Sap Fi Accounts Payable Overview

FI113 Umoja Accounts Payable
Overview
Umoja Accounts Payable Overview Version 11

Last Modified:
Copyright
United14-Aug-13
Nations
Agenda
Course Introduction
Module 1: Financial Accounting in Umoja
Module 2: Invoice Processing
Module 3: Other Accounts Payable Activities
Course Summary
Course Assessment
Course Survey
Copyright United Nations
Course Overview
The purpose of the Umoja Accounts Payable Overview course is to explain how Accounts
Payable functions and invoice processing in general are affected by the implementation of
Umoja.
Prerequisite Review
You should have completed the following prerequisite courses:
Umoja Overview
Umoja ECC Navigation
Umoja Master Data & Coding Block Overview
Course Duration: 2 hours
Course Objectives
After completing this course, you will be able to:
Describe how invoices are processed within Umoja
List the key roles and responsibilities in Accounts Payable
Describe the key changes and benefits of Umoja Accounts Payable
Describe when non-Purchase Order (PO) invoices are applied
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
Module 1 Objectives
After completing this module, you will be able to:
Define the key terms related to Accounts Payable
Describe the park and post functionality and when it is used
Explain how Logistics Invoice Verification is used
Key Terminology
Key Term
Invoice
Three-way Matching
Goods Receipt
Workflow
Invoice Tolerance
Payment Block
Description
It is used in Umoja to refer to all payment documents. It is
created in Umoja even in cases where no physical commercial
invoice is received.
It is a functionality within Umoja that compares an invoice to the
appropriate PO and the amount of goods or services received.
It is a document in Umoja that is created to acknowledge the
receipt of goods, referencing one or more POs.
It refers to invoices or other financial/procurement documents
being automatically routed to the appropriate approvers based
on the delegations of authority.
It is the maximum amount by which an invoice may differ from
the relevant PO for a three-way match to pass ($4000 USD or 10%
of PO line item, whichever is lower).
It is a block that ensures that the payment for an invoice will not
be processed until the payment block is removed.
Key Terminology
Key Term
Down Payment
Chart of Accounts
Subsidiary Ledger
Description
It is an advance payment to any entity. These payments may
require a Funds Commitment/PO depending on the type (for
example, commercial down payment and salary advance).
It is a catalogue of all General Ledger (G/L) accounts available in
the Umoja accounting environment.
It is a secondary ledger that sits under the G/L, to which all
operational transactions are recorded or performed.
Reconciliation Account
It refers to accounts within the G/L that are automatically

modified when posts are made to subsidiary ledgers.
Special GL Indicator
It indicates when a transaction should post to a different

reconciliation account than indicated for a particular Business
Partner Group (used for down payments, for example).
Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Umoja Accounts Payable (A/P)
process:
Financial Accounting
User (A/P)
Creates vendor invoices and vendor credit memos within

the A/P sub ledger. This entails:
Adding VAT
Changing payment terms, if needed
Adding a payment block, if needed
Reducing the invoice, if needed
Requesting that PO be modified, if needed
These documents are subject to workflow approval
Approver (A/P)
Reviews and approves vendor invoices and credit

memos created by the Financial Accounting User (A/P)
within A/P sub-ledger
Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Umoja Accounts Payable (A/P)
process:
Senior User (G/L /
A/R / A/P / CO)
Creates and maintains the cost accounting allocation

rules, including the statistical key figures used for
allocations
Runs the batch that posts billing documents that come
from the Sales and Distribution module
Inserts a long-text description (occasionally) for
incoming payments for voluntary contribution
Creates and posts G/L documents that are not subject
to workflow, such as accruals, reversals and recurring
entries
Clears G/L, Accounts Receivable (A/R) and A/P
documents
10
Key Benefits & Changes of Umoja

As a result of Umoja, the major changes and benefits to the A/P process are as follows:
Integration Across
Areas
Three-Way Matching
One Integrated
Company Code in
Umoja
11
Integration Across Areas

Three-Way Matching
One Integrated Company

Code in Umoja
Integration across areas allows business documents to be linked.

A single document gives an end-to-end trail (For example, a user can see if goods
have been received from a PO)
The system checks and informs the user if a down payment to the vendor has
already been processed. After the invoice is posted, the down payment is settled.
Any amount that needs to be retained as a performance guarantee (for example
for construction contracts) will be withheld from payment
12
Three-Way Matching
Three-Way Matching

Code in Umoja
Three-way matching is used to automatically check consistency of documents.

