Brief Process Description and Process Scope:

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.Accounting Entries Outgoing Payment Made

Vendor Account

Dr

Bank Clearing AccountCr

Accounting Entries Post Bank Reconciliation

Bank Clearing AccountDr

Bank Main Account

Cr

Accounting Entries Incoming Payment Received

Bank Clearing AccountDr

Customer Account

Cr

Accounting Entries Post Bank Reconciliation

Bank Clearing AccountCr

Bank Main Account

Dr

Accounting Entries (Bank Charges) Bank Reconciliation

Bank Charges AccountDr

Bank Main Account

CrThe 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.

Process Flow

Transaction / Activity Chart

S No.TransactionT. CodeInputOutput

1Upload of Bank StatementFF_5Input File in Multi Cash FormatBank Data Uploaded

2Forced Match OptionFEBACompany Code, Payment DetailsOpen documents are cleared

3Display of DocumentFB03Company Code, Document Number, Fiscal YearDisplay of uploaded document

4Bank GL balanceFBL3N / FAGLB03Display of GL AccountReconciled 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.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