FIGL 322 Bank Reconciliation v07 PDF

Umoja Job Aid
Bank Reconciliation
Copyright © United Nations 1

Agenda
Course Introduction
Module 1: Introduction to Bank Reconciliation
Module 2: Outgoing Payments
Module 3: Incoming Payments

Bank Reconciliation - Overview
In Umoja prior day electronic bank statements are imported into the system daily, for every bank
working day. The system validates each and every transaction on the imported bank statement to
ensure that the transactions have matching operational and/or Treasury items in the Financial
Ledgers. As the transactions are validated and matched, the open items originating from the
Operational and Treasury Transactions are automatically cleared. Items which are not so cleared
are to be manually matched and cleared. This User Aid explains how this manual matching and
clearing is to be performed.
Each transaction on an imported bank statements has a direct impact on the balance of the
account that the UN keeps with the bank. It results in either a reduction in this balance (i.e. the
bank has paid out money from our account) or in an increase in the money we have at the bank
(i.e. the bank has received money into our account). The material in this User Aid is organized
around these two types of transactions – Outgoing and Incoming Payments.
The remainder of this Introduction explains the framework in which Outgoing and Incoming
Payments are manually matched and cleared. We’ll consider the following successively:
1. House Banks,
2. Bank Clearing Accounts,
3. FEBAN, the tcode used for manual bank reconciliation,

Payments Processing through House Banks
Treasury Pool Funds:
With the introduction of House Banks, all bank accounts now belong to one of three Treasury Pool
Funds.
1. Main Pool – Cash & Investment 64VQA-> all operational in/out payments
2. EUR Pool – Investment 64VQE
3. UNSMIS Pool – Investment 64VQZ
Operational Funds (e.g. Missions) no longer have balances in their own bank accounts. Instead they
have equity in the Treasury Main Pool. The equity of each Fund in the Pool increases with the Fund’s
incoming payments and falls with outgoing payments.
Outgoing Payments will be pooled by currency, based on House Bank Determination logic. Foreign
currency payments will be delegated to the appropriate House Bank account, maintained by UNHQ
Treasury. Local payments will continue to be the responsibility of the mission-based cashiers.
Outgoing Payments will result in a decrease in the equity that mission fund has in the Treasury Main
Pool 64VQA.
Similarly, incoming payments will be recorded in the Treasury Main Pool Fund 64VQA and will result
in an increase in the equity of the mission for which the money is destined.

House Bank Example - Outgoing Payment
Sells supplies
UNMISS Vendor in
Payment amount deducted Lebanon
from the balance of the Pays for supplies from
UNMISS fund in the cash its House Bank Account
pool
Funding
UN Treasury Fund Cash Pool LBP House

Bank Account
Suppose the UN Mission in South Sudan (UNMISS) purchases goods from a vendor in Lebanon and
payment is by cheque in Lebanese Pounds (LBP). According to the house bank determination logic,
the vendor will be paid from the LBP House Bank Account, managed by the United Nations Interim
Force in Lebanon (UNIFIL). UNMISS’s equity in the Treasury Pool will reduce by the amount of the
payment.

Bank Clearing Accounts
In Umoja besides the Nominal Account opened for each physical bank account, there are 7 other
GL accounts associated with the same bank account. These 8 accounts are used to record the
balance and reconciling items linked to the physical bank account.
Example: The GL accounts of the bank account opened in the books of NY JP Morgan, Cash HQ
New York JP Morgan USD Wire ACH Nominal are as follows:
1-101-1010 Cash HQ USD Nominal
1-101-1011 Cash HQ USD Cheque Out
1-101-1012 Cash HQ USD Cheque In
1-101-1014 Cash HQ USD EFT Out
1-101-1016 Cash HQ USD EFT In
1-101-1017 Cash HQ USD Invest
1-101-1018 Cash HQ USD Charges
1-101-1019 Cash HQ USD Unidentified
Later, we’ll see how these clearing accounts ensure that bank reconciling items do not appear in
the GL Bank Nominal account. This ensures that the balance in the Nominal is equal to the balance
in the physical bank account.

FEBAN
The tcode used to access bank
statements that have been uploaded is 2 1
FEBAN. It is used as follows:
1• Enter FEBAN in the Command

field
2• Click the Enter icon
This opens the Selection of Bank 3

Statements by Banks and Account Nos.
screen.
3• Enter data in the following fields: 3
• Company Code
• House Bank
• Currency
4• Click on the Check button at the
bottom right corner of the
screen to verify input, then click
on Execute if no errors are
4
reported. This opens the Edit
Bank Statement screen.

FEBAN
Note the following in the Edit
Bank Statement screen.
1• House Bank whose
statement is displayed.
2• Bank Statement Number
1
3• Unreconciled Outgoing
Payment. It has a yellow
status.
4• Unreconciled Incoming
Payment. It has a red
5
status.
5• Reconciled item. It has a 2 3
green status.
6• Posting Areas. It is here 4
that document numbers 6 6
generated when
reconciling items are
posted are displayed.
•7 External Transaction code:
Code that identifies the
transaction sent by bank

External Transaction
External Transaction is a code sent by the bank. This code is mapped to SAP “posting rules”.
When you enter FEBAN, First check the external transaction. It will help you to identify the posting
rule and the type of actions you have to take.
The posting rules are the following:
Posting area 1 Posting area 2

