The document outlines the foreign exchange (forex) payment process for a company. It discusses the documentation required for material and service payments, how to book forex transactions in SAP, methods for remitting payments including bank link and manual payments, tracking and controlling forex transactions, and clearing control accounts and EBS in SAP. The volume of forex payments is also addressed.

1. FOREX PAYMENT PROCESS
• FOREIGN PAYMENTS ARE OF TWO CATEGORIES :
• FOR MATERIAL :-
• FOR SERVICES : -
Company Confidential
1 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential

2. DOCUMENTATION PROCESS FOR FOREX PAYMENTS :
• FOR MATERIAL : -
• COPIES OF INVOICES.
• REQUEST LETTER ( DEBIT LETTER ) DULY SIGNED BY AUTHORISED SIGNATORIES.
• FORM NO A-1 DULY SIGNED BY AUTHORISED SIGNATORIES.
• TRIPLICATE COPY OF BILL OF ENTRY( DULY SIGNED BY CUSTOMS AUTHORITIES ) ALONG
WITH AIRWAY SLIP OR COURIER SLIP SHOWING PROFF OF CONSIGNOR AND CONSIGNEE.
• FOR SERVICES : -
• COPIES OF INVOICES .
• REQUEST LETTER ( DEBIT LETTER ) DULY SIGNED BY AUTHORISED SIGNATORIES .
• FORM A-2 DULY SIGNED BY AUTHORISED SIGNATORIES .
• 15 CA DULY SIGNED BY THE AUTHORISED SIGNATORY .
• 15 CB DULY SIGNED AND STAMPED BY A CERTIFIED CHARTERED ACCOUNTANT .
Company Confidential
2 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential

3. BOOKING OF FOREX TRANSACTIONS IN SAP
• FOR SERVICES : -
• THE EXPENSES HAS TO BE BOOKED ALONG WITH TDS
DEDUCTIONS AND SERVICE TAX WHEREVER APPLICABLE.
CONFIRMATION SHOULD BE TAKEN FROM THE TAXATION
TEAM FOR THE SAME .TDS GROSS UP AREAS SHOULD ALSO
BE BOOKED ACCORDINGLY .
• REQUIREMENT IS NO PE/ PAN.
• FOR MATERIAL PAYMENTS : -
• THE BOOKINGS ARE BEING DONE BASED ON THE PO
SPECIFICATIONS AND GR CONFRIMATIONS .
Company Confidential
3 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential

4. REMMITANCE OF FOREIGN PAYMENTS
• BANK LINK PAYMENTS :
• THE INVOICES DUE FOR PAYMENT ARE PICKED IN
THE TRIAL WEEKLY BANK LINK RUN ON FRIDAY
HOWEVER THE DOCUMENTS WHICH ARE DUE AND
READY ARE PUT AS PAYMENT METHOD B AND ARE
FINALISED ON MONDAY . REMAINING ARE
BLOCKED .
• THE DOCUMENTS WHICH ARE READY FOR
PAYMENT ON WEDNESDAY – WE HAVE TO TAKE
A MANUAL DEAL FROM THE TREASURY AS
THESE ARE OF MULTIPLE CURRENCIES .
• INVOICES WHICH COULD NOT BE PICKED IN THE
WEEKLY BANK LINK CAN ALSO BE PUT IN THE
DAILY BANK LINK BASED ON THE URGENCY AND
COMPLETION OF DOCUMENTATION .
• MANUAL PAYMENTS :
Company Confidential
4 • © 2008 Nokia
WE HAVE THE OPTION OF RELEASING
V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential

5. VOLUME OF FOREX PAYMENTS
Company Confidential
5 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential

6. CLEARANCE OF CONTROL ACCOUNT AND EBS
IN SAP
• FOR BANK LINK PAYMENT : -
• CLEARING THE TOTAL PAYMENT FROM
EBS TO 229200 A / C .
• VENDOR A / C DOCUMENT IS CLEARED TO
222000 A / C AUTOMATICALLY ( WEEKLY
BANK LINK ) .
• CLEARING THE 222000 TO 229200 SO AS TO
COMPLETE THE CLEARING PROCESS.
• FOR MANUAL LINK PAYMENT : -
• CLEARING THE TOTAL PAYMENT FROM
EBS TO 229200 A / C .
• CLEARING THE VENDOR ACCOUNT TO
229200 SO AS TO COMPLETE THE
Company Confidential
6 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
CLEARANCE PROCESS .Company Confidential

7. TRACKING AND CONTROL OF FOREX
TRANSACTIONS
• THE APPLICABILITY OF TDS AND SERVICE
TAX NEEDS TO BE COMMUNICATED TO THE
POSTING TEAM WELL IN ADVANCE .
• DEALS TAKEN FROM THE TREASURY FOR THE
FOREX PAYMENTS NEEDS TO BE CLOSED –
THERE SHOULD NOT BE ANY OPEN DEALS
LEFT TO BE CLOSED .
• FOLLOWING UP WITH THE LOGISTICS AND
USERS FOR BILL OF ENTRIES FOR MAKING
FOREIGN REMMITANCES FOR MATERIAL
PAYMENTS.
• WORKING ON THE VENDOR AGEING ON A
MONTHLY BASIS FOR ALL FOREX
TRANSACTIONS .
Company Confidential
7 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential

8. Thank You
Company Confidential
8 © 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials
Company Confidential