Functional Design AP357 - FD - RTR.I.22.RTR - Interface - Positive Pay Reconciliation Inbound

1
AP357_FD_RTR.I.22.RTR Interface Version 1.2

Positive Pay Reconciliation Inbound
Functional Design
AP357_FD_RTR.I.22.RTR_Interface_Positive Pay Reconciliation
Inbound
Modified:07/12/2017 19:40:49 1 Last modified by: seema.yadav

2011 Accenture. All Rights Reserved
2
Usage guidelines and Specific Instructions:
Document Flow- The flow of the document is generic. Specific changes to the flow will be
required to be done by the client team to suit the client context.
Document Content-The content explains the functional specification in a generic manner.

Specific changes are required to be made to meet client requirement.
Section 2 The overall business requirements along with the assumptions, dependencies,
target audience, initiating process, system details, processing method and volume of
transactions are to be clearly specified in this section.
Section 3 This section caters to the detailed functional requirement. The process flow
diagram is to be compulsorily designed and documented here. Finer details like the transfer
mechanism, Source/ Target layout and mapping, transaction screen sequence, error
handling methods are to be furnished in this section.
Section 4 - The section needs to cover all the key business test conditions that the
interface has to satisfy.
Section 5 Any recommendations to the design approach needs to be documented here.
Section 6 All issues that have cropped up so far and their present status are to be
highlighted in this section.

3
Document Information
Deliverable Name AP357_FD_RTR.I.xx.RTR_Interface_Positive Pay Outbound

Author Seema Yadav
Owner Craig Cihlar
Team RTR
Status
Version 1.0
Document Review & Sign-off
Signatories
Role Name Signature Date
RTR Team Lead Craig Cihlar

RTR Team Lead Daniel Harris
Reviewers
Role Name Comments Received Date
Director of Treasury Frank Nix
Operations, RTR
Team
Revision History
Version
Date Author Revision Description
No.
1.0 2/6/2012 Seema Yadav New
Other Related Documents
<Please insert links to related Documents (issues, data entities, etc.).>
Related Document Comment

CF_BP315_Execute Automatic Outlines the procedures for preparing outgoing
Payment Program payments and execution of the payment program.

4

5
Contents
1. Sign-off Checklist .....................................................................................................................................6

2. Overview and Scope................................................................................................................................6
2.1 Functional Description ..........................................................................................................................6
2.2 Dependencies / Constraints ................................................................................................................6
2.3 Assumptions ...........................................................................................................................................7
2.4 Security Requirements .........................................................................................................................7
2.5 System Details and Direction ..............................................................................................................7
2.6 Transaction Volume ..............................................................................................................................7
2.7 Frequency and Timing ..........................................................................................................................7
2.8 Initiating Process / Transaction / Program ......................................................................................7
2.9 Processing Type .....................................................................................................................................7
3. Detailed Functional Requirements ....................................................................................................7
3.1 Functional Specification .......................................................................................................................7
3.2 Interface Process Flow Diagram .........................................................................................................8
3.3 Proposed Transfer Method / Program ...............................................................................................8
3.4 Target / Source Data Layout...............................................................................................................9
3.5 Mapping SAP fields to Source / Target .............................................................................................9
3.6 Selection Screen Details ......................................................................................................................9
3.7 Transaction Screen Sequence (if no load module exists) .............................................................9
3.8 Post Interface Activities .......................................................................................................................9
3.9 Legacy System Extract/Load Procedure ...........................................................................................9
3.10 Network Integration ...........................................................................................................................9
3.11 Reporting ..............................................................................................................................................9
3.12 Error Handling ................................................................................................................................... 10
3.13 Reconciliation Procedures and Audit Requirements ................................................................. 10
3.13.1 Approach .............................................................................................................................. 10
3.13.2 Metrics .................................................................................................................................. 10
3.14 Process and Operational Considerations ..................................................................................... 10
3.14.1 Performance ........................................................................................................................ 10
3.14.2 Batch Requirements .......................................................................................................... 10
3.14.3 Data Maintenance Requirements .................................................................................... 11
3.14.4 Re-Use Details .................................................................................................................... 11
3.14.5 Other ..................................................................................................................................... 11
3.15 Change Management Requirements ............................................................................................ 11
4. Testing Requirements ......................................................................................................................... 12
4.1 Key Business Test Conditions .......................................................................................................... 12
4.2 Technical Test Conditions ................................................................................................................. 12
4.3 Risk and Controls Test Conditions .................................................................................................. 12
4.4 Testing Considerations/Dependencies ........................................................................................... 12
5. Design Alternatives .............................................................................................................................. 12
6. Outstanding Issues .............................................................................................................................. 12
7. Appendix ................................................................................................................................................... 13
7.1 Glossary of Terms .............................................................................................................................. 13
7.2 Additional Supporting/Reference Documentation ....................................................................... 13

