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bank reconciliation
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sanjay pradhan
Feb 28, 2009 5:52 AM
Hi sap professionals
Can anyone tell me how we do the bank reconciliation in sap , as i am new in this area?
Thanks
sanjay kumar
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 Re: bank reconciliation

Manish Kumar Feb 28, 2009 8:38 AM (in response to sanjay pradhan)
Sanjay,

- The Bank reconciliation process is based on the entries passed through the Bank sub account
and main account. The process is dependent on the Bank Statement received from the Bank that
will be entered into SAP. Accounting rules are to be defined for each transaction type and
posting rule for posting accounting entries as per bank statement. Bank statements to be
uploaded into SAP.

- Bank Main account balance is the actual balance as per the bank statement whereas the Bank
sub accounts denote the reconciliation items. These sub accounts show those entries, which will
flow from the sub account which are not cleared in the bank statement.

- Adding or subtracting the Bank sub accounts will help in preparing the Bank reconciliation
statement.

- The following scenarios would explain the reconciliation process:

- Cheque received from customer

- Cheque issued to vendors

- Cheque received from Other than Customers

- Direct Debits in Bank Statement

- Direct Credits in Bank Statement

- Fund Transfer between Bank Accounts

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Below mentioned is the step by step configuration step for Bank Reconcilaition in SAP.

To set up Electronic Bank Statements (EBS)

Processing in SAP for most customers in North America.

1. Create House Bank and Account ID (FI12)

2. Setup EDI Partner Profile for FINSTA Message Type (WE20)

3. Configure Global Settings for EBS (IMG)

- Create Account Symbols
- Assign Accounts to Account Symbols
- Create Keys for Posting Rules
- Define Posting Rules
- Create Transaction Types
- Assign External Transaction Types to Posting Rules
- Assign Bank Accounts to Transaction Types

4. Define Search String for EBS(Optional)

- Search String Definition
- Search String Use

5. Define Program and Variant Selection

Additional information is also available in the SAP Library under:

Financial Accounting > Bank Accounting (FI-BL) > Electronic Bank Statement >
Electronic Account Statement Customizing.

Bank Reconcilliation Statement

The following are the steps for BRS:

Create Bank Master Data - This can be created through T.Code FI01 or you can also create the
house bank through IMG/FA/Bank accounting/Bank account

2. Define House Bank

3. Set up Bank selection payment programe- IMG/FA/ARAP/BT/AUTOIP/PM/Bank selection
for payment prg.

a. setup all co codes for payment transaction - Customer and vendors

b.setup paying co codes for payment transactions

c.setup payment method per country

d.setup payment method per co code for payment transaction

e.setup bank determination for payment transaction

Please go for Cheque mangement using T code

FCHI (IMG/FA/ARAP/BT/OP/AutoOp/PaymentMedia/CheckManagement) and for void
reasons FCHV. You can create Bank Reconcilliation statement by TC FF67
(SAP/AC/Treasury/CashManagement/Incomings/ManualBankStatement) . Don't forget to keep
the opening Balance as zero. Use FBEA for post process.

All the steps together will lead to (FF67) Bank reconciliation statement.

Hope this clarifies. Let me know if you need any other information.

Rgds
Manish
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 Re: bank reconciliation

Sanil Kailash Bhandari Feb 28, 2009 12:24 PM (in response to sanjay pradhan)
Hi

The cutomizing for the same is done in path

IMG>Financial Accounting (New)>Bank Accounting>Business Transactions>Payment

Transactions>Manual Bank Statement

In addition , you need to create a house bank using T Code FI12

There after create, follow the steps:

1. Create Account Symbols

2. Assign Accounts to Account Symbol
3. Create Keys for Posting Rules
4. Define Posting Rules

In bank Reconciliation, you have a main Bank GL and depending on your Business
Requirements, you can have seperate Bank Sub Accounts for Deposit and with drawal, including
for cash and cheque seperately.

These are the steps followed for manual bank reco. In case, you are using electronic bank reco,
you need to create Transactions Types and assign these to External Transactions Codes.

Refer to SAP Help for further details.

Thanks & Best Regards

Sanil K Bhandari
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 Re: bank reconciliation

k.r.girija devi devi Feb 28, 2009 12:57 PM (in response to sanjay pradhan)
hi snajay,

here wtih i give some exaples for BRS settings it will help u

Bank Reconciliation - MT 940 Configuration

Account Symbols & GL Accounts used for both Manual and Electronic BRS

Account Symbols Description

Bank Bank Account
Bcharge Baank Charges
BCOMM Bank Commission
CHKCLEAR Check Clearing
CHKPYMT Check Payment
CHKREC Check Receipt
CHKRETN Check Return
BINT Bank Interest

Assign Account to Account Symbols

Account Symbols Acc Mod Currency Gl A/ct Account Symbol Description
Bank + + Bank Account
Bcharge + + Baank Charges
BCOMM + + Bank Commission
CHKCLEAR + + Check Clearing
CHKPYMT + + Check Payment
CHKREC + + Check Receipt
CHKRETN + + Check Return
BINT + + Bank Interest

