CARS User Guide For Refunds: (Common Accounts Receivable System)

Integrated Development
CARS User Guide for Refunds

(COMMON ACCOUNTS RECEIVABLE SYSTEM)
CARS
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29 June 2016
2008 IBM Corporation
Refund Handling what has to be done when, how and why
The purpose of this document is to define a refund, describe the handling of

the Adjustment Approval Tool DB (AAT DB), which is used to request the
required approvals for Refunds, how to get the access to the AAT DB and how
to process the refund adjustment in CARS.
The AAT DB is implemented for the following countries: Austria, Belgium,

Denmark, Finland, France, Germany, Italy, Ireland, Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland, South Africa and the UK.
Delegation Matrix
Refund
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Definition of a Refund
A refund is defined as a payment made in favor of a Customer in refund of an
agreed credit balance or overpayment situation on CARS.
The procedure starts with a formal request from a Customer or potential refund
identification by a Cash Administrator within the application of cash / unallocated
cash management process and ends with the dispatch of a cheque or bank
transfer, and the settlement of the Open credit balance item on the ledger.
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Refund Process
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Either the Cash Administrator identifies a potential refund situation coming from the Cash
Application or the Unallocated Cash Management Process, which results in an information to
the collector responsible by mail, or the collector gets a direct request from the customer
within the Collection Process.
The collector responsible analyses the customer account statement with regards to open
invoices
If open invoices do appear on the customer account, contact the customer in order to
obtain remittance information for the unallocated cash
If the customer does provide remittance information, proceed with applying the
cash to the open item(s) according the provided information
If the customer does not provide remittance information, check if the situation
can be classified as an exceptional situation and consequently would justify to
proceed with a refund
If there is no justification to proceed with the refund on an exceptional basis,
continue with Unallocated Cash Management
If there is justification to proceed with the refund on an exceptional basis,
continue under b.
The refund of a performance bonus to Business Partner can be considered as an exception.
The justification of no credit situation in CARS is not required, while the information that the
refund is processed for the performance bonus is needed.
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If open invoices do not appear on the customer account or an exceptional situation

to proceed with the refund anyway is given and a DPL check, in accordance with
Corporate Instruction FIN184, does not prevent any refund: http://w303.ibm.com/ibm/documents/corpdocweb.nsf/ContentDocsByTitle/Corporate+Instruc
tion+FIN+184+-+Attachment+1
Contact the customer in order to obtain written confirmation to proceed with
the refund (this should be by letter/e-mail or fax, and should provide the
cheque payee information or the bank account information to which any credit
transfer should be made). In case of high volumes / low values of refunds,
and in order to minimize the business controls risks associated with refunds
while containing the workload associated with chasing the Customers
confirmation, it is acceptable to replace the formal Customer confirmation by
a negative confirmation that can be issued by IBM through letter, e-mail or
fax, for all refunds below a certain amount (this amount should be determined
and formally documented by country, but in any case should not exceed the
equivalent of 15K without prior approval according Deviations process as
outlined in chapter 2.4. The negative confirmation issued to the customer
must specify that, without any answer within 8 business days, IBM will
proceed with the refund. The information provided to the customer should
contain as a minimum: refund amount, invoices/credit notes numbers if any,
reason for refund (overpayment, double payment, credit note, account
creditor) and mode of refund. negative confirmation documentation must be
retained along with the other refund documentation for audit purposes.
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The Collector initiates the Refund Adjustment in CARS, misdirected

payments are done by the Cash Admin Team
Prepare request for obtaining the approval which is necessary according
delegated clip level and in line with FIN101 through the Adjustment
Approval Tool (AAT) which is a workflow notes database to support the
refund approval process. This must contain:
- The payee (customer) name, address
- The customer IBM account number
- The customers bank account number
- The written confirmation from customer or negative confirmation
- Proof of the credit situation in CARS. This should include a review of
the total customer entity to ensure there are no accounts with
debit
balances, where the credit total could be used (with prior
customer agreement), to settle open items.
- In case of no credit situation in CARS, justification for this exception
- For manual cheques the information about the detailed address, when
different to the one in CARS (including the explanation/ justification for
not using the address in CARS) in written form from the customer
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Once inserted the request is submitted for approval within AAT

