Configuration of Electronic (EBS)/Manual Bank Statement (MBS)

There is not much difference between the functionality and configuration of MBS and EBS. So that in order to understand how EBS functionality works in SAP we first start with MBS.

Manual bank statement – It is a document sent by the bank which gives details of the transactions done by the account holder. This statement is used in SAP to clear bank main and clearing accounts and to do reconciliation of SAP bank accounts with banks.

Configuration of House Bank: First we have to create a House bank and its bank accounts. Configuration steps of House Bank are given in the document of lockbox.

Within the IMG, the user needs to follow the menu path below to access the Manual Bank Statement configuration.

SPRO->Financial Accounting (New) ->Bank Accounting->Business Transaction->Payment Transaction->Manual Bank Statement->Create and assign business transactions.

Here we create a transaction and assign the same with posting rules created in next step.Using the transaction you determine how and to which accounts the system is to post the payment.

SPRO->Financial Accounting (New) ->Bank Accounting->Business Transaction->Payment Transaction->Manual Bank Statement->Define Posting Keys and Rules.

In this Customizing activity, user can make basic settings for the account statement. There are four steps to be carried out. Brief description of these steps is:

1. Create account symbolSpecify G/L accounts (such as bank, cash receipt, outgoing checks) to which postings are to be made from the account statement. You assign account symbols to the G/L account numbers. These are required for the posting rules in step 2.

2. Assign accounts to account symbolsDefine postings to be triggered by possible transactions in the account statement (such as bank transfer, debit memo).Note: 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.

3. Create keys for posting rules Assign the posting rules to the possible transactions in the account statement file. A list of such assignments where one external transaction code is assigned to one posting rule is called a transaction type.

4. Define posting rules Create a posting specification for each posting rule. You thereby specify how a given business transaction is to be posted.

Step 1: Create account symbol:

In this step you create the account symbols that you later need for defining the posting specifications. Before the posting rule is used, the account symbols are replaced with the relevant accounts to which posting is to be made.

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.

Activities 1. Define an ID for each account symbol. 2. Enter a description in the text field.

Step 2. Assign accounts to account symbols

In this step 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, Incoming Payment, Outgoing payment). In the posting specifications 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.

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.

Further examples how a user can assign a G/L account to each of the account symbols created (Not configured in above screen). The G/L account may contain the entire G/L account, a partial mapping of the G/L account, or a generic mapping of the G/L account. SAP provides the functionality of creating a wildcard search value when using the plus sign “+” character. See below the available means to map the G/L account to the account symbol.

The user may assign the G/L account to the entire G/L account.

Account symbol G/L accountUS_EXPENSE 0000479000

The user may assign the account symbol to a partial mapping of the G/L account. (If the number is entered partially generic, SAP replaces the plus signs “+” with the G/L account number contained in the House bank, but the non-generic portion remains within the value. For example: mapping G/L account +++++++++1 will replace the final with “1”)Account symbol G/L accountUS_CH DEPOSITED +++++++++1

  SAP provides the functionality to make postings in foreign currencies. The user may create a mapping that designates a specific foreign currency to be used with an account symbol (e.g., EUR, GBP, USD, etc.).

Account symbol Currency G/L account############# EUR ++++++++++

 SAP also provides the capability of creating a wildcard “+” for a specific account symbol such that all currencies are available.

Account symbol Currency G/L accountUS_CH ISSUE + +++++++++2

Account Modification:Field user can allocate as user want; it controls account determination for bank subaccounts.

With the help of this field, you can direct the posting to a differentiate bank subaccount instead of a standard one.Leave this field blank (or enter the mask "+") if you do not want to use an account modification.

Step3. Create keys for posting rules

In this step we are creating the posting rules which we need to assign the external transaction code. 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.

Activities 1. Define an ID for each account symbol. 2. Enter a description in the text field.

Step 4. Define posting rules.

The user needs to define each posting rule for how the transaction shall post as a journal into the General Ledger. The user needs to provide the following information when creating the posting rule.

Posting rule Posting area

o 1 – Bank accountingo 2 – Sub-ledger accounting

Pkey (D) – posting key for debit postingo 40 – debit entryo Blank value designate G/L, customer, or vendor account posting

DCInd (D) – special G/L indicator for debit posting to customer or vendor account Acct (debit) – account symbol for debit posting Comp (D) – account determination: indicator for compression (NOT OFTEN

USED): Indicator that the line items are to be compressed automatically before posting.

