Bank Reconciliation

-----------------------------
Manual Bank Recon Electronic Bank Reco
The main purpose of uploading the bank statement into SAP is to have bank main a/c and bank
statement balance in sync. To achieve this we usually use bank main a/c & bank sub a/c in
SAP. Before we get into configuration of SAP, We will go through the accounting entry.
• Whenever you make a payment through F-53 or F-58 or F110, the entry would be:

Vendor Account Dr
To Bank outgoing Account Cr
• Upload of the bank statement would pass the below journal entry:

Bank Outgoing Account Dr

To Bank Main Account Cr
Customer payment F-28
Bank Incoming account Dr
To Customer Cr
• Upload of the bank statement would pass the below journal entry:

Bank Main account Dr

To Bank incoming account Cr
In case of Customer payments through Bank Transfer.
• If GL accounting area (01) is configured the entries the system will pass:

Bank Main Account Dr

To Bank Incoming Account Cr
• If sub-ledger area (02) clearing is also configured, the entry the system will pass:

Bank incoming Account Dr

To Customer account. Cr Pravahit Technologies [email protected] Contact:
• Upload of the bank statement would pass the below journal entry for Bank charges:

Bank charges account Dr

To Bank Main account Cr
• Upload of the bank statement would pass the below journal entry for Interest paid:

Bank Interest account Dr

To Bank Main account Cr
• Upload of the bank statement would pass the below journal entry for Interest Received:

Bank Main account Dr

To Interest Received account Cr
In case of Manual Bank Statement –
- Manual Import (FF67) – The bank statement can be created manually by entering the details
in transaction FF67. Different Layout can be created to capture clearing information and clear
items during posting of statements in SAP.
- Custom Programs - The statement data from Excel or other formats can be populated in
FF67 by using custom programs, thus reducing the manual job of entering data in SAP.

In case of Electronic Bank Statement –

Electronic Bank Statement- Overview
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, Multicash, 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 case of Manual Bank Statement –

- Manual Import (FF67) – The bank statement can be created manually by entering the details
in transaction FF67. Different Layout can be created to capture clearing information and clear
items during posting of statements in SAP.
- Custom Programs - The statement data from Excel or other formats can be populated in
FF67 by using custom programs, thus reducing the manual job of entering data in SAP.

In case of Electronic Bank Statement –

Electronic Bank Statement- Overview
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, Multicash, 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.
Account no. should be ends with
1. Main bank account 0
2. Check issue account Open item 1
3. Check deposit A/c Open item 2
4. clearing account Open item 3
5. Bank Changes
6. Interest paid A/c

Account Symbols
• You enter account symbols rather than the actual account names in
posting specifications. You can define these account symbols to meet your
requirements.

Example -
For account 200130 you could define an account symbol BANK

Assigning G/L Accounts to Account Symbols

Define postings to be triggered by possible transactions in the account statement (such as
bank transfer, debit memo).
In the posting specifications debit -> credit that you define here, use the account symbols
from step 1, not the G/L account numbers. This prevents similar posting rules being defined
several times, the only difference between them being the accounts to which postings are
made.
• You can assign the G/L account to the account number in any one of the following ways:

Account Symbol G/L Account

BANK 0000200130
BANK ++++++++++
BANK +++++++++0
The use of “+++” is known as masking.
Create keys for posting rules
Assign posting rules to possible transactions in account statement file. A list of assignments
where one external transaction code is assigned to one posting rule is called a transaction
type.

Define Posting Rules:

In this activity you create posting specifications for each posting rule. You use the posting
specifications to specify how a certain business transaction (such as a credit memo) is to be
posted
create and assign business truncation for manual bank
statement
path :up to business truncation the path is same –Payment transactions –manual
bank statement –Create and assign business transactions
Define variants for manual bank statement
Same path (Tr cod is OT43)
Select create button
Variant : ALLP
Name :Manual bank statement variant for ALLP
Enter
From the possible fields column double click on reference doc .number (selection)
Enter
4the column (20+16) :36
From the possible field column double click on bank reference
Enter
From the possible fields column double click on business area
Enter (53+13+4):67
Save
Press enter to save in your work bench request
Keep the cursor on ALLP :select activate button
To make text field optional field for field status groups G001 and G005 (Tcode OBC4)
Select field status variant :ALLP
Double click on field status group folder
Double click on G001
Double click on general data
Text make it optional entry field
Save
Press enter to save in your request
Double click on G005
Double click on General data
Text make it optional entry field
Save
Sales invoice posting (F-22)
Give the document date :Today’s date
Type :DR
Company code :ALLP
Posting key :01
Reference bill no. :2345
Account :1980000005
Enter
Amount : 194000
Business area :ALPB
Text :Sales invoice posting
Posting key :50
Account no. :300000 Sales a/c
Enter
Amount :*
Business area :ALPB
Text :+
Document –simulate & Save
Customer payment (F-28)
Give the document date :Today’s date
Type :DZ
Company code :ALLP
Posting key :15
Reference bill no. :
Account :1980000005
Enter
Amount : 194000
Business area :ALPB
Text :Customer payment
Posting key :40
Account no. :200132 SBI Incoming account
Enter
Amount :*
Business area :ALPB
Text :+
Document –simulate & Save
Give the document date :Today’s date
Type :KR
Company code :ALLP
Posting key :31
Account no. :4500001
Enter
Give the amount :100000
Business area :ALPB
Text :Purchase invoice posting
Posting key :40
Account no. :200120 Inventory RM
Enter
Amount :*
Business area :ALPB
Text :+
Document –Simulate and Save
2. Outgoing payment with clearing (Tr code is F-53)
Give the document date :Today’s date
Type :KZ
Company code :ALLP
Clearing text :Outgoing payment
Account under bank data :200131 (SBI Outgoing account)
Business area :ALPB
Amount :100000
Text :Outgoing payment
Account under open item selection: 4500001
Select process open item button
Double click on payable amount : 100000
From the menu select Document --Simulate & Save
Path :Accounting –Financial accounting –Banks-Incoming –Bank statement –manual
entry (Tr code is FF67)
From the menu select settings –specifications
Start variant : select ALLP
Enter
Bank key : SBI5643
Bank account : 011012345
Currency :INR
Give the statement no. :1
Statement date : 29.02.2016
Opening balance :0
Closing balance :90000
Posting date :29.02.2016
Enter
Ignore the warning message press enter
Transaction :select ALLP
Value date :Today’s date
Amount :100000
Give the reference doc no. :700001 (check number)
Business area :ALPB
Enter & Save
Save once again
From the menu select System –Services –Batch input session
Select session name :FICO1
Select process button
Select display errors only radio button
Select process button
Ignore the message and exit batch input button
Go and see the SBI Incoming account A/c (FBL3N)
Give GL A/c No. :200132
Company code :ALLP
Select cleared items radio button
Select normal items check box
Execute
Double click credit 194000
Select call up document overview button
Create transaction types
In this activity you create the names and descriptions of the various transaction types you
require. House banks that use identical lists of business transaction codes (external
transactions) can be assigned to the same transaction type later.
Create the names and descriptions of the various transaction types you require.
Assign external transaction codes to posting rules
In this activity you assign (external) business transaction codes to an (internal) posting rule.
This means that the same posting specifications can be used for different business
transaction codes.
1. For each transaction type, assign a posting rule to each external transaction key.
2. In the "+/- sign" field, enter "+" or "-" to indicate whether payments are incoming or
outgoing.
3. If necessary, define an interpretation algorithm if open items are to be cleared
automatically as a result of the posting.

Assign bank accounts to transaction types

In this activity you assign each of your bank accounts to a transaction type. You can specify
a work list of G/L accounts. This enables you to search several bank subaccounts for open
items that the system could not clear during posting of the account statement when you
post process the account statement.
Import Electronic Bank Statement
Sample format of Electronic bank statement (MT940 format) which is received from bank

We cannot upload statement more than once. If we want to upload in any case then we
have to delete the statement and upload.
Go to SE38 transaction
Enter program : RFEBKA96
Execute.
Enter Application id : In this scenario . 0001

If we know the Id, then enter the ID else leave blank

Click Execute button.
Then we will get list of statements that are uploaded in the system.

