Bank Reconciliation
Participant Guide
Participant Guide
Umoja Instructor-Led
Training
Umoja Bank Reconciliation course
Version: 01
Course Duration: 9 hours
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Table of Contents
Module 1 : Introduction to Bank reconciliation ...................................................................... 3
Module 2 : Outgoing payments ................................................................................................
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Course Overview
The purpose of the Umoja Bank Reconciliation course is to provide step- by -step guidance on
how to process uncleared transaction items through established sub ledger bank clearing
accounts between a physical bank account maintained by a financial institution and the
General Ledger nominal bank account maintained in the Umoja system.
Target audience
This course is intended for the following finance Accounting (FI) roles:
 Financial Accounting User: GL
 Financial Accounting User: AR
 Etc….( add more if any)
Participant Guide
The participant guide will be used in conjunction with the Instructor presentation of the course
as an Instructor – Led Training (ILT). It is not suitable for self –study
Course objective
The developed course ensures that the end user with an enterprise role to perform bank
reconciliation responsibility is able to do so efficiently and effectively.
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Module 1: Introduction to Bank Reconciliation
Module Overview
This module explains the UN business and Umoja solution theory of bank reconciliation.
Objectives:
After completing this module, you will be able to:
 Define what bank reconciliation is
 Understand the theory behind bank reconciliation in the Umoja solution
 Know the T_codes relevant for bank reconciliation
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General Definition of Bank reconciliation
Bank reconciliation is a process that explains the difference between the bank balance shown in
an organisation's bank statement, as supplied by the bank, and the corresponding amount
shown in the organisation's own accounting records (General Ledger – nominal bank account)
at a particular point in time.
Note
UN Recommended interval for Bank reconciliation for entities
with deployed Umoja solution is DAILY
Umoja 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
that are not cleared are to be manually matched and cleared.
Each transaction on the imported bank statement has a direct impact on the balance of the
account that the UN keeps with the bank. Either it results in a reduction in this balance (i.e. the
bank has paid out money from UN account) or in an increase in the money at the bank, (i.e. the
bank has received money into UN account).
The bulk of bank reconciliation activities are based around these two types of transactions
namely – Outgoing and Incoming Payments to a bank account.
The framework in which Outgoing and Incoming Payments are manually matched and cleared
is considered in the following successively:



House Banks,
Nominal and Bank Clearing Accounts,
FEBAN T_code
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1. Payment Processing through House Banks
The UN treasury with the Umoja solution has introduction the concept of House Banks.
All bank accounts now belong to one of three Treasury Pool Funds as follows:
Treasury pool funds
Main Pool - Cash & Investments
EUR Pool - Investment
UNSMIS Pool - Investment
GL Account
64VQA
64VQE
64VQZ
Notes
For all operational in / out Payments
Operational Funds (e.g. UNIFIL, UNON) 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 Business area (entity such as a mission)-based cashiers.
Outgoing Payments will result in a decrease in the equity that Business area 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
Business area for which the funds are destined.
Example: House Bank - Outgoing Payment
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.
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2. Norminal and Bank clearing GL Accounts
In Umoja besides the Nominal Account opened for each physical bank account, there
are seven (7) other GL accounts associated with the same bank account. These eight (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:

