Electronic Bank Statement

[Former Member]

Hi All,

In EBS, system clears outgoing payments based on check number which is present in SAP which we can give as an algorithm in configuration. For outgoing payments where there is no check number system takes amount as the base and clears.

My query is that on what basis system clears incoming payments? Is it only based on amount or can we put any other as algorithm, for eg.,check no of incoming payments which we enter manually in SAP in assignment field?

We are using MULTICASH FORMAT and we asked bank to provide check no of incoming payments in electronic file.

Can any of you help me on how system clears for incomings automaticlly based on other than amount?

Is it possible in standard?

Thanks in advance

Kumar

[Former Member]

Hi

Configuring the Electronic Bank Statement and Manual Bank Statement

Electronic bank statement u2013 It is an electronic document sent by the bank which gives details of the transactions done by the account holder in electronic form. The electronic document can be remitted by the bank in the following formats SWIFT, Multicash BAI etc., (http://www.bai.org/operations/reportingcodes.asp)This statement is used in SAP to do an automatic reconciliation. The statement is uploaded in SAP and it clears the various Bank clearing accounts such as the Chk out, Chk in account to the main bank account.

In our scenario we have following bank GL codes (Sub accounts) for our Bank:-

111410 ICICI Bank u2013 Main Account

111411 ICICI u2013 Check Issued Out

111412 ICICI u2013 Outgoing w/tfr

111415 ICICI u2013 Other interim posting

111419 ICICI u2013 Check Received

Checks issued out to vendors will be credited to G/L code 111411 - ICICI Check Issued out Which is a clearing account.

Similarly Checks received from customers are debited to GL Code 111419 u2013 ICICI Check received which is a clearing account.

When the bank statement is uploaded in SAP the following will happen:-

For Checks issued out u2013 based on checks cleared in the bank account the following entry will be passed automatically.

GL Code Account Description Debit/Credit

111411 ICICI u2013 Check Issued Out Debit

111410 ICICI Bank u2013 Main Account Credit

For checks received in u2013 based on checks cleared in the bank account the following entry will be passed automatically.

GL Code Account Description Debit/Credit

111419 ICICI u2013 Check Received Credit

111410 ICICI Bank u2013 Main Account Debit

Thus after uploading the bank statement in the system, the main bank account i.e. GL code 111410 - ICICI Bank u2013 Main Account will exactly match with the balance shown in the bank. All the clearing accounts having open line items will be the reconciliation items.

Manual bank statement u2013 In case the bank is not able to give an electronic statement then the statement can be manually entered in the manual bank statement and uploaded.

The configuration for both the statement is the same except in electronic statement further 2 configurations are required:-

IMG > Financial accounting > Bank Accounting > Business transactions > Payment Transactions > Electronic Bank Statement

In this activity you make the global settings for the account statement. There are four main steps to be carried out:

Enter the chart of accounts YCCA

1) Create Account Symbol

In this activity you create the account symbols that you later need for defining the posting specifications.

Before posting rule is used, the account symbols are replaced with the relevant accounts to which posting is to be made.

Example

Create the account symbols BANK and CASH RECEIPT so that you can later define a posting rule for cash receipt.

Activities

1. Define an ID for each account symbol.

2. Enter a description in the text field

Specify G/L accounts (such as bank, cash receipt, outgoing checks) to which postings are to be made from account statement.

You assign account symbols to the G/L account numbers. These are required for the posting rules in step 2.

Click on and type in the following:-

Click on to save entries.

2) Assign accounts to account Symbols

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 (such as bank transfer, debit memo).

In the posting specifications debit -> credit that you define here, use the account symbols from step 1, not the G/L account numbers. This prevents similar posting rules being defined several times, the only difference between them being the accounts to which postings are made.

Double click on

Click on and update the following: -

To avoid having to define a separate account symbol for every single house bank account (with a different G/L account in each case), the G/L account field can contain a masked output. The masking is done using +++++++ for the main bank account. For the sub accounts all the other digits are masked except the last one. For bank charges the actual GL account is entered.

Note that masked entries (using +) are always based on a ten character account number. IF you are using a shorter account number (six characters for example), the entry must be right-aligned.

Click on to save entries.

3) Create keys for posting rules

Assign posting rules to possible transactions in account statement file.

A list of assignments where one external transaction code is assigned to one posting rule is called a transaction type.

Double click and click on and update the following information:-

Click on to save.

4) Define Posting rules

Here you assign the key created for posting rules to the various account symbols and specify whether it will be a debit or credit and to which posting area, whether bank or a sub ledger posting.

Click on

Update the following:-

Posting type 4 (Clear Debit G/L Account)

Click on Save

Click on

Select posting type 5 (Clear credit G/L account)

Click on

Click on save

Click on

Select posting type 1 (Post to G/L account)

Click on Save

Click on

5) Create Transaction Type

Assign bank details for which the account statements are to be imported, to a transaction type.

All the house bank accounts at a particular bank are usually assigned to the same transaction type.

Click on

Update the following:

Click on Save

Select

Double click on

Click on

Click on Save

Assign Bank accounts to transaction types

Double Click on

Click on new entries

Save

[Former Member]

hi

for incoming payment the system uses the 'note to payee' to decipher the algorithm for check number.

using the check number the system searches for the document number to be cleared.

in OT51 --> Allocate external transaction to posting rules, for each external transaction type and the posting rule, we need define the 'Interpret algorithm'.

thanks

eashwar