+- Pst. rule Debit Credit Posting type Debit Credit Posting type
Outgoing ZB01 Cheques Out Nominal 4 Clear account in debit
Outgoing ZB04 EFT Out Nominal 4 Clear account in debit
Incoming ZB06 Nominal EFT In 1 No clearing EFT in Clear Sub-ledger in credit
Outgoing ZB08 Bank Charges Nominal 1 No clearing
Unidentifi
Incoming ZB09 Nominal ed 1 No clearing
Outgoing ZB19 Unidentified Nominal 1 No clearing
Investmen
Incoming ZB07 Nominal t 5 Posting with clearing in credit
Outgoing ZB17 Investment Nominal 4 Clear account in debit
Incoming ZC06 Nominal EFT IN

Other display of Bank statement
By clicking on View> other display, you will see the bank statement with another
display:
On this display, you can see the posting rule

You can also download to excel file

Agenda
Course Introduction

Outgoing Payments – Creation
Accounts Payable Unit
At the time an accounts
payable is established
(MIR7 or FV60) a
vendor’s invoice (KR doc
type) is created with
these entries:
• Dr. GR-IR or Expense
• Cr. Vendor
Cashier’s Office
When the cashier
generates payment
(F110 and FPRL_LIST) an
Outgoing Payment (KZ
doc type) is created
with these entries:
• Dr. Vendor
• Cr. Cash EFT AP

Outgoing Payments – Clearance of Vendor Open Item
When an Outgoing Payment – KZ – is matched to an open payable item – KR, this clears the
vendor’s account for that item. For instance Outgoing Payment 3300000272 is created to
settle vendor’s invoice 3100000288. The status of the KR doc turns from red to green with a
zero balance displayed for the item as shown below.

Outgoing Payments – Bank Clearing Accounts
Unlike before, when the cashier generates payments in Umoja (creates Outgoing
Payments – KZ), the nominal bank account or cash is not immediately credited in the
GL. Instead the credit is temporarily booked to one of two bank clearing accounts for
Outgoing Payments :
1. Cash Cheque Out (for payments by cheque) or
2. Cash EFT AP (for payments by Wire)
As mentioned earlier these are two of the seven GL accounts created to record
balances and reconciling items for each House Bank that UN Treasury opens.
The task of reconciling transactions with the bank, which result from the Outgoing
Payments that we create is essentially the processing of the credits that are
temporarily booked to these clearing accounts when the cashier generates payments.
While some of the transactions will reconcile automatically, others will have to be
cleared manually.
Whether a bank transaction resulting from our Outgoing Payment will be reconciled
automatically or manually depends on what happens when bank statements are
uploaded into Umoja.

Outgoing Payments – Bank Statement Upload
1. Bank statements will be uploaded unto Umoja on a daily basis. A statement will
show any prior day’s Incoming Payments received by a House Bank, as well
Outgoing Payments paid out from the House Bank.
2. For each Outgoing Payment listed in an uploaded bank statement, Umoja will
generate a ZR document with the following entries in the GL:
Dr. Cash EFT AP (or Cheque Out)
Cr. Bank Nominal
This reflects the fact that the bank has debited our account for the disbursement they
made on our behalf. Umoja thus reduces the balance of the Bank Nominal in the GL to
synchronize it with the balance held by the bank. Put differently, in principle, as far as
Outgoing Payments are concerned the GL Bank Nominal a/c will only be credited when
the bank has effectively paid out money as instructed by the UN. Any Outgoing
Payments generated by us but for which the bank has not yet made disbursements will
appear in the GL Cash EFT AP (or Cheque Out) and not in the GL Bank Nominal.
Note: Later on, we’ll examine what happens when the bank debits our account in their books without an
instruction from us to them to make a disbursement on our behalf.

Outgoing Payments – Automatic Clearance
As mentioned earlier, when the cashier generates an Outgoing Payment, Umoja creates
a KZ document clearing the vendor’s account i.e.:
Dr. Vendor
Cr. Cash EFT AP (or Cheque Out)
We’ve also seen that when an uploaded bank statement shows a debit in our account
at the bank, Umoja creates a ZR document crediting our GL Bank Nominal i.e.:
Cr. Bank Nominal
Umoja will attempt to establish a link between the credit in the KZ document and the
debit in the ZR document. Two possible outcomes exist.
1. If both entries relate to the same transaction, Umoja will establish a match and use the
ZR document to clear the KZ document. In this case the ZR document could be viewed as
confirmation to us that the instruction given in the KZ document has been executed
successfully. We can therefore close the case. No more bank reconciliation work is
needed for this Outgoing Payment.
2. If a link can’t be established, automatic clearance will fail. We will have to manually
apply the ZR document to the KZ document. Otherwise, both documents will remain
open (un-reconciled items).

The match between the KZ and ZR documents is established by two elements:
1.
1 KZ document number. This is the Payment Doc. Number generated by the system after
the cashier has successfully executed the process steps using t-codes F110 and FPRL_List
(Assign, Approve and Pay). This number is included in the instructions that go to the
bank. In return, the bank is required to reference the number in their bank statement
against the corresponding disbursements made.
1 2
2.
2 Amount. A match will not be established if there is a discrepancy between the amounts
in both documents, whatever the magnitude of the difference.
Example
A payable of $1,400 was established for Vendor 2080001758 through KR 3100000288. The cashier
generated payment (KZ 3300000272) via House Bank JPM Chase US with credit to clearing A/c
11011014 Csh HQ USD EFT AP. The bank paid out the money and debited our account in their books
by $1,400, as well as included the ref. 3300000272 in bank statement #13283. Let’s see what happens
when this statement is uploaded.