If the request is approved inside the tool, the initiated Adjustment in
CARS is validated against the approval package by the Cash
Administration Manager (or other delegee)
- If all approvals have been correctly obtained and the adjustment
is matching the request, the corresponding adjustment is
approved in CARS, which results in processing the refund to the
treasury systems (further manual intervention might be
necessary). Following the approval the collector corresponding is
notified.
- In any mismatch is detected, the adjustment gets rejected in
CARS and the collector responsible gets notified
If the request is not approved inside the tool
- In case the rejection is based only on missing information, the
collector has to create a new request inside the AAT DB ,
including the additional information required
- In case the rejection is based on business reasons, the
adjustment has to be deleted in CARS by the collector upon
notification.
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Further Guidelines:
No Cash refunds are allowed.
Check Lists:
Check Lists with the items that have to be included to the request within AAT
Checklis t Refund
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How to create the refund adjustment in CARS

Before creating the refund adjustment, make sure that you have a written confirmation from the customer.
Select the credit note / payment affected
For the creation of the adjustment you have to enter C7
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Under Reason for Adjustment you have to enter the bank account details and the reason/info of the
refund for the customer if TPS is used, please use the TPS abbreviations (T, M, C based on
your country setup) and put the bank account details in line 1 - details see next page
To process the adjustment you have to enter the process code R
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Bank Account Information for Refunds
Country
Transfers
Cheques
Manual Refunds
Austria
n/a
n/a
n/a
Belgium
T + Bank Account (12 digits)
n/a
Denmark
T + 4 digits sort code + 10 digits

account nbr of the customer
n/a
M + Bank Account
Finland
T + 6 or 7 digits sort code and

then account nbr (14 digits total)
n/a
M + Bank Account
France

code guichet + 11 digits acc nbr
M + Reason
Germany

account nbr plus 00 in the end
n/a
Ireland

bank account number
Italy
Q + 00010101 + Bank Account
n/a
Netherlands
T + 0 + 2 digits for the bank + 7

digits for the bank Account or
Giro Bank TP + 0 + 2 digits
for the bank + 7 digits for the
bank account
n/a
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Bank Account Information for Refunds
Country
Transfers
Cheques
Manual Refunds
Norway
T + 11 digits ( sort code and

bank account)
n/a
n/a
Portugal
T + Bank Account
n/a
Spain
T + sort/bank code 4 digits +

branch nbr 4 digits + 2 digits
kontrol key + 10 digits account
number from the customer
Sweden
Tbg + 8 digits
n/a
Switzerland
if DD in Opt 14 - via DTA

if no DD Bank Account only
n/a
n/a
UK

bank account number
C only
M only
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When you have processed the refund adj. you will see the adjustment number. This adj. number you need
to write down as it is required within the approval request .
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When you have processed the refund adj. you will find the credit note/payment on the CF screen marked
with W (waiting for approval). Now you have to start with the approval request via the AAT DB.
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How to reverse a refund adjustment in CARS

Business Circumstances & Business Control Comment:
The refund is processed in CARS, but deemed to be inappropriate. The downstream
processing of the refund via Treasury is 'stopped' before the payment from IBM has been
completed. Such a situation should not occur due to the range of control checks in place before
the CARS processing is complete. It should be investigated how the controls failed to prevent
such a transaction, to prevent further failures.
Assumption
It is assumed that the refund has not left IBM, the user need to contact Treasury dept, or
system support group for Treasury refund application.
Any situation where the refund has irreversibly left IBM, the customer should be contacted
to request repayment of the funds transferred in error.
Depending on how such repayment is processed in Treasury determines how CARS should (if
at all) be updated.
- If the returned payment is processed as AR and assigned to CARS, then it should be
processed to the customer's account as an unapplied payment.
- If the returned payment is not processed as AR, but is treated as, for example, a failed
transfer, and is just reversed within the Treasury process, then it may be appropriate to
perform a refund reversal.
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CARS processing solution:

A General Ledger Adjustment should also be used to reverse a refund-adjustment
(by the Cash Admin.):
Enter A (Application detail) for Refund Adjustment on screen CG and press enter
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On the screen C6 use option C7 and press enter
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Enter the reason for the adjustment with the process code G and press enter
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As a last step, enter the appropriate Ledger Account (see list on the left) on
screen C8 and press enter
Reversal Accounts - NEM

Austria
02 206 0300 0001
Switzerland 02 206 0300 0001

UK
02 206 0300 0001
Ireland
02 206 0300 0001
Sweden
02 216 0390 0169
Norway
02 206 0300 0001
Finland
02 107 0110 0003
Denmark
02 107 0116 0018
Italy
02 128 0390 0033
Germany
02 206 0300 0001
Reversal Accounts SEM

