Presenter: Marchand Hildebrand Date: 12 March 2013 Session 47 - Finance Good afternoon and welcome to session 47. It is my privilege to present the session here today, it is my 8th time at conference of which must have presented at least 7 times . I see a number of familiar faces in the audience welcome to you and also to those that I don’t know that well, welcome. I trust that you will find the session informative. Feel free to ask questions at any time during the presentation. Should you like to discuss the presentation further or any other matter please use the time here at conference. Make an appointment and come and discuss with me. Presenter: Marchand Hildebrand Date: 12 March 2013

Accounts Payable GL Report Writer User Restrictions Introduction The topic’s I will be discussing today are The accounts payable - reconciliation and payment process The GL Report writer - how to get more out of the GL report writer. User Restrictions – basic understanding of the new finance user restrictions The topic we discuss in these session are decided by the User Group Exco in discussion with the product system owner. The reason why I mention this is to invite you to submit suggestion for topic’s to the UG Exco or to me. Your are confronted by the burning issue in the industry on a daily basis that knows what is happing in finance administration and management in education.

Accounts Payable The payment of creditors represents one of the most critical functions within an organisation. It ensures the continues flow of goods and service to the stakeholders in a institution. You normally need to make payment within 60 days from the date of the transaction. To pay creditors an institution needs cash This places strain on cash resources if not managed correctly. Way to manage cash resources – do a cash flow Some people does this formally, other informally use software or report to determine the cash in and outflows One should also consider the cost of using an over draft vs the settlement discount forfeited by paying

Risk Areas Within Creditors Unauthorised Suppliers Inaccuracy of Recording Settling Balances Fraud / Misappropriation Area of risk to consider when paying creditor are : Unauthorised Suppliers = should not just be creating new creditors, your process should include a supplier evaluation, where suppliers should complete a registration form and supply documentation to support the suppliers application and only created once approved as a supplier. Ensure doing business with a reputable supplier Company Registration, Proof of Business Address owner Id etc. Inaccuracy of Recording finger trouble - User work summary add document and compare to user work summary Decentralised environment – client create a creditor per business unit - same invoice can be captured twice Settling Balances – Cash Flow is there funds available to settle debt - no funds need to borrow / over draft cost money Fraud / Misappropriation – incorrect banking details, collusion

Clear consistent policy Payment terms are agreed at the outset Procurement Policy Clear consistent policy Payment terms are agreed at the outset Payment procedures explained to suppliers Invoices are settled accordance with payment terms agreed with suppliers Complaints are dealt with quickly Suppliers are advised of disputes The risk can be reduce through a good procurement policies and procedures Clear consistent policy Payment terms are agreed at the outset Payment procedures explained to suppliers Invoices are settled accordance with payment terms agreed with suppliers Complaints are dealt with quickly Suppliers are advised of disputes

Accounts Payable Process The next two slide map a Account payable process Finance Receive Invoices Match Invoice / Orders Matched y / n No – subject to approval Yes -

Accounts Payable Process Yes - Capture Invoice Reconcile - this step is a process on its own Recon consists of Receive creditors statement Print statement Match Invoice Credit Notes with Creditors Statement Follow up un-matched items / differences with suppliers / buying office / department Retain invoice / creditor Complete recon template Supervisor check recon Payment Run cash flow match payments to recons Retain / release – invoice not paid Do payment Run Cancel Payment Print Payment Advices

Accounts Payable Process Recon Receive an account statement from supplier

Accounts Payable Process Recon Print statement

Reconcile Creditor Statement’s Match Invoice Credit Notes with Creditors Statement Follow-up un-matched items on statement Match order number Follow up differences with suppliers / buying office / department Retain invoice / creditor Supervisor check recon

Cash Flow Run cash flow match payments to recons Do payment Run Print Payment Advices

Payment Do payment Run

Payment Advice Recon Print Payment Advices

Upload / Maintain Bank Statements Match Payment on Bank Statement EFT - Payments Cancel Payments Generate Payment File Send File Bank Upload / Maintain Bank Statements Match Payment on Bank Statement Bank Reconciliation Payment Method A or B to be used ACB - name outdated – to be changed in a future release impact a number of programs A- inserts a single payment into CB to be matched on BS B - inserts a single payment into CB to be matched on BS Generate payment file is local for most clients part of acb system - Hanlie / christel

Internet Payments Like to show you some local software we have done for ITS(HO) New payment method – Internet Payments User the payment method A Difference between ACB / EFT and Internet ACB - CB entry created on tape creation Internet – create CB entry when payment is generated We have taken the creditor payment program and added prompt Internet Payment

Internet Payments Added creditor groups , categories and sub categories as used in reporting specifically BEE reporting. Allows payment program to run for a specific group of creditor for example Qualifying Small Enteprises

Internet Payments Run payment program – print list of payments Print Payment Advices

Internet Payments Print and send Payment Advices

Internet Payments Use payment advice to process Internet payment Risk - Payment detail on system may differ form the payment made Use payment number as reference for B/S