11##XX10
Cash HQ USD Nominal

11##XX11
Cash HQ USD Cheque Out

11##XX12
Cash HQ USD Cheque In

11##XX14
Cash HQ USD EFT Out

11##XX16
Cash HQ USD EFT In

11##XX17
Cash HQ USD Invest

11##XX18
Cash HQ USD Charges

11##XX19
Cash HQ USD Unidentified

Note: Where ## is 01, 02 or 10 and XX is
unique to a house bank
Later, we will 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
GL account is equal to the balance in the physical bank account and is the essence of
bank reconciliation.
3. FEBAN T_code
The T_code used for uploading a bank statement of a physical bank account into Umoja
in order to performed bank reconciliation to equate the balance on the nominal GL
account.
To access the FEBAN Screen
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Enter the FEBAN T_code in the command.
Click Enter
icon
The Selection of bank Screen:
Enter data in the following fields:
• Company Code
• House Bank
• Currency
Click check button at the bottom right corner of the screen to verify input and then
click Execute if no reported errors exist. This opens the Edit Bank Statement screen
explained on the next page.
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Understanding the FEBAN Screen
USCHI is the House Bank for the displayed statement
The No. 1262 is the Bank Statement Number and the amount next to it is the closing
balance
Unreconciled / open outgoing Payment has a yellow status.
Unreconciled /open incoming Payment has a red status.
Reconciled/cleared item has a green status.
Posting Areas is where document numbers generated signify the reconciling items
status as follows for;
Outgoing payments, posting area 1
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Incoming Payments, posting area 2
Note:
For FI postings double click the document Numbers for
nominal and clearing accounts (e.g. Fund = 64VQA and
Business Area = S101, UNHQ treasury)
The field displays the external transaction code sent by the bank. The code
mapped to SAP “posting rules” helps to identify the posting rule and the type of
actions you have to take. Therefore, when you enter FEBAN, it’s recommended
that you first check the external transaction code. The following are the posting
rules:
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Other Bank statement displays
Click “View > other display”, to see statement items in the screen. You can view eternal
transaction code and posting rules. Statement items in other display format can also be
exported to excel file.
Note:
To verify that all bank statements have been uploaded, ensure the
closing balance of the last statement (in FEBAN) match with the
balance of the Nominal GL account (use tcode FAGLL03)
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Module 2: Outgoing Payments
Module Overview
This module explains the processing of outgoing payments within the integrated Umoja
Accounts payables and Treasury payments system solution with focus on how to perform
reconciliations for items that do not automatically clear when cashiers generate those outgoing
payments.
Objectives:
After completing this module, you will be able to:
 Know the FI created document types for outgoing payments
 Understand the ideal FI accounting entries associated with outgoing payments
 Confirm automatic cleared items and perform manual clearance of open items
 Learn different reasons why automatic clearing for items between the physical bank
and GL Nominal and bank clearing accounts entries may not happen
AP outgoing payments – creation
An outgoing payment is the amount of money or its equivalent issued by the UN entity to pay
for goods or services. The payment is normally created in the Accounts payable / Vendors Unit
or its equivalent by an AP User role.
At the time an accounts payable is established through either T_ code MIR7 (payment with
Purchase order) or FV60 (Payment without a purchase order), a vendor’s invoice KR document
type) is created with these FI General Ledger or sub ledger accounting entries:
• Dr. GR-IR or Expense Account
• Cr. Vendor
Example 1: $1400.00 Outgoing payment to BP Ayaydin Ercan
The screen shows:
 Debit to Consu. PreFab GL Expense account (77143050), $1400.00
 Credit to Vendor AP sub ledger account (2080001758), - $1400.00
 KR Document number 3100000288 created by the Umoja system
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Cashier’s office
When the cashier generates payment through T_codes F110 and FPRL_LIST, an Outgoing
Payment KZ document type is created with these entries:
• Dr. Vendor
• Cr. Cash EFT AP
The screen shows:
 Debit to Vendor AP Sub Ledger account (2080001758), $1400
 Credit to Cash HQ USD EFT AP account (110 11014), -$1400
 KZ Document Number 3300000272 created by the Umoja system
When an Outgoing Payment – KZ – is matched to an open payable item – KR, this clears the
vendor’s account for that item. In the case of the example above, outgoing payment KZ
3300000272 is created to settle vendor’s invoice KR 3100000288. The status of both the KR
and KZ documents turns is green with a zero balance displayed for the Vendor as shown in
the Vendor line item report screen below.
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Cashier outgoing payments – creation
When the cashier generates payments in Umoja (creates Outgoing Payments with
document type KZ), the nominal bank account or cash is not immediately credited in the
General Ledger. 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)
These are two of the seven GL accounts created to record balances and reconciling items
for each UN House Bank. The task of reconciling transactions with the bank, which result
from created Outgoing Payments, 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 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 upload into Umoja is on a daily basis. A statement will show any prior
day’s Outgoing Payments paid out from the House Bank as well as Incoming Payments
received by a 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 General Ledger:
 Dr. Cash EFT AP (or Cheque Out)
 Cr. Bank Nominal
This reflects the fact that the bank has debited the UN account for the disbursement they
made on behalf. Umoja thus reduces the balance of the Bank Nominal in the General Ledger
to synchronize it with the balance held by the bank. Any Outgoing Payments generated by
UN but for which the bank has not yet made disbursements will appear in the General
Ledger Cash EFT AP (or Cheque Out) and not in the GL Bank Nominal.
Outgoing Payments – Automatic Clearance
As stated earlier, when the cashier generates an Outgoing Payment, Umoja creates a KZ
document clearing the credit to the vendor’s account (document Type KR) i.e.:
 Dr. Vendor
 Cr. Cash EFT AP (or Cheque Out)
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When an uploaded bank statement shows a debit in UN account at the physical bank,
Umoja creates a ZR document crediting the UN General Ledger Bank Nominal i.e.:
 Dr. Cash EFT AP (or Cheque Out)
 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 considered as confirmation that the instruction given in the KZ
document has been executed successfully and therefore, no bank reconciliation
work is needed for this Outgoing Payment.
2. If a link cannot be established, automatic clearance will fail. The ZR document
will have to manually be applied the to the KZ document. Otherwise, both
documents will remain open as un-reconciled items (open items).
The match between the KZ and KR documents is established by two elements:
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
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 2: Automatic clearing – AP to BP Ayaydin Ercan
What happens when a bank statement is uploaded in the following scenario?
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.
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Using the FEBAN T_code, review the uploaded bank statement for the relevant house bank
> enter FEBAN on the SAP Easy Access Command field and click the enter icon
At the Selection of Bank Statement by Bank and Account Nos. screen, >enter: House Bank ,
Bank statement # and currency
Click execute Button
Review the Edit Bank Statement screen
The statement no. is 13283, for House Bank USCH1, currency USD, closing bal. $3,100.
The transaction uploaded has reduced the UN bank nominal balance, Outgoing Payment
(Negative sign)
The transaction status is green, therefore, 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 (3300000272).
Double click the ZR document # to see accounting entries.
Note that PmtAcc field is empty because the item is not a reconciling item
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Review ZR Document:
The ZR document Debits EFT AP and Credits Bank Nominal. Both accounts are in the
General Ledger, 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. Note that both bank accounts belong to the Treasury Main Pool and they have the
same Fund (64VQA) and Business Area (S101). This information is helpful when manually
applying the ZR to a KZ document during bank reconciliation.
Review EFT AP A/c
Use T_code FAGLL03 to view access the G/L Account line item Display G/L view screen
Enter 11011014 in the GL account field.
Select Cleared Items in Line Item Selection.
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Enter the date the item was cleared in the Clearing Date field.
Click Execute icon to run the search. The screen below opens to reveal the search
Results.
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 the ZR document number
Outgoing Payments – Manual Clearance
Automatic clearance of Outgoing Payments when bank statements are uploaded is the ideal
transaction processing. However, this will not always be the case for a number of reasons:
a) The cashier may have indeed generated an Outgoing Payment and therefore a KZ
document exists. However, the bank may incorrectly quote either the KZ document
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 does not exist i.e. the bank has Debited the UN account when
the cashier has not generated payment and sent them an instruction to disburse
funds on UN behalf. This could be due to a number of reasons such as:



The bank Debited UN account in error
Bank charges and other fees that the bank directly imputes to UN account but
for which there is no need to raise a payable and generate an Outgoing Payment
The disbursement by the bank is legitimate but it was made before raising the
payable and the cashier generating an Outgoing Payment.
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Whatever the reason, each time the bank Debits UN account, Umoja will always create a ZR
document Crediting GL Bank Nominal at the time the bank statement is uploaded i.e.:
Dr. Cash EFT AP (or Cheque Out)
Cr. Bank Nominal
Bank reconciliation in this case is all about how we manually clear this Debit of the Cash EFT
AP (or Cheque Out) Account before books of accounts are closed at the end of the month.
How this is done depends largely on the reason why automatic clearance failed in the first
place.
Example Case scenarios
Case 1: The bank wrongly references a disbursement they made in executing an
instruction for an Outgoing Payment.
Suppose the cashier generated Outgoing Payment (KZ document # 3300000267) for $500
via House Bank JPM Chase. However, the bank incorrectly quoted the KZ Document # on
the bank statement. The effect when the statement was uploaded includes:
 Automatic clearance failed.

A ZR document was created with Credit to Bank Nominal and Debit to Cash EFT AP.

The Debit is an open item and has to be manually applied to the credit of the
existing KZ document through bank reconciliation.
Transaction process review
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To manually clear an item, first locate the bank statement on which it is found through
FEBAN as described earlier. In this case, we are looking for statement 23 of House Bank
USCH1.
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.
Double click the PmtAcc Doc#. It will show the Debit to Cash EFT AP and Credit to Bank
Nominal
Click Statement Items and select Post
Post with clearing items screen review
Note that all open items are displayed and selected by default. Match the remaining
Debit line of ZR 6300000420 to the open Credit line of KZ 3300000267.
To deselect the amounts not required, double click these amounts
For the selected open item, amount Entered and Assigned fields in the section below
will be both zero. This means that the sum of Debits equals the sum of Credits.
Click on Document in the menu bar and select Simulate.
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Post with clearing items display overview screen review
The document type is ZR. This is the second ZR document. The first (6300000420) was
created by the system with credit to Bank Nominal and two debits to EFT AP.
The reference and Doc. Header Text are system generated. The Reference # is a
combination of House Bank, Currency of account and bank statement number.
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.
The sum of debits is equal to the sum of credits.
Click on the Save icon to post the document.
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A message with a green status appears at the bottom of the screen informing that the
document has been posted. Note the document number.
Return to FEBAN and double click the item just reconciled. Note that the status has
changed from yellow to green
In Posting Area 1 there is a second ZR doc (6300000421) shown in the Doc field. It is
the document that carries the entries of the reconciliation performed.
Double click on both ZR 6300000420 and 6300000421 to review their entries.
Document ZR 6300000420 Review
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Dr. Cash EFT AP - 11011010
Cr. Bank Nominal-11011014
The generated entry each time a bank statement is uploaded in Umoja to show that the
bank Debited UN account, whether an Outgoing Payment was generated or not.
Document ZR 6300000421 Review
Dr. Cash EFT AP -11011014
Cr. Cash EFT AP - 11011014
Both the Debit and Credit are in the same account but not matched to each other. Manual
reconciliation is essentially pairing the two entries in order to clear the open item.
Review EFT AP A/c
Using the T_code FAGLL03 to display G/L Account Line Item for 11011014 note the postings:

There are two ZR documents, 6300000420 and 6300000421. We now have four
clearing entries, instead of two as we did for automatic clearance.

The Debit of the first ZR document 6300000420 and Credit of KZ document
3300000267 were cleared by the second ZR document 6300000421
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Case 2: The bank debits UN account when no instruction to disburse funds on UN behalf
was issued
There could be instances when the bank Debits UN account in their books when UN have
not and do not intend to create an Outgoing Payment. E.g. for a bank Debit of $2,000 in
house bank USCH1, when the bank statement #117 is uploaded the following is expected:


Automatic clearance fails.
A ZR document is created with a Credit to Bank Nominal and a Debit to Csh EFT AP.
Manual reconciliation will be required to move the Debit from the Csh EFT AP a/c to Cash
Unidentified until the bank clarifies the situation.
Manual Clearance Steps
Using FEBAN T_code, locate the bank statement, i.e. statement #117 for house bank USCH1.
Double click the open outgoing payment item to access the ZR document # and note
that this time it appears in the PmtAcc field. When manual clearance is completed
another ZR document will be generated and will appear in the now empty Doc. Field.
Double click the PmtAcc Document #. It will show the Debit to Cash EFT AP and Credit
to Bank Nominal.
Click Statement Items and click Post.
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Post with clearing items display overview screen review
All open items are displayed and selected by default
Click the Charge off diff. button. This brings you to the Post with Clearing Display
Overview screen where the system posting will clear the Debit balance in GL a/c
11011014 with a Credit the same GL a/c 11011014 and manually a Debit will be
posted to the Bank Unidentified A/C associated with the House Bank.
Enter posting key 40 in the PstKy (Posting key) field to Debiting
a GL account.
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Enter GL a/c 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 UN account without an instruction from UN representative.
Click the Enter icon to get to Post with Clearing Add G/L Account Item screen where
additional data for the Debit line will be entered.
Confirmation of entries to Debit line
Enter the amount to be cleared in the Amount field or * for the balance
Enter a clear descriptive text in the Text field.
Click More Data for additional data fields from the Coding Block screen
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.
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Enter the Fund in the Fund field. The Fund 64VQA is for Treasury Main Pool.
Enter GMNR in the Grant field.
Click the Enter icon to go back to the Post with Clearing Add G/L Account
Item Screen.
Click Document in the menu bar and select Simulate. This opens the Post with Clearing
Correct G/L Account item.
The document type is ZR, the second ZR document. The first ZR document.
(6300126747) was created by the system with Credit to Bank Nominal and Debit to
EFT AP
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Both the Reference and Doc. Header Text are system generated. The reference is a
combination of House Bank, Currency and Bank statement number.
The Credit of the Cash EFT AP clears the un-reconciled Debit from the first ZR
document 6300126747. Cash Unidentified is now Debited.
The sum of debits is equal to the sum of credits.
Click on the Save icon to post the document.
A message with a green status appears at the bottom of the screen informing that the
document has been posted. Note the document number.
Return to FEBAN and double click the item just reconciled. Note that the status
changed from yellow to green
In Posting Area 1, there is now a second ZR document (6300180159) shown in the Doc
field. It is this document that carries the entries of the reconciliation we just performed.
Double click both ZR 6300126747 and 6300180159 to review their entries.
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ZR document # 6300126747 Review
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 UN account, whether an Outgoing Payment or
not.
ZR document # 6300180159 Review
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.
EFT AP A/c 11011014 Review
Both ZR documents (Debit and Credit) are cleared and the status is green. The balance on
the account is Zero
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Case 3: The bank correctly charges UN account but for expenses where there is no need
to raise Accounts payable and generate an Outgoing Payment (e.g. 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 charges to UN account.
As before, at the time the bank statement is uploaded, Umoja creates a ZR document to
post the bank charges:
Dr. Cash EFT AP
Cr. Bank Nominal
Since a payable will not be established and consequently neither an Outgoing Payment (KZ
document) will be generated, bank reconciliation in this case will consist of:
Raising a JV to transfer the Debit from the Cash EFT AP account to an expense account.
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
T_ code (in case there are many debits to be cleared).
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 posting.
Posting scheme for Outgoing Payments
Module 2 Exercises
Exercise 1 - outgoing payments ref KZ documents
Exercise 2 - unidentified charges
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Module 3: Incoming Payments
Module Overview
This module explains the processing of Incoming payments within the integrated Umoja
Accounts Receivable and Treasury Funds receipt system solution with focus on how to perform
reconciliations for items that do not automatically clear when a Bank statement is uploaded to
match Accounts Receivables with those Incoming payments.
Objectives:
After completing this module, you will be able to:
 Know the FI created document types for Incoming payments
 Understand the ideal FI accounting entries associated with Incoming payments
 Confirm automatic cleared items and perform manual clearance of open items
 Learn different reasons why automatic clearing for items between the physical bank
and GL Nominal and bank clearing accounts entries may not happen
Incoming Payments – Overview
The revenue the UN receives either comes from exchange transactions (when there has
been sell of goods or services and recovery of costs for services rendered) or from nonexchange transactions (e.g. assessed and voluntary contributions). Ideally, receivables or
recoverable amounts 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 ( Customer/ Vendor), 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. In such instances, Incoming Paymets
will manually be applied to the accounts of the relevant Customer or Vendor. This is the
focus of this module.
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Identifying Open Customer Items
Open Customer Items can be identified as follows:
Using T_code ZARFBL5N, open the Financial Accounting Accounts Receivable screen.
Keep the Customer account field open.
Enter the Business Area for the UN entity Customer items need to be identified.
“In Line Item Selection” choose Open Items.
For a more refined specification of the search criteria, click Dynamic Selections icon
Click Execute icon
.
to run the search.
A listing of all customer open items that meet the search criteria is displayed. Note that all
open items below have a red status. See the screen on next page.
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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):
 An increase in the equity of the entity in 64VQA for which the money is destined i.e.
the entity expecting the Incoming payment.