Create keys for posting rules

Posting Rule Text
MS01 Bank Account
MS02 Baank Charges
MS03 Bank Commission
MS04 Check Clearing
MS05 Check Payment
MS06 Bank Interest
MS07 Check Return

Create and Assign Business Transactions

Transaction Key +- Posting Rule Text
RC01 + MS01 Check Deposit
RC02 - MS02 Baank Charges
RC03 - MS03 Bank Commission
RC04 - MS04 Check Payment
RC05 - MS05 Bank Interest
RC06 - MS06 Check Return

Define Variants for Manual Bank Statement

In the Manual bank Reconciliation process, Following Journal Entries are journalize in the books
of accounts,

 At the time of outgoing payment to the vendor-

Dr. Vendor A\c xxxx
Cr. Outgoing clearing A/c xxxx

For outgoing cheques presented in bank –

Dr Outgoing clearing A/c xxxx

Cr Main Bank A/c xxxx

  At the time of the payment of received from customer,

Dr. Incoming clearing A\c xxxx

Cr. Customer A\c xxxx

For incoming cheques credit given by bank –

Dr. Main Bank A/c xxxx

Cr Incoming clearing A/c xxxx

Common Errors in APP (Automatic Payment Program)

Common errors encountered while executing F110 (APP) and resolutions are listed
out here, hope these are helpful to troubleshoot the errors.

1) No valid payment method found

Maintain payment method in vendor master or in the invoice. Payment
method has to be maintained at either in vendor master or in the vendor
invoice
2) Company codes XXXX do not appear in proposal XX.XX.2011 XXXX( Run
date & Identification)
Please check if you have any open items for the vendors or not for the dates
you are running proposal. Check with FBL1N report for the chosen vendor.
This is telling you that F110 could not find any records that meet those
criteria. As it is a generic message and the error can be because of any
reasons or combination of multiple reasons.
A review of the additional log should help you to identify exact reason for not
selecting a particular invoice.
3) Payment in Currency XXX, payment method X: No valid payment
procedure
The payment program could not find a combination of payment method and
house bank account with which the payment can be carried out.
You might have restricted the payments for a particular currency/
currencies; you may have to change currencies restrictions if required.
4) Account XXXXXX XXXX (Vendor Account number and Company code)
blocked by Payment proposal XX.XX.2011 XXXX (Run Date & Id)
Once you make a proposal for a vendor, you cannot create another proposal
for the same vendor unless and until first one is completed i.e. payment run
is over. Unless payment run is over, vendor is locked for another proposal
Option1: complete the earlier proposal and continue the current proposal
Option2: Delete the earlier proposal and continue the current proposal
5) Minimum amount has not been reached
If your vendor due amount is less than threshold minimum amount, then
your invoice will go into exception list in F110. That means that the amount
less than the minimum amount specified in the configuration will not be
paid.
Exception is that if the payment method is maintained in the invoice, system
will not consider the minimum amounts. That means you can pay the
amounts less the minimum amount by giving the payment method at invoice
level.
6) Account or Invoice is blocked for payment
Item is blocked for payment means that the Invoice is blocked for payment.
You need to manually unblock the invoice or wait for it to get unblocked.
Account is blocked for deletion means that the vendor is blocked for
payment remove the block in XK02 transaction or see it is flagged for
deletion in XK05
7) Required details are no maintained in Vendor Master
If you select the Street/PO Box Postal Code, Bank Account number as
mandatory in the FBZP Configuration and those details are not maintained in
the vendor master system throws an error.
8) No pymt possible because items with a debit bal.still exist; see job log (
Contributed by Godavari SAP Ravi Sankar Venna)
If a vendor has debit balance, it will be shown under exception list with this
message. Automatic payment program will pay a vendor with credit balance
only.
If there is a debit balance on vendor due to any down payment, that needs
to be adjusted while making the payment for invoice. Otherwise, only
making payment to invoices would be incorrect and the down payment
would remains the same on the account.
Therefore, it needs to be configured in FBZP.
==> All Company Codes
Include the special G/L indicators to be paid. Then they will also be selected
within the payment and the invoice amount would be adjusted accordingly.
9) Withholding tax information missing from line items ( Contributed
by Aniruddha B Mahalle )
This error is because, if we update some with-holding tax parameters in
vendor master after posting some vendor transactions.

In order to resolve this error, follow these steps:

1. Delete the payment proposal in F110 transaction in which the

aforesaid error occurred.
2. Go to SAP transaction SA38 and enter the program name: RFWT0010
3. In the next screen, mention the affected vendor or range, mention
your company code, mention the date specifications, select following
options as per your requirement
4. Add new with-holding tax types
5. Copy with holding tax codes from master record
6. Also down payment and partial payments with with holding tax codes
7. Do not enter withholding tax code
8. Delete w/tax no longer relevant.

Check the result in ‘TEST’ mode first and then do the update run.
Again generate the payment proposal in transaction F110 and now we can
edit (reallocate) the items which were affected earlier due to the withholding
tax error.