Electronic BRS Configuration

• What is BRS?

A bank Reconciliation Statement is a Summary of business activity that

reconciles financial details. It ensures that payments have been processed and money has been
deposited on the same date. An Accountant prepares the reconciliation statement once a
month.

To keep a record of business transactions, a Bank Reconciliation Statement is a

statement which records differences between the bank statement and general ledger. A BRS
checks entries on a monthly basis to avoid any future discrepancy. A BRS means matching
records for a cash account entry corresponding to the bank statement.

Bank Reconciliation in SAP can be done with the help of two kinds of bank Statement.

➢ Manual BRS (You need to enter the details of the statement manually.)
➢ Electronic BRS (You can just upload the statement).

• What is EBRS?

Medium to large scale businesses do thousands of transactions each day. Lot of

these transactions are banking related. Reconciling Bank balances with book balances manually
is not possible.

Uploading manual bank statement in ERP System is a time-consuming affair and

prone to clerical errors due to manual intervention. Treasury staff in an organization may end
up spending lot of time usually at the end of month for reconciliation.

Electronic bank Statement feature provided by SAP can save a lot of time and is
error free. SAP will upload the file which is sent (FTP) by bank. Based upon SAP Configuration
financial postings will be done. This configuration will the Statement automatically and at the
same time will do bank sub ledger postings and clearing postings.

• Required GL's EBRS:

*Main Bank Account
*Incoming Account
*Outgoing Account
*Income Account
*Bank Charges Account

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 Electronic BRS Configuration
• Prerequisites:

Following are the basic requirements for setting up EBRS in SAP:

➢ House Bank
➢ Bank file in specified format
➢ SAP configuration for EBRS
➢ Set up connection between SAP and bank for file transfer mostly secured (SFTP)
➢ SAP automated batch set up.

• House Bank Creation:

Required GL Accounts for creation of House Bank

*Firstly, we create 3 GL's in - FS00

➢ Main Bank Account

➢ Incoming Payment Account (Open Item Management)
➢ Outgoing Payment Account. (Open Item Management)

• IMG Path:
SPRO->IMG Path->Financial Accounting (New)-> Bank Accounting->Bank Accounts->Define
House Banks - FI12

House bank is done at Company Code level.

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 Electronic BRS Configuration

• Click on New Entries

• Fill the fields

-House Bank

-Bank Country

-Bank Key

• After that click on Create

Fill all those fields in Bank Data.

Next Click on Bank Accounts and click on New Entries

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Fill the Fields of

-Account ID
-Description
-Bank Account Number
-Currency
-G/L Acc-Main Bank Acc
And Click on save.

• SAP Configuration of Electronic BRS:

SPRO->IMG Activity->Financial Accounting (New)-> Bank Accounting->Business Transactions-

>Payment Transactions->Electronic Bank Statement-OT83

EBRS is done at chart of Account level.

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 Electronic BRS Configuration
• Create Account Symbols
• Assign Accounts to Account Symbol
• Create Keys for Posting Rules
• Define Posting Rules
• Create Transaction Type
• Assign External Transaction Types to Posting Rules
• Assign Bank Accounts to Transaction Types.

1.Account Symbol Creation:

Account Symbols are specifications for general ledger accounts. These are posted with
possible transaction contained in bank Statement.

Click on New Entries

Define an ID for each account Symbol & enter a description in the text field.

In this activity you create the account Symbols that you later need for defining the
posting specifications. Before the posting rule is used, the account symbols are replaced with
the relevant accounts to which posting to be made.

2. Assign Accounts to Account Symbol:

GL Accounts are mapped to account symbols in this step.

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 Electronic BRS Configuration
In this activity you define the account determination procedure for each individual account
symbol. Define postings to be triggered by possible transactions in the account statement (Bank
Income, Bank Outgoing payment, Bank Incoming Payment, Bank Charges, Main Bank).

3.Create keys Posting Rules:

Description for the necessary posting rules is entered in this step. Each posting rule
represents a business transaction.

. In this Activity you enter descriptions for the necessary posting Rule. Each posting rule
represents a business transaction from the SAP System that included in the account Statement

Such as:

• Bank Charges
• Income
• Incoming Payment
• Outgoing Payment

4.Define Posting Rules:

In this activity posting specifications for each posting rule is Created. You Specify how a
certain business transaction is to be posted with which posting key, document type and posting
type.