Spain
02 206 0300 0001
France
02 206 0300 0001

IGF 05 206 0300 0001
Portugal
02 206 0300 0001
Netherlands LC 10 - 02 206 0300 0001

LC 26 - 07 206 0300 0001
Belgium
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02 206 0300 0001
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The item will be visible on the CF screen and marked with U within the Status Field
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The details of the item will look as follows
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How to complete the AAT DB Refund template

To create a new Refund simply, click on the New Refund button in the main menu:
The refund template will open

First you have to enter the country in the template
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Created By (Automatic): Displays the current user when creating the document for the first time.
Date Created (Automatic): Displays the time and date when the document was opened and created for the first time.
Status (Automatic): Shows the current status of the document, containing either the current approval status, if its a
new document, or if it has been completed. Views are limited depending on this field.
Country (Mandatory): Choose the country from a predefined list
Refund Type (Mandatory): This sets the type of Refund the document should be, only allowing two options, IGF and
Trade.
Customer Name (Mandatory): User should introduce the name of the customer.
Customer Number (Mandatory): User should introduce the customer number.
Credit/UAC Number (Mandatory): User should introduce the reference number
Ledger Code (Mandatory): The options in this field are predefined by the country, showing only options available for
that specific country. Values to this field can be added to the database, by requesting Support for additional ledger
codes.
Refund Method (Mandatory): User should select between Bank Transfer, Check Automatic and Check Manual.
CARS User ID (Mandatory): The user ID has to be entered
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Street Address (Mandatory): User should introduce the customers street address.
City/Town (Mandatory): User should introduce the customers city.
Postal Code (Mandatory): User should introduce the customers postal code.
State/Province (Optional): User can introduce the customers State or Province, if applicable.
Country (Mandatory): User should select the customers country from the list, if countries need to be added or
removed support should be contacted.
Type Of Document (Mandatory): User should select the type of document, either Refund of C/N, Payment,
Credit Balance or misdirected payment
Adjustment Number (Mandatory): User can introduce the adjustment number if needed.
Pay Value Date / Credit Note Due Date (Optional): Date field where the user can select the Pay Value Date or Credit
Note Due Date if needed.
Amount (Mandatory): Click on the Add amount field and put the number plus currency. As soon this information is
present, the approval matrix will be updated in the approval tab
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Amount in Letters (Optional): Amount should be introduced as text.
Bank Name (Optional): User can introduce the Banks Name if applicable.
Bank Address (Optional): User can introduce the Banks Address if applicable.
Bank City/Town (Optional): User can introduce the Banks City or Town if applicable.
Bank Postal Code (Optional): User can introduce the Banks Postal Code if applicable.
IBAN Code (Mandatory): User should introduce the Banks IBAN Code or bank account for the current refund.
SWIFT Code (Optional): User should introduce the Banks SWIFT Code or sort code for the current refund.
Bank State/Province (Optional): User can introduce the Banks State or Province if applicable.
Bank Country (Optional): User can introduce the Banks Country if applicable, can be selected from the list available,
if
countries need to be added, support should be contacted.
Reason (Mandatory): Used to specify the reason of the Refund.
AAT - Refund Guide
Us age of the DPL

DB
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Detailed Information on how to complete the AAT DB

How to use the DPL DB
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When you have completed the template with all the requested information / documents according to
the refund check list, the request can be sent for approval by clicking on the Save Refund button
Acc. to the country and the amount you have entered, the tool will automatically send the request to
the correct approvers acc. to the clip level. For the first approval a pop up window will appear and the
1st line mgr has to be selected. In case you are aware that your mgr. is off you have anyway to select
your usual mgr. With the information from the manager to the S&A Task ID the name given will be
changed in the background and send to the correct person.
You can check the request in the Awaiting for approval section and in case of urgency contact the
approver to get it approved faster.
Important: Once a request has been rejected, the document can not be modified. The following pop
up message will appear, if the user tries to edit the document.
AAT gives you the possibility to create a clone form your completed/rejected request. For further
details, please see the AAT guide on page 22 of this desk procedure
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A new request has to be created and the adjustment in CARS has to be deleted as well
by the collector via option 5 Worklist Processing
Worklis t Proces s ing
- Option 5
Additional information about the handling of the Adjustment Approval DB can be found
as well directly within the AAT DB under section Help. There you will find the necessary
user guide (AAT User Guide).
The requester receives an automatic generated mail, when the request has been fully
approved in AAT and has to set the document to status completed.
Please check if the adjustment has been approved in CARS. To change the document
to Completed, go to the approved document and click on the set to completed button
located on the top left corner of the document.
Once this is done the document will be moved from the Approved view to the
Completed view. The document would then be considered as closed.
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Misdirected payments
Money that belongs either to a third party, to a different ledger or to another IBM
entity then AR (PDL excluded see next page)
Misdirected payment to a third party or to another IBM entity:
Refunds are done by Cash Admin Team
They can be done with an R Adjustment or with a GL adjustment
First approver is the Collection manager from the related country
Mis idirected
Payment - NON IBM
Misdirected payments that belong to a different ledger

