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CHECKS
         COLLECTION
          SOLUTION
         Prepared By
SAKR Internal FICO Consultant
  Mohamed A. El-Kaream
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.
Main Concepts
• The country specific (Greece-Thailand-Turkey)
  solution uses terms like:

-   Portfolio(s).
-   Transfer Account.
-   Interim Account.
-   Bank Liability Account.
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.
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.
Process Flow Diagram
& The Possible Available
       Scenarios
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
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”
Continue Scenario.. 1
3. At the Bank

      - Refused

      Reverse the financial entries through the system
      either to the payment level or the invoice level.
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
Continue Scenario.. 2
• Now the Check gets Bounced & Cleared.

     Dr. Customer
     Cr. Bank Bounced Checks
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
Continue Scenario.. 3
- Add to the new Portfolio

Dr. Bank Liability Account
Cr. Old Portfolio
--------------------------------------
Dr. New Portfolio
Cr. Portfolios Transfer Account
Continue Scenario.. 3
• From here you can carry on with any of the steps
  presented previously in the above Scenarios.
THANK YOU

              Checks in Safe
                Solution

         Prepared By
SAKR Internal FICO Consultant
  Mohamed A. El-Kaream

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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
  • 7.
  • 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