Checks Collection Solution
- 1. CHECKS COLLECTION SOLUTION Prepared By SAKR Internal FICO Consultant Mohamed A. El-Kaream
- 2. Introduction ? Standard SAP system delivered solution for Checks under Collection is suitable for other business scenarios other than SAKR’s business scenario required. ? SAP system delivers a country specific solution which maps perfectly with SAKR’s business requirements.
- 3. Main Concepts ? The country specific (Greece-Thailand-Turkey) solution uses terms like: - Portfolio(s). - Transfer Account. - Interim Account. - Bank Liability Account.
- 4. Main Concepts.. ? Check Portfolio Is like a book/ journal where check transactions related data is kept. ? Transfer Account Is a GL. Account used while transferring checks between checks Portfolios.
- 5. Main Concepts… ? Interim Account Is a temporary suspense GL. Account for the check amount Presented to the Bank. ? Bank Liability Account Is a GL. Account that is posted against the Interim account when presenting the check to the Bank.
- 6. Process Flow Diagram & The Possible Available Scenarios
- 8. Scenario.. 1 1. Record the Payment “Checks in Safe – Portfolio”. Dr. Customer SGL. In. “C.I.S” Cr. Customer Account 2. Present the Check to the Bank. Dr. Bank-Deposit-Account Cr. Bank Liability Account
- 9. Continue Scenario.. 1 3. At the Bank - Cleared Dr. Bank-Main-Account Cr. Bank-Deposit-Account -------------------------------------- Dr. Bank Liability Cr. Customer SGL. In. “C.I.S”
- 10. Continue Scenario.. 1 3. At the Bank - Refused Reverse the financial entries through the system either to the payment level or the invoice level.
- 11. Scenario.. 2 ? The same payment procedure. ? The same presentation procedure. ? If the Check got Refused it will be bounced to the Bank Bounced Checks Portfolio. Dr. Bank Liability Account Cr. Customer SGL. In. “C.I.S” ----------------------------------------- Dr. Bank Bounced Checks Cr. Bank-Deposit-Account
- 12. Continue Scenario.. 2 ? Now the Check gets Bounced & Cleared. Dr. Customer Cr. Bank Bounced Checks
- 13. Scenario.. 3 ? The same payment procedure. ? The same presentation procedure. ? You move the Check from one Portfolio to another new Portfolio. - Remove from Portfolio Dr. Portfolios Transfer Account Cr. Bank Liability Account
- 14. Continue Scenario.. 3 - Add to the new Portfolio Dr. Bank Liability Account Cr. Old Portfolio -------------------------------------- Dr. New Portfolio Cr. Portfolios Transfer Account
- 15. Continue Scenario.. 3 ? From here you can carry on with any of the steps presented previously in the above Scenarios.
- 16. THANK YOU Checks in Safe Solution Prepared By SAKR Internal FICO Consultant Mohamed A. El-Kaream