When entered into Umoja, the invoice amount is checked against the PO and
Goods Receipt. If they do not match, appropriate action may need to be taken
(for example reduce invoice or issue credit memo)
The system allows payment processing to move forward if the invoice amount is
within the set tolerance of the PO and the amount of goods received
Differences between the amount of goods received and amount invoiced do not
accumulate because they are automatically reconciled
13
One Integrated Company Code in Umoja

Three-Way Matching

Code in Umoja
One integrated company code in Umoja replaces multiple instances of Sun/IMIS.

Provides consolidated reports and faster access to information from a central
source
Decreases manual effort in obtaining information from multiple sources
Integrated Vendor Master Data allows the same vendor to be used across
missions, eliminating duplication of records
14
Umoja Main Ledgers

Each module also maintains a ledger and generates documents that make use of the
coding block elements. These are the four main ledgers of Umoja:
General Ledger (maintained in the FI module)
Controlling Ledger (maintained in the CO module)
Funds Management Ledgers (maintained in the FM module)
Grants Ledger (maintained in the GM module)
General
Ledger (G/L)
Controlling
Ledger
FM Ledger
Grants
Ledger
G/L only records

actual postings. Every
financial transaction
conducted in Umoja
has a corresponding
posting within the
G/L.
The Controlling ledger

records postings used
for cost and
management
accounting.
The FM ledger records

budget-relevant
transactions such as
budget, consumption,
budgetary resources,
etc., and provides
budget availability.
The Grants ledger

records grant-relevant
transactions (trust
funds).
15
General Ledger in Umoja

G/L is the central accounting record for Umoja. It contains the balances of all offsetting
credit and debit accounts. Every financial transaction conducted in Umoja has a
corresponding posting within the G/L.
G/L accounts form the basis of segregating financial data into the following accounting
groups (IPSAS elements of financial statements):
Assets
Liabilities
Income
Expenses
Fund
Balances
Transactions that are performed in external legacy systems are brought into Umoja via an
interface. These transactions are then posted to the G/L. For example, payroll is performed
in Progen, then uploaded into Umoja via an interface.
16
General Ledger (G/L) Accounts

A consolidated list of all G/L and subsidiary ledger accounts housed in Umoja is stored in
the systems Chart of Accounts. Account numbers and corresponding accounts used in
Umoja are listed below:
1xxxxxxx Current Assets
2xxxxxxx Non-current Assets
3xxxxxxx Current Liability
4xxxxxxx Non-current Liabilities
5xxxxxxx Net Assets

6xxxxxxx Revenue
7xxxxxxx Expenses
88xxxxxx Memo Accounts + Excluded from F/S
To make a posting in Umoja, a posting key is used for each line item to define:
Side of the account the line item is posted to, debit or credit
Type of account the line item is posted to
Fields contained in the entry screens
17
Financial Accounting Module in Umoja

In Umoja, the Financial Accounting (FI) module is designed to capture UNs business
transactions in a manner that will satisfy external reporting requirements.
A consolidated list of all Umoja G/L accounts housed in Umoja is stored in the systems
Chart of Accounts.
Note: Budget-relevant transactions

are recorded in a separate budgetary
ledger in the FM module, parallel to
the G/L.
General Ledger
Umoja Chart of Accounts
G/L
Accnt 1
G/L
Accnt 2
G/L
Accnt 3
G/L
Accnt 4
G/L
Accnt 5
G/L
Accnt 6
G/L
Accnt 7
G/L
Accnt 8
G/L
Accnt 9
G/L
Accnt
10
G/L
Accnt
11
G/L
Accnt
12
18
General Ledger vs. Subsidiary Ledgers

The subsidiary ledger is a supporting ledger that provides detailed information about
individual accounts, which are not stored at the detailed level in the G/L.
Subsidiary ledgers divide financial data into distinct and more manageable categories.
The total of all individual account balances in the subsidiary ledger equals the balance of
the reconciliation account in the G/L.
General
Ledger
Postings to Reconciliation Accounts
Subsidiary
Ledgers
19
A/P Subsidiary Ledger

