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Manual Bank Statement and Payment Allocation

Hi experts,

Could anyone please explain and advise whether my steps are correct?

1) What is the relationship between processing manual bank statement and payment allocation?

2) When do we need to manually enter all the items of bank statement into the system at "Items" tab and manually select those items and payment documents in the system in order to do reconciliation?

3) For Outgoing Payment: Create Outgoing Bank Transfer > Change Status to "In Transfer" in Payment Monitor" > Create Bank Statement (select all items in "All not Confirmed Items in Transit" tab) > Post.

For Incoming Payment: Create Bank Credit Advice (with posting) > Create Bank Statement (select all items in "All not Confirmed Items in Transit" tab) > Post.

4) For incoming payment, is wire transfer same as bank transfer? I couldn't find wire transfer as incoming payment method for customer.

Appreciate it.

Thanks

Regards,

DK

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2 Answers

  • Jun 20, 2017 at 03:05 AM

    Hi Harshal,

    Thank you so much for your detailed explanation. It definitely clears up my confusion.

    About Question (4), the screen that I am trying to find incoming payment is the Fine-Tuning Activity: Account Determination for Cash sub ledger.

    I was trying to do incoming payment for customer for Wire Transfer via Bank Credit Advice. But I encountered the error message "Missing GL account in Cash sub ledger > Cash Receipt - Cash in Transit, Payment Method - Wire Transfer" . incomingwiretransferbankadvice.png However, there is no Wire Transfer as a payment method for Cash Receipt - Cash in Transit. Please refer to the pictures attached. cashreceiptintransitwithoutwiretransfer-01.png

    Am I not supposed to do Wire Transfer via Bank Credit Advice? Appreciate much for your help. Thanks

    Regards, DK

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  • Jun 19, 2017 at 05:37 AM

    Hello Dk,

    1) What is the relationship between processing manual bank statement and payment allocation?

    A : Payment allocation is the technical clearing which means that you are linking the payment in the system with the entry in the bank statement.

    Manual processing of the bank statement means that you will be manually creating the bank statement and link the payments if it is required.

    2) When do we need to manually enter all the items of bank statement into the system at "Items" tab and manually select those items and payment documents in the system in order to do reconciliation?

    A : Bank statement creation (Manual) is the step by step activity. when you are on step 2 and select the items, usually you do not need to process the payment allocation.

    when you are on step-3 and manually create the entry in the bank statement, that's when you need to allocate the line to the existing payment in the system or allocate it to GL account.

    Step-3 is usually required when you have not created the payment in the system but as per the bank statement, Payment was received (Incoming payment). Incoming payments are initiated externally (except Direct debit and credit card), so you get to know that the payment has been made only when you see the entry in bank statement.

    So you create the entry during step 3 and then allocate it to GL or also create the incoming payment manually and then allocate the bank statement item to the newly created payment.

    3) For Outgoing Payment: Create Outgoing Bank Transfer > Change Status to "In Transfer" in Payment Monitor" > Create Bank Statement (select all items in "All not Confirmed Items in Transit" tab) > Post.

    A : Yes, that's correct. or check the actual bank statement you receive from the bank and select items manually.

    For Incoming Payment: Create Bank Credit Advice (with posting) > Create Bank Statement (select all items in "All not Confirmed Items in Transit" tab) > Post.

    A : Yes. you can do this. If you are already aware of the incoming payment and like to create the payment in the system.

    4) For incoming payment, is wire transfer same as bank transfer? I couldn't find wire transfer as incoming payment method for customer.

    A : they are different.

    Can you tell me in which screen you are trying to find incoming wire transfer for customer? above screenshot is from the bank statement creation step-3.

    Regards,

    Harshal

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