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Accounts Receivable
DT+MT customer
FI customer
2. Cash Application
Incoming Payments
Customer Down Payments
Clear Accounts Receivable
Debit Memo/ Credit Memo Entry
3. Collection Management
Ageing / Overdue Review / Provision / Write off Bad Debts
Correspondence with Customers
Master customer
Master customer maintenance
Request & filling information on form from CD (for DT+MT) or
functional department (Mktg, SM, )
CSE is owner for requesting new code (DT+MT)
AR is owner for requesting new FI code (not affect to physical
stock)
AR cross check main information, which impact to finance view:
Name , VAT code, address, bank name, account bank
(matched with business license)
Account reconciliation, account group,
Delivery plant : V101 - VSIP; V102 - BNDC ; V103- DN; V104 :
ICE CREAM
Payment term (used for DT+MT+FS )= standard payment (5)+
lead delivery time + bank day (review by CSE & CDF) . Average
payment of DT : 8 days/ MT :11 days/ FS : 31 days
Payment term (used for FI code) = contract or agreement
Confirmation to MDM for new code creation
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Master customer
Incoming Payment
Key Concepts
Customers can pay Unilever using different incoming payment instruments. There are
various types handled in the U2K2 template.
Incoming payment assigns a payment document to a customer and clears open items
from customer accounts.
Cleared items are assigned with a document reference number and clearing date.
Special G/L indicators are used to differentiate the types of businesses dealing with the
same customer under one customer master data.
Full or partial payment is posted with clearing depending on whether the amount
received is equal to the amount in the invoice.
A partial payment is a payment that is posted to an account without any open items
being cleared. The original open item and the partial payment remain open.
A residual item results when a payment is made for less than the actual amount
outstanding. The original open item is cleared and the system posts a new open item.
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Incoming Payment
Bank transfer
Bank account of each customer will be transfer into UVN through virtual
account at HKB
VirtVual
= 000484+customer
code
Virtualaccount
account
=000484+customer
code
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Incoming Payment
Make sure to check total bank amount in bank statement matched with SAP
system
Unknown incoming payment is temporary booked to suspense a.c
13301953 (approved from GL) and following up with AP/CD/Treasury/ RS/
SM for clearing suspense a.c by month-end .
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Incoming Payment
Special GL Indicators
Used when target reconciliation account needs to be used instead of the usual reconciliation
account that is defined in the customer master.
o Example:
Usual posting when customer makes normal payment
Cr Customer Reconciliation Account(PK :
15)
Dr Bank HSBC vnd (PK : 40)
Or Dr Bank CTB vnd (PK : 40)
But when customer makes a special G/L indicator , target reconciliation account needs to be used instead by
specifying Special G/L Indicator X
Cr Special G/L Indicator X Pledge in cash 14301197 (AP Other-Customer Claim)
(PK : 19)
Dr Bank HSBC vnd
13108317(SUB HSBC 001-034826-003
Cr Special G/L Indicator H/I Pledge in
BG/Over draft (PK : 19)
Dr GUARENTIES -OFFSET-CUSTOMER
Other common uses of special G/L indicator are when posting incoming payments as deposit,
bank guarantee, overdraft.
By using special G/L indicators, different target reconciliation accounts can be for the same 8 8
Incoming Payment
Payment Differences and Tolerance Limits
Payment difference : Actual amount received Amount expected
If payment difference is within tolerance limit, the small balance differences during the clearing
will be booked automatically to P/L account according to predefined tolerance groups.
Tolerance is small balance differences during the clearing . Tolerance limit for Vietnam is 0 VND.
, there will be no automatic clearing, and differences have to be booked manually.
Rules
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FBL5N
Customer Line Item Display
F-32
Manual clear Customer
F-26
Incoming Payments Fast Entry
FBRA
Reset Cleared Items
YUFI_GLZZ01 FI General batch input
Sm35
Batch input monitoring
F-19
Reversal Bank guarantee /OD
F38
Enter Bank guarantee/ OD (special GL ; H/I)
F-29
Enter cash pledge (special GL : X)
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A guarantee letter is not a real payment, and will be posted as a statistical item.
A statistical item is a posting where only 1 line is required during entry and system
automatically assigns the offset account. Statistical postings do not impact the trial
balance.
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At the time of entry, only 1 line is required with special G/L indicator.
o Cr 84601006 Customer Account (PK : 19-Special GL :H/I)
Security deposits may be required for signing up a new Distributor or business required
Deposits are posted in the system with special G/L indicator X (PK : 19)
The deposit balance may impact to credit limit, depending on the business rule.