Deselect all the check box and select only the statement that needs to be deleted.

Click delete statement button then system shows the popup message click yes button.

1. Brief Description of Electronic Bank Reconciliation:

In many countries today, account statement data can be electronically retrieved from banks.
In Germany, this information is accessed using the bank communication standard (BCS) of
the banks. These files can be imported into the SAP system where they are then
automatically processed.
 During conversion, data in the MT940 file is supplied with SAP-specific information for
further processing. After the import transaction is completed, the data in the bank data
memory is analyzed. The system tries to identify the individual business transactions and
filter out the information necessary for posting, for example document numbers, from the
note to payee fields on the account statement (interpretation of the note to payee).
If the necessary information can be interpreted, the system will automatically post the
transactions (using batch input). All line items are usually posted automatically.
Statistics show that up to 95% of customer data can be posted automatically in the SAP
system. The system offers convenient tools for further processing of line items that are not
posted. Problems may occur during the posting of incoming payments in the accounts
receivable area. Some customer invoices may not be completely cleared or bank
transactions may have been made with incorrect references. In these situations, you will
have to use the post processing function to post the items.
Processing always takes place in three stages.
1. First, each file is transferred (in the relevant account statement format) to the bank data
storage.
2. The data that is used to derive the clearing information from unstructured information is
then interpreted. This clearing information is stored in bank data storage.
3. Batch input sessions are then created or the account statements are posted directly.
4. Many banks provide account statements in the SWIFT MT940 format (with or without
structured field 86).
5. SWIFT MT940 should only be used in cases where it is not possible to use the MultiCash
format.
Business Process Overview MT940:
1. It is an electronic document sent by the bank which gives details of the transactions done
by the account holder.
2. The electronic document can be remitted by the bank in the following formats SWIFT,
Multicash, BAI etc.
3. This statement is used in SAP to do an automatic reconciliation.
4. 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.
2. Process Steps:
2.1 . Import
Use
When importing the electronic bank statement, you enter the format and both filenames,
and stipulate further processing. After the import, the system posts payments to the bank
account, bank clearing account, customer accounts, and, if appropriate, vendor accounts
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP ECC menu Accounting Financial Accounting
Banks Incomings Bank
Statement Import
Transaction code FF_5
Mention FF_5 in Command bar to upload the bank statement as given in the screen shot
below with used specification.

Select Import Data Check box

Electronic Bank Statement format Select I SWIFT MT940 International Format.
Statement File: Select the path where the Bank Statement file is located in your system.
Select WorkStation upload check box.
Select Do not post radio Button always. Do not select post immediately radio button. If you
select the radio button then documents generates automatically.
On last select execute bottom. Then screen will appear like following. If in between any
error comes then rectify it by suggested error to upload.
Press back arrow
2.2 . Display
Use
It used to display the earlier uploaded statement by using transaction code # FF_6 as
trailing.
Procedure
Access the transaction choosing one of the following navigation options:
SAP ECC menu Accounting Financial
Accounting Banks Incomings
Bank Statement Display
Transaction code FF_6

To display the Statement enter the following:

Company Code :IN10
House Bank ID: BNPIN
Bank Account ID : INM01
Execute.
Execute:
2.3 . FEBA_BANK_STATEMENT - Reprocess
Use
It used to display the earlier uploaded statement by using transaction FEBA.
Procedure
Access the transaction choosing one of Accounting Financial
the following navigation options: SAP Accounting Banks Incomings
ECC menu Bank Statement
FEBA_BANK_STATEMENT-
Reprocess
Transaction code FEBA_BANK_STATEMENT
Similarly by selecting following parameters in FEBA T.Code also we can navigate to above
screen.
Enter the following Details:
Application: 0001 Electronic and Manual Bank statement
Company Code: IN10
House Bank: BNPIN
Account Id: INM01
Statement Number: Enter the Statement Number.
Statement Status: 1 ALL LINE ITEMS
Posting Areas: 1 GL ACCOUNTING
Posting Methods: A Display all screens.
Execute.
Click Overview button.

Click on the Bank Name.