To access a given bank 1 1
statement:
1• Enter FEBAN in the
Command field and
click the Enter icon.
This opens the
Selection of Bank 2
Statements by Banks
2
and Account Nos.
screen.
2
2• Enter data in the
following fields:
Company Code,
House Bank, Bank
Statement#,
Currency.
3• Click on the Execute
button to run the
search. 3

The Edit Bank Statement Screen
displays. Note the following:
1.4 The statement no. is 13283, for
House Bank USCH1, currency USD,
4
closing bal. $3,100.
4
2.5 The transaction uploaded has 4
reduced our bank nominal balance 5
– it is an Outgoing Payment 6
(negative sign).
3.6 Also the status of the transaction is
green, meaning that the debit of
the ZR document (6300000416)
created by Umoja when the
statement was uploaded
automatically cleared with the
credit of the existing KZ document 7
(3300000272).
4.7 Double click the ZR document # to 8
see its accounting entries.
5.8 Note that PmtAcc field is empty.

Review ZR Doc
As expected, the ZR doc debits EFT AP and credits Bank Nominal. Both accounts are in the GL,
hence the 50 and 40 posting keys used respectively. Note that the Ref. generated by the system is a
combination of the House bank, currency and bank statement number. Also note that as both
accounts belong to the Treasury Main Pool they have the same Fund (64VQA) and Business Area
(S101). This information will be helpful when we manually apply the ZR to a KZ document.

Review EFT AP A/c 1 1
Next, review the EFT AP a/c 11011014 to
confirm that the existing credit entry
from the KZ document has indeed been
cleared by the debit entry from the ZR
5
doc.
1.
1 Type FAGLL03 at the command field
2
and click Enter. The G/L Account Line
Item Display G/L View screen
displays.
2.
2 Enter 11011014 in the GL account
field.
3.
3 Select Cleared Items in Line Item
Selection.
4.
4 Enter the date the item was cleared
in the Clearing Date field.
5.
5 Click Execute to run the search. The
results are shown in another G/L 3
Account Line Item Display G/L View 4
screen, which opens.

Review EFT AP A/c
Note that effectively, the credit of the KZ document has been cleared by the debit of the ZR
document. This is attested by the green status that both lines now have. The clearing document
number is 6300000416, which is nothing other than the ZR document number.

Outgoing Payments – Manual Clearance
Automatic clearance of Outgoing Payments when bank statements are uploaded is the
ideal. However, this will not always be the case for a number of reasons:
a) An Outgoing Payment may have indeed been generated by the cashier i.e. a KZ doc
exists. However, the bank may incorrectly quote either the KZ doc number or
amount of the Outgoing Payment on the bank statement. As a result, when the
statement is uploaded Umoja will be unable to establish a match between the KZ
and ZR documents and thus fail to clear them automatically
b) An Outgoing Payment doesn’t exist i.e. the bank has debited our account when our
cashier has not generated payment and sent them an instruction to disburse funds
on our behalf. This could be due to a number of reasons such as:
The bank debited our account in error.
Bank charges and other fees that the bank directly imputes to us but for which
we do not need to raise a payable and generate an Outgoing Payment.
The disbursement by the bank is legitimate but it was made before we had
raised the payable and the cashier generated an Outgoing Payment.

Whatever the reason, each time the bank debits our account, Umoja will always create
a ZR document crediting our GL Bank Nominal at the time the bank statement is
uploaded i.e.:
Cr. Bank Nominal
Bank reconciliation in this case is all about how we manually clear this debit of the of
Cash EFT AP (or Cheque Out) before we close our books at the end of the month. How
this is done depends largely on the reason why automatic clearance failed in the first
place. We’ll examine this in greater detail in a series of cases.
a. Case 1: The bank wrongly references a disbursement they made in honour of an
instruction we gave them (Outgoing Payment).
b. Case 2: The bank debits our account when we did not instruct them to disburse funds on
our behalf i.e. they debited us in error.
c. Case 3: The bank correctly charges our account but for expenses for which we do not
have to raise a payable and generate an Outgoing Payment (i.e. bank charges).

Case 1: Wrong Reference of an Outgoing Payment on the Bank Statement
Suppose the cashier generated Outgoing Payment (KZ) ref. 3300000267 for the amount of $500 via
House Bank JPM Chase. However, the bank incorrectly quoted the KZ ref. # on the bank statement. When
the statement was uploaded, this is what happened.
1. Automatic clearance failed as expected.
2. A ZR document was created with a credit to Bank Nominal and a debit to Cash EFT AP. It is this debit
line that has to be manually applied to the credit of the existing KZ document.

To manually clear an item, first
locate the bank statement on 3
which it is found through
FEBAN as described earlier. In
our case, we are looking for
statement 23 of House Bank
USCH1.
1.
1 Double click the item. 1
This brings up the ZR doc#
but this time it appears in
the PmtAcc field. When
manual clearance is
completed another ZR
document will be
generated in the now
empty Doc. Field.
2.
2 Double click the PmtAcc
Doc#. It will show the
debit to Cash EFT AP and
1
credit to Bank Nominal.
3. Click Statement Items and 2
3
click Post.

