Infor ERP LN – AP and Cash Payments Overview Dan Aldridge  CEO  Performa Apps    e-mail  dan.aldridge@i-app.com website  www.inforln.com/wp linkedin  Dan Aldridge twitter  @Danaldridge1

Finance Training Agenda – ACR & CMG ACR - Accounts Payable Overview Overview Master Data Processing Open Entries Exercises CMG - Cash Management Overview

Finance Training Agenda – Accounts Payable Overview

Finance Training Agenda – Accounts Payable Overview Business Partners Financial Customer Groups Processing Terms Master Data Parameters Procurement Card Purchase Invoice Report Definition Processing Received Invoices Invoice – Matching Invoice - Cost Recurring Purchase Invoices Reporting Open Entries Dashboard Aging Reports Recalculate Invoice-From BP Balances

Accounts Payable Business Partners All supplier and/or all customer roles must be defined for a business partner Buy From Sold To Ship From Ship To Business Partner Supplier Roles Customer Roles Invoice From Invoice From Invoice To Invoice To Accounts Payable Business Partners Pay To Pay To Pay By Pay By

Accounts Payable Supplier Information Supplier Buy-From: BP Status Language Area Line of Business Address Order Discount Purchase Office Terms of Delivery Supplier Invoice-From: BP Status Language Address Currency Financial Supplier Group Statement Method Terms of Payment Payment Method Supplier Ship-From: BP Status Language Address Warehouse Supplier Pay-To: BP Status Language Address Currency BP Bank Accounts Payable Supplier Information

Accounts Payable Financial Supplier Groups Business Partner Accounts Payable Financial Supplier Groups Financial Supplier Group Ledger Accounts

Accounts Payable Financial Supplier Groups Financial Supplier Group Information: Control Account Currency Profit & Loss Payment Differences Discounts Late Payment Surcharges Invoice Receipts Anticipated Payments Price Differences Unallocated Payments Advance Payments Others Accounts Payable Financial Supplier Groups

Accounts Payable Purchase Order Steps Print Purchase Order PN4 Print Good Rec. Note Maintain Receipts Print Claims Maintain Approvals Print Storage List Print Return Notes Accounts Payable Purchase Order Steps Print Purchase Inv. Process Delivered Purchase Orders

Accounts Payable Cost Invoices Purpose: To process invoices for (non-inventory) items that were purchased without a purchase order. No longer separate Transaction Type in LN. Process Flow: Maintain Transaction Purchase Invoice Header Purchase Invoice Lines Optional: - Change terms of payment. - Attach payment schedule, then create transactions from schedule. - Change authorization data.

Accounts Payable Purchase Order Matching Receive and Authorize Invoice Register (Voucher) Invoice Purchase Invoice Matching: Automatic or Manual* Booking Difference Approve Price Difference Approve Invoice for Payment Optional

Accounts Payable Keywords Received Invoice has been entered in “Maintain Received Purchase Invoices” session Registered Invoice can be a batch in “Maintain Transactions” session. Ledger accounts will then be assigned. Matched Invoice has been matched to Purchase Order and/or Receipt in “Match/Approve Purchase Invoices with Orders” or “Match Receipts” sessions. Approved Invoice has been approved (authorized) in “Approve Purchase Invoices” session Canceled Invoice has been canceled in “Maintain Received Purchase Invoices” session Accounts Payable Keywords

Accounts Payable Order Matching Differences Booking Difference: An additional invoiced amount. Recorded as an add-on cost. Enter G/L account and dimension code. For example, freight, insurance, and so on. Price Difference: A true Purchase Price Variance (PPV). The invoiced price is different than the PO price. G/L account price variance (within tolerances). G/L account result (outside tolerances).