Internet Payments Payment creates a entry into CB

Internet Payments Receive / upload bank statement Query payment reference as per bank statement Match payment using payment number to payment on B/S

Preferential Credit Terms Enterprise Development – may be included in the value of Enterprise development preferential credit terms granted to beneficiary entities Short Term Payment Periods % of invoiced amount 15 days less number of days from invoice payment

GL Report Writer GL Report Writer – is a tool that have existed since V11 – create in 2003 Allows the user to create customised GL reports Report are based on the ITS GL The tool was enhanced in INT 2 and the enhancements back ported to INT 1 – the enhancements included adding budgets, commitments, expense budgeting and formulas to the tool. The GL report writer has been the topic of a number of previous UG sessions. The focus of today is not as much on the enhancements and set up of report codes but rather on a number of suggestions on using the tool

Business Report Writing Prepare Organise Write Edit Read Through (Rupert Morris – Writer and Trainer) The following guidelines I found that I though to be useful in writing business reports Think about the target audience of the report , the information to be conveyed and the relevance of the information to the readers of the report. Write down the basic structure of the report introduction, executive summary, body, closing and the flow of logic between the sections in the body of the report Now write the report Once a draft has been written, Critically consider each section ito logical information flow, relevance, target audience and information provided. Quality check spelling, grammer, layout Read Through -

GL Report Writer GL Report writer report are based on the layout of spread sheet which consist of columns and rows The source of information which can be reported are the ITS GL and income and expense budget

GL Report Writer The rows of the report relates the accounts in the ITS ledger and can either be a single account or group of accounts Columns relates to cost centres and or cc grouped together or Consolidated Cost Centre’s We advise that when you design a report write report you first plan the report using a spread sheet Start a new work book in the first column enter a heading rows and start entering the row descriptions. Total can be added in one of two ways, either enter a account list of the accounts to be added or enter a formula. When entering a formula the formula must be below the row on which to perform the calculation

GL Report Writer In the second column enter then note number to be used should you wish to use notes in your report Third column is the account list, code = (A3), you may need to group account together in a list should you need to add accounts Even though they not yet exist assign a code to a list and indicate the account making up the list

GL Report Writer Next Column Add the cost centre or consolidated cost centre on which to report Report on A, B, C, E Indicate the year 0 = current year, -1 = current year, 1= current year +1 Start and end cycle I/ E cycle 13 / 14

Maintain Account List {FCS0-5} Block 1 – Code - Description Block 2 – Major Allocation Block 3 – Account List Detail Block 1 – Code - Description Block 2 – Major Allocation Block 3 – Account List Detail

Maintain Report Codes {FCS0-8} Block 1 – Report Codes Block 5 – Report Notes Block 2 – Report Rows Block 3 – Report Row List Block 4 – Report Columns Block 6 – Note Tag Reference B1 Code Description B2 Row description, Note, +- value ind, formula B3 Account List – Row B4 CC, Cons, A,B,C ,E, F, I/E 13-14 ,Year, Cycles B5 Notes number B6

{FGLOR10-1} - output

{FGLOR10-1} csv - output

Graphs Example 1

Pivot Tables Example2

Report Notes Create note text in RFT document Load the RFT document onto the database system {GMNT- 5} / {GMNT-14 b1} Convert the RFT to XSL {GMNT- 5} / {GMNT-14 b1} Link note number to Style Sheet {FCSO-8 b5} Link note number to Report Row/s {FCSO-8 b2} Link Tags to Column and Row {FCSO-8 b6} Create note text in RFT document Load the RFT document onto the database system {GMNT- 5} / {GMNT-14 b1} Convert the RFT to XSL {GMNT- 5} / {GMNT-14 b1} Link note number to Style Sheet {FCSO-8 b5} Link note number to Report Row/s {FCSO-8 b2} Link Tags to Column and Row {FCSO-8 b6}

Note with Text and Values

Note as Table with Values

Report Writer

User Restrictions The finance user restriction have been changed in INT 2 - it is a total change as to how other restrictions are applied in the ITS system Must set it up else you will not be able to process any financial transactions in INT2 or later versions Placed on new menu FCSP

How It Fits Together 4 Parts Parts Linked = User Restriction Functions Entities Rules People Parts Linked = User Restriction Restrict Person To Area Performing Action

Account / Amount Stationary How It Fits Together Create Request Cost Centre Arts Account / Amount Stationary < 15000 Requesters

User Restrictions Understand how it works Cannot work is not set up Decide at what level to implement the restrictions Create function groups Create rule Link functions to rules Link action groups to rule lines

User Restrictions Set up structure on Test environment User Testing Do any adjustment required to structure Ensure all transaction approved / rejected All request / orders in status normal Clear all Requests / Orders not in Normal Copy structure to production

Disclaimer The information, comments and material presented in this presentation are provided for information purposes only. The presentation is not addressing all possible technical or business aspects and does not claim to be complete or exhaustive. ITS reserves the right to change its business or product development plans as circumstances dictate. This document may not be reproduced or distributed without the written permission of ITS Holdings (Pty) Ltd.

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