PROCESS DOCUMENTATION

Goodyear
COUNTRY: SLOVENIA, EX-YU, C ZECH R EPUBLIC
P RO CE S S L1: RECORD TO REPORT
P RO CE S S L2: L2 G E N E R A L A CCO UNT I NG
P R O C E S S L3: L3 OTC R E LATE D A CTI V I TI E S
P R O C E S S L4: L4 R E C LA S S CRE DI T B A LA NCE S
A C T I V IT Y : RECLASS CREDIT BALANCE

ID SOP: 2.1.8.11

Activity name 1

DOCUMENT CONTROL__________________________________________3

PROCESS OVERVIEW___________________________________________3
2.1 L2 Process Overview
3
2.2 L3 Process Overview
3
2.3 L4 Process Overview
3

ACTIVITY OVERVIEW___________________________________________3
3.1 Process Details 3

DETAILED INSTRUCTIONS_______________________________________3
4.1 Run the report and review individual AR balance
3
4.2 Create and post 3
4.2.1 Post the journal for Foreign currency__________________________3
4.2.2 Post the journal for EUR____________________________________3
4.3 Check the balance3
4.4 Reverse of credit balance
3
4.5 Request in SSF 3

SUPPORTING DOCUMENTATION__________________________________3

EXCEPTION MANAGEMENT______________________________________3

1 DOCUMENT CONTROL
Created on
Created by
Owner
Approved by
Last Updated on
File Reviewed

26.05.2013
Lima Koshy
Ina Mocanu
05.11.2014
2.1.8.11_Reclass credit balances_CSEE_Slovenia_v1.0

Version

Change Description

Author

1.

0.1

Work document To Be SOP

Ina Mocanu

2.

1.0

Ready validation SSC

Ina Mocanu

Mirko Danesi

3.

1.1

Content review with comments

Ina Mocanu

Andreea Petrica

4.

1.2

Incorporated comments SSC

validation

Ina Mocanu

Simona Saulean

5.

1.4.

Reviewed by Local

Ina Mocanu

Spela Krek 11/12/2014

6.

1.5

Incorporated comments Local Czech

review

Ina Mocanu

2.0

Transition team final review

Ina Mocanu

For any questions or clarifications about this document, please contact:

Name

Spela Krek

Function

Credit controller

Country

CSEE Slovenia & Ex-Yu (SAVA)

Email:

spela_krek@goodyear.com

Tel.

+386 4 207 71 52

Name

Ina Mocanu

Function

General Accounting and Reporting Accountant

Country

SSC

Email
Tel

ina_mocanu@goodyear.com

Reviewed By

Ana Maria Tagirta

2 PROCESS OVERVIEW
2.1 L2 Process Overview

General Accounting

2.2 L3 Process Overview

2.3 L4 Process Overview

3 ACTIVITY OVERVIEW
The purpose of this activity is to reclass any credit balances in AR sub ledger every quarter. Credit
balances can be represented by cash in advance paid by the customer in anticipation of future
shipments or credit notes issued but not applied against invoices as there are no invoices on
balance.
This activity is performed quarterly, on 1st working day. Back-Office SSC will receive an email
from Local Credit Department when all cash received from customers is matched with invoices on
balance (clearing is done). Then, Back-Office can proceed to Revaluation (2.1.8.10 Customer
Revaluation) and only then with reclassification of credit balance.
Used acronyms are:
Acronyms

Full Name

RSD
HRK
MO
BO

Serbian Dinar
Croatian Kuna
Middle-Office
Back-Office
Table 1 Acronyms used in process documentation

3.1 Process Details

Trigger / Input
Received

Completion of AR Revaluation

Sender /
Back-Office Department
Triggering Unit
Working Day

1 (after Revaluation was run)

Recurrence

Quarterly (Slovenia & Ex-Yu countries)

Output
generated

Journal entry

Receiving Unit

Back-Office Department

Systems Used

SAP, Excel

Reconciliations Accounting reconciliation is performed according to accounting policies.

/ Checkpoints
All the documentation has to be attached to reconciliation files.
Reporting

Credit Department has to be informed after this process is done, they

will proceed with other closing activities.

GL- Accounts
affected

1140002010 (Trade Accounts Receivable - Trade Export B) used for ExYu, 1140000000 (Trade Accounts Receivable - Control Account),
2110003010 (Accounts Payable - Trade - Customers with Credit
Balances), 1140003060 (A/R - Clearing Account Customers with Credit
Balance) for Czech Republic.
5

Efficiency
Potential

N/A
Table 2

4 DETAILED INSTRUCTIONS
There are few steps to be followed when preparing this reclassification.

4.1 Run the report and review individual AR balance

1

Back-Office SSC is responsible with preparation of this information. Middle-Office will be

only responsible with reviewing. Ensure AR Revaluation is done for quarter (March, June,
September, December) for Slovenia and for Ex-Yu countries.

