Process Update

Meeting
April 2024
GCTC Operation Excellence

GCTC OE 2024-04-26
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 1 of 31
Agenda
● Fire Letter-Linda
● AR Process Update-Linda
● No Posting After GLs are Closed-Kexin
● Cash Flow Closing Schedule-Kexin
● Cash Flow WI and Template Update-Kexin
● Customer Finance Knowledge Recall-Kexin
● Customer Finance WI Update-Kexin
● Manual Payment WI Update-Hitesh
● Treasury Update-Hitesh
● GCTC Bank Management-Neeraj
● Manual Payment Matrix-Mindy
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 2 of 31
 Fire Letter April 2024

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 3 of 31

 Fire Letter April 2024
New companies
Canada
● TDC / 3239 ERICSSON CANADA DENALI INC.
Sweden
● EOO / 3185 ERICSSON GLOBAL OPERATION AB
● TDA / 3237 ERICSSON SWEDEN DHAULAGIRI AB
United States
● TDB / 3238 ERICSSON US DENALI LLC
Divested company
Finland
EXF / 3026 RED BEE MEDIA FINLAND AB will be liquidated in April closing (the
trigram is to be removed in May 2024).

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 4 of 31

 Fire Letter April 2024
Change of Operating Type from 1 to 5
● EPY / 2378 ERICSSON DEL PARAGUAY S.A.
Change of Operating Type from 6 to 8
● BSS / 2892 ERICSSON AB SOUTH SUDAN BRANCH

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 5 of 31

 Enhancement of CoDD T-code ZF24 in P12 S4
● T-code ZF24 is used for mass change of due date.

Before Now
● Enhance the functionality of t-code ZF24 in the S4
• Only works on normal items.
system, enabling mass change of due dates for
• Cannot be used for customer special GL
special GL billings.
billings. e.g. customer finance 152102, WHT
168210. ● New features has been moved to P12 on 15th
April.

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 6 of 31

Enhancement of CoDD T-code ZF24 in P12 S4
● ZF24 template layout in SAP has been updated to reflect this change.
1) For normal items, there is no change, and the process remains the same.
2) For special GL billings, the Due on Date will be equal to the Baseline date. The Net due date for special GL=Due on Date
+ Payment term.

● No impact to Change of due date template. CoDD template takes data from t-code FBL5N. Due on date equals baseline date
in FBL5N.

Communication Email
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 7 of 31 Outlook Item
 CE5.9.1.1
● CE5.9.1.1 Write Off Request
Updates in revision AA (Valid from 2024-05-01):
Section 5: Remove 5 EUR and threshold is now defined as 50 SEK equivalent (M rate).
● Threshold used in CE5.9.1.1 Check Write off Request
This WI document the analysis of the threshold used for SOX CE5.9.1.1 Check Write off request.
Update in Version B:
●Section 3.1.1: Update the analysis with data related to write off in 2023.
●Section 3.1.2: Update the link to Effectively monitoring of accounts receivables.

Use T-code EWCT to convert M rate

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 8 of 31

Kexin
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 9 of 31
 Important notice – No posting after GL close

PEC Standard Time Plan

● P&L transfer BO: D+2 CET 5:00 AM – No postings for Branch offices after this time
● Close CO and close G/L in FI : D+2 CET 8:00 AM – No postings for all entities after this time

● Even sometimes there is some technical issue GL is not closed after the deadline, there should not be postings

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 10 of 31

 Cash flow closing schedule

● Cash flow will start on D+2 around CET 10:20.

● Please wait for emails from OE team.

● Deadline is D+3 CET 17:00.

● Cash Flow Assignment Tool and Fiori can be used

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 11 of 31

 Cash flow WI and template update
WI Assign to Correct Liquidity Item
Cash Flow Assignment Tool

● Update the total unassigned link.

● Add BO report in the WI.
● Cash flow assignment bookmark

● Update cash flow assignment tool

for BO report.