Click on the statement number

After clicking the statement number

In the right side of the screen we can see All the amounts are not posted and it displayed
common message “To be Posted”.
To post a particular Amount
Then select the amount for which we need to clear.
Double click the Amount
In the below screen shot clicked on the Amount 232.187,01- for No 00005
Once Double click on the amount the following screen will display

In the above screen shot we can see the details like External Transaction NMSC.
In the Payment Notes we can see the DD number, if it is check we can see the
corresponding details.
To post the document. Select Menu- Line Items-Post.
Once we select post. Immediately the document gets posted.
We can see the document number that got posted document. 100000203.
Double click the Document to display.

The following entry has been generated.

To go back to the main link click back arrow.
We can see the difference to the amount for which the document posted. Rest all the
amounts are in the status to be posted.
To Post the amounts for the rest of the item to the uploaded statement file. We have to
follow the same process as mentioned above.
2.4 . Clear
Use
It used to clear the Reconcile Document manually
Procedure
Access the transaction choosing one of the Accounting Financial Accounting
following navigation options: SAP ECC General Ledger Account Clear
menu
Transaction code F-03

To clear the GL account manually.

Enter the following details.
Enter GL Account:
Select Amount radio button and select Process open items button
Select Process Open items button.
Enter the Amount in the amount field and select process open items.
Menu-Document – Simulate
The same process to be followed for rest of the amounts available in the Bank Statement
How to understand Electronic Bank statement
process (Read below guidelines)
MT940 statement tags
20 Transaction Reference Number
25 Account Identification
28C Statement Number/Sequence Number
60a Opening Balance
61 Statement Line
86 Information to Account Owner
62a Closing Balance
Below table list the Field Name Field Value Remarks
transaction details
required for MT940
account statement.
Field Id
:20 Date YYYYMMDD Statement Date
from request xml
Sequence No Running sequence number sequence no used for MT940
and prefix with ‘0’ for 8 request. It will be
digits incremented for every
statement date of account
number.
:25 A/c No Account number from
request xml

:28C Statement No 5 digits length. Julian day value of

YYDDD Statement Date
from request xml
Sequence No 3 digits length prefix with 0. Incremented by 1 for each
request for Account No and
Statement Date which is
received in same day. This
applicable when statement
date and request date is
same. If statement date is
less than request date it will
be always 1.
:60a First or intermediate ‘F’ or ‘M’ Statement Date <
Opening Balance Request Date
It will be always ‘F’.
Statement Date =
Request Date
‘F’ for first request
for and ‘M’ for
subsequent request
in the same day.
Debit/Credit ‘D’ or ‘C’ It will be ‘D’ if opening
balance for statement date
is negative balance else it
will be ‘C’
Date YYMMDD Statement date
Currency Account Currency
Amount Opening Balance for a Amount & Decimal will be
particular statement date separated by comma.
eg. 1000,50
If Decimal part is not
available then it will be
taken as 00. eg. 1000,00
:61 Date YYMMDD Value date
Entry Date MMDD Posting date
Debit/Credit ‘D’ or ‘C’ ‘D’ for debit entry and ‘C’ for
credit entry
Currency Thrid character of Transaction currency
Amount Transaction Amount. Amount & Decimal will
 be separated by comma.
Non-Swift (hardcoded) N Always hard coded as ‘N’
Transaction type identification Trxn Code
NONREF Always hard coded as NONREF
Reference No prefix with // Reference No.
:86 Mnemonic Code M mnemonic
code/value of each
transaction entry
Narration Transaction description for each transaction
entry
Branch Name Branch name value from
:62a First or intermediate Closing Statement Date < Request
Balance Date
It will be always ‘F’.
Statement Date = Request
Date
‘F’ for first request for and
‘M’ for subsequent request
in the same day.
Debit/Credit ‘D’ or ‘C’ It will be ‘D’ if closing
balance for statement date
is
negative balance else it will be ‘C’
Date YYMMDD Statement date
Currency Account Currency
Amount Closing Balance for a Amount & Decimal will be
particular statement date separated by comma.
eg. 2000,50
If Decimal part is not
available then it will be
taken as 00. eg. 2000,00