Please see guide below for Cross Ledger Adjustments
Cros s Leger
Adjus tments
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Misdirected Payments PDL

These are payments for the ireland invoices
There are 2 ways of handling
Payment not yet in CARS
Supress item in CAT

Fill out the Cash Mgmt Tool (please see the form on the next slide)
Payment in CARS
Fill out the Cash Mgmt Tool

GL Adjustment to the PDL Account
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How to use
Access to the tool is given by the the Teamleader of the IBM PDL Team (currently
Krysinska, Monika)
When you get the payment into CAT and you know upfront it is for a PDL Invoice
Supress the item in CAT Reason for Supression: PDL Invoice XXXXXX
Fill out the request in the Cash Mgmt Tool (put the PDL invoice number in the request)
Send an email to treasury to inform them about the payment so that it can be booked to the
PDL account
When the payment is already in CARS

Perform a GL adjustment to the PDL account
Fill out the Cash Mgmt Tool (put the PDL invoice number in the request)
Once your request is closed, you will receive a mail from the Cash Mgmt Tool
There is no SAVE Button inside the Tool, press Escape and it will ask you to save your
request
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Credit Card Refunds

As any other refund Credit Card refunds should be requested, approved and
documented through AAT
Two Refund methods for Credit Cards
- With RCO facility in CARS (in Belgium, France, Germany, Italy, Netherlands,
Nordics, Spain and UK)
- Without RCO facility in CARS and therefore request should be performed in
ePOS (the rest of the countries).
Refunds through RCO facility:
- Refund Call Off Request (RCO) is done on the CARS CU screen
- It is needed to confirm that the item current C/C status is equal to 0 (it is
needed to document this data on the AAT package through a CARS screenshot)
- RCO requires Cash Admin approval Level 9
- Daily batch runs collects all RCO payments and sends them to the Payment
System
- Payment systems validates and sends debit payment via GLIM into CARS
- For further instructions, please read the guide below
Guide to perform
CC Refunds
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Refund: manuel cheque or international bank transfer

A manual TPS request has to be requested, in case
- the customer requires a cheque, which is sent to a different address as the one shown in
CARS or to a subsidiary company (manual cheque to be selected in AAT)
- foreign customer: the bank transfer has to be done to a bank account abroad (bank transfer
to be selected in AAT)
In CARS an "M" is inserted in the reason for the R-adjustment field by the collector
responsible.
The process step-by-step will be the following:
1.Verification by the Cash Administration Manager (or delegate) of the refund package in
AAT once received for his/her approval
2.In case the refund is compliant, request to process manual TPS to the Cash
Administrator
3.Once approved by the 2 approvers in TPS, Cash Administrator transmits the refund in
TPS. After transmitting, he/she also adds the ''ready to batch'' print screen to the refund
package in another section ''Other'' (example see slide 35)
4. Once all the above steps have been completed, Cash Administrator informs Cash Admin
Approver, who will then approve the refund request in AAT and CARS.
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Example: ''ready to batch'' print screen TPS
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Addendum for Austria

To get the access to the Payment Orders DB, which is used to get the approvals and to
provide Treasury the required information to transfer the money to the customer, a mail
with the completed RCMC User-ID Request form, approved by the requester Manager,
has to be sent to Martin Mataseje / Treasury Support Center Bratislava
RCMS Us er-ID
RCMC Us er-ID
RCMC Us er-ID
Reques t R
Form
eques t Form - Cas h A
R
dmin.
eques t Form - Manager
The collector (independent where located) has to complete the refund request within the
AAT DB. Within the field mandatory field Adjustment Number, the comment Treasury DB
has to be entered. The collector has to flag the item to be refunded on the CF screen
within the status field with the code R as well. The approval process will be handled
according to the delegation matrix set up within the AAT DB.
The last approver within the AAT DB is the Cash Admin Manager, who has to provide a link
of the requested refund(s) to the Cash Admin. They will enter the required information into
the Payment Order DB.
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The Cash Administrator has to perform the following steps:
Verification of the correctness (availability of customer request, )
Completing of the Treasury DB (Payment Orders) with the required information
Obtaining the necessary approvals
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The Payment Order DB has to be completed as follows:
the reference needs to remain unchanged
the execution date has to be set to the future
in case of foreign customer/bank switch from Domestic to International
Empty Refund
Reques t Form
Business Case: Refunds