A decrease in the amount outstanding on the customer account who made the
payment by automatically or manually clearing the open Accounts Receivable /
recoverable in the AR sub Ledger.
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 maintain.
The task of reconciling transactions with the bank, which result from the Received Incoming
Payments, essentially consists of moving these credits from the EFT In account to the
respective accounts with open items. This may be processed automatically by Umoja
solution or manually through bank reconciliation.
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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 Steps
1. 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
2. Matching to Clear
If the incoming payment contains information e.g. invoice number, which 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
3. Equity Increase in Treasury Pool
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
There are a number of cases where manual bank reconciliation for Incoming Payments is
undertaken, the following cases are considered:
Case 1: Incorrectly Reference on the Bank Statement
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
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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 of the
reasons why automatic clearance will fail is when the reference on the bank statement for
the Incoming Payment does not match an open receivable or recoverable item in the
system.
To illustrate how manual clearance is done in this case, the following data set is used:
 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 described earlier. In our case, we are looking for Item #11 of statement 13282 of
House Bank USCH2.
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
Click Post icon. This starts the process to move the funds from EFT In (Debit) to the
customer’s A/c (Credit). At the end of the process a document number will appear in
Posting Area 2.
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In the Post with Clearing Select Open Items screen that opens, undertake the following:
Enter the Customer’s Account in the Account Field.
Enter ‘D’ in the Account Type Field.
Select the ‘Amount’ button from Additional Selections.
Click Process Open Items, this opens the Post with Clearing Enter Selection Criteria
screen.
Enter the amount you intend to clear in the ‘From’ field of the Amount Section.
Click Process Open Items. This opens the Post with Clearing Process Open Items
screen.
A list of open items with the amount specified earlier is displayed. Their total is shown in
the Assigned field in the Processing Status section (bottom right).
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De-select (by double clicking) the amounts not intended to match to the Incoming
Payment until the Amount entered = Amount Assigned.
Click on Document in the menu bar and select Simulate, this opens the Post with
Clearing Display Overview screen. Take note of the following:
Document type is DZ, “Incoming Payment”. The posting key for the Debit entry is 40
because it is a Debit to a GL account, while 15 is a Credit to a Customer a/c.
The sum of Debits equals the sum of Credits.
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Click Save icon to Post the document, a message appears at the bottom of the screen
with the posted document number.
Return to the bank statement and double click the item you just reconciled. Note the
following:
 The status is now green.
 A document number now appears in Posting Area 2
Double click each of the two document numbers in turn.
Review ZR document # 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.
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Review DZ document # 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 Sub ledger a/c. Further, P003 ensures UNIFIL’s equity increases in 64VQA by
amount received.
Review EFT In A/c 11012716
On review of the EFT In a/c 11012716, observation made is that though the credit that was
temporarily booked there to the account of the customer who made the payment was
moved, the two entries in the EFT In a/c still have a red status. The status will change to
green and a document number will appear in the now empty Clrng Doc field when the
documents are matched against each other as part of batch clearing process
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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, UN 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 A/C
It will then be the duty of the bank reconciler in collaboration with the Accounts Receivable
Unit to move the funds from EFT In A/C 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 to illustrate case 2
Customer 1111000026 – Municipality of Deir Mimas used UN air asset in June 2013.
They were invoiced on 08 Oct. ‘13 for the full amount of $4,500. The customer however
contested this amount because food was not served on board. They only paid $4,000
directly into UN 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. In such
instances, manual reconciliation is required to clear the open item.
The first step is to find the bank statement on which the open item is located through use of
T_code FEBAN. In this case its item # 2 of statement 13282 for House Bank USCH2.
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Double-click the open item you intend to clear. Note that the Doc Field in Posting Area
2 is empty.
Click Save icon to post (can also do via Ctrl + S), this opens the Post With
Clearing Select Open Items screen
Enter the Customer’s Account in the Account Field.
Enter ‘D’ in the Account Type Field
In Additional Selections, maintain the defaulted “None” option.
Click the Process Open Items icon. This opens the Post with Clearing Process Open
Items Screen.
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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.
Double click the amount of the item you intend to clear. This highlights the amount
and also duplicates it in the Payment Amount.
Delete the amount in the Payment Amount field and replace it by the partial payment
you intend to make.
Press Enter to validate. Note that the Not Assigned becomes zero.
Click on Document on the menu bar then Simulate.
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When the Post with Clearing Display Overview screen opens, note that the doc type DZ
- Incoming Payment, corresponds with the posting key for line 2 i.e. credit of a
customer account for an Incoming Payment.
Click the Save icon to post and note the document number that displays at the bottom
of the page when posting is done.
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.
Note that the document carrying the reconciliation entries now appears in Posting
Area 2. Double click the documents in Posting Areas 1 and 2.
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Review EFT In A/c 11012716
It is noted that though the Credit
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 # 1111000026 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.
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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 in July 2013. A credit memo (Doc type
KG #3200000063) was raised to record this recoverable on 30 August 2013. The staff
member transferred $100.00 to UN House Bank USUS1. The Incoming Payment was
reflected in UN bank statement #13279 of 09 October 2013. In this instance, perform
manual bank reconciliation.
Vendor Incoming Payments – Manual Clearance
Like all cases for bank reconciliation, to manually clear the Vendor incoming payment, first
locate the bank statement using T_code FEBAN. In our case, we are looking for Item #6 of
statement 13279 of House Bank USUS1.
Double-click the open item you intend to clear. Note; Doc Field in Posting Area 1 has a
number but is empty in posting area 2.
Click Save icon to post (or use Ctrl + S), this opens “Post with Clearing Select Open
Items” screen
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Enter the Vendor’s Account # in the Account Field
Enter ‘K’ in the Account Type Field.
In Additional selections choose on Document Number.
Click “Process Open Items”, this opens “Post with Clearing Enter selection criteria”
Screen.
Enter the KG doc number in the “From” field of the Document Number section.
Click “Process Open Items”, this opens “Post with Clearing Process Open Items”
Screen.
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Since the document number of the open item (credit memo) was entered, only one
result is returned, which matches with the amount of the Incoming Payment and the
processing status for “Not Assigned” is zero
Select “Document” on the menu bar choose “Simulate”, this opens “Post with Clearing
Display overview” screen
When “Post with Clearing Display Overview” screen opens, document type DZ
- Incoming Payment, corresponds with the posting key for line 2 i.e. credit of a vendor
account for an Incoming Payment.
Click “Save icon” to post and note the document number that displays at the bottom
of the page when posting is done.
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Confirmation of Manually cleared item
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.
Note that the document carrying the reconciliation entries now appears in Posting Area
2. Double click the document numbers in Posting Areas 1 and 2 to review the postings.
Review EFT In A/c 11012916
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Review of EFT In a/c 11012916 reveal that though the credit that was temporarily booked
has been moved 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 the documents 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). The
open Vendor item is fully reconciled.
Case 4: Payments received before raising a receivable