The Post with Clearing Open Items
Screen opens.
44. Note that all open items are
displayed and selected by 7
default. We are only interested in
matching the remaining debit
line of ZR 6300000420 to the
open credit line of KZ
3300000267.
55. Accordingly, double click any
other amount we are not
interested in. This deselects the
4 6
amounts.
66. When only the lines of interest to
us remain selected the Amount 5
Entered and Assigned fields in
the totals section below will be
6
both zero. This means that the
sum of debits equals the sum of
credits.
77. Click on Document in the menu
bar and select Simulate.

The Post with Clearing Display Overview 8
Screen opens. Note the following:
aa) The document type is ZR. The is the
second ZR doc we’ll be having. The first a
(6300000420) was created by the
system with credit to Bank Nominal
and two debits to EFT AP.
b
b) Both the reference and Doc. Header
b
Text are system generated with the
former being a combination of House
Bank, Currency of account and bank c
statement number.
c)
c Both lines relate to the same GL
account, Cash EFT AP, the debit being
the second debit line of ZR
6300000420 and the credit being the
credit line of KZ 3300000267.
d)
d The sum of debits is equal to the sum d
of credits.
88. Click on the Save icon to post the

document.

9.
9 A message with a green 9
status appears at the
bottom of the screen
informing that the
document has been
posted. Note the document
number.
10.
10 Return to FEBAN and 10
double click the item just
reconciled. Note that the
status has changed from
yellow to green
11.
11 Also note that in Posting
Area 1 there is a second ZR
doc (6300000421) shown
in the Doc field. It is this 11
document that carries the
entries of the reconciliation
12
we just performed.
12.
12 Double click on both ZR 12
6300000420 and
6300000421 to review
their entries.

a/ ZR 6300000420
Dr. Cash EFT AP
Cr. Bank Nominal
As indicated earlier, this entry
will always be generated each
time an uploaded bank
statement shows that the bank
has debited our account,
whether we generated an
Outgoing Payment or not.
b/ ZR 6300000421
Dr. Cash EFT AP
Cr. Cash EFT AP
Both the debit and credit are in
the same account but not
matched to each other. Manual
reconciliation is essentially
pairing the two entries.

Review EFT AP A/c
As was the case with automatic clearance, let’s now review the EFT AP a/c 11011014 to see how
the clearing entries played out. Follow the same steps described earlier to access the EFT AP a/c.
Note that effectively,
• There are two ZR docs, 6300000420 and 6300000421. We now have four clearing entries,
instead of two as we did for automatic clearance.
• The debit of the first ZR 6300000420 and credit of KZ 3300000267 were cleared by the second
ZR doc 6300000421.

Case 2: The Bank Debits Our Account in Error
A more serious case is when the bank debits our account in their books when we have not and do not
intend to create an Outgoing Payment. Suppose the amount is $2,000. When bank statement #117 is
uploaded.
1. Automatic clearance fails as expected.
2. A ZR document is created with a credit to Bank Nominal and a debit line to Cash EFT AP. Manual
reconciliation in this case is about moving this debit away from the Cash EFT AP a/c to Cash
Unidentified until the bank clarifies the situation.

To manually clear the item,
first locate the bank statement
on which it is found through
FEBAN as described earlier. In 3
our case, we are looking for
USCH1.
1.
1 Double click the item.
This brings up the ZR doc#
but this time it appears in
the PmtAcc field. When
manual clearance is
completed another ZR
document will be
generated in the now
empty Doc. Field.
11
2.
2 Double click the PmtAcc
1 1
Doc#. It will show the
2
debit to Cash EFT AP and
2
credit to Bank Nominal.
3.
3 Click Statement Items and
click Post.

The Post with Clearing
Open Items Screen
opens. 5
44. All open items are
displayed and
selected by default.
4
55. Click the Charge off
diff. button. This
brings you to the
Post with Clearing
Display Overview
screen where the
system will clear the
debit balance in GL
11011014 (credit to
4
GL 11011014) and
manually a debit
line will be posted
to the Bank
Unidentified A/C
associated with the
House Bank.

6.
6 Enter posting key 40 in
the PstKy field. This is the
key used when debiting a
GL account.
7.
7 Enter GL 11011019 in the
Account field
(Unidentified a/c of this
House Bank: USCH1)
where the unrecognized
charge will remain until
clarification is obtained
from the bank why they
debited our account
without an instruction
from us to do so.
8.
8 Click on the Enter icon.
This takes you to the Post
with Clearing Add G/L
Account Item screen
where additional data for
the debit line will be
entered.

•9 Confirm that this is indeed the debit line that we are entering.
•10 Enter the amount to be cleared in the Amount field or * for the balance.
•11 Enter a descriptive text in the Text field.
•12 Click on More Data for additional data fields. The Coding Block screen opens.
12
9
10
11

13.
13 Enter the Business Area in the Business Area field. Since Unidentified a/c is an account of the
Treasury Main Pool, the Business Area to enter is S101.
14.
14 Enter the Fund in the Fund field. Again because we are entering data for an account of the
Treasury Main Pool, the Fund is 64VQA.
15.
15 Enter GMNR in the Grant field.
•16 Click on the Enter icon. This takes you back to the Post with Clearing Add G/L Account Item
Screen.
13
14 15
16


20.
17 Click Document in the menu bar and select Simulate. This opens the Post with Clearing Correct G/L
Account item.
17

Note the following:
a)
a The document type is ZR. This
the second ZR doc we’ll be
having. The first (6300126747)
was created by the system with
credit to Bank Nominal and
debit to EFT AP.
•b Both the reference and Doc. a
Header Text are system
generated with the former
being a combination of House
Bank, Currency and bank b
statement number.
•c The credit of the Cash EFT AP
clears the un-reconciled debit c
from the first ZR document
6300126747. Cash Unidentified
is now debited.
•d The sum of debits is equal to
the sum of credits. d
•18 Click on the Save icon to post
the document.