6
1. Sign-off Checklist
Use the following link to access the checklist template:
http://advance/ProjectDocuments/Design/Functional%20Design%20Templates/FD%20Peer%20Rev
iew%20Checklist.xls
When the checklist has been completed, rename it and save it with the functional design
document.
2. Overview and Scope
2.1 Functional Description
The objective of the document is to create the additional clearing functionality in SAP ECC
system via an ABAP Program. This program brings more flexibility to the clearing process for
clearing the bank clearing accounts and the Bank Main accounts. Any matching transactions
are cleared. The program can be run manually by the business or automatically by scheduled
jobs against pre-defined parameter variants.
This Interface will be developed with the following two main objectives.
1. To import Positive Pay Reconciliation file from Harris Bank and RBC systems into SAP.
2. The interface would also process the file to post clearing accounting entries on bank clearing
GL and bank main GL account.
Bank reconciliation fundamentally is the clearing of open items and transferring of amounts
between GL accounts. For instance, check payments should be issued for an "uncleared check
payments" account initially. Then, a file from the bank would eventually indicate when this
check has been cleared. Within SAP, you would configure the process to transfer the check
amount from the "uncleared check payments" account to either a "cleared check payments"
account or the "master bank" GL account.
The file will be sent to CF from the Bank. It will consist of the various clearing Information.
Based on the selection criteria of the cheque number and amount the ABAP program will match
to checks in the system and the bank file and then sends back to the bank and the positive pay
processing is performed. Once the Bank Reconciliation is completed, one has to take the details
of Bank Reconciliation Statement Report for the audit ( Internal/External) purpose. Generally it
gives the details of Balance as per Bank, Cheque Issued but not debited by Bank and the issue
deposited but not credited by Bank and it arrives the Balance as per Ledger/Book.
The benefit of the custom program is that it will help in correctly clearing a higher proportion of
Bank clearing accounts and Bank main account open items with little or no manual involvement,
minimising the work load of the team involved in the open item clearing process.
2.2 Dependencies / Constraints

Bank Configuration is required in the ERP system
The file format for the positive pay file must be identified
To keep the design and the interface complexity low, it would help to arrive at a common
file format for positive pay across multiple banks
Encryption and SFTP protocols must be established and coordinated with the banks
Banks must provide access to their FTP server
7
The banks must provide a directory structure to use for testing of SFTP
2.3 Assumptions
Bank(s) use common file formats for positive pay file
Positive pay files will be encrypted and pushed from the banks FTP server
Distinct PGP encryption keys will be used for each bank
Encryption keys will be shared with the bank.
Variants will be documented and created pre go-live in SAP ECC. Some new variants may be created
in SAP ECC. Any existing variants which are no longer required will not be copied into ECC.
2.4 Security Requirements

Restricted access to the file directories is required for any files created during this process.
These files should only be accessed by members of the Treasury group in accordance with
current SOX compliance controls.
PGP Encryption keys will be created, shared with the bank(s) and then managed by the
corporate security officer.
2.5 System Details and Direction

Processing of the positive pay file is an Inbound interface between SAP and the bank(s).
2.6 Transaction Volume

The transaction volume is not available. The estimated transaction volume would be 50 per day;
assuming 50 checks per day.
2.7 Frequency and Timing

The outgoing positive pay file process will be scheduled to execute hourly
2.8 Initiating Process / Transaction / Program

The payment file will be created using a custom program that reads from payment tables.
2.9 Processing Type

The interface will be processed both on schedule and ad hoc. There may be a delay between the
time the export file is created and the time in which the bank receives the file depending on the
methodology of the FTP script.
3. Detailed Functional Requirements
3.1 Functional Specification

Requirements
A secure file directory must be established to hold the positive pay file for the bank.
Each bank should have its own file directory to limit the risk of processing the wrong
positive pay file
The process must be capable of importing the positive pay files in format agreed with the
banks
The process must be capable of importing the positive pay files for both domestic and
internationally domiciled bank accounts.

