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Best practice for Bank GL set up if same bank is using across company codes

Nov 13, 2017 at 06:28 AM


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Former Member

I have question about normal bank GL set up. We have across global lots of company code. Every company code using more than 1 house bank (Local currency, Foreign currency) etc. So best practice is to create 1 main and several sub GL account for each bank account or we can use same GL account cross co code? For example: Co code 1000 using Chase bank in local currency USD and another bank account foreign currency MXN. So it mean Co code 1000 has 2 house bank and 2 main GL bank account with several sub GL account. Co code 1004 using Chase bank with local currency EUR and foreign currency USD So what is best practice to create separate GL account for each house bank or extend the GL account which we are using in co code 1000. Please suggest and also keep in mind that how it impact the future implement of Cash management and Treasury project.

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2 Answers

Best Answer
Eli Klovski
Nov 13, 2017 at 08:18 AM


There is no best practice for this; each client decides for him(her)self. I'd recommend to have common G/L across company codes for the same bank and currency, and I believe, that's what you mentioned in your example. E.g. CCode 1000 has G/L X for DeustcheBank in EUR, so if CCode 2000 also has house bank with DeutscheBank in EUR, they will have the same G/L. You have to remember that G/L description is maintained on COA level and if you don't want any discrepancy in description, that's the best way to manage it.



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Former Member

Hi Eli

Thanks for your reply. If I understand correctly, Cash management we assign GL account. I am only confuse while implementing cash management will it have any impact if we will use same GL across co code for bank accounts.

Any thought?




Why would it pose a problem? It's the same coding, not the same account...

Georgios Sofianos Jun 13 at 05:04 PM

Usually within an organization you have a Global Chart of Accounts shared between all company codes. Each GL Account relevant for treasury and banking should be unique. However, best practice is to adhere to a GL Account format that is easy understandable, easy to configure and to follow. Keep in mind that in the Payment Program and Bank Statement processing configuration you might need to configure bank accounts using a mask (*). So for example, you might use a format like 2940XXYYN, where:

2940 could be the range /level of G/L Accounts that relate to Bank Accounts, as per Chart of Accounts,

XX could be a code that defines internally the banking institution, i.e. 40 is HSBC, 50 is Citi etc.

YY is the internal code for the currency, i.e. 01 is EUR, 02 is USD etc.

N is an internal digit that defines the use of the Account, i.e. '0' could be the main Bank Account, '1' is the bank subaccount for Outgoing EFT Payments, '2' is for inbound EFT Payments, '3' is the unallocated cash technical account, '4' is outgoing Cheques, etc.

As the name of the Account is at CoA level, you may need to make sure that the description of the G/L Account remains generic, for example, "Citi Main Bank Account EUR", so that the same GL can be used across different company codes.

Hope this helps.

Georgios Sofianos

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