Cross check the transfer amount in CARS
Reason for Payment: enter the text which should be seen by the customer (on his bankstatment)
Copy the customer name and address from the CC screen into the field
DIV/MAJ
02100
MINOR
0100
SUBMINOR
0000
BO/DPT
blank
Beneficiary: name + address

Bank and Bankcode have to be completed according to the drop down menu
Account number has to be entered
IBAN: blank in case of Domestic only to be completed by International
PAYOR: always Bank Austria
REMARKS: blank
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When the template has been completed, print it out and perform a 4-eye check
When everything is ok -> set request to Ready for Approval
The mail with the received link has to be sent to the Cash Admin Manager and the
hardcopy template has to be handed over as well to the Cash Admin Manager.
The Cash Admin Manager approves the request in the Payment Orders DB and
afterwards in the AAT DB. It is only possible to approve the request in the AAT DB, when
the request has been approved in the Payment Orders DB.
After the approval in the Payment Orders DB, the refund is processed within the Bank
Austria (BAU)
Completed &
Approved Refund Template
Customer First Program AT-CSM-00002

The Cash Admin receives from the Country Complaints Management Resolution Owner
the credit note number and the bank account. The Cash Admin identifies and forwards it
to the collector responsible. The collector completes the AAT DB and flags the item to be
refunded on the CF screen within the status field with the code R. The approval process
is started according to the delegation matrix and is then handled by the Cash
Administrator as described before.
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When are Refunds processed ?
Day to day, except month end
Acc. to the customer request (mail from customer, letter, fax, possible payment
documents
Reversal of a Refund
Any sitution where the refund has irreversibly left IBM, the customer should be contacted
by the collector to request repayment of the funds transferred in error.
The re-paid amount should be processed to the customers account as an unapplied
payment and the collector has to be informed.
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Addendum for Ireland

When a refund is processed in CARS, the interface between CARS and TPS
allows only 18 digits in the second line of the C7 screen
This 18 digit information can be seen by the customer
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Germany Addendum
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Refundhandling Germany
Refund Checklis t
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Addendum for Italy

In case of an intercompany transfer/refund the Cash Administrator this to do this via EPOS.
The handling is described in the attached file and an additional request via the AAT DB has
not to be completed.
All the other refunds are handled BAU via the AAT DB and the R adjustement in CARS by
the Collector.
Handling of EPO
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Addendum for Luxembourg

Luxembourg belongs to the same ledger as Belgium but luxembourg bank accounts are not
accepted on CARS C7 screen therefore refunds have to be done manual.
Please follow the instructions below
Cash Control performs the manual booking in TPS and sends a screenshot to the collector
Collector performs a manual adjustment in CARS
When entering the data in AAT, requestor puts the screenshot from TPS in attachement
Other
Approver approves the request inside AAT and TPS
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CARS User Guide For Refunds: (Common Accounts Receivable System)

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Integrated Development

CARS User Guide for Refunds

2008 IBM Corporation

Refund Handling what has to be done when, how and why

The purpose of this document is to define a refund, describe the handling of

The AAT DB is implemented for the following countries: Austria, Belgium,

CARS for Collectors

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If open invoices do not appear on the customer account or an exceptional situation

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The Collector initiates the Refund Adjustment in CARS, misdirected

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Once inserted the request is submitted for approval within AAT

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How to create the refund adjustment in CARS

For the creation of the adjustment you have to enter C7

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To process the adjustment you have to enter the process code R

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Bank Account Information for Refunds

T + Bank Account (12 digits)

T + 4 digits sort code + 10 digits

T + 6 or 7 digits sort code and

T + 5 digits sort code + 5 digits

T + 8 digits sort code + 12 digits

T + 6 digits sort code + 8 digits

Q + 00010101 + Bank Account

T + 0 + 2 digits for the bank + 7

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Bank Account Information for Refunds

T + 11 digits ( sort code and

T + sort/bank code 4 digits +

if DD in Opt 14 - via DTA

T + 6 digits sort code + 8 digits

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How to reverse a refund adjustment in CARS

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CARS processing solution:

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On the screen C6 use option C7 and press enter

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