The A/P subsidiary ledger (or sub ledger) is one of three sub ledgers in Umoja.
General
Ledger
Accounts
Receivable (A/R)
Accounts
Payable (A/P)
(Contains customer
accounts)
(Contains vendor
information)
Fixed
Assets (F/A)
(Contains assets not
recorded in Galileo)
20
Reconciliation Accounts
Umoja uses reconciliation accounts to reconcile financial information contained in the
subsidiary ledgers in real time. The entries in the reconciliation account can only come
from a subsidiary ledger. Direct postings are not allowed in G/L.
For example, fuel purchased from a vendor will be recorded in G/L as follows:
A/P Subsidiary Ledger
General Ledger
A/P- Reconciliation Account

Journal Voucher
Vendor Account
Debit Fuel
2000
Credit Vendor 2000
2000
In the A/P subsidiary

ledger, the vendor is
credited with the amount
due
Expenses
2000
2000 Fuel
In G/L, the A/P reconciliation

account has a corresponding
credit entry to reconcile with
the A/P subsidiary ledger.
21
G/L Accounts used for Accounts Payable
Entries in the A/P

Sub-Ledger
Entries for
Revaluation of
Monetary Balances
Entries for late

audit adjustment
G/L Account
Reason
Reconciliation accounts
Ensures that the sub ledger is

always reconciled with G/L
Revaluation accounts
Revaluation entries cannot be

posted to the reconciliation G/L
accounts
Manual Adjustment accounts
Should be recorded at the G/L

level since the sub ledger may
be closed earlier than the G/L
22
Recording A/P Entries in Umoja G/L Accounts

For each Business Partner Group, Umoja provides a standard numbering convention for
each type of G/L account:
Account Type
Ending with Digits
Reconciliation account
10
Manual Adjustment account
20
Revaluation account
99
23
Business Partner Groups in Umoja
Member States
Non-member
States
Other
Governmental
Entities
UN Agencies,
Funds and
Programs
Individuals
(Staff Members,
Retirees and
Survivors)
Individual
Consultants and
Contractors
NGOs
Commercial
Vendors
24
G/L Accounts for Accounts Payable

For standard invoice transactions, the following G/L accounts (current liability) are
automatically derived by Umoja based on the Business Partner Group:
Business Partner Group
Reconciliation G/L Account
Member States
33201010
Non-Member States
33201110
Other Governmental Entities
35101210
UN Agencies, Funds, and Programs
35101310
Non-Governmental Organizations
35101410
Commercial Vendors
35101510
Individuals (Staff Members, Retirees,

Survivors, etc.)
35101610
Individual Contractors and Consultants
35101810
25
Special GL Indicators
Special GL Indicators (SPGL) are used to identify transactions that should be recorded to
alternate G/L accounts instead of the automatically derived Reconciliation account. In
Umoja, the following SPGL are used for A/P:
Transaction
SPGL
Down payments to commercial vendors
Advances to implementing partners
Travel advance
Salary advance
Security deposits
Loans receivable
Note: In Umoja, SPGL are used in conjunction with the Down Payment functionality, which
is covered later in the course.
26
Balancing FI Dimensions Through Document Splitting

Umoja contains a specific functionality that assists users in managing the G/L. One key
functionality is document splitting.
Umoja performs document splitting for all inter-fund entries to ensure that these
entries are balanced at the fund, business area, grant and segment level. Document
splitting achieves this balance by automatically generating additional line items for
transactions that must be divided amongst multiple dimensions.
There are four splitting dimensions for Umoja as shown in the diagram below:
Fund
Business
Area
Grant
Segment
27
Document Splitting in Umoja

The concept of document splitting is demonstrated in the tables below:
A vendor invoices $100 for a service provided for two separate UN missions. The
payable appears in the G/L as one line item because one invoice was provided by the
vendor for the service delivered.
Account
Mission/Fund
Vendor Payable
Amount
(100.00)
Using document splitting, the first line item is separated into two separate line items,
each assigned to the appropriate fund for the amount due from that fund.
Account
Mission/Fund
Amount
Payable
0001
(40.00)
Payable
0002
(60.00)
28
Touch Points
The Umoja system is an integrated system and its modules integrate with each other to
complete a process. Touch points refer to these integration points across Umoja modules,
processes and activities.
Treasury
Controlling
General Ledger
Grant/Fund
Management
Accounts
Receivable
Accounts
Payable
Asset
Accounting
Sales and
Distribution
Real Estate
Material
Management
29
Learning Checkpoint 1
Invoices are parked by the ____________.
Fill in the blank with the correct option.