19
•
19 A message with a green
status appears at the bottom
of the screen informing that
the document has been
posted. Note the document
number.
20
•
20 Return to FEBAN and double
click the item just reconciled.
Note that the status changed
from yellow to green
•
21 Also note that in Posting Area
1 there is a second ZR doc
(6300180159) shown in the
Doc field. It is this document
that carries the entries of the
reconciliation we just
performed.
21
•
22 Double click on both ZR
6300126747 and 22
6300180159 to review their
entries.

a/ ZR 6300126747
Cr. Bank Nominal
Dr Cash EFT AP
As indicated earlier, this
entry will always be
generated each time an
uploaded bank statement
shows that the bank has
debited our account,
whether we generated an
Outgoing Payment or not.
b/ ZR 6300180159
Dr. Cash Unidentified
Cr. Cash EFT AP
The debit in ZR
6300126747 has now been
transferred to Cash
Unidentified temporarily
pending clarification from
the bank.

Review EFT AP A/c
Once more, let’s now review the EFT AP a/c 11011014. We note that both the debit and the credit
appear cleared (green).

Case 3: Bank Charges
At times the bank may correctly charge our account but for expenses for which we do
not have to raise a payable and generate an Outgoing Payment. This will be the case
with bank charges and other commissions that bank directly imputes to our account.
As before, at the time the bank statement is uploaded, Umoja creates a ZR document:
Dr. Cash EFT AP and
Cr. Bank Nominal
Since a payable will not be established and consequently neither an Outgoing Payment
(KZ) will be generated, bank reconciliation in this case will consist of:
1. Raising a JV to transfer the debit from the Cash EFT AP account to an expense account.
2. Ensuring that the assignment of both the debit (from the bank statement, doc type ZR)
and the credit (from the JV, doc type SA) have the same assignment or clear them using
F-03 (in case there are many debits to be cleared).
3. Bank charges are usually not cleared using FEBAN as it has been designed that these
transactions (they might be many lines) will appear as cleared in FEBAN (but still open in
the GL). With a JV many lines could be cleared in one go.

Agenda
Course Introduction

Incoming Payments – Overview
The revenue the UN receives either comes from exchange transactions (when we sell goods or
services or simply recover costs for services rendered) or from non-exchange transactions (e.g.
assessed and voluntary contributions). Ideally, receivables or recoverables need to be established
prior to the receipt of any type of revenue.
For revenue received through Electronic Funds Transfer, the Umoja solution is configured to ensure
that the Incoming Payment is automatically applied to the open accounts receivable/recoverable of
the debtor/creditor, if certain conditions are met. Bank reconciliation will not be needed in this case.
In the majority of cases though, the conditions for automatic clearance will not be met – we’ll have to
manually apply Incoming Payments to the accounts of those who made them. This is the focus of this
module.
We’ll look at manual bank reconciliation of Incoming Payments in a number of cases:
Case 1: Full amount of receivable is received but the bank statement incorrectly references the
payment
Case 2: Only part of what was owed is received
Case 3: Payment is received from a vendor for whom a recoverable already exists
Case 4: Payment is received prior to a receivable/recoverable being set up
Case 5: Payment has been rejected by the bank
Case 6: Payment is received in error
Before looking at how to reconcile Incoming Payments. Let’s first see how to identify Open Customer
Items.

Identifying Open Customer Items
2 1
Open Customer Items can be identified as
follows:
•1 Type ZARFBL5N in the Command Field
5
and click Enter. This opens the 6
Financial Accounting Accounts
Receivable screen.
•2 Keep the Customer account field
open.
•3 Enter the Business Area.
•4 In Line Item Selection choose Open
Items.
•5 For a more refined specification of the
search criteria click the Dynamic
Selections icon.
•6 Click Execute to run the search.
3

Identifying Open Customer Items
A listing of all customer open items that meet the search criteria is displayed. Note that all open
items have a red status.

Incoming Payments – Bank Clearing Account
As explained earlier, with the introduction of House Banks, all bank accounts of missions now
belong to one of the three Treasury Pool Funds – 64VQA: Main Pool – Cash & Investment. As a
result, all Incoming Payments are recorded in 64VQA. This leads to two sets of entries (after bank
reconciliation):
1. An increase in the equity of the mission in 64VQA for which the money is destined i.e. the
mission that was owed money.
2. A decrease in the amount owed by the customer who made the payment.
When an EFT Incoming Payment is received, the customer’s account is not immediately credited
in the GL. Instead the credit is temporarily booked to the EFT In a/c. This is one of the seven GL
accounts created to record balances and reconciling items for each House Bank that UN Treasury
opens.
The task of reconciling transactions with the bank, which result from the Incoming Payments that
we receive, essentially consists of moving these credits from the EFT In account to the respective
accounts where the funds are to be lodged. This maybe done automatically by Umoja (we see how
shortly), or manually.
Whether a bank transaction resulting from Incoming Payments will be reconciled automatically or
manually depends on what happens when bank statements are uploaded into Umoja.