Step 1

The report is run for 2 accounts 1140000000 for Slovenia and 1140002010 for Ex-YU. For
Ex-YU the process is more complex as there are different currencies (EUR, RSD and
HRK). Slovenia only have EUR. The information is compiled in one file and entry is
booked. Run transaction
Execute.

and then click on

Figure 1

To get the right Layout use : Balance Report

Figure 2

Figure 3

And press Execute.

Step 3 Export this report to Excel and adjust the format.
3.1.

Sort the table to Total AR (largest to smallest) and positive amounts can be deleted.
The only numerical column important is Total receivables. The amounts reflected in
this report are in EUR. This means that for each customer BO has to check in the
system the currency of the customer and add a column with the amount in local
currency.

Table 3

To check the currency follow the next steps:

Copy the Customer Number (from 1st column)

and run T-Code

Fill the details below:

Figure 4

The report shows both amounts: local and EUR. Amount in square is in local
currency and in circle is in EUR.

Figure 5

These steps are done for every customer for Ex-YU, so that in the end the report contains the
amounts to be reclassed per each currency. This step is not done for Slovenian customers as they
already operate in EUR.

Table 4

3.2.

Split the currency (HRK, EUR, RSD) for a better control. The amounts to be booked in
SAP will be in local currency and in EUR.

Table 5 Credit balance of account 1140002010 split by currency and related amount

For Slovenia the process is easier due to single currency. The report to be run is the
same. A file excel is prepared based on the output of the report.

4.2 Create and post

Post the journal entry debiting AR (customer account) and crediting payables (account
2110003010). For Ex-Yu countries use t-code FBB1, because of different currencies. For Slovenia
use FB01.

4.2.1 Post the journal for Foreign currency

a. Open t-code
b. Insert the details from figure 6 + ENTER. Debit AR (customer account) and on credit put
211 000 3010.

Figure 6

On the next screen fill in the amount in RSD (foreign currency) and in EUR and a small description
in the Text field:

Figure 7

After entering all the customers with the same currency, insert the Pkey 50 for the credit account.
The final display of the booking will be:
10

Figure 8

The amount of the booking has to be the same as in the table below:

Table 6

DO NOT FORGET TO USE FBB1 FOR FOREGN CURRENCIES!!!

4.2.2 Post the journal for EUR

a. Open t-code
b. Use the details from SOP 2.1.2.1 Normal manual entry. Insert all the customers with the
corresponding amounts on debit and on credit the whole amount on the account
2110003010.
Posting key are:
07 Customer
50 211 000 3010

4.3 Check the balance

After posting the reclass journal a balance check will be performed by the BO to ensure all the
balances were reclassed correctly.

Run transaction

Fill in the account:

11

The layout is:

Figure 9

It should be the same amounts as on the files (Ex-Yu + Slovenia). If the total balance does
not match with the amount from Excel file, check again all the entries.

12

Figure 10 Credit balances reclassed for Ex-Yu countries

Figure 11 Credit balances reclassed for Slovenia

The figure 11 shows only the total amount of the reclassed balance for Slovenia.

4.4 Reverse of credit balance

The reverse of these transaction has to be done immediately (in 5 -10 min after booking) with the
date of the next month. Credit department needs this information so that they could give correct
balances to the customers, invoices due and amounts paid in advance. If the reclass was recorded
on 30.06.2014 is should be reversed with 01.07.2014.
To reverse the transactions follow the SOP 2.1.2.2 Entry automatically reversed.
The reversal is:
The result in the accounts are listed below. Red square is the record and yellow is the reverse.

13

Figure 12

Figure 13

4.5 Request in SSF

Once booked or while booking in SAP BO will create an SSF request for each manual entry. The
request shall also contain the document numbers of the entry and reversal.
-

Enter SSF and fill in the details as shown below:

General Data
Date
Amount
Currency

14

Figure 14

Attach supporting documentation prepared:

Figure 15

Add in Business Context SAP document numbers for the entry and for the reversal:

Figure 16

Add SSF request in SAP for those 2 documents above:

Figure 17

Send for approval:

15

Figure 18

5 SUPPORTING DOCUMENTATION
All calculation files and excel will be saved and stored on the common SharePoint.

6 EXCEPTION MANAGEMENT
For Slovenia check the account of late interest 1147110000 if there are negative amounts and do
the same steps as for account 1140000000. Usually there are no negative amounts, but it can
happen.
In Czech Republic reclass of credit balances is posted yearly. In case total credit amount is more
than 10% of total balance on 1140000000, then it is posted monthly.
The accounts to be used are: on debit 1140003060 and on credit 2110003010. The posting is
reversed next month. Note that, the credit balance is not booked against customer account, but on
1140003060, the whole amount.

16