House Bank Creation with Multiple Branches & Account IDs

[former_member565633]

Hi All,

I have a doubt on house bank creation, sorry if the same has already explained here.

My requirement is to create a House bank as HDFC with 10 branches and each branch has 2 account ids. How to do the configuration in FI12?

Do we need to create separate house banks for each branch?

Thanks in advance,

Abhi

[Former Member · Accepted solution]

Dear Abhilash,

As my opinion, I will seperate 10 House bank for 10 branchs also.

Because in this case, I'll create 11 bank key, and each bank key is assinged to one House bank.

So, I think you should create seperate House bank for each branch.

Julie

[former_member565633]

Thank you all for your help on the issue.

To conclude, if we have multiple account ids in a branch, then we need to create separate House Banks for each branch.

BANK	BRANCH	ACCOUNTS	HOUSE BANK	DESCRIPTION
HDFC	BGLR	SAVING	HD01	Need to create  House Banks for each Branch
HDFC	BGLR	CURRENT
HDFC	MUMBAI	SAVING	HD02
HDFC	MUMBAI	CURRENT

If we have only one account in each branch, then we can use the account id concept for each branch with a single House Bank.

BANK	BRANCH	ACCOUNTS	HOUSE BANK	DESCRIPTION
HDFC	BGLR	SAVING	HDFC	One House Bank and 4 Account Ids for each Branch
HDFC	MUMBAI	SAVING
HDFC	DELHI	SAVING
HDFC	CHENNAI	SAVING

Please let me know if I am wrong.

Thanks again,

Abhi

[Former Member]

Hi Abhilash,

I have a doubt in second table your company have four saving accounts in HDFC Bank in different locations but your creating one House Bank.

As for my knowledge you need to create 4 House Banks for 4 different address.

Thanks & Regards,

Ravindra

[former_member565633]

Hello Ravindra,

Yes, you are absolutely right in normal scenario.  But creating House banks for each branch will not be feasible in all the time.

For example, suppose, our company is having HDFC as main bank and have 100 branches and also each branch have one account.  Here creating 100 house banks will make difficulty at the time of EBS. So in this scenario, we can use the account id concept for each branch.  You can create one House Bank as HDFC and create 100 account ids for each branch. 

This might be a hypothetical scenario but I guess as per the requirement we should take the call.

Please correct me if I am wrong.

Thanks,

Abhilash

[Former Member]

Hi Abhilash,

Yes it is not possible to just create one house bank with bank key xxxx and then assign several branches as each of them constitutes one single house bank with dependant address data in FI01. If you want to combine house banks under one umbrella for reporting or operational purposes you can use bank chains. If you want, for example, to execute collections or payments for all your branches in one central house bank you can redirect these operations depending on a search scenario to a central bank.

Path: SPRO -> Financial Accounting -> Bank Accounting -> Bank Chains -> ...

Hope this helps!

BR,

Alex

[Former Member]

Hi Abilash,

I think so below information is helpful to resolve your issue.

1) Create a Bank master record for HDFC - FI01

2)  HDFC 10 branches are all different locations then you need to define 10 House Banks under   company code - FI12

3) House Bank level you can create as many account ID's (Bank accounts).

Thanks & Regards,

[former_member565633]

Thanks Julie and Subhrajit for your explanation.

One more clarification.

Is there any way to configure the above requirement under one House Bank? That means one House bank as HDFC and multiple branches as account ids.  If so how can we configure multiple accounts in the same branch?

Thanks,

Abhi

[Former Member]

Hi,

In order to maintain bank account for each branch, you can use tcode FI12 also.

After created House bank, choose the folder Bank account to create bank account for that House bank, you fill the bank account, assign GL account for this bank account, and currency also.

If you use Automatic Payment Program (APP), please go to tcode FBZP to set up the Bank determination to specify which house bank should be used first.

Julie

[Former Member]

Yes you can mantain multiple accounts under the same House bank. You need to differentiate with your Account ID like below.

House bank    ActId

HDFC            CA001

HDFC            FL002

HDFC            FL003

[former_member565633]

Thanks Giri for your reply,

As you said we can create different Account IDs in same House Bank.  But my case was I have one Bank, HDFC, 10 branches and each branch has 2 accounts like Saving account and Current Account.  Is it possible to configure above under the same House Bank???

Thanks in Advance,

Abhi

[Former Member]

Hi Abhilash,

Got your point.

What you are refering is 3 tier structure, with HDFC as house bank and you want Account Ids to act as different branches.

I am afraid that is not possible.

As I told you before, if you want to capture different branches of HDFC in your system (assuming- different branches has different address) the please creat 10 House Banks.

You can use same SWIFT code and bank key in all 10 House Banks and it wont be a problem.

So for Eg.

you have HDFC - Mumbai, Delhi , Kolkata branch.

Create as HDFCM, HDFCD, HDFCK - 3 House banks.

Different address maintained,

Same or diff, bank key & Swift Code maintained,

Under each House banks create Account IDs - which refer to Bank Accounts.

Rest of the settings in FBZP like Bank determination, clearing account set up - I hope you are aware of .

[Former Member]

Hi,

As Julie explained above, each Branch will have a different address , and that means a different Bank Key, So I would also suggest to have 10 different house Banks with two Account Id's to each house bank representing your different Account No.'s with that branch. This is SAP best practice.

Regards,

Kavita

[Former Member]

Abhilash

Can we do something like this: If your bank key is same and with different bank act number,

   For one branch (HYD) is defind below,

similarly we can add 10 branches.

I am not sure If I understood your requirement correctly.

[Former Member]

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