In exceptional cases, a customer may pay the UN before establishing a Receivable in the
customer’s account. Automatic clearance of the Incoming Payment will fail in such cases. If
by the time of Month End Closing the Receivable is not yet established, the Incoming
Payment will be moved to GL a/c 39201010 “AP Unapplied Cash”, pending appropriate
posting.
Scenario
On 24 October, an Incoming Payment of USD 1,200 was included in bank statement # 1265
of House Bank USCH1. By 30 October when the Month End Closing was carried out, 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. A decision was made to move the funds to AP
Unapplied Cash until the Receivable or recoverable was set up.
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Incoming Payments – Manual Clearance
To manually clear the item, first locate the bank statement using T_code FEBAN as
described earlier. In this case, it’s Item #7 of statement # 1265 of House Bank USCH1.
Double-click the open item you intend to clear. Note that the Doc Field in Posting Area 2
is empty
Click “Save icon” to post (or use Ctrl + S). This opens “Post with Clearing Select open
Items” screen.
Click “Back icon”. This opens “Post with Clearing Display Overview” screen.
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When the Post with Clearing Display Overview screen opens, note that the doc type DZ.
Also note that Line 1, the debit line is automatically generated by the system. We now
have to enter Line 2s
Enter 50 in the Pstky field and the 39201010 in the Account field
Click Enter. This opens the Post with Clearing Add Customer Item screen.
Enter the amount in the Amount field.
Enter a descriptive text in the text field.
Click “More Data”. This opens “Coding Block” Screen
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The coding block key elements
Enter Business Area, Fund and Grant.
Click “Enter icon”. This opens “Post with Clearing Correct G/L Account item” Screen.
Go to “Document” in the Menu Bar and select “Simulate”. This opens “Post with
Clearing Display Overview” screen.
Review the two lines, the doc type and the reference (House Bank + Currency + Bank
Statement Number).
Click “Save” to post the DZ document and note the number that displays at the
bottom of the screen.
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Review Reconciled item
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.
Note that the document carrying the reconciliation entries now appears in Posting
Area 2. Double click the documents in Posting Areas 1 and 2.
Case 5: Outgoing Payment rejected by the bank
In some cases, outgoing payments are rejected by the bank and are therefore credited to
the UN bank account in a similar manner to incoming payments
Scenario
On 30 August 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 found out that the amount had been returned by the bank, being the total for
two payments rejected by the bank
This instance would require a Bank reconciler to transfer the amounts to a clearing account.
Account payable would then re-issue the payment.
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Incoming Payments – Transfer to clearing account
To transfer the reconciling item, first locate the bank statement on which the item is found
using FEBAN T_code.
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 post (or use Ctrl + S). This opens the Post With
Clearing Select Open Items screen.
Click “Back icon”. This opens “Post with Clearing Display Overview” screen.
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Enter Posting key = 50 and Enter GL Account 11479997 (Payment Rejected by Bank)
Click “enter icon”
Enter Amount of the original invoice
Click “more data” for the coding block screen
Enter Business Area, Fund and Grant of original invoice and Click “enter”
Enter Posting Key 40 and G/L account 74251010 for Bank charges
Click on More Data
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Enter Business Area, Cost Center, Fund and Grant of original invoice and Click enter
Click on Overview Icon
Click on Save
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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.
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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.
Posting Scheme for Incoming Payments
Module 3 exercises
Exercise 3 - incoming payments from customer or vendor
Exercise 4 - incoming payments with no receivable
Exercise 5 - rejected payments
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Module 4: Transfer to a zero-balance bank account
Objective
This module outlines steps on how to reconcile transfers to zero – balance accounts that the UN
may find necessary to maintain for operational convenience. The transfer to zero – balance
account is done automatically by the source bank.
Identify the incoming and outgoing transfer using FEBAN
Source bank
Like in previous modules, the first step is to identify the reconciling item on the bank statement
of the source bank as in example below for USCI1 Bank. Double click in the line to see the
details of the transaction.
To see the posting of the bank statement (ZR document), double click in the document number
(6300021748) of the posting area 1. The posting of the source bank is:
Credit to the nominal account
Debit to EFT-AP.
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Receiving Bank
The receiving bank, in this case is LBC12
The expected posting for the receiving bank is:
Debit to the Nominal Account
Credit to EFT-in.
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Clear the incoming transfer using FEBAN
Double click in the line already identified (in case the line appears green while the bank
account GL is not reconciled, refer to “Reconciling open items of the bank account GLs which
appear incorrectly reconciled in FEBAN”). Click the post icon or select from the main menu
Statement Items/Post, enter the EFT-AP GL account of the source bank in the Account field and
change the Account Type to S. Click Process Open Items.
Note: As FEBAN would be clearing the credit in the EFT-In line of the bank
statement, the system will automatically debit that account. Therefore, the action to be
taken through FEBAN would be to post a credit (posting key=50) to the EFT-AP GL of the
source bank account. Recall that postings to the nominal bank account is only through
the upload of bank statements and never through FEBAN
[Type sidebar title]
[Type the sidebar content. A sidebar is a standalone supplement to the main
document. It is often aligned on the left or right of the page, or located at the top or
bottom. Use the Drawing Tools tab to change the formatting of the sidebar text box.]
Select the document related to the outgoing transfer; in this example 6300021748 (selected
line would be light blue while the others, if any, are black).
Select from the main menu Document/Simulate to see the postings.
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Finally select the post icon.
Clearing document 2400000311 is posted and the line is cleared (green) as in screen shot
below.
Clear the outgoing transfer using FEBAN
Double click in the line already identified (in case the line appears green while the bank
account GL is not reconciled, refer to “Reconciling open items of the bank account GLs which
appear incorrectly reconciled in FEBAN”). Click the post icon or select from the main menu
Statement Items/Post. The system finds that there is a credit (created by FEBAN in the prior
step) and reconciles it with the debit of the bank statement (clearing document 6300024968 is
posted as in screen shot below).
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Clearing of the GL accounts
Using FAGLL03 you may verify that the assignment of the debit and the credit is the same for
the EFT-In account. Those entries will be cleared with the automatic batch or manually using F03.
For the EFT-AP, in which the system automatically reconciled the debit and the credit with
clearing document 6300024968, both lines are already cleared.
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Module 5: Transfer from a source bank account to a receiving bank account
Objective
This module outlines steps on how to reconcile transfers from an Umoja source bank account
to an Umoja recipient bank account, specifically from a USD bank account to a foreign currency
bank account.
Note: With Umoja, the term Remittance applies only
in those cases in which the source bank is not in Umoja.
Transfer approved through ZT doc type documents
A transfer from a USD bank account (house bank USCH1) to a GBP bank account (GBCH1) has
been approved and posted with documents 1700020886 and 1700020885 (doc type: ZT).
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As you may see, the credit in the source bank (USD) and the debit in the receiving bank are in
GL 11xxxx17. Likewise, the gain/loss in exchange rate is the difference between the debit and
the credit in GL 79611010 (USD 97,546.98 – 100,000). Consequently, there will be no need to
post any exchange rate difference with FEBAN.
Note: in case the transfer from a USD bank account is also to another USD
bank account, there will be only one ZT document (debit and credit to 11xxxx17)
and there will be no postings to GL 79611010 (FX Purch Sale Currency).
Bank statement in the source bank (doc type ZR)
Bank statement 96 (line 1) has been posted with document 6300002667 (doc type ZR)
Review the postings
The bank statement (source bank) posts a Credit to the nominal bank account. The Debit could
be in GL 11xxxx17 or 11xxxx14 (EFT-AP). To see the posting, double click in the pmtAcc field on
document No. 6300002667 in this example.
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Reconciliation (ZT and ZR documents) of the source bank using FEBAN
As seen in the above screenshots, the source bank has a Credit (ZT doc 1700020886) and a