A.
Financial Accounting User (A/P)
B.
Financial Accounting Approver (A/P)
C.
Cashier
D.
Financial Accounting Senior User (G/L, A/R, A/P and CO)
30
Invoices are parked by the ____________.

A.
B.
C.
Cashier
D.
Financial Accounting Senior User (G/L, A/R, A/P and CO)
Option A is the correct answer. Invoices are parked

by the Financial Accounting User.
31
Which of the following transactions require a Special GL Indicator?
Select all that apply.

A.
Commercial Invoice
B.
Commercial Down Payment
C.
Salary Advance
D.
Travel Advance
E.
Security Deposit
32
Which of the following transactions require a Special GL Indicator?
Select all that apply.

A.
Commercial Invoice
B.
Commercial Down Payment
C.
Salary Advance
D.
Travel Advance
E.
Security Deposit
Options B, C, D and E are the correct answers.

Only commercial invoices do not require a Special
GL Indicator.
33
Module 1 Summary
The key points covered in this module are listed below:
G/L is the central accounting record for Umoja
A consolidated list of all Umoja G/L accounts housed in Umoja is stored in the
systems Chart of Accounts
Reconciliation accounts are used to reconcile (update in real time) the G/L based
on postings to the A/P sub ledger
Special GL Indicators are used to make postings to accounts outside of the

standard Reconciliation account (for example for down payments)
Business Partner Groups in Umoja each have their own set of Reconciliation
accounts
34
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
35
Module 2 Objectives
Identify the effect of tolerances on invoice processing
Describe when non-PO invoices are applied
Describe how credit memos and down payments are implemented in Umoja
36
Key Terminology
Key Term
Description
Goods Receipt/Invoice
Receipt (GR/IR) Account
It is the temporary payable account used to compare

goods/services received versus invoice (or amount) received.
This account is credited when goods are received. When the
invoice is posted, this account is debited and the
corresponding line items are cleared.
Credit Memo
It is a document used to adjust the amount due to a vendor as

a result of damaged goods, errors or allowances. These are
sometimes referred to as credit notes.
Payment Retention
It is a payment that can be applied when a pre-determined

portion of an invoice is retained until a defined due date and
until confirmation that conditions for retention have been met.
Special GL Indicator
It is assigned to certain A/P and A/R transactions to segregate

postings through the use of alternative Reconciliation
accounts. For example, these are used for specific types of
down payments, such as a salary advance.
37
Key Terminology
Key Term
Description
Invoice Reduction
It is used to lower the amount of an invoice due to a vendor in

comparison to the physical invoice received (in case of
missing/damaged goods or invoice error).
Unplanned Charges
It is used to add charges to an invoice that is not captured in

the Goods Receipt or PO (in case of unplanned delivery/freight
charges for example).
38
Accounts Payable Document Types

In Umoja, most transactions output a specific type of document, such as an invoice,
with a unique ID. Below are the different document types relevant for A/P in Umoja:
Document Type
Code
Description
Invoice (with PO)
RE
A/P document that links to a PO and matches against

Goods Receipt using Logistics Invoice Verification (LIV)
Credits A/P sub ledger vendor account
A/P document used for non-PO payables

Credits A/P sub ledger vendor account
Entered manually or through an Excel file
Non-PO Invoice below $4000

USD with Certification
KR
Non-PO Invoice with

Earmarked Fund
KH
Non-PO Invoice above $4000

USD without Certification
KE
Down Payment Request
KA
Used for advance payments

May or may not reference a PO
Vendor Credit Memo
KG
A/P document to reduce amount payable to a vendor

or record amount recoverable from a vendor
Debits A/P sub ledger vendor account
Created when goods or services are received in Umoja
Goods Receipt
WE
39
Accounts Payable Document Types