Finance Training Agenda – Accounts Payable Master Data

Accounts Payable – Master Data Parameters Default Aging Analysis Transaction Types for Currency Differences Financial Customer Groups Procurement Cards Matching Codes Accounts Payable – Master Data Parameters

Accounts Payable – Master Data Parameters Purchase Invoices Hold Reasons Assigned Approvers Authorizations Matching Tolerances Purchase Offices Reporting Aging Analysis Data A/P Statements Credit Notes Letter Accounts Payable – Master Data Parameters

Finance Training Agenda – Accounts Payable Processing

Accounts Payable – Processing Procurement Cards Procurement Card processing is focused on corporate houses, where the products are purchased using a corporate Procurement Card. The buyer is not necessarily a regular buyer of goods in the organization

Accounts Payable – Processing Procurement Cards Manually Manually Electronically Electronically Purchase Requisition Holiday Inn hotel EUR 850 Lufthansa EUR 1.400 Holiday Inn hotel EUR 850 Lufthansa EUR 1.400 EUR 2.250 Match Manually Automatically

Accounts Payable – Processing Procurement Cards Procurement card number Procurement card company (business partner) Status / validation data Credit limit Procurement Cards Line Category Purchase requisition Past adjustment Others Default ledger account Procurement Card Lines

Accounts Payable - Processing Received Invoices Purpose: To optionally preregister invoices without generating financial transactions and opening A/P items. Also includes authorization by different employees/departments for further A/P processing.

Accounts Payable - Processing Accounts Payable Purchase Invoice Processing Received Invoices Maintain Transactions Maintain Purchase Invoices Approval Matching with Orders Maintain Transaction Lines Approval GLD Processing

Accounts Payable - Processing Types of Matching Register Invoice Yes $ Receipt / $ Invoice - Tolerance No Automatic Match Manual Match Complete Price Difference On FSG Approve Invoice

Accounts Payable - Processing Assign Credit Notes to Invoices Now Later Original Invoice Transaction Type One Credit Note to One Invoice One Credit Note to Many Invoices Reduces the Open Balance of the Invoice

Accounts Payable - Processing Recurring Purchase Invoices Period 1 Period 2 Period N Today

Accounts Payable - Processing Tolerances Higher Lower % $ % $ 2% 50.00 5% 100.00 Receipt Amount = $100.00 Invoice Amount = $120.00 Out of Tolerance Receipt Amount = $100.00 Invoice Amount = $97.00 In Tolerance

Finance Training Agenda – Accounts Payable Open Entries

Accounts Payable – Open Entries Print / Display Options Business Partner (BP) Purchase Invoices Registered Purchase Invoices by BP BP Totals BP by Factoring Company Print Purchase Invoices Print Invoice Authorization Schemes Print Invoice-from BP Balances Print Invoice-from BPs Total Balances (by Co.) Print Aging Analysis by Invoice-from BP Print Invoice-from BP Aging Summary Print Invoice-from BPs Finalized Transactions Print Control Account Checklist Print Recurring Purchase Invoices Need info NOW?

Accounts Payable Dashboard Main Accounts Payable Dashboard

Review Questions and Answers

Accounts Payable Training Exercises Input Cost Invoice Finalize Batch Review in Transactions in ACP Dashboards

Finance Training Agenda – Cash Management

Finance Training Agenda – Cash Management Overview Master Data Parameters Payment Authorizations Bank Relations & Methods Check Master Electronic Bank Statements IRS 1099 Reporting Processing Payments to Suppliers Receive Payments

Finance Training Agenda – Accounts Payable Cash Management Overview

Cash Management Remittance based on cash application Facilitates quick data entry Does not restrict user with data consistency checks Checks are done when applying the remittance advice Reduction of cash application lead time Options to easily handle: Short payments Over payments

Cash Management Uninterrupted supplier payment process Select Invoices for Payment Payment Batch X1 Uninterrupted Payment Process Payment Created Financial Posting Exception Error Payment Batch X2

Cash Management Uninterrupted payment/receipt process Payment Process Defaults Devices Starting Check Senders Identity File Identification Device for Payments Payment Process Defaults by Bank/Payment Method

Cash Management Uninterrupted payment process Error report during Payment Process Display of all exception errors per payment batch

Cash Management Accounting for anticipated payments Check Run At Bank Reconciliation Check received by Supplier and presented to Supplier’s Bank Check mailed Check clears your Bank L E D G E R E N T R I E S Anticipated Payments Cash Clearing Debit Credit Debit Credit Anticipated Payments Cash Clearing Debit Credit Accounts Payable Cash

Finance Training Agenda – Accounts Payable Cash Management Master Data

Cash Management – Master Data Parameters Payments by Company Group Select Only Finalized Invoices Payment Differences Tolerances

Cash Management – Master Data Payment Authorizations Used to limit check writing to selected user along with putting limits on size of payment.

