Fx payment process
?Download as PPT, PDF?
1 like?347 views
The document outlines the foreign exchange (forex) payment process for a company. It discusses the documentation required for material and service payments, how to book forex transactions in SAP, methods for remitting payments including bank link and manual payments, tracking and controlling forex transactions, and clearing control accounts and EBS in SAP. The volume of forex payments is also addressed.
Fx payment process
- 1. FOREX PAYMENT PROCESS ? FOREIGN PAYMENTS ARE OF TWO CATEGORIES : ? FOR MATERIAL :- ? FOR SERVICES : - Company Confidential 1 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential
- 2. DOCUMENTATION PROCESS FOR FOREX PAYMENTS : ? FOR MATERIAL : - ? COPIES OF INVOICES. ? REQUEST LETTER ( DEBIT LETTER ) DULY SIGNED BY AUTHORISED SIGNATORIES. ? FORM NO A-1 DULY SIGNED BY AUTHORISED SIGNATORIES. ? TRIPLICATE COPY OF BILL OF ENTRY( DULY SIGNED BY CUSTOMS AUTHORITIES ) ALONG WITH AIRWAY SLIP OR COURIER SLIP SHOWING PROFF OF CONSIGNOR AND CONSIGNEE. ? FOR SERVICES : - ? COPIES OF INVOICES . ? REQUEST LETTER ( DEBIT LETTER ) DULY SIGNED BY AUTHORISED SIGNATORIES . ? FORM A-2 DULY SIGNED BY AUTHORISED SIGNATORIES . ? 15 CA DULY SIGNED BY THE AUTHORISED SIGNATORY . ? 15 CB DULY SIGNED AND STAMPED BY A CERTIFIED CHARTERED ACCOUNTANT . Company Confidential 2 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential
- 3. BOOKING OF FOREX TRANSACTIONS IN SAP ? FOR SERVICES : - ? THE EXPENSES HAS TO BE BOOKED ALONG WITH TDS DEDUCTIONS AND SERVICE TAX WHEREVER APPLICABLE. CONFIRMATION SHOULD BE TAKEN FROM THE TAXATION TEAM FOR THE SAME .TDS GROSS UP AREAS SHOULD ALSO BE BOOKED ACCORDINGLY . ? REQUIREMENT IS NO PE/ PAN. ? FOR MATERIAL PAYMENTS : - ? THE BOOKINGS ARE BEING DONE BASED ON THE PO SPECIFICATIONS AND GR CONFRIMATIONS . Company Confidential 3 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential
- 4. REMMITANCE OF FOREIGN PAYMENTS ? BANK LINK PAYMENTS : ? THE INVOICES DUE FOR PAYMENT ARE PICKED IN THE TRIAL WEEKLY BANK LINK RUN ON FRIDAY HOWEVER THE DOCUMENTS WHICH ARE DUE AND READY ARE PUT AS PAYMENT METHOD B AND ARE FINALISED ON MONDAY . REMAINING ARE BLOCKED . ? THE DOCUMENTS WHICH ARE READY FOR PAYMENT ON WEDNESDAY – WE HAVE TO TAKE A MANUAL DEAL FROM THE TREASURY AS THESE ARE OF MULTIPLE CURRENCIES . ? INVOICES WHICH COULD NOT BE PICKED IN THE WEEKLY BANK LINK CAN ALSO BE PUT IN THE DAILY BANK LINK BASED ON THE URGENCY AND COMPLETION OF DOCUMENTATION . ? MANUAL PAYMENTS : Company Confidential 4 ? ? 2008 Nokia WE HAVE THE OPTION OF RELEASING V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential
- 5. VOLUME OF FOREX PAYMENTS Company Confidential 5 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential
- 6. CLEARANCE OF CONTROL ACCOUNT AND EBS IN SAP ? FOR BANK LINK PAYMENT : - ? CLEARING THE TOTAL PAYMENT FROM EBS TO 229200 A / C . ? VENDOR A / C DOCUMENT IS CLEARED TO 222000 A / C AUTOMATICALLY ( WEEKLY BANK LINK ) . ? CLEARING THE 222000 TO 229200 SO AS TO COMPLETE THE CLEARING PROCESS. ? FOR MANUAL LINK PAYMENT : - ? CLEARING THE TOTAL PAYMENT FROM EBS TO 229200 A / C . ? CLEARING THE VENDOR ACCOUNT TO 229200 SO AS TO COMPLETE THE Company Confidential 6 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials CLEARANCE PROCESS .Company Confidential
- 7. TRACKING AND CONTROL OF FOREX TRANSACTIONS ? THE APPLICABILITY OF TDS AND SERVICE TAX NEEDS TO BE COMMUNICATED TO THE POSTING TEAM WELL IN ADVANCE . ? DEALS TAKEN FROM THE TREASURY FOR THE FOREX PAYMENTS NEEDS TO BE CLOSED – THERE SHOULD NOT BE ANY OPEN DEALS LEFT TO BE CLOSED . ? FOLLOWING UP WITH THE LOGISTICS AND USERS FOR BILL OF ENTRIES FOR MAKING FOREIGN REMMITANCES FOR MATERIAL PAYMENTS. ? WORKING ON THE VENDOR AGEING ON A MONTHLY BASIS FOR ALL FOREX TRANSACTIONS . Company Confidential 7 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential
- 8. Thank You Company Confidential 8 ? 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials Company Confidential