Interest on the cash deposit, it will be netted off from customer balance through issuing credit
note
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Customer open items have to be cleared once Incoming Payments and Incoming
payment advices are received
There are 2 ways by which Accounts Receivable clearing can happen
o Automatic FIFO clearing for full invoice based on oldest open invoice by due date ^
smallest amount for the same due date, not partial invoice
o Manual clearing (to be used for some customers : MT + export) : full or partial
invoice clearing can happen, depending on debits amount = credit amounts
Small balance differences during the clearing will be booked automatically to P/L
account (Dr 42325502 CC 5630002)
After the clearing, the system assigns the clearing date and clearing document number
to each open item cleared.
Reset cleared items if error happen
Clearing document is saved within the number range of 1100000001-1199999999.
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FD10N
FBL5N
F-32
FBRA
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This process refers to invoices that are not generated from the sales order process.
These are non-stock invoices that are entered directly in AR module. Examples:
o Sale of fixed asset
o Sale of Scrap (unused items eliminate from manufacturing: drums, paper, cartons,
broken pallet, )
o Sales of raw & packing material
o Free export invoice for FG sample, transist test ,
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Document Type to be used for local customer Invoice is DR & oversea invoice is DN.
Local customer Invoices will be saved within the number range of 33000000013399999999
Oversea invoice will be saved within the number range of 8200000001-8299999999.
Posting key to debit customer when posting AR invoice is 01.
When reversing AR invoice, the system will credit customer in the reversal document
with posting key 12 & type document is RR & range document is 58xxxxxxxx .
Accounting treatment for transactions booking into credit :
1. raw material sales : 51403010
2. packaging material sales : 51403020
2. scrap sales & WO FGs sales : 51401010
3. Fixed asset sales : 51001010
4. other income (penalty of late delivery/compensate of loss, damaged ,
depreciation) : 51420010.
Guidelines
Before invoice can be posted for a new customer, customer master must be created in
the company code for that customer.
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FD03 / XD03
Check customer details
F-03
Clear Off matching GL line items
FBRA
Reverse GL Clearing
FB03
Display Posted AR document
FB08
Reverse AR document
YVNFI_AR8153
Print invoice document
FB01
Post DRP Invoice
FB70
FI local invoice (scrap invoice,FA, RM, w/o slob sales)
F-22
Debit note ( penalty of late delivery/loss/damaged/. / FI export invoice (free sample, RM,
FA .)
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BUSSINESS PLACE
3 . Bussiness place is where issue invoice & to declare VAT output/VAT
input to tax office
Business place
0000
0002
0004
0003
Warehouse
Bac Ninh
Da Nang
Binh Duong
HCM
19
This process refers to credit notes that are not generated from the sales order process.
These are non-stock credit notes that are entered directly in AR module. Examples:
o Clear free invoice : DRP invoice, free sample invoices
o Commission given to customer
FD03 / XD03
Check customer details
F-03
Clear Off matching GL line items
FBRA
Reverse GL Clearing
FB03
Display Posted AR document
FB08
Reverse AR document
FB75/ fb01
Post Credit Memo
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This process is used for none legal invoices, that are generate in AR debtor.
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Guidelines
Before invoice can be posted for a new customer, customer master must be created in
the company code for that customer.
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FD03 / XD03
Check customer details
F-03
Clear Off matching GL line items
FBRA
Reverse GL Clearing
FB03/FBL1N
Display Posted AR document
FB08
Reverse AR document
F-22 /Fb01
Post Debit note
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POSTING KEY
Objective : posting MJ by using PK to identify DR or CR
Posting
Key
Debit/Credit
Debit/Credit
Debit
Customer
31 Invoice
Credit
Vendor
Customer
Credit
Vendor
3 Bank charges
Debit
Customer
34 Other payables
Credit
Vendor
4 Other receivables
Debit
Customer
35 Incoming payment
Credit
Vendor
5 Outgoing payment
Debit
Customer
36 Payment difference
Credit
Vendor
6 Payment difference
Debit
Customer
37 Other clearing
Credit
Vendor
7 Other clearing
Debit
Customer
38 Payment clearing
Credit
Vendor
8 Payment clearing
Debit
Customer
Credit
Vendor
Debit
Customer
40 Debit entry
Debit
G/L account
11 Credit memo
Credit
Customer
50 Credit entry
Credit
G/L account
12 Reverse invoice
Credit
Customer
70 Debit asset
Debit
Asset
13 Reverse charges
Credit
Customer
75 Credit asset
Credit
Asset
14 Other payables
Credit
Customer
Debit
G/L account
15 Incoming payment
Credit
Customer
81 Costs
Debit
G/L account
16 Payment difference
Credit
Customer
83 Price difference
Debit
G/L account
17 Other clearing
Credit
Customer
84 Consumption
Debit
G/L account
18 Payment clearing
Credit
Customer
85 Change in stock
Debit
G/L account
Credit
Customer
86 GR/IR debit
Debit
G/L account
21 Credit memo
Debit
Vendor
Material
22 Reverse invoice
Debit
Vendor
Credit
G/L account
24 Other receivables
Debit
Vendor
91 Costs
Credit
G/L account
25 Outgoing payment
Debit
Vendor
93 Price difference
Credit
G/L account
26 Payment difference
Debit
Vendor
94 Consumption
Credit
G/L account
27 Clearing
Debit
Vendor
95 Change in stock
Credit
G/L account
28 Payment clearing
Debit
Vendor
96 GR/IR credit
Credit
G/L account
Debit
Vendor
Posting Key
Description
1 Invoice
Posting Key
Posting Key
Description
Material
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This process involves activities to detect and correct any discrepancies that may exist
between Unilevers records and those of the business partners, and to make the
necessary allowances for bad debt.