Debit (ZR doc 6300002667) in GL 11011017. Both lines need to be cleared through FEBAN.
Double click in the line and click on the post icon or select from the main menu Statement
items/Post (in case the line appears green while the bank account GL is not reconciled, please
refer to (“Reconciling open items of the bank account GLs which appear incorrectly reconciled
in FEBAN”).
Select only documents 1700020886 and 6300002667 (selected lines would be light blue while
the others are black) and click the post icon
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When clearing occurs, as seen in the next screen a new clearing document will be posted. In
this example, clearing document 6300025876 has been posted and the line is now cleared
(green).
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There might be instances in which the bank statement of the source bank debits GL 11xxxx14
(EFT-AP) while the credit of the ZT document is in GL 11xxxx17. In those cases, only the line of
the bank statement should be selected (6300002667). From the main menu, select Edit/Select
more.
Enter the Investment GL account of the source bank in the Account field. Click “Process Open
Items”.
Select the related ZT document; in this example 1700020886 (selected line would be light blue
while the others, if any, are black as stated earlier).
To review the postings, select from the main menu Document/Simulate. To post select “post
icon”
Bank statement in the receiving bank (doc type ZR)
As seen in the screen below, Bank statement 108 (line 1) has been posted with document
6300002628 (doc type ZR)
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To see the posting, double click in the document number.
Reconciliation (ZT and ZR documents) of the receiving bank using FEBAN
In this case, the receiving bank has a Debit (ZT doc 1700020885) in GL 11011317 and a Credit
(ZR doc 6300002628) in GL 11011316. Both lines need to be cleared through FEBAN using a
similar procedure as described above (in case the line appears green while the bank account GL
is not reconciled, please refer to “Reconciling open items of the bank account GLs which
appear incorrectly reconciled in FEBAN”):
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Once the post icon is selected, only the line of the bank statement should be selected
(6300002628). From the main menu, select Edit/Select more.
Enter the Investment GL account of the receiving bank in the Account field. Click “Process Open
Items”.
Select the related ZT document; in this example 1700020885 (selected line would be light blue
while the others, if any, are black).
To review the postings, select from the main menu Document/Simulate.
To post, select the post icon
Posting the ZR document (63xxxxx) if it is not appearing in FEBAN
There might be instances in which the ZR document has not been posted even though the line
appears in FEBAN as seen in screen below:
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To post the ZR document, please select the post icon
Item/Post.
or from the menu select Statement
Double click in the line again and FEBAN will show the just posted ZR document.
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Print the list of Transfers done via a ZT document
As explained above, when UNHQ approves a transfer to a mission bank account, a posting is
automatically recorded with document type ZT:
Cr
Dr
Source Bank Invt FX (GL 11xxxx17)
Receiving Bank Invt FX (GL 11xxxx17)
To review the list of transfers, you can use report FAGLL03 with the variant “Remittance”:
Note: Ensure the Created By field is
empty i.e. remove your name if it appears
in this box
Click on the execute button.
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Select Remittances. Note that there is one dynamic selection for that variant. Select all items to
see open and cleared remittances i.e. all remittances.
Click the Execute button
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Posting scheme - Transfers in the same currency (one ZT document)
Posting scheme - Transfers from currency A to B (two ZT documents)
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Module 6: Preparation of Month End Bank Reconciliation
Objective
This module outlines steps on how to prepare Month End Bank Reconciliation statement, which is a
critical management report that UN entities prepare every month as part of the financial reports to
UNHQ Accounts Division. Bank reconciliation statement is prepared for each bank account the UN
maintains. Steps to undertake are elaborated below:
Run FAGLL03 Report – Bank Reconciler Responsible for Bank Account
1. The FAGLL03 G/L Account Line Item Display report is run for the range of GL Accounts corresponding
to a physical bank account. The following parameters are used:
2. Once the report has executed, select the Report Layout “/BK REC RPT“:
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The report will now show information in the same column order as the Month End Bank
Reconciliation template.
Export the report output to Excel:
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Indicate where you want the file saved and enter the file name.
Click Save
If you receive the following message, click OK.
When the following message appears in the bottom left corner of the screen, the export is
complete.
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Prepare Month End Bank Reconciliation Report – Bank Reconciler Responsible
for Bank Account
1. Open Excel template and manually enter:
a. Your mission/office
b. Month end date
c. Bank Name, Currency and FEBAN bank code
d. GL Account numbers
e. Document currency
f. Name of Preparer
g. Name of Approver
2. Copy and paste FAGLL03 nominal balance and reconciling items for each GL account.
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Sections boxed in blue are copied and pasted into the Month End Bank Reconciliation template;
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Verify Total formula to ensure range includes all relevant cells.
4. Format numbers if needed.
5. Check print range and print preview.
6. Print and attach supporting documents:
a.
Printscreen of FEBAN balance at month end showing balance per bank equal to Nominal
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G/L Account
b.
Printout of FAGLL03 showing GL account balance for all reconciling GL Accounts for that
bank account (i.e. GL ending in 10 to 19)
c.
Printout of bank statement obtained from bank (if available).
7. Sign and date the bank reconciliation
8. Submit Bank Reconciliation and supporting documents to Approving Officer for approval and
signature.
9. Keep report on file for the audit purposes.
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Module 7: Bank reconciliation General Ledger maintenance.
Objective
This module provides useful information on how to maintain some bank reconciliation
transactions at the General Ledger level to facilitate clean financial reporting.
Bank Charges
With Umoja solution, if the Bank external transaction code used by your house bank is properly
mapped, Bank Charges will be displayed with green status to indicate that they are cleared in
FEBAN. However, these entries at General Ledger level will need to be cleared using T_Code F 03. Below are different forms that Bank Charges will take and related General Ledger postings;
Category Bank Charge Form
1
Bank charges that are not
associated with a specific
transaction
( typically these charges
appear in the statement
on the last day of the
month)
2
Bank charges that are
associated with a specific
transaction (for instance
international payment fee)
3
Bank charges that are
associated with special
services provided by the
bank ( e.g. transporting
money to remote and safe
areas)
4
Bank charges associated
with rejected payments
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Financial postings
Involves two-step process:
1. Using F-03, select “Charge off diff" button to record
the expense line: Posting key = 40, GL = 74251010,
Cost Centre = 99901 Fund = 64VQA, Business Area =
S101, Grant =GMNR
2. A batch
program (Average Daily Balance) will allocate all Bank
Charges recorded in 64VQA to the pool participants.
As for category 1 above
These will be charged to the Fund and Business Area
using the service: 1. Using F-03, select “Charge off
diff" button to record the expense line: 2. posting Key
= 40, GL 74251010, cost centre = xxxxx, Fund =
<concerned entity>, Business Area = <concerned
entity>, Grant=GMNR. 3. If a Fund commitment for
bank charges has been established, enter the
Earmarked Fund Document N0. and line
These will be posted as for category 3 above, however
in case the rejected payment is due to a negligence on
the part of the staff member ( such as not informing
AP user that the bank account has been closed, etc.):
Using FV65, post to staff member account and related
duty entity as follows: Debit Staff Member, Credit GL=
74251010, Cost Centre=xxxxx, Fund=xxxx, Business
Area=xxxx, Grant=GMNR
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Clearing: FEBAN vs. F-03 (GL), F-44 (Vendor), F-32 (Customer)
Appears as Open
in FEBAN
Banking Clearing
Accounts from
Outgoing
Payments
Banking Clearing
Accounts from
Incoming
Payments
To be
charged
against
Another GL
Remarks
Another GL
FEBAN should be used. Using F-03 may clear both lines but the
bank clearing account will be displayed always as open in FEBAN
FEBAN should be used. Using F-44 may clear both lines but the
bank clearing account will be displayed always as open in FEBAN
FEBAN should be used. Using F-32 may clear both lines but the
bank clearing account will be displayed always as open in FEBAN
Vendor
Debit
Customer
Debit
FEBAN should be used. Using F-03 may clear both lines but the
bank clearing account will be displayed always as open in FEBAN
Notes:




FEBAN is a T_code to clear open items in bank clearing accounts
FEBAN should be used always before using any of the other T_codes to clear GLs (F-03), Vendors
(F-44) or Customers (F-32). Otherwise, those lines will always appear as open in FEBAN
To check what is actually open in bank clearing accounts, you must use FAGLL03
Bank and Unidentified Charges are mapped to appeared green in FEBAN but they are open in
FAGLL03
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Typical Bank Reconciler daily maintenance actions
1 Verify whether a Bank
Statement has been uploaded
for each House Bank under duty
entity ( Business Area)
responsibility
2 Verify that Nominal GL Account
balance agrees to FEBAN closing
balance
3 Review content of GL account
ending in 19 for unidentified
transactions
4 Using FEBAN, reconcile incoming
payments
Report missing Bank Statement to local Cashier
Report issues to local Cashier who will request a Bank to correct
the Bank Statement if needed. Alternatively, if it is an error with
the upload, the Cashier will report the issue to the Umoja
Treasury team
Verify transaction type used by the bank, if the bank uses a new
transaction type, request the Cashier to confirm with the bank
what type of transaction will have that code.
Open an iNeed Service Request for this new transaction type to
be added to the Bank Rule Table. Include a description of the
transaction so that the Umoja team can configure correctly.
Note: These transactions will be green in FEBAN based on the Bank Rule Table
but will not be reconciled in GL. Reconcile with JV or F-03.
Payment from commercial entity or third party:
i)Check AR Report with ZARFBL5N T_code
ii)Check AP Report with ZAPFBL1NN T_code
Payment from individual:
i)Check AP Report with ZAPFBL1NN T_code
Note: Review content of GL account ending in 12 and 16 with FAGLL03 to
ensure all incoming payments have been cleared.
5 Using FEBAN, reconcile outgoing
payments to the extent they
have not been cleared
automatically
If Cheque number is included in the bank file;
i)Display Cheque Register FCHN
II)Clear with FEBAN
If KZ document number (33xx)is included in the bank file:
i)Display vendor history (ensure KZ is not cleared)
ii)Clear with FEBAN
Note: Review content of GL account ending in 11 for Cheque Payments and 14
for EFT Payment to ensure all items are reconciled
6 Review content of GL account
ending in 17 for Bank Transfer
Received from another UN Bank
with FAGLL03
7 Review content of GL account
ending with 18 for Bank Charges
with FAGLL03
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Refer to “Reconciliation of bank transfers and automatic bank
transfers for zero balance account” in Module 5 above
Refer to 4 categories of bank charges reconciliation with different
process respectively.
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Revision History (Soft Copy only)
Date
15 Dec 2014
[Bank Reconciliation] Version 1
Version
1
Prepared by
Description
Josephine Mwaka Mwambazi
Initial Draft
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