Document Type
Code
Description
Outgoing Payment
KZ
Vendor Clearing Document KC
Automatically created by Cash Management when

payment is sent
Debits A/P sub ledger vendor account
Clears a payable document (KR, KG, RE) with an
Outgoing Payment (KZ)
40
Processing an Invoice
Although the general process for managing invoices remains the same under Umoja, the
following distinctions can be highlighted:
Financial Accounting User (A/P) enters/types the invoice in Umoja, attaching a
scanned copy
Workflows reduce the need to follow up manually with individual approvers
Invoices are generally posted after Goods Receipt (GR) has been entered for each
invoiced item. They can also be posted before the Goods Receipt. In this case, the
invoice is parked and sent to the Certifying Officer who will process the invoice
after the GR is entered. The invoice will then be approved by the Approving Officer
Three-Way Match links the invoice to the PO and Goods Receipt to ensure there is
no mismatch. The process ensures payment for more than goods received is not
made until all three documents match
41
Invoices without PO's

Umoja introduces the concept of creating invoices with reference to a Funds Commitment
instead of a PO. This applies in the following scenarios:
Consultants/Individual Contractors
Grants process for implementing partners
Official Travel
Entitlement Travel
Miscellaneous Obligating Documents
Fellowship Study Tour
Education Grant
Self-Insurance (unless treated as special PO)
Appendix D Claims All Fund Types
PK Local TCC / PCC payments
42
Invoice Transactions in Umoja

There are two main transactions within Umoja ECC to enter an Invoice:
MIR7 is used for standard invoices for goods and services in reference to a PO
FV60 is used in cases when there is no PO. Invoices processed with FV60 may refer
to a Funds Commitment
MIR7
FV60
Invoice entered with reference to a PO
Invoice entered without reference to a PO
Line items are derived automatically
Line items must be entered manually or

through an Excel file
Saving the document as Complete will

automatically post the invoice if three-way
match is successful
Saving the document as Complete will

forward the invoice to be approved and
posted by A/P Approver
Parking the document will trigger

workflow and send to A/P Approver for
review
Parking the document will save for later

completion but will not trigger workflow
Holding the document will save for later

completion but will not trigger workflow
No Hold functionality
43
Invoice Processing Scenarios

Three-Way Match
Standard
process for
goods/services
Purchase Requisition/
Shopping Cart
Low Value Purchase Order

Under $4000 USD
Purchase
Order
Goods
Receipt
Invoice
Purchase
Order
Goods
Receipt
Invoice
Non-PO Invoices
Over $4000 USD
Non-PO Invoices
Under $4000 USD
Earmarked Funds
Document (if required)
Manual
Invoice
Manual
Invoice
All POs over the low value threshold of $4,000 originate from a Shopping Cart created
in the Umoja SRM system. Invoices are then entered against these POs.
For requisitions less than the threshold, a Low Value Acquisition can be created instead,
eliminating the need for a Shopping Cart.
44
Three-Way Match
Financial Implications
Umoja ECCs automated Three-Way Match enables the cross-check of PO, Goods
Receipt and invoice
If the documents cannot be matched within the Invoice Tolerance, the system
automatically blocks the payment
If the documents do match or are within the Invoice Tolerance, payments are
automatically processed according to payment terms
If physical discrepancies (for example physical damage) are found during Goods Receipt,
a blocked status can be placed on the goods, resulting in no financial posting.
Umoja ECC
performs
three-way
matching
Goods Receipt
Invoice
Umoja
ECC
Purchase Order
45
Three-Way Match
Umoja Three-Way Matching process allows the comparison of quantities, price per unit,
terms, etc. that appear on the vendors invoice with the information on the PO and
Goods Receipt.
Purchase Order
Goods Receipt (GR)
Invoice
Item 1
Material: -------Quantity: --------
Item 1
Item 1
Item 2
Item 2
Item 2
Contract terms
Contract terms
Contract terms
46
Three-Way Match
The Three-Way Match process is used to match goods/services received with invoices.
The GR/IR account is credited when good are received and debited (that is cleared) when
the relevant invoice is posted.
The LIV process is depicted in the following diagram:
Purchase
Request
Purchase
Order
Goods
Receipt
FI Posting
GR/IR
X
Invoice
Verification
FI Posting
Vendor
Payment
FI Posting
Expense
X
A/P
X
GR/IR
X
Cash
X
A/P
X
47
Invoice Tolerances
Invoices can be posted by the User (A/P) only if there is
a successful Three-Way Match. The match is not
successful:
If the Invoice is within Tolerance

If the invoice is within the Invoice
Tolerance ($4,000 USD or 10% of the
PO Line Item, whichever is lower), the
User (A/P) may enter an invoice
reduction, credit memo or
unplanned charges
If the Invoice is Incorrect

