Bank Accounting

Bank Accounting is used to handle accounting transactions that process with the bank. It
includes the management of bank Master data, the creation and processing of incoming
and outgoing payments.

Define House Banks

IMG Financial Accounting Bank Accounting Bank Accounts Define
House Banks
Each house bank of a company code is represented by a bank ID in the SAP system.
The House bank is used for automatic payment program, check deposit, bank
reconciliation. Thus you will only need to create a house bank for a bank account if you
want to use the aforesaid functionality.


Enter the Company Code in the work Area and click on continue

Click on New Entries and Update the following fields:-

House bank: This is the code for house bank. Give an alpha numeric key.
Numeric is also possible.

Bank key: Bank key is the Bank account number




Click on Button and update the Bank data as shown below, and save
the settings.




Bank Accounting





Enter the details as shown above and save the settings.


Bank Accounting


Electronic Bank Statement and Manual Bank Statement

Electronic bank statement It is an electronic document sent by the bank which gives
details of the transactions done by the account holder. The electronic document can be
remitted by the bank in the following formats SWIFT, Multi-cash, BAI etc. This statement
is used in SAP to do an automatic reconciliation. The statement is uploaded in SAP and
it clears the various Bank clearing accounts such as the Check out, Check in account to
the main bank account.

In our scenario we have the following bank GL codes (Sub accounts) for our Main Bank
(111500 SBI bank Main account a/c):-

111511 SBI check issued out
111512 SBI outgoing wire Transfer
111513 SBI other interim posting
111514 SBI check received

Checks issued out to vendors will be credited to GL code 111511 SBI check issued
out, which is a clearing account.

Checks received from customer are debited to GL code 111514 SBI check received,
which is a clearing account.

When the bank statement is uploaded in SAP the following will happen:-
For checks issued out based on checks cleared in the bank account the following entry
will be passed automatically.

GL code account description Debit /Credit
111511 SBI check issued out Debit
111500 SBI bank Main account a/c Credit

For checks received in based on checks cleared in the bank account the following
entry will be passed automatically.

GL code account description Debit /Credit
111514 SBI check received Credit
111500 SBI bank Main account a/c Debit

Thus after uploading the bank statement in the system, the Main bank account i.e. GL
code 111500 SBI bank Main account a/c will exactly match with the balance shown in
the bank. All the clearing accounts having balances will be the reconciliation items.

Manual bank statement In case the bank is not able to give an electronic statement
then the statement can be manually entered in the manual bank statement and
uploaded.

The common configuration for both type of statement is as follows:-
Make Global Settings for Electronic Bank Statement
IMG Financial Accounting Bank Accounting Business Transactions Payment
Transactions Electronic Bank Statement Make Global Settings for Electronic Bank
Statement


Bank Accounting


Enter the chart of accounts 6900

1. Create account symbol
Specify G/L accounts (such as bank, cash receipt, outgoing checks) to which
postings are to be made from account statement, we assign account symbols to the
G/L account numbers. These are required for the posting rules in step 2.
Click on New Entries, enter the following and save settings.



2. Assign accounts to account symbols



Click on New Entries, enter the following and save settings.







Bank Accounting

To avoid having to define a separate account symbol for every single house bank
account (with a different G/L account in each case), the G/L account field can
contain a masked output. The masking is done using ++++++ for the main bank
account. For the sub accounts all the other digits are masked except the last one.

Bank charges account is hard coded.

3. Create keys for posting rules



Enter the following and save settings.




4. Define posting rules






Bank Accounting


Enter the following and save settings.






Click on New Entries, enter the following and save settings.











Bank Accounting


Click on New Entries, enter the following and save settings.





Click on New Entries, enter the following and save settings.












Bank Accounting


Click on New Entries, enter the following and save settings.



3 additional configuration steps required for electronic bank statement.

5. Create Transaction type




Enter the following and save settings.




Bank Accounting


6. Assign external transaction type to posting rules

Here we assign the external transaction type of banks to our posting rules.
Banks generally have their own codes for various transactions such as Check
received 704, Bank charges 705 etc.



Enter the following and save settings.



7. Assign Bank Accounts to Transaction types
Assign bank details, for which the account statements are to be imported, to a
transaction type, all the house bank accounts at a particular bank are usually
assigned to the same transaction type.




Bank Accounting




Manual Bank statement

Create and Assign Business Transactions

IMG Financial Accounting Bank Accounting Business Transactions
Payment Transactions Manual Bank Statement Create and Assign
Business Transactions

In this step we store an indicator for each business transaction and allocate a
posting rule to each business transaction.

Click on New Entries enter the below Settings and save the Settings.



Define Variants for Manual Bank Statement
IMG Financial Accounting Bank Accounting Business Transactions
Payment Transactions Manual Bank Statement Define Variants for
Manual Bank Statement

Here you can create separate account assignment variants for the manual bank
statement in order to adapt the arrangement and/or the selection of account
assignment fields to your company-specific requirements.



Bank Accounting

Standard Variant SAP01 is available which is generally not suitable for customers
need. It is not modifiable. Therefore we need to create a new variant.








Bank Accounting




Place the cursor on Document Number and click on to delete the field.
Similarly delete Customer match code, foreign currency, and foreign currency amt.

Double Click on Allocation Number in the Possible Fields and Click on Continue to
add Allocation Number to Current Fields, Similarly add the Bank Reference Field and
change the output length to 06



Click on Check button to verify the variant and save the settings.



Change the Variant Name to Reliance Gas Bank Statement and save the setting.