Pkey (C) – posting key for credit postingo 50 – credit entryo Blank value designate G/L, customer, or vendor account posting

DCInd (C) – special G/L indicator for credit posting to customer or vendor account

Acct (credit) – account symbol for credit posting Comp (C) – account determination: indicator for compression (NOT OFTEN

USED): Indicator that the line items are to be compressed automatically before posting.

PstTy – bank statement posting type (see below for more detail) Doc. Type – bank statement document type

o PstTy – bank statement posting type

OA pst key – posting key for posting on account when clearing posting fails Reason – reason for reversal

The bank statement posting type is required to determine how the posting rule should post as a journal within SAP. SAP uses the value to identify if the transaction posts directly to G/L account, posts directly to sub-ledger account, posts with clearing to G/L account, or posts with clearing to sub-ledger account.

1 – Post to G/L account2 – Post sub-ledger account debit (directly to sub-ledger account)3 – Post sub-ledger account credit (directly to sub-ledger account)4 – Clear debit G/L account5 – Clear credit G/L account7 – Clear debit sub-ledger account (clear open item of sub-ledger account)8 – Clear credit sub-ledger account (clear open item of sub-ledger account)9 – Reset and reverse clearing

Explanations of the above configuration with screen print of documents posted in SAP

1. Bank Income

FF67

2. Bank Expense

Now we can also change the above con fig and post bank expense account to separate expense GL account.

3. Customer Payment

Posted an customer Invoice

Received Incoming Payment

Bank Statement

It says that debit main bank account and credit bank sub clearing account with clear credit GL account. So it means that our bank sub clearing account should be cleared automatically by system.

4. Similarly we can configure for vendor payments

Posted an Invoice

Outgoing payment to vendor

Here we used standard variant SAP01

Configuration of Electronic Bank Statement Electronic bank statement – It is an electronic document sent by the bank which gives details of the transactions done by the account holder. The electronic document can be remitted by the bank in the following formats SWIFT, Multicash, BAI etc. 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 Check out, Check in account to the main bank account.

MultiCash format is created from the bank’s account statement data, usually in SWIFT MT940 format. The format consists of two files in format AUSZUG.TXT and UMSATZ.TXT. The AUSZUG.TXT contains the header information for the bank account statement while UMSATZ.TXT contains the line item information. This format allows the customer to import data from several account statements at the same time.

SWIFT MT940 is an international standard file format available for use by virtually all banks. The file format consists of header information with opening balance, closing balance, and statement number. The file also contains transaction information along with detail information for those transactions. SAP provides a pre-formatted structure for automatic mapping of the SWIFT MT940 files when uploading the data into SAP Banking. SAP recommends using SWIFT MT940 only in cases where it is not possible to use the MultiCash format.

SAP provides the means to convert the data from both file formats into a structure that may be used for further processing of the data. Reason for the bank statement upload

functionality existing is for automatically posting the line item activity directly into the General Ledger. The configuration steps required to post the information from the electronic bank statement into the General Leger is shown below.

The user needs to access SAP Implementation Guide for R/3 Customizing (IMG) using transaction SPRO.

Within the IMG, the user needs to follow the menu path below to access the Electronic Bank Statement configuration.

SPRO->Financial Accounting->Bank Accounting->Business Transaction->Payment Transaction->Electronic Bank Statement->Make Global Settings for Electronic Bank Statement.

The user needs to identify the Chart of Accounts that should be referenced within the Electronic Bank Statement configuration. Then the user may click on the “Continue” button.

In this Customizing activity, user can make basic settings for the account statement. There are seven steps to be carried out for EBS. Out of these seven first four is already configured in MBS:

1. Create account symbol – We already created them in MBSSpecify G/L accounts (such as bank, cash receipt, outgoing checks) to which postings are to be made from the account statement. You assign account symbols to the G/L account numbers. These are required for the posting rules in step 2.

2. Assign accounts to account symbols - We already created them in MBSDefine postings to be triggered by possible transactions in the account statement (such as bank transfer, debit memo).Note: 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.

3. Create keys for posting rules – We already created them in MBS

Assign the posting rules to the possible transactions in the account statement file. A list of such assignments where one external transaction code is assigned to one posting rule is called a transaction type.