If the difference between the
documents is more than the Invoice
Tolerance, the User (A/P) will not be
able to post the invoice and must send
for review using automated workflows
48
Workflow Approvals
Workflows are used to forward financial documents for review to the appropriate
Approvers. Certain documents (credit memos, down payment requests) require the
Approver (A/P) to approve before they can be posted.
In the example below, Umoja automatically routes the document to the appropriate
certifying and approving officers based on the account assignment. The approvers
will see the invoice in their inbox in Umoja after it is ready for review.
The User (A/P)

Saves the
document as
Complete
The Approver
(A/P) approves
the document
The document is
posted.
49
VAT Process
If an invoice is received with Value Added Tax (VAT), there are three possibilities
based on the host country:
The UN is exempt from taxes altogether and the vendor is

informed of the exclusion.
The Financial Accounting User (A/P) chooses a tax code
for non-reimbursable tax.
The Financial Accounting User (A/P) chooses a tax code for
reimbursable tax.
50
VAT Process: Example

In the example below, the invoice has been posted with the full amount and the
appropriate VAT tax code selected.
The full amount (that is` amount including VAT) is credited to the Vendor Reconciliation
account. The net amount is debited to GR/IR and VAT amount to VAT Recoverable. Both
these amounts are calculated by Umoja depending on the VAT code selected.
GR/IR
1000
VAT
Recoverable
Automatically posted
by selecting
the VAT code
200
Vendor
1200
51
Credit Memos
Credit Memos reduce the amount payable to a vendor or record amount recoverable
from a vendor as a result of damaged goods, errors or allowances.
Credit memos are entered by the User (A/P) with or without reference to a specific
PO
All credit memos must be submitted for approval through workflow. The Approver
(A/P) reviews the credit memo and approves or rejects as necessary
Upon approval, the credit memo will be picked up in the next Payment Run made
to the vendor. The credit amount will be automatically subtracted from the
amount being paid to the vendor
52
Down Payments
The following steps explain how down payments are processed in Umoja:
1
The Financial Accounting User (A/P) creates a down payment

request in Umoja.
2
The Financial Accounting Approver (A/P) approves or rejects

the request.
3
If approved, the payment is made on the Due Date specified

in the original request.
4
When the next invoice against the vendor is entered in Umoja,

the system will remind the user about the down payment. The
user can apply/clear the down payment against the invoice.
Down payments are processed using Special GL Indicators (SPGL). The Financial
Accounting User (A/P) uses the Special GL Indicator in Umoja to designate which type
of down payment is being used. (for example SPGL A = Commercial Down Payment).
53
Down Payments: Budget Consumption

There are several types of down payments applied to payables in Umoja. Amongst
these, some down payments consume budget while some down payments do not
consume budget.
Down Payment Types that

Consume Budget
Commercial down payment
Travel advance
Advances to implementing
partners
Down Payment Types that do not

Consume Budget
Salary advance
Security deposit
Loan receivable
54
Payment Retention
The process for entering payment retention begins when a retention percentage is
entered in the PO. The full invoice is posted at the time of processing.
The retention amount may be automatically posted by a certain date or manually
after certain retention requirements are met.
55
Invoice Processing without a PO

Invoices can also be parked and posted without
reference to a PO. For example, invoices for
travel claims and daily allowance of troops can
be parked and posted without reference to a PO.
Example: Travel Claims

Certain types of Non-PO invoices,
such as Travel Claims, require a
special type of Earmarked Funds
Document called a Funds
Commitment*.
Note: For further explanation of Earmarked Funds Documents, please see the Funds
Management Overview course.
56
Touch Points
The Umoja system is an integrated system and its modules integrate with each other
to complete a process. Touch points refer to these integration points across Umoja
modules, processes and activities.
Treasury:
Outgoing
Payments
Processed
Invoice
If Three-Way Match is successful the
invoice is automatically approved and
passed to Treasury for payment.
At this stage the approved invoice

is scheduled for payment.
57
Invoices can be parked for approval (that is posting) if the invoice is within ______or
______of the PO at the line item level, whichever is lower.
A.
$3,000 USD; 20%
B.
$4,000 USD; 20%
C.
$1,000 USD; 10%
D.
$4,000 USD; 10%
58
Invoices can be parked for approval (that is posting) if the Invoice is within ______or
______of the PO at the line item level, whichever is lower.
A.
$3,000 USD; 20%
B.
$4,000 USD; 20%
C.
$1,000 USD; 10%
D.
$4,000 USD; 10%
Option D is the correct answer. Invoices can be