● Have arranged a separate session

to share BO report on Apr 25th.
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 12 of 31
 Customer finance knowledge recall
Why important ？ It decides BPC reports directly
Scenario Nature Accounting Need BPC result
Invoice rebooking Customer finance invoice need DA on 152102 CF disbursement
to be rebooked to GL 152102
Sale of customer finance Payment received from bank DZ on 151132 Sale of CF
due to sales of the customer 19 customer account Y
finance invoices to the bank Profit center
Repayment from customer We never receive payment from DZ on 152102 Repayment of
(non-sold exposure) bank. 19 customer account D Customer Finance
Invoice is not sold to the bank, Profit center
the customer pay the invoice Cannot clear invoices in the DZ
amount to Ericsson document, must use AB to knock off DZ
payment and DA invoice

● Accounting Treatment of customer finance

● WI – Customer Finance invoice rebooking and payment posting
Please read this WI carefully, it includes the posting guidelines of every step with SAP snapshots.

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 13 of 31

 Customer finance knowledge recall

● Two Scenarios

customer finance scenarios.xlsx

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 14 of 31

 Customer finance WI update

● Accounting Treatment of Customer Finance

Changes from revision AE to AF:
Chapter 9;
-Updated which FIRE codes that are automatically populated. 8112141 and 8112151 for Overdue are added as
automatically populated.
-Added accounting info for when manual adjustment on current and non-current customer finance postings are
made (FIRE 1812111 and 1314111), a one-legged adjustment of Ericsson share of risk amount (FIRE 8112131)
must be done accordingly.

● WI – Automated EB09 reporting

Update from rev C to rev D
Chapter 3: Updated info on which FIRE codes that are automatically populated. Overdue FIRE codes 8112141
and 8112151 are added as automatically populated.
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 15 of 31
Hitesh
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 16 of 31
Manual Payment Work Instruction Updated
• All reference to SAP (P12) is updated to SAP (S4). New Category Contribution
• All reference to Global Payment Specialist role is updated to Treasury Accountant. • Added as additional Manual Payment Category Matrix in Section 7
• Added Section 3 Manual Template Updates • Added as new Manual Payment Category detailed in Section 8.11

Section-7

Section-8.11

Manual Payment Work Instruction-Electronic Payment

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 17 of 31
DA8.30.1.1 Check completeness of Kyriba transactions monitoring and clearing

● Updated Transaction code FBL3N to FAGLL03 and SAP ONE to SAP S4 (P12) in various section.

DA8.7.1.2 Validate correct valuation of derivatives according to ISDA Agreement

• Updated SAP/ SAP ONE to SAP S4 (P12) in
various section.

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 18 of 31

Neeraj
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 19 of 31
 BM Quarterly
RINA Entities
Audit
Migration
Observation
GCTC Bank
Management​
SCB HSBC
authorization authorization
matrix matrix
update update
RINA Entities Migration
BM Quarterly Audit Observation
• Users are not aware of local bank access. However, in the bank list
their name is available.

• Many users are in Inactive or blocked status on EB portals

• Users haven't logged into the portal for more than 90 days.

• Please ensure to keep sufficient no. access within a team

 SCB authorization matrix
Group ID Entity Matrix ID Matrix 1 Matrix 2 Authorizer Status Matrix Status Proposed Action Project Status

ERICSS03 Mainland 1 Any 2 From F NA 1 authorizer with No change for user role and sign class; NA
China ABS sign class F No change for matrix 1.
Totally 3 matrixes / 3 accounts in the
platform; No change for user role and sign class.;
Any 1 From All authorizers are Matrix 1 for Account no. To apply matrix 101 to all 3 accounts, Any 2 from A; Apr 8th, 2024 - S2B request form
ERICSS02 LMB 1, 2, 101 Any 2 From A A AND Any with sign class A 44707921778; To remove matrix 1 and matrix 2; sent to bank and bank is working
1 From B Matrix 2 has no account; To remove "sent to bank" functions. on it.
Matrix 101 for Account no.
43800124590 and 43800124612.
To change matrix 102 to Any 1 from B;
RECA and Any 1 From A AND NA A for 1st Authorizers Totally 3 matrix in the platform; To remove authorizer role and sign class A for 1st
GEU00521 RMEA 1, 3, 102 Any 1 From B and B for 2nd Matrix 102 for all accounts authorizers; In process
authorizers To remove matrix 1 and 3;
To remove "sent to bank" functions.
19 Any 1 From A
Totally 3 matrixes in the platform; To change matrix 19 ENC Trade to Any 1 from B;
20 Any 1 From A AND To change matrix 20 Cash to Any 1 from B;
RASO and Any 1 From B A for 1 Authorizers Matrix 19 for ENC trade services;
st
To change matrix 22 EBL Trade to Any 1 from B;
GCN00688 RNEA NA and B for 2nd Matrix 20 for all accounts cash To remove authorizer role and sign class A for 1st In process
authorizers services; authorizers;
Any 1 From A AND Matrix 22 for EBL trade services To remove "sent to bank" functions.
22 Any 1 From B