Cash Management – Master Data Payment / Receipt Methods Separate Methods for: Receipts Payments – Checks Payments – ACH Checks Printing: Multiple Checks Single Check w/Remittance Single Check with overflow to Remittance.

Cash Management – Master Data Check Master By Payment Method Check Status: Not Used Test Print Void Damaged Anticipated Rejected Paid

Cash Management – Master Data Check Master Reasons Can be Added to Payments Valid for 1099-MISC Yes / No

Finance Training Agenda Cash Management Processing

Cash Management – Processing Supplier Payments Based on Payment Batches Created by session and modifiable. Supplier total can not be negative. Can be used for EFT or Checks Use separate batches for EFT and Checks Use different payment Methods. Payments can be easily voided or rejected until cleared. Payments not in GLD until Posted. Automated clearing available with Bank Electronic file. Requires set up of EBS import specifications. Still requires manual processing for problem checks.

Cash Management – Processing Supplier Payment Process Select invoices for payment Payment advise Trade Note process Automatic payment process Documents Documents File Electronic bank statement Manual bank statement Change Trade Note step Automatic matching Reconcile Open entries

Cash Management – Processing Select Invoices for Payment Create Batch to pay May be modified Not Selected Prints a report of invoices NOT selected. Helpful Hint: You should print the “Not Selected” report to see what is still open.

Cash Management – Processing Payment Advice Ability to modify Payment Batch before paying invoices.

Cash Management – Processing Process Payments Compose Payment Assign Banks to Payment Audit Payments Create Payment Orders Checks ACH Print Remittance Letters Post Payments to GLD By Payment Batch

Cash Management – Processing IRS 1099 Reporting Generates output for filing 1099s with IRS Can be either: Paper Electronic

Cash Management – Processing Customer Payments Manual process uses same session as Journal Vouchers Uses “Cash” Transaction Type Normally uses a “Checksums” for batch. Automated process available with Bank Electronic file. Requires set up of EBS import specifications. Used with Lockboxes Still requires manual processing for unmatched receipts.

Cash Management – Processing Customer Payments Physical Receipt of Cash, Check, etc. Manual Receipts $ Direct Debit Direct Debits OR Cancel Open Invoices Advance Receipts Receipts not specifically Allocated to Open Invoices Non-BP Related remittance for Sundry Sales (Trans posted Directly to GL) Business Partner’s bank is automatically charged for a selected sales invoice

Cash Management – Processing Customer Payments To process manual bank reconciliation entries, available Transaction Types in the Bank Transactions (tfcmg2100m000) session include: Receipt Transaction - The Bank transaction type to process customer receipts and payments for credit notes State Bank & Trust S T A T E M E N T 7/12/99 $18000.00 Deposits Checks 7/18/99 $27889.77 7/23/99 $ 9987.00 7/30/99 $33887.65 7/01/99 7/06/99 7/07/99 7/08/99 7/09/99 $ 60.00 $ 14002.40 $ 232.09 $ 115.50 $ 1160.45 $ 22.00 325432 325438 325447 325448 325449 svc chg

Cash Management – Processing Customer Payments Journal - The Bank transaction type to process charges directly to the general ledger (e.g., bank costs, bank service charges, and other sundry charges) Receipt Reconciliation - The Bank transaction type to process anticipated receipts actually received by the bank Unallocated Receipt - The Bank transaction type to process an unallocated receipt not linked to an invoice. These amounts can be assigned to open entries now (Assign Adv./Unall. Receipt under Specific), or at any later date Unallocated Receipt - The Bank transaction type to process an unallocated receipt not linked to an invoice. These amounts can be assigned to open entries now (Assign Adv./Unall. Receipt under Specific), or at any later date

Cash Management – Processing Customer Payments Unallocated and advance receipts: Create open cash amounts on the partners account after they have been reconciled to the bank statement. Advance receipt: Tax can be calculate tax on Advance Receipt. Unallocated receipt: Tax can NOT be calculated on Unallocated Receipt. Choosing which type of receipt to create depends on the business situation and the local tax legislation requirements.

Review Questions and Answers

Cash Management Training Exercises Create Payment Batch Edit Payment Batch Process & Post Payment Batch Finalize Batch Review in Transactions in ACP Dashboards

For more info: Email dan.aldridge@i-app.com Twitter @danaldridge1, @iapperp Website: www.inforln.com/wp