parked for approval (that is posting) if the invoice is
within $4,000 or 10% of the PO, whichever is
lower.
59
Which of the following down payment types require a Funds Commitment?
Select the correct option.
A.
Travel Advance
B.
Salary Advance
C.
Security Deposit
D.
Loan Receivable
60
Which of the following down payment types require a Funds Commitment?
A.
Travel Advance
B.
Salary Advance
C.
Security Deposit
D.
Loan Receivable
Option A is the correct answer. A travel advance is

a down payment type that consumes budget.
61
An Umoja user wishes to purchase goods worth $1,500. Which is the correct order of
activities that must take place?
A.
Good received > Manual Invoice entered
B.
Shopping cart created in SRM > Invoice entered
C.
Low value acquisition PO created in SRM > Goods Received > Invoice entered
D.
Shopping cart created in SRM > Low value acquisition created > Invoice entered
62
An Umoja user wishes to purchase goods worth $1,500. Which is the correct order of
activities that must take place?
A.
Good received > Manual Invoice entered
B.
Shopping cart created in SRM > Invoice entered
C.
Low value acquisition PO created in SRM > Goods Received > Invoice entered
D.
Shopping cart created in SRM > Low value acquisition created > Invoice entered
Option C is the correct answer. For requisitions

less than $4,000, a Low Value Acquisition can be
created, eliminating the need for a Shopping Cart.
63
Module 2 Summary
The Three-way Matching process is used to match goods received with
invoices received for both goods and services. The GR/IR account is
credited when goods are received and debited when the relevant invoice is
posted
Invoices can be parked for approval (that is posting) if the invoice is within
$4,000 or 10% of the PO, whichever is lower
There are several types of down payments applied to payables in Umoja

out of which some down payments consume budget while others do not
consume budget
Invoices can also be parked and posted without reference to a PO
64
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
65
Module 3 Objectives
Describe the Local Troop Payment process in Umoja
Identify the role played by A/P in the Petty Cash process
Explain the steps to make a payment to another UN agency
Explain the steps to make a payment on behalf of another UN agency outside of
Umoja
66
Key Terminology
Key Term
Cash Journal
Description
It is an online tool in Umoja for recording cash disbursements
and cash or cheque receipts. It is used to track petty cash and
imprest accounts.
67
Local Troop Payment Process

The following process is used to cover the daily allowances and leave allowances for
local troops:
1
Financial Accounting User

(A/P) creates and parks an invoice
without a PO but with reference to a
Funds Commitment.
Payments are made through local bank.

2

reviews and posts the document.
After posting, the payments are

processed by Treasury/Cashier.
68
Payments to UN Entities outside of Umoja

For payments made by other UN entities outside of Umoja (not including UNDP), the following
process is followed:
1. Umoja Entity Procures Goods The Umoja entity follows the standard Procurement
process, sending a PO to a Third-party vendor
2. Goods are Received and an Invoice is posted The invoice is posted as per a standard
commercial payment
Debit: GR/IR
Credit: Vendor
3. Inter-Office Voucher (IOV) is created In Umoja, the IOV Financial Authorization
document references the PO number. This document notes the entity that will be making
the payment
4. Credit Memo is created The Credit Memo is used to clear the credit from the Vendor
account
Debit: Vendor
Credit: Special A/R IOV Clearing account for entity
5. No Payment is made While the non-Umoja entity will pay the vendor, the amount owed
to them will be held in the designated Clearing account until the entity is brought onto
Umoja
69
Payments made by UNDP

There are two main scenarios for when the United Nations Development Programme
(UNDP) may make a payment on behalf of a UN entity on Umoja:
Procures and Acts as Pay Agent
Acts as Pay Agent
UNDP assists with the acquisition

of goods and/or provision of
services to support technical
cooperation or other
Peacekeeping operations that are
administered by UN. Following
the acquisition of goods and
services, UNDP pays the vendor.
UNDP only acts as pay agent. In

this case, the procurement
process is performed by UN.
However, UNDP pays the invoice.
For all UNDP payments, an advance (down payment) is required to be made to UNDP.
This is then drawn down for all payments made on behalf of the Umoja entity.
70
UNDP Procures and Acts as Pay Agent