4. Define posting rules - We already created them in MBSCreate a posting specification for each posting rule. You thereby specify how a given business transaction is to be posted.

5. Create a transaction typeCreate the names and descriptions of the various transaction types you require.In this activity you assign (external) business transaction codes to an (internal) posting rule. As a result, you can use the same posting specifications for different business transaction codes.

6. Assign External Transaction codes Create the external transactions for a transaction type; the user needs to select a specific transaction type. Then the user needs to double click within the Dialog Structure the line “Assign external transaction types to posting rules”.

7. Assign bank accounts to transaction typesAssign the bank details to a transaction type, for which the account statements are to be imported. All the house bank accounts at a particular bank are usually assigned to the same transaction type.

.Remaining three steps are explained as under:

Step 5 Create Transaction type.

The user needs to create the transaction types and description as shown below. A transaction type should exist for a conglomeration of banks that have similar External Transaction Types. The External Transaction Types are the external transactions that are sent from the bank referencing the type of activity occurring for a specific transaction. SWIFT codes are some basic external transactions that appear within the bank statement.

Step 6: Assign External Transaction codes.

SAP requires the external transactions be created and assigned to posting rules for each transaction type. To create the external transactions for a transaction type, the user needs to select a specific transaction type. Then the user needs to double click within the Dialog Structure the line “Assign external transaction types to posting rules”.

SAP provides the means to create and assign an external transaction type based upon the transaction type, the movement of the transaction, the posting rule, and an interpretation algorithm for posting the transaction.

External transaction – SWIFT code or other external code + / - sign

o “+” designates cash receipto “-“ designates cash disbursement

Posting rule – posting process of transaction Interpretation algorithm – determines how the note to payee field should be

searched for clearing open items. (SAP provides the functionality to search incoming and outgoing transactions for known values from the note to payee field of the bank statement line items. The search may occur within the document number, reference document number, or check number of a posted document.)

Planning type transaction – may create cash management payment advices for transactions reported by the bank

Processing type – dummy entry: not assignable is available

Interpretation AlgorithmIt uses information in note to payee field of EBS to search matching tranacations in sap.If any open items are there in the system will post the subsequent entries based on the Algorithm.

If you select 00: No algorithm, use custom algorithm that developed through user exists.

If you select 01: Standard algorithm the system will identify the open items and post the subsequent payments based on the Document number or Reference number.

If you select 11: System interpret contents of note to payee field as check number you sent and find correct document number from check number. It assumes that check number is different from sap document number. System will search based on document number or reference document number.

If you select 19: System search DME information in note to payee field to find correct document in SAP.

If you select 20: Same as 11 except: Document number the system will identify the open items and post the subsequent payments based on the Document number only (Customer Invoice).

If you select 21: Same as 11 except: Reference document number the system will identify the open items and post the subsequent payments based on the Reference document number only.

Step 7: Assign Bank Accounts to Transaction types:

The user needs to assign the bank account to the Transaction type. SAP provides the functionality to assign a bank key and bank account to a specific Transaction type. SAP uses the specified Transaction type for processing the bank statement postings for that bank account.

Upload of EBS input File: Below is the example of sample EBS. It is just to demonstrate brief structure of Input file, how it uploaded in SAP and other related steps. So the configuration of EBS shown above does not match with the configuration according to which below file is demonstrated.

Import Electronic Bank Statement Sample format of Electronic bank statement (MT940 format) which is received from bank

Details of description (MT942 Format) : 20: Statement Date: 25: Account Identification Bank ID/account number: 28C: Statement and/or sequence number: 60F: Opening Balance : 61: Statement line field : 86: Information to account holder: 62F Closing Balance

Uploading Bank Statement into SAP Transaction code FF_5

Fill the details as shown in screen shot to uplad the data provided by bank.Click on Excuete button(f8) for uploading data into ERP system.

Click on

To view cleared documents After uploading Electronic Bank Statement data through Transaction Code FF_5, documents will automatically posted into the Main Bank Account & also it clears the Sub ledgers open items as shown below. Go to Transaction Code FBL3N.

Now, Bank Sub ledger amounts are transfer to Main Bank accountChecking of bank Statement (Transaction Code: - FF67)

Click on

Double click Selected Bank

Double click on required statement to view the transaction details