Incoming Payments – Automatic Clearance
Bank Statement Upload
When the Bank Statement of the previous day is uploaded into Umoja, a Bank EFT-In clearing
account will be credited by the debit of EFTs received as follows:
• Dr 64VQA Bank Nominal (GL A/c 11011X10)
• Cr 64VQA Bank EFT In Clearing (GL A/c 11011X16)
The credit is next moved to a customer/vendor’s account.
Matching to Clear
If the incoming payment contains information e.g. invoice number, that identifies an existing
receivable (customer) or recoverable (vendor) for the same amount, Umoja will establish a match
between the two. The receivable or recoverable will be automatically cleared by the incoming
payment.
• Dr 64VQA Bank EFT In Clearing (GL A/c 11011X16)
• Cr 20OLA Customer/Vendor Open Item
Equity Increase in Treasury Pool

At the same time the equity of the Fund for which the incoming payment was meant will increase
in the Treasury Pool.
• Dr 20OLA Equity in Pool
• Cr 64VQA Equity in Pool

Incoming Payments – Manual Clearance
Case 1: Incorrect Reference on Bank Statement
As shown earlier, when the Incoming Payment hits the Nominal Account, an EFT-In account is
initially credited i.e.
• Dr 64VQA Bank Nominal
• Cr 64VQA Bank EFT In Clearing
The task of the bank reconciler is to move the funds from the EFT-In account to a Customer/
Vendor’s account when the system fails to do so automatically.
One reason why automatic clearance will fail is when the reference on the bank statement for the
Incoming Payment doesn’t match an open receivable or recoverable item in the system.
To illustrate how manual clearance is done in this case, we’ll use the following data set.
• Customer: 1111000010 – Government of Belgium
• Outstanding Amount: US$ 15,700
• Being: Sale of Publications
• AR Document #: 2200000485

To manually clear the item, first
locate the bank statement on
which it is found through FEBAN as 2
described earlier. In our case, we
are looking for Item #11 of
USCH2.
•1 Double-click the open item
you intend to reconcile. Note
that a document number
appears in Posting Area 1
only. This is the reconciliation
doc ZR showing:
• Dr. Bank Nominal
• Cr. EFT In
•2 Click the Post icon. This starts
the process to move the funds
from EFT In (debit) to the
1 1
Customer’s A/c (credit). At the 1
end of the process a
document number will appear
in Posting Area 2.

In the Post with Clearing Select
Open Items screen that opens:
3• Enter the Customer’s
Account in the Account
Field.
4• Enter ‘D’ in the Account
Type Field.
5• Select the ‘Amount’ button
from Additional Selections.
6• Click on Process Open
Items. This opens the Post
with Clearing Enter
Selection Criteria screen.
7
• Enter the amount you
intend to clear in the
‘From’ field of the Amount
Section.
8• Click Process Open Items.
This opens the Post with
Clearing Process Open
Items screen. 7

A list of open items with the
amount specified earlier is 10
displayed. Their total is shown
in the Assigned field in the
Processing Status section
(bottom right).
9• De-select (by double
clicking) the amounts we 9
do not intend to match to
the Incoming Payment until
the Amount entered =
Amount Assigned.
• Click on Document in the
10
menu bar and select
Simulate. This opens the
Post with Clearing Display
Overview screen.
9

•
11 Take note of the following: 12
a. Doc type is DZ, Incoming

Payment.
b. The posting key for the 11
debit entry is 40 because
we are debiting a GL
account, while 15 is used
to credit a Customer a/c.
c. The sum of debits equals
the sum of credits.
•
12 Click on the Save icon to Post 11
the document. A message
appears at the bottom of your
screen with the posted
document number.
11

•
13 Return to the bank
statement and double
click the item you just
reconciled. Note the
following:
a. The status is now
green.
b. A document
number now
appears in
Posting Area 2.
14
• Double click each of
the two document
numbers in turn.
13 14 14

a/ ZR 6300000288
Dr. Bank Nominal
Cr. Cash EFT In
This entry will always be generated
each time an uploaded bank
statement shows that the bank has
credited our account for an
Incoming Payment, whether we
established a receivable or not.
b/ DZ 2400000204
Dr. Cash EFT In
Cr. Customer
Note the differences in posting
keys, Business Area and Fund, as
we debited a GL a/c and credited
an AR Subledger a/c. Further, P003
ensures UNIFIL’s equity increases
in 64VQA by amount received.

Review EFT In A/c
Let’s now review the EFT In a/c 11012716. We note that though we have moved the credit that was
temporarily booked there to the account of the customer who made the payment, the two entries
in the EFT In a/c still have a red status. When they are matched against each other as part of batch
clearing process, the status will change to green and a document number will appear in the now
empty Clrng Doc field.

Case 2: Partial Payments
The bank may correctly reference an Incoming Payment on the bank statement. However,
automatic clearing may still fail because the amount on the statement is different from the amount
in the customer open item. For instance, we might receive a lesser amount than expected. This
could be due to exchange rate differences, bank charges or because the customer disputes parts of
the invoice. Whatever the reason, when the bank statement is uploaded, the system will:
• Dr. Bank Nominal
• Cr. EFT In
It will then be the duty of the bank reconciler in collaboration with the Accounts Receivable Unit to
move the funds from EFT In to the customer’s account. If the difference is due to bank charges or
exchange rate fluctuation, a JV should be raised to clear it.
Scenario
Customer 1111000026 – Municipality of Deir Mimas, used our air asset in June 2013. They were
invoiced on 08 Oct. ‘13 for the full amount of $4,500. The customer however contests this amount
because food wasn’t served on board. They only paid $4,000 directly into our account on 08 Oct.
‘13. The AR document number was correctly referenced in Bank Statement # 13282 of House Bank
USCH2. However, when the statement was uploaded on 09 Oct. ‘13 automatic clearance failed
because of differences in amount between the Incoming Payment and customer open item. We are
required to do the manual reconciliation.