8
Process steps
Refer to CF_BP315_Execute Automatic Payment Program for complete process flow for
the creation of checks
Exception logs will be reviewed and corrective action may be taken by the initiator, if
necessary.
Acknowledgement files from the banking institutions should be emailed to the Treasury
group
3.2 Interface Process Flow Diagram
Click the icon, which will display the open item details for the Cheque deposited but not credited
by Bank.
3.3 Proposed Transfer Method / Program

The proposed transfer method will be SFTP of the encrypted positive pay file from the financial
institution

9
3.4 Target / Source Data Layout
The generation of the Inbound positive pay file is accomplished through custom program. The
information on the positive file should include:
Check Number
Payment Date
Payee Name
Amount
<To be confirmed with business>
3.5 Mapping SAP fields to Source / Target

<This section to be updated after we have clarity on the structure of the positive pay file>
3.6 Selection Screen Details
Name Table field / Select- Comments Default

Check Box / Option(S) or Value
Radio Button Parameter(P)
Key Date P Date for the Reconciliation, Current
To and from date
Company Code P
House Bank P
Account P House Bank Account
Amount P
3.7 Transaction Screen Sequence (if no load module exists)

TBD
3.8 Post Interface Activities

The positive pay files will be encrypted and transported from the banks using SFTP.
Exception logs must be reviewed by the initiator to identify and take action on any positive pay
files that were not uploaded or processed successfully.
Acknowledgement files that are sent by the bank will be emailed to the appropriate support
group/individual.
3.9 Legacy System Extract/Load Procedure

N/A
3.10 Network Integration

CF will require the appropriate FTP addresses, logins, and passwords for the house banks.
3.11 Reporting
The BASIS network administrators will monitor the positive pay files and can advise if a file is
not sent at its scheduled time.

10
3.12 Error Handling

All errors related to the Import of the positive pay file should be recorded in the exception log
and notification should be sent to the initiator and business contacts from the Treasury
department:
Frank Nix fnix@cfindustries.com

Hassan Khan hkhan@cfindustries.com
Karen Farmer kfarmer@cfindustries.com
3.13 Reconciliation Procedures and Audit Requirements

3.13.1 Approach
The positive pay file will be reconciled against the incoming positive pay reconciliation file
received from the bank at the month end and/or acknowledgements sent from the bank.
3.13.2 Metrics
The metrics used for reconciliation are the total payment amounts and number of payments
processed (as evident in the reconciliation file).
3.14 Process and Operational Considerations

3.14.1 Performance
Performance considerations will be dependent upon the number of check payments processed
and the frequency of execution.
3.14.2 Batch Requirements

This interface is both real-time and batch (scheduled).
Submission automatic
Scheduling Considerations - none
Run Frequency - Hourly
Start Date Go Live
Start Time 01:00
Estimated Volume Per Run - 5
Parameters / File Dependencies
o Run Date
o Run ID
Job Dependencies - None
Constraints - None
Variant Required
o May need variants established for each bank/payment method
Field Text Inbound Positive Pay File
Suggested Value
Description InboundPositive Pay File

11
3.14.3 Data Maintenance Requirements

The Positive Pay file life cycle and retention policy is yet to be determined
3.14.4 Re-Use Details

None
3.14.5 Other
3.15 Change Management Requirements
Users of this interface should be trained to review the exception logs and be able to identify the
exceptions that are within their control to correct. They must also be trained on how to initiate
the interface.