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Guidelines
Send debtor statement are using through functionality of SAP. Should be aware that
email address maintained in customer master update
Content
Showing movement : credit, debit,
Closing balance = opening balance + Total debit Total credit
Detail of payment : indicate clearing for specific invoices
T code
YVNFI_AR5033
Customer Statement
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Credit limits are reviewed periodically and updated according to the good or bad
payment capability of the customer.
The role Finance plays is limited to updating the credit limit of the customer. CD
advises / approves the credit limit and CDF review/ approve credit limits.
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Credit limits means a maximum amount of debt and pick order at any point of time that
customer is allowed to have
Credit limit is guarantee by pledge in cash/ bank guarantee/ estate
Reduce risk of company if customer went bankrupt .
Formula :
Credit Limit = [x] weeks * [Average AR Invoice per week of previous quarterly]
1. [x] weeks criteria
- GT8 and any Distributors whose average Gross Sales Value (GSV) is more than VND
5 bil/month = 2 weeks
- Non GT8 Distributors whose GSV is below VND 5 bil/month = 2.5 weeks
- Key Accounts = 3 weeks
- MT Independents = 2 weeks
- GT (FS) = 30 days
2 . Average AR invoice per week
Average AR invoice = [Gross Sales Value - TTS On invoice + VAT)
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Authorization
CD Finance Manager(MT/DT)
**
***
VP Finance
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Authorization
DC/CSE Manager
**
VP SC
***
DC/CSE Manager
****
VP SC
*****
DC/CSE Manager
******
VP SC
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FD33
Display Customer credit Management
FD32
Change customer credit limit (individual)
YUSD_MD0063 Mass change customer credit limit
FD24
Display changes to credit limit
F.31/ F.33 Credit Limit Report
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33
Contract type
Party
involved
Invoice value
Supporting
docs
Scrap sales
3rd party
YES
Applicable rate
Negotiated
price
Contract
Raw/Pack sales
3rd party
YES
Applicable rate
Negotiated
price
Contract/WO
FA sales
3rd party
YES
Applicable rate
Negotiated
price
Contract/LCP
Penalty of
logistic issues:
- U sells
damaged
products to
transporter
- U penalize
transporter
due to late
delivery
Transport
er/vendor
FA lease charge
processor
YES
Applicable rate
Minutes
NO
(debit note)
Minutes
YES
Applicable rate
34
Negotiated
price
Contract/
Minutes
Contract type
Party
involved
Invoice value
Supporting
docs
vendor
NO
(rebate)
3rd party
YES
Applicable rate
Exchanged
value
Contract
U
concerned
YES
0%
TP
Contract
Bonus on
purchasing
refund
Benefit
exchange
Concerned sales
SLOB sales
3rd party
YES
Applicable rate
Negotiated
price
Contract
10
HEALTH
INSURANCE
3rd party
YES
NO VAT
Negotiated
price
Contract/Agre
ement
35
Vendors next
invoice
Reporting
1. Balance sheet : review details of aging accounts belong to account group :
Reporting
4. O2C KPIs :
Cash application on time : measure (%) transactions , which is late than
1 days between document date & posting date
Cash clearing application : measure (%) transactions , which is late than
2 days between document date & clearing date
Debtor days = Total AR balance x No of days
Total Sale(NIV+Tax)
Overdue debt (%) = Total over due debt
Total AR balance
Over due for positive amount = Total over due amount
Total amount for positive invoice
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