To create new matrix 102 as Any 1 from B;

Any 1 From A for 1st Authorizers Totally 33 matrixes in the platform; To apply matrix 102 for all accounts;
ERICSSC1 RSSA 1, 3 - 33, 101 Any 2 From A A AND Any and B for 2nd To remove authorizer role and sign class A for 1st In process
1 From B authorizers One matrix for multiple accounts authorizers;
To remove the rest matrixes;
To remove "sent to bank" functions.

Totally 2 matrixes / 2 accounts in the To change matrix 102 to Any 1 from B;

Any 1 From A for 1 Authorizers platform;
st
Matrix 102 for Account no.
To apply matrix 102 for both PF and GF accounts;
To remove authorizer role and sign class A for 1st
LMGFBD01 EBL 101 Any 2 From A A AND Any and B for 2nd 0001554785701; authorizers; In process
1 From B authorizers Matrix 101 for Account no. To remove matrix 101;
0032595037801; To remove "sent to bank" functions.
 HSBC authorization matrix update - BAS
Group ID Entity Authorization Matrix Authorizer Status Matrix Status Proposed Action Project Status

RMEA Any 1 From A Sign class A for 2nd authorizers 1st authorizer to input -> 2nd authorizer NA NA
to authorize

Core
Platform
Any 1 From A AND Any 1 Sign class A for 1st authorizers; 1st authorizer to input -> 1st authorizer Authorization
to Any 1 From
matrix changed
A;
BMT from B Sign class B for 2nd authorizers (different user from previous step) to Remove sign class A for 1st In process
authorize -> 2nd authorizer to authorize authorizer

BAS Local BSA Any 1 From A Sign class A for 2nd authorizers; 1st authorizer to input -> reviewer to Remove review function from April 19th, 2024 - Completed
Platform Review function is enabled review -> 2nd authorizer to authorize the platform

BAM Local BAM Any 2 From A Sign class A for both 1st authorizers Inputter to input -> 1st authorizer to Remove sign class A for 1st April 25th, 2024 - Completed
Platform and 2nd authorizers authorize -> 2nd authorizer to authorize authorizer
Mindy
| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 25 of 31
 Manual payment
matrix
Short training to GCTC post matrix combination in one

Mindy Wang GCTC SOX compliance manager 2024-04-26

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 26 of 31
 Milestone for manual payment matrix

Before 2018. 2022 2024

2018 Sep. Sep Apr. Mar.
Matrix as per LE Matrix as per region Matrix as per MA Matrix as per global
(Category)

From different format to standard format for all

Source: Lorem ipsum

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 27 of 31
 MPE project to EMP Project

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 28 of 31

 One entry point
Authorization Lists Summary

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 29 of 31

 WOW to maintain matrix
● House keep activity Work Instruction-Manual Pay Highlights
ment authorization matrix
• Each change must be initiated with an
email request, refer to change log for
details.
• Approval from new authorizer’s line
manager
• Job role match with category or special
aligned for delegation/process alignment
• Amount limit is not mandatory to be
maintained which will be covered by
EMP project
• Line manager is the default back up if no
strong OoO message, including approve
one time overlimit.

| ELLIJBO Linda Li J | Uen | 2024-04-22 | Ericsson Internal | Page 30 of 31