Bank Charges:

*Journal Entry of Bank Charges

Bank Charges - DR xxx

Main Bank -CR -xxx

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• Posting Type 1 means - Post to G/L account

*Journal Entries of Income:

Main Bank - DR XXX

Income - CR -XXX

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*Journal Entry of Incoming Payment:

Bank Incoming Payment - DR XXX

Customer - CR -XXX

*BRS Entry:

Main Bank - DR XXX

Incoming Payment - CR -XXX

• Posting Type 5 means - Clear credit G/L act

*Journal Entry for Outgoing Payment:

Vendor Acc - DR XXX

Outgoing Payment - CR -XXX

*BRS Entry:

Outgoing Payment - DR XXX

Main Bank - CR -XXX

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• Posting Type 4 means - 4 Clear debit G/L acct.

5.Create Transaction Type:

Transaction Type Contains the external transactions type. External transaction types are
codes used by bank to specify the business transaction in bank file.

In this activity you create the names and descriptions of the various transaction types you
require. House Banks that use identical lists of business codes (external transactions) can be
assigned to the same transaction type.

6.Assign External Transaction codes to Posting Rules:

Transaction types in turn are link between External transaction types, Posting Rules and
Interpretation Algorithms. Interpretation Algorithm interprets the note to payee line in bank
statement and accordingly clears the open items accordingly.

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 Electronic BRS Configuration

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 transactions type, assign a posting rule to each external transaction key.

2.In the +/- sign field enter to indicate whether payments are incoming or outgoing.

3.If necessary, define an interpretation algorithm if open item are to be cleared automatically
as a result of the posting.

7.Assign Bank Accounts to Transaction Types:

Last step involved is assigning bank accounts with transaction types as defined above.
This step contains the list of external transaction which are valid for a house bank. Assignment
is of Bank account number and Bank Routing Number and not of GL account in this step.

In this activity you can Assign each of your bank accounts to 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.

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 Electronic BRS Configuration
Import Electronic Bank Statement:

Sample Format of Electronic bank Statement (MT940)

:20:BOR1

:25:7894561231

:28C:101

:60F:C191030INR0,00

:61:1910301030DR100,00NMSCBANKCHARGES//224189658

SBIN316030628614

:86:Neft DR Sbin0001323 Knldec153349

:62F:C191030INR100,00

Detail Description (MT940) Format:

:20:Reference

:25:Account Identification Bank ID/Account Number

:28C:Statement Number

:60F:Opening Balance

:61:Statement Line ID

:86:Information to account Holder

:62F:Closing Balance

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Uploading Bank Statement into SAP:

Transaction Code: FF_5

Then Execute.

:20:ANDH1

:25:89745621369

:28C:101

:60F:C191030INR0,00

:61:1910301030DR100,00NMSCBANKCHARGES//224189651

SBIN316030628614

:86:Neft DR Sbin0001323 Knldec153349

:62F:C191030INR100,00

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After Execute Account Statement.

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After Posting the Document

To View Cleared documents: T. Code-FBL3N(Bank Charges)

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Income:

:20:ANDH1

:25:89745621369

:28C:104

:60F:C191031INR2100,00

:61:1910311031CR1000,00NTIMBANKCHARGES//224189651

SBIN316030628614

:86:Neft DR Sbin0001323 Knldec153349

:62F:C191031INR3100,00

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After Posting the Document:

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Incoming Payment (open Item):

:20:ANDH1

:25:89745621369

:28C:106

:60F:C191031INR3600,00

:61:1910311031CR1000,00NMIPINCOME PAYMENT//6501

SBIN316030628614

:86:Neft DR Sbin0001323 Knldec153349

:62F:C191031INR4600,00

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After Posting the Document:

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Outgoing Payment:

:20:ANDH1

:25:89745621369

:28C:105

:60F:C191031INR3100,00

:61:1910311031DR500,00NMOPOutgoing PAYMENT//7501

SBIN316030628614

:86:Neft DR Sbin0001323 Knldec153349

:62F:C191031INR3600,00

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Line Item Display:

System will not post all those transactions which have valid external transaction codes. Missing
codes need to be mapped and the statement need to be reprocessed using standard SAP
transactions code FEBAN (Edit Bank Statement).

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