UNDP Procures and Acts as Pay Agent
1. PO created (Vendor is UNDP)

2. IOV Financial Authorization created for UNDP
3. Goods Receipt posted
4. Monthly process of capturing UNDP service fees and adjustments in
Service Clearing Account (SCA). This occurs automatically via interface
5. Down payment is made again to UNDP to replenish funding for future
purchases
71
UNDP acts as Pay Agent Only

UNDP acts as Pay Agent only
1. PO created (to actual Third-party vendor)

2. Goods Receipt posted
3. Invoice is posted with a special payment method. Since UNDP is
paying the vendor this will credit a specific temporary G/L account
instead of the Vendor account
4. IOV Financial Authorization created for UNDP
5. Down payment is made again to UNDP to replenish funding for future
purchases
72
________ creates and parks a payable document to the contingent paymaster.
A.
Cashier
B.
C.
D.
Treasury
73
________ creates and parks a payable document to the contingent paymaster.
A.
Cashier
B.
C.
D.
Treasury
Option C is the correct answer. The Financial

Accounting User (A/P) creates and parks a payable
document with the contingent paymaster.
74
Module 3 Summary
The Local Troop Payment process is used to cover the daily allowances and leave
allowances for local troops
There are several scenarios in which another UN agency outside of Umoja may
provide services to the secretariat
The two main scenarios when UNDP may make a payment on behalf of a UN entity
are procures and acts as pay agent and acts as pay agents
75
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
76
Course Summary
The key points covered in this course are listed below:
The G/L is the central accounting record for Umoja
A consolidated list of all Umoja G/L accounts housed in Umoja is stored in the
systems Chart of Accounts
Reconciliation accounts are used to reconcile (update in real time) the G/L based
on postings to the A/P sub ledger
Integration across A/P areas allows business documents to be linked and decreases
manual effort in obtaining information
The Three-way Matching process is used to match goods received with invoices
received for both goods and services. The GR/IR account is credited when goods
are received and debited when the relevant invoice is posted
Invoices can also be parked and posted without reference to a PO for

non-commercial payments
77
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
78
Course Assessment
Now that you have completed all the modules in this course, you can test your
knowledge by completing the Course Assessment.
To receive credit for completing this course, you must pass this assessment with a
minimum score of 90%.
To complete the assessment you must return to the Learning Management System:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course assessment

5. Click the Submit button once you have completed the assessment
79
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
80
Course Survey
Your feedback is important to the continuous improvement of our training program.
Please complete the Survey for this course using the following steps:
1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course survey
5. Click the Submit button once you have completed the course survey
81
Congratulations! You have successfully completed the

Accounts Payable Overview course.
82

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FI113 Umoja Accounts Payable

Umoja Accounts Payable Overview Version 11

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Course Duration: 2 hours

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It refers to accounts within the G/L that are automatically

It indicates when a transaction should post to a different

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Roles & Responsibilities

Creates vendor invoices and vendor credit memos within

Reviews and approves vendor invoices and credit

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Roles & Responsibilities

Creates and maintains the cost accounting allocation

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Key Benefits & Changes of Umoja

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Integration Across Areas

Integration Across Areas

One Integrated Company

Integration across areas allows business documents to be linked.

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Integration Across Areas

One Integrated Company

Three-way matching is used to automatically check consistency of documents.

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One Integrated Company Code in Umoja

Integration Across Areas

One Integrated Company

One integrated company code in Umoja replaces multiple instances of Sun/IMIS.

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Umoja Main Ledgers

G/L only records

The Controlling ledger

The FM ledger records

The Grants ledger

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General Ledger in Umoja

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General Ledger (G/L) Accounts

5xxxxxxx Net Assets

Financial Accounting Module in Umoja

Note: Budget-relevant transactions

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General Ledger vs. Subsidiary Ledgers

Postings to Reconciliation Accounts

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A/P Subsidiary Ledger

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A/P- Reconciliation Account

In the A/P subsidiary

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In G/L, the A/P reconciliation

G/L Accounts used for Accounts Payable

Entries in the A/P

Entries for late

Ensures that the sub ledger is

Revaluation entries cannot be

Manual Adjustment accounts

Should be recorded at the G/L