12
4. Testing Requirements
4.1 Key Business Test Conditions

Files destined for a specific house bank should be Imported to the appropriate file
directory
Each house banks file directory should have a unique SFTP login/password
Concurrent executions of the interface should not overwrite any files that have not been
sent to the bank
Each execution of the interface should create only one file for the bank
All files must be retained throughout their life cycle.
4.2 Technical Test Conditions
ID Condition Expected results Cycle

Ref.
1 Test errorfree execution All check payments processed
correctly
2 File creation error No positive pay file has been
Imported. Exception log identifies
error and is sent to email address
established for testing
3 Testing for the scenario for all the Clearing should take place as per the
grouping criteria i.e. Posting date, selected fields in the grouping
Account, Amount and company code criteria.
in the custom developed program.
4.3 Risk and Controls Test Conditions
ID Condition Expected results Cycle

Ref.
1 Rounding currency None of the currency values
should change due to rounding
4.4 Testing Considerations/Dependencies

None identified
5. Design Alternatives
None
6. Outstanding Issues
1. Will this interface run be manual or automated or both

2. If this is an automated Interface then the reconciliation run is daily or monthly.
3. Will this performed for all the company codes and for all the banks.
4. How will we take care of the Tolerances as they may pose a threat to reconciliation? Does the
user need to Input the tolerances each time or it will be taken care by the configuration

13
7. Appendix
7.1 Glossary of Terms
Term Definition
7.2 Additional Supporting/Reference Documentation


Functional Design AP357 - FD - RTR.I.22.RTR - Interface - Positive Pay Reconciliation Inbound

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Functional Design AP357 - FD - RTR.I.22.RTR - Interface - Positive Pay Reconciliation Inbound

Uploaded by

Copyright:

Available Formats

1

AP357_FD_RTR.I.22.RTR Interface Version 1.2

Modified:07/12/2017 19:40:49 1 Last modified by: seema.yadav

Usage guidelines and Specific Instructions:

Document Content-The content explains the functional specification in a generic manner.

Section 5 Any recommendations to the design approach needs to be documented here.

Modified:07/12/2017 19:40:49 2 Last modified by: seema.yadav

Deliverable Name AP357_FD_RTR.I.xx.RTR_Interface_Positive Pay Outbound

Document Review & Sign-off

RTR Team Lead Craig Cihlar

Other Related Documents

<Please insert links to related Documents (issues, data entities, etc.).>

Related Document Comment

Modified:07/12/2017 19:40:49 3 Last modified by: seema.yadav

Modified:07/12/2017 19:40:49 4 Last modified by: seema.yadav

1. Sign-off Checklist .....................................................................................................................................6

Modified:07/12/2017 19:40:49 5 Last modified by: seema.yadav

Use the following link to access the checklist template:

2. Overview and Scope

2.1 Functional Description

2.2 Dependencies / Constraints

2.4 Security Requirements

2.5 System Details and Direction

2.6 Transaction Volume

2.7 Frequency and Timing

2.8 Initiating Process / Transaction / Program

2.9 Processing Type

3. Detailed Functional Requirements

3.1 Functional Specification

Modified:07/12/2017 19:40:49 7 Last modified by: seema.yadav

3.2 Interface Process Flow Diagram

3.3 Proposed Transfer Method / Program

Modified:07/12/2017 19:40:49 8 Last modified by: seema.yadav

3.4 Target / Source Data Layout

<To be confirmed with business>

3.5 Mapping SAP fields to Source / Target

3.6 Selection Screen Details

Name Table field / Select- Comments Default

3.7 Transaction Screen Sequence (if no load module exists)

3.8 Post Interface Activities

3.9 Legacy System Extract/Load Procedure

3.10 Network Integration

Modified:07/12/2017 19:40:49 9 Last modified by: seema.yadav

3.12 Error Handling

Frank Nix fnix@cfindustries.com

3.13 Reconciliation Procedures and Audit Requirements

3.14 Process and Operational Considerations

3.14.2 Batch Requirements

Modified:07/12/2017 19:40:49 10 Last modified by: seema.yadav

3.14.3 Data Maintenance Requirements

3.14.4 Re-Use Details

Modified:07/12/2017 19:40:49 11 Last modified by: seema.yadav

4.1 Key Business Test Conditions

4.2 Technical Test Conditions

ID Condition Expected results Cycle

4.3 Risk and Controls Test Conditions

ID Condition Expected results Cycle

4.4 Testing Considerations/Dependencies

1. Will this interface run be manual or automated or both

Modified:07/12/2017 19:40:49 12 Last modified by: seema.yadav

7.1 Glossary of Terms

7.2 Additional Supporting/Reference Documentation

Modified:07/12/2017 19:40:49 13 Last modified by: seema.yadav