Bank reconciliation is a process whereby you are matching your accounting records with the bank record.

At aparticular 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 particula r 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 ofaccounts 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 transact ion 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 andpredefined 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 Via Transaction Code Provide Chart of Accounts IMG-->Financial accounting-->Bank accounting-->Business transactions--> Check deposit -->Define posting keys and posting rules for check deposit

SPRO

Click on Save Double click on "Assign Accounts to Account symbols" 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

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 Click on New Entries update below details

OT53

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

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

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

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 Via Transaction Code

Accounting --> Financial Accounting -> Customers --> Document Entry --> Invoice FB70