Manual Bank Reconciliation Statement Process | SCN

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Manual Bank Reconciliation Statement

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Version 3

Introduction
Bank reconciliation is a process whereby you are matching your accounting records with the bank record. At a particular
point in time, your accounting record may or may not match the bank record. This is due to the time difference between
recording transactions in the companys books of account and the banks transaction postings. At the end of the month
or at a particular time interval agreed to with the bank, the bank sends a bank statement to the company.
The company compares the bank statement with the transactions recorded in its books of account. This process may
bring up the true balance with the bank, a transaction the company failed to record, or a transaction recorded by the
bank that does not pertain to the company. Because of these differences the bank account as per the books of accounts
may not exactly match with the bank statement.

When the company passes these entries, the main bank account balance will agree with the bank balance as per bank.
Important acronyms
BRS is Bank REconciliation Statement.
MBS Manual Bank Reconciliation Statement
EBRS is Electronic Bank Statement
BRS and MBS are one and same, these terms are used synonymously. In this document we are going to cover
BRS/MBS but not EBS.
In case if bank provides the bank statement manually or physical copy, we use manual bank reconciliation. Here we
need to do the reconciliation for each transaction by transaction manually.
In case if bank provides the bank statement in electronic form, we use Electronic bank statement. In this case we can
directly uploaded the statement in SAP and reconciliation happens automatically based on the configuration and
predefined parameters.
Prerequisites: Before configuring Bank reconciliation statement/Manual Bank Statement, we need GL Accounts, House
Bank and Check lots

Configuration
1.2 Define posting keys and posting rules for check deposit
Via Menus

IMG-->Financial accounting-->Bank accounting-->Business transactions--> Check

deposit -->Define posting keys and posting rules for check deposit

Via Transaction Code

SPRO

Provide Chart of Accounts

Click on Save

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Click on New Entries and update below details and press Enter

Alternatively, you can mask the GL accounts (e.g +++++0 for main bank account )
Click on Save
Double click on "Create Keys for Posting Rules"
Click on New Entries update below details and press Enter

Double click on "Define Posting rules"

Click on New Entries update below details and press Enter

Click on Right Arrow and update below information

Click on Right Arrow and update below information

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Click on Right Arrow and update below information

Click Save

1.3 Create and assign Business Transactions

Via Menus

IMG--> Financial Accounting --> Bank Accounting Business Transaction --> Check
Deposit --> Create and assign Business Transactions

Via Transaction Code

OT53

Click on New Entries update below details

Click on Save

1.4 Define Variants for Check deposit

Via Menus

IMG--> Financial Accounting --> Bank Accounting -->Business Transaction --> Check
Deposit --> Define Variant for Check Deposit

Via Transaction Code

OT45

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Place the cursor on Standard and click on Copy

And give Variant name as 1009
Click on 3-digit check number and click on Delete.
Similarly, delete 8-digit bank key and invoiced amount
Double click on 10-digit check number under Possible fields as below
And change the length to 06
Variant will look like one below:
Click Save and change description as below

Click Save and Click on activate Variant

1.5 Create and assign Business Transactions

Via Menus

IMG--> Financial Accounting -->Bank Accounting--> Business Transaction -->

Payment Transactions-->Manual Bank Statement -->Create and assign Business
Transactions

Via Transaction Code

OT52

Click on New Entries update below details

Click on Save

Note the following when assigning the business transactions:

The +/- sign
You can further differentiate external transactions by setting "" or "-" signs for them. If the external
transaction code has a "+" sign in front of it, it is a cash receipt; likewise, a "-" sign represents a cash
disbursement.
Interpretation algorithm
In addition to specifying posting rules, you must also specify which interpretation algorithm should be used.

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The interpretation algorithm determines whether (and with which algorithms) the system should search for
clearing information.

1.6 Create Variants for Manual Bank Statement

Via Menus

IMG--> Financial Accounting --> Bank Accounting --> Business Transaction -->
Payment Transactions --> Manual Bank Statement--> Create and assign Business
Transactions

Via Transaction Code

OT43

Place the cursor on Standard and click on Copy

Change the description

Click Save and Click on Activate Variant.

2 Check Deposit Process Flow

2.1 Sales invoice posting
Via Menus

Accounting --> Financial Accounting --> Customers --> Document

Entry --> Invoice

Via Transaction Code

FB70

2.2 Manual Check Deposit

Via Menus

Accounting-->Financial Accounting --> Banks -->Incomings --> Check Deposit -->

Manual Entry

Via Transaction Code

FF68

Select Settings-->Specifications and provide details

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Press Enter and provide below details

Press Enter

Click on Save

ecuting Batch Input

Go to Batch input session (SM35) as below

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Select your Session name and click on "Process"

Select and Click on "Display Errors Only" , then select exist session
Go to FBL5N and see whether Customer open item is cleared

Double click on Document type DZ to see document

2.3 Manual Bank Statement

Via Menus

Accounting -->Financial Accounting --> Banks -->Incomings --> Bank Statement

-->

Manual Entry
Via Transaction Code

FF67

Select Settings --> Specifications and provide below details

Press Enter and provide below details

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Press Enter

Click on Save
System Message : Statement/List Saved
Click on Save again
System Message : Statement/List Posted

ecuting Batch Input

Go to Batch input session (SM35) as below

Select Session name and click on Process

Select and Click on "Display Errors Only", and click on Process . then click on Exist session
Go to FBL3N and see the posting with Document type SA

Double Click on SA document type to see document posted

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3 Check Payment Transactions flow

3.1 Vendor Invoice Posting
Via Menus

Accounting --> Financial Accounting --> Accounts Payables -->

Document Entry --> Invoice

Via Transaction Code

FB60

3.2 Vendor Outgoing Payment

Via Menus

Accounting --> Financial Accounting --> Accounts Payable -->

Outgoing Payment --> Post

Via Transaction Code

F-58 or F110

Check number 100502 issued to Vendor . If you use F-53, then go to FCH5 and issues Check manually.