Bank Accounting


Check Deposit

Define Posting Keys and Posting Rules for Check Deposit
IMG Financial Accounting Bank Accounting Business Transactions
Check Deposit Define Posting Keys and Posting Rules for Check Deposit

Enter the Company Code and click on continue.



Click on new entries to Create Account Symbols, update as shown below and save
the settings.













Bank Accounting







Click on New Entries and Maintain Settings as shown below and save the settings.

















Bank Accounting




Create and Assign Business Transactions

IMG Financial Accounting Bank Accounting Business Transactions
Check Deposit Create and Assign Business Transactions

We store transaction indicators for check deposit and allocate these indicators to a
posting rule. We have created posting rule RCHK in the earlier step. We need to
allocate this to the transaction indicator. You specify this indicator in the
"Transaction" field on the initial screen of check deposit.



Define Variants for Check Deposit
IMG Financial Accounting Bank Accounting Business Transactions
Check Deposit Define Variants for Check Deposit

Here you can create your own account assignment variants for check deposit in
order to modify the arrangement and/or selection of account assignment fields
according to your company-specific requirements.



Bank Accounting

SAP01 Variant is delivered as a default. It cannot be changed, we will copy SAP01
variant and create a New Variant.







Place the cursor on 3 Digit Cheque Number and click on to delete the field.
Similarly delete 8 Digit Bank Key, Invoiced Amount Fields.

Double Click on 10-Digit Cheque Number in the Possible Fields and Click on
Continue to add 10-Digit Cheque Number to Current Fields.

Place the cursor on the SAP01 Variant and
Click on Copy option to create a new variant.


Bank Accounting




Save the Changes and Change the description of the variant from the first screen
And save the changes.



Position the cursor on RGL01 and click on to activate the Variant.













Bank Accounting


Brief Process Description and Process Scope:
The data from the bank statement and the bank transactions in company books should
be reconciled with each other. The non reconciled data should only be displayed as
open items.

Business Process Details:
In SAP the bank statement to be input in SAP for reconciling with the company data.
The bank statement can be manually entered in SAP or an electronic bank statement
can be imported into and processed automatically in SAP.

In order to import the electronic bank statement in SAP, the bank statement should be
available in specified bank formats such as multi-cash format.

After importing the bank data, the system interprets the bank data based on the
transaction types contained in the bank statement. Based on the rules defined for each
bank transaction type the bank items are matched with the company data in SAP. On
matching the bank transaction with the transaction in company books the item is marked
as cleared in SAP and necessary accounting entry is passed to transfer the same from
bank clearing account (Bank sub-account) to the bank main account.
The items in bank statement which are not matched are available for processing
manually. These items have to be processed manually and cleared with the relevant
company data.

After the process is completed, the bank main account in SAP will match with the bank
statement and the other reconciliation items such as checks issued but not presented,
bank charges debited by bank but not accounted in books etc is available in bank
clearing sub accounts for review.

Each house bank of a company code is represented by a bank ID in the SAP system,
every account at a house bank by an account ID. In the SAP system, we use the bank
ID and the account ID to specify bank details. These Specifications are used, for
example, for automatic payment transactions to determine the bank details for payment.
In SAP for every Bank account of the company two set of GL accounts shall be
maintained Bank main account and Bank clearing sub-account.
The Bank clearing Sub-accounts ensure that all incoming and outgoing payments are
only posted to the bank Main account when the transaction is actually debited /credited
in the Bank statement. The entries from the bank sub-accounts to bank main account
takes place in SAP when the bank statement received from the bank is uploaded in
SAP.



Bank Accounting




Accounting Entries Outgoing Payment Made

Vendor Account Dr
Bank Clearing Account Cr


Accounting Entries Post Bank Reconciliation

Bank Clearing Account Dr
Bank Main Account Cr


Accounting Entries Incoming Payment Received
Bank Clearing Account Dr
Customer Account Cr


Accounting Entries Post Bank Reconciliation
Bank Clearing Account Cr
Bank Main Account Dr


Accounting Entries (Bank Charges) Bank Reconciliation
Bank Charges Account Dr
Bank Main Account Cr


Bank Accounting


The following will be the process steps for bank reconciliation in SAP

1. Receive bank statement from the bank

2. Load the bank statement into SAP using the bank statement option

3. The bank reconciliation will be carried out in SAP taking into account the external
transaction types of the bank and the related posting rules and interpretation
algorithm.

4. After the reconciliation run in SAP, the matched items will be cleared in the books
and required accounting entries will be passed for transferring the amount from
bank sub-accounts to the bank main account.

5. The un-matched entries would get posted to the bank sub-account and the bank
main account, but the transactions will not clear in the bank sub-account and will
remain open.

6. The unmatched entries will have to cleared manually in the bank sub account
after receiving the necessary information from the bank where required.


Bank Accounting



Process Flow
Start
Receipt of Bank
Statement
Convert into Multi-
Cash Format
Upload File in SAP
Reconciliation of
Upload File
Data Matched
End
Yes
No
Forced Match


Bank Accounting


Transaction / Activity Chart
S No. Transaction T. Code Input Output
1 Upload of Bank
Statement
FF_5 Input File in Multi
Cash Format
Bank Data Uploaded
2 Force Match
Option
FEBA Company Code,
Payment Details
Open documents are cleared
3 Display of
Document
FB03 Company Code,
Document Number,
Fiscal Year
Display of uploaded document

4 Bank GL
balance
FBL3N /
FAGLB0
3
Display of GL
Account
Reconciled Bank GL accounts
are cleared

Key Process Changes (if any):
COMPANY has to maintain separate General Ledger account for Bank Main Account
and Bank Clearing Account for each Bank. Bank Statement to be available in Multi Cash
Format.