To manually clear the item, first
locate the bank statement on
which it is found through FEBAN 2
as described earlier. In our case,

we are looking for Item #2 of
USCH2.
1.1 Double-click the open item
you intend to clear. Note that
the Doc Field in Posting Area
2 is empty.
2.2 Click on the Save icon to post
(can also be done via Ctrl + 1
S). This opens the Post With
Clearing Select Open Items
screen.

3.3 Enter the
Customer’s Account
in the Account
Field.
4.4 Enter ‘D’ in the 6
Account Type Field.
5.5 In Additional
Selections maintain
the defaulted None 3 5
option.
6.6 Click the Process
4
Open Items icon.
This opens the Post
With Clearing
Process Open Items
Screen.

11
•7 The Post with Clearing
Process Open Items screen
opens with the Standard tab
open by default. Since we are
not clearing the full amount
of an open item, click on the
Partial Pmt Tab. 7
•8 Double click the amount of

the item you intend to clear.
This highlights the amount
and also duplicates it in the
Payment Amount.
8 9
•9 Delete the amount in the
Payment Amount field and
replace it by the partial
payment you intend to make.
•10 Press Enter to validate. Note 10
that the Not Assigned

becomes zero.
•11 Click on Document on the
menu bar then Simulate.

13
•
12 When the Post with Clearing
Display Overview screen
opens, note that the doc type
DZ - Incoming Payment, 12
corresponds with the posting
key for line 2 i.e. credit of a
customer account for an
Incoming Payment.
•13 Click the Save icon to post
and note the document
number that displays at the
bottom of the page when
posting is done.
12

•
14 Return to FEBAN
and double click
on the Incoming
Payment that
was just applied
to a Customer
A/c. It now
displays a green
status.
•
15 Note that the
document
carrying the
reconciliation 14
entries now
appears in
Posting Area 2.
Double click the
documents in 15 15
Posting Areas 1
and 2.

Review EFT In A/c
Once more, let’s now review the EFT In a/c 11012716. We note that though we have moved the
credit that was temporarily booked there to the account of the customer who made the partial
payment, the two entries in the EFT In a/c still have a red status. When they are matched against
each other as part of batch clearing process, the status will change to green and a document
number will appear in the now empty Clrng Doc field.

Review Customer Open Item
A review of the customer’s account for Invoice # 2200000383 (DR doc type) shows that though a
partial payment of $4,000 was received on 09.10.2013, the invoice is still outstanding by $500.

Case 3: Payments from Vendors
Recoverable amounts from staff members, MILOBs, Commercial Vendors and other Business
Partners who do not have customer roles in Umoja are done through credit memos established in
the Accounts Payable Sub-ledger. Incoming Payments from these vendors to settle outstanding
items will have to be matched and cleared manually.
Scenario
Staff member 1110001280 – Abou Saleh, owed UNIFIL $100.00 for private telephone calls he made
while on mission there during Pilot Go-live last July. A credit memo (Doc type KG #3200000063)
was raised to record this recoverable on 30 August 2013. The staff member transferred $100.00 to
our House Bank USUS1. The Incoming Payment was reflected in our bank statement #13279 of 09
October 2013. Perform the manual reconciliation.

To manually clear the item,
first locate the bank 2
statement on which it is
found through FEBAN as
described earlier. In our
case, we are looking for
Item #6 of statement
13279 of House Bank
USUS1.
•1 Double-click the open
item you intend to
clear. Note that the
Doc Field in Posting
Area 2 is empty.
•2 Click on the Save icon
to post (can also be
done via Ctrl + S). This
opens the Post With
1
Clearing Select Open
Items screen.

•3 Enter the Vendor’s
Account in the
Account Field.
•4 Enter ‘K’ in the
Account Type Field. 6
•5 In Additional
Selections click on
Document
Number. 3
•6 Click the Process 5
Open Items icon.
4
This opens the Post
With Clearing Enter
Selection Criteria
Screen.

•7 Enter the KG doc
number in the
From field of the
Document Number
8
section.
•8 Click the Process
Open Items icon.
This opens the Post
With Clearing
Process Open Items
Screen.

10
•9 Since we entered the
document number of the
credit memo we intend to
clear only one result is
returned, which matches
with the amount of the
Incoming Payment. Note
that Not Assigned is zero.
9
• Click on Document on the
10
menu bar then Simulate.
Clearing Overview screen.

11
• When the Post with Clearing 12
DZ - Incoming Payment,
corresponds with the posting 11
key for line 2 i.e. credit of a
vendor account for an
Incoming Payment.
•
12 Click the Save icon to post
and note the document
bottom of the page when
posting is done.
11

•
13 Return to FEBAN
and double click
on the Incoming
Payment that
was just applied
to a Customer
A/c. It now
displays a green
status.
•
14 Note that the
document
carrying the
reconciliation
entries now
appears in
Posting Area 2.
Double click the
documents in 13
Posting Areas 1 14 14
and 2.