3.4 Manual Statement

Via Menus

Accounting-->Financial Accounting -->BanksIncomings --> Bank Statement --> Manual

Entry

Via Transaction Code

FF67

Go to Settings --> Specifications and Provide below information

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Press Enter and provide below details

Press Enter

Click on Save
System Message : Statement/List Saved
Click on Save again
System Message : Statement/List Posted

Executing Batch Input Session (SM35) as below:

Select Session name and click on Process

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Select "Display errors Only"and Click on Process, then select exist session
Go to FBL3N and Observe that Citibank Check issue account is cleared

Double click on Document type SA and see below document

3.5 Posting Bank Charges

Via Menus

Accounting -->Financial Accounting --> Banks-->Incomings --> Bank Statement -->

Manual Entry

Via Transaction Code

FF67

Note: Make sure that the status of text field for Bank charges account as optional, if it is mandatory, you are going to get
an error while procession the bank charges.

Click on New Statement

Opening balance will be defaulted by the system and fill the closing balance. In this example, we want to post 1500 as
bank charges. So closing balance will be
45000-43500=1500.

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Press Enter and provide below details

Note that Bank charges amount should be entered with (minus) sign.
Click on Save
Executing Batch Input Session as below

Select Session name and click on Process

Select "Display Errors Only" and Click on Process, then select exist session
Go to FBL3N/FS10N and observe document posting in Bank charges account

Double Click on document and select overview to see document

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Note1: To understand what are errors encountered during the bank statement procession, you can use transaction
FEBA or FEBAN.
Note2: In case if you not sure about the opening balance of the statement to be entered in FF67, you can go to
FEBA/FEBAN and see what was the closing balance of last statement. The closing balance of last statement becomes
opening balance of the current statement.
Note3: There are no standard reports available on BRS in SAP similar to one given below:
Bank Statement balance

xxxxxxxxx

+ Checks Deposited but not cleared

xxxxxx

- Checks Issues but not cleared

xxxxxx

Book Balance

xxxxxxxx

If you want a report like this, you may have to develop this report using ABAP development.

Products:SAP ERP Financials Topics:Enterprise Resource Planning

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Tags: reconciliation, manual, statement, ebs, bank, brs

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9 Comments

singh p1 Jul, 2013 6:49 PM

Hi Venkat,
I am very much thankful to you for giving this information. But i am confusing and unable to configure if
i have 2 or more banks in same company code. Here my doubt is how many GL A/cs are required for
2 or more bank accounts in same company code. Shall we use different main bank accounts and
same check issued/check deposit for 2 or more banks in same company code.
Thanks in advance.
Regards,
Singh
Like (0)

Venkat Emani2 Jul, 2013 4:53 PM (in response to singh p)

Hi Singh,
You need not do the configuration again in case of 2 bank accounts.
what you can do is mask the GL accounts in step 2 assign accounts to account symbols ( as
given below )and create GL account in second company code and ensure the last digits are
same like 200170, 200180 for main bank, 200171, 200181 for check issue, 200172, 200182
checks deposit respectively for company code 1 and 2. then you can use the configuration for
second company code also.
+++++0 Main bank
+++++1 Check Issue account
+++++2 Check Deposit account
Br,
Venkat
Like (0)

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singh p2 Jul, 2013 9:31 PM (in response to Venkat Emani)

Thank you very much

Like (0)

Naresh Krishnamoorthy2 Jul, 2013 9:13 AM

Thank You for this Very Useful Resource. Highly Informative.

Regards,
Naresh K.
Like (0)

Venkat Emani2 Jul, 2013 2:50 PM (in response to Naresh Krishnamoorthy)

Thank you Naresh.

Like (0)

Ravi Sankar Venna4 Jul, 2013 4:23 PM

Good work Venkat. Hopefully, useful for our community members.

Kind Regards,
Ravi
Like (1)

Venkat Emani4 Jul, 2013 4:37 PM (in response to Ravi Sankar Venna)

Thank you Ravi !

Like (0)

Marssel Vilaa4 Jul, 2013 6:51 PM

Good work Venkat.

I just remembered that one of the biggest lies told in FI is the Automatic Reconciliation processing.
The checking of amount transactions between SAP and Bank don't always have a connection. There is
identified clearings for some cases.
I've seen many customers with expectations that during import EBS by FF.5 all Invoices would be
cleared.
Unfortunately cases like that happens.
Thank you for sharing.
Like (0)

Venkat Emani6 Jul, 2013 6:47 PM (in response to Marssel Vilaa)

Thank you Marssel, If we achieve 95% of automation that will be of great help to the
business users.
Like (0)

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