Enter Line details - Amount and Text Line Text can be copied from previous line by entering ‘+’ or ‘++’ (with confirmation)

24. 24  Tata consultancy services Cheque Management u Manual Cheques For cheques prepared manually, outside the system, details of cheque number has to be entered Menu Path - A/cs -- Fin. A.c -- AP -- Environment -- Check Info -- Create - - Manual Checks ( Transaction Code - “FCH5” ) Enter Document Number for which Cheque details are being maintained Enter Cheque Details – House Bank e.g. ICICI – Account Id e.g. Ahd – Cheque Number e.g.212002 u These details can be viewed by clicking “Check Info” button in account display for a payment Line Text can be copied from previous line by entering ‘+’ or ‘++’ (with confirmation)

25. 25  Tata consultancy services Automatic Cheque Processing u 3 ways Post and Print subsequently Post and Print simultaneously Automatic Payment u Standard SAP payment programs (RFFOUS_C) R F F O U S _ C Module print formcountry method T=bank Transfer, C=Cheque D=Direct Debit

26. 26  Tata consultancy services 1. Parameters : vendor, co.code, payment method (Chk/Transfer) 2. Proposal : list of proposed payments 3. Payments : update financials, create clearing document 4. Print : Print Program For printing of checks system - services - reporting program : RFFOUS_C Automatic Payment (4P)

27. 27  Tata consultancy services Payment Advices Menu Path - System -- Services -- Reporting u Enter Program - ‘ZFRPAYVR10’ u Selection Criterion for printing Document Number Document Date Document Type

28. 28  Tata consultancy services Bank / Cash - GL account Menu Path - A/cs -- Fin. A.c -- GL -- Account -- Display Balances ( Transaction Code - “FS10” ) u Display Options (same as page 9) u Line Layout Variant button Choose ‘Standard-modified for E+L - Bank’ Cheque No, Ch. Date and Bank fields for details of cheques received u Check Information button for cheque details of payments

29. 29  Tata consultancy services Bank / Cash - GL account u ‘Edit -- Find’ facility - to narrow down the listing based on : - Document number Document type Posting key Document date Posting date Amount

30. 30  Tata consultancy services Bank / Cash - GL account u ‘Edit -- Sort’ facility - to sort line items based on the following Sort criterion (Upto 3) : - Document date Posting date Document type Posting key Amount Document number u Total for each sort criterion can be displayed

31. 31  Tata consultancy services Bank / Cash Book Report Menu Path - System -- Services -- Reporting u Enter Program - ZFRCASBK10 - for Cash Book u Selection Criterion Month Year u Output Bank book for the month GL a/c wise summary for the month