Review EFT In A/c
Once more, let’s now review the EFT In a/c 11012916. We note that though we have moved the
credit that was temporarily booked there to the account of the vendor who made the partial
payment, the two entries in the EFT In a/c still have a red status. When they are matched against
each other as part of batch clearing process, the status will change to green and a document
number will appear in the now empty Clrng Doc field.
.

Review Vendor Open Item
A review of the Vendor’s account for Credit Memo #3200000063 (KG doc type) shows that the
outstanding recoverable of $100 has been cleared by the Incoming Payment (DZ). No more bank
reconciliation work is needed.

Case 4: Payments received before receivable is raised
In exceptional cases a customer may pay the UN before a receivable has been raised in the
customer’s account. Automatic clearance of the Incoming Payment will fail for an obvious reason. If
by the time of Month End Closing the receivable is not yet raised, the Incoming Payment will be
moved to GL a/c 39201010 AP Unapplied Cash, where it will remain until a decision is made on
what to do with it.
Scenario
On 24th October an Incoming Payment of USD 1,200 was included in bank statement 1265 of House
Bank USCH1. By the 30th of October when the Month End Closing was done, it was still not possible
to move the funds to a Customer or Vendor a/c because the receivable or recoverable could not be
established. It was decided to move the funds to AP Unapplied Cash until the receivable or
recoverable is set up.

To manually clear the item, 2
first locate the bank
statement on which it is
found through FEBAN as
described earlier. In our case,
we are looking for Item #7 of
statement 1265 of House
Bank USCH1.
1• Double-click the open
item you intend to clear.
1
Note that the Doc Field in
Posting Area 2 is empty.
2• Click on the Save icon to
post (can also be done via
Ctrl + S). This opens the
Post With Clearing Select
Open Items screen.
3• Click on the Back icon.
3
Clearing Display Overview
screen.

4• When the Post with Clearing 6
DZ. Also note that Line 1, the
4
debit line is automatically
generated by the system. We
now have to enter Line 2s:
5• Enter 50 in the Pstky field and
the 39201010 in the Account
field.
6• Click Enter. This opens the
Post with Clearing Add
Customer Item screen.
5 5

7• Enter the amount in the
Amount field.
8• Enter a descriptive test in
the text field.
9• Click on More Data. This
opens the Coding Block
Screen 9

• Enter Business Area,
10 Fund and Grant.
• Click on Enter. This
11 opens the Post with
Clearing Correct G/L
Account Screen.
• Click on Document in
12 the Menu Bar and select
Simulate. This opens the
Post with Clearing
Display Overview
screen.
12

14
• Review the two lines, the
13 doc type and the reference
(House Bank + Currency +
Bank Statement Number).
13
• Click on Save to post the DZ
14
document and note the
bottom of the screen. 13
13

•
15 Return to FEBAN and
double click on the
Incoming Payment
that was just applied
to the Unapplied Cash
a/c. It now displays a
green status.
•
16 Note that the
document carrying the
reconciliation entries
now appears in 15
Posting Area 2. Double
click the documents in
Posting Areas 1 and 2.
16 16

Case 5: Payment has been rejected by the bank
In some cases, payments are rejected by the bank.
Scenario
On 30.08.2013 an Incoming Payment of USD 75.446,42 was included in bank statement 12243 of
House Bank USCH1. After communication with treasury department, bank reconciler finds out that
the amount has been returned by the bank. It is the total for 2 payments rejected by the bank
Bank reconciler is going to transfer the amounts to a clearing account. Account payable will then re-
issue the payment.

Incoming Payments – Transfer to clearing account
To transfer the item, first
locate the bank statement on 1
which it is found through
FEBAN as described earlier
• Double-click the open

item you intend to clear.
Note that the Doc Field in
Posting Area 2 is empty.
• Click on the Save icon to
1
post (can also be done via
1
Ctrl + S). This opens the
Post With Clearing Select
Open Items screen.
• Click on the Back icon.
2 This opens the Post with
Clearing Display Overview
screen.
2

Enter Posting key = 50
Enter GL Account
11479997 (Cash Payment
Rejected by Bank)
Click on enter
1 2

Enter Amount of
the original invoice
Click on more data
Enter Business
Area, Fund and
Grant of original
invoice
Click on enter

Enter Posting
Key 40 and
G/L account
74251010 for
Bank charges
Click on More
Data

Enter Business
Area, Cost Center,
Fund and Grant
of original invoice
Click on enter
Click on Overview
Icon

Click on Save

Remember that whenever an FI document is posting against two different funds, the system
automatically posts another document (17xxxxxx) against the Treasury Pool Fund. You can see it
selecting Environment/Document Environment/Accounting Documents.

Double click in the
17xxxxxx document to see
the interfund postings
done by the system.

Case 6: Payments received in error
Exceptionally, payments may be made to the UN in error. Prior to closing the month the money
should be moved from EFT In to another GL a/c 39201010 – Unapplied Cash, where it will remain
until a decision is made on what to do with it.
The steps to move the funds from EFT In to Unapplied Cash are the same as those described in
Case 5.

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Umoja Job Aid

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UN Treasury Fund Cash Pool LBP House

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1• Enter FEBAN in the Command

This opens the Selection of Bank 3

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Posting area 1 Posting area 2

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On this display, you can see the posting rule

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screen, which opens.

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88. Click on the Save icon to post the

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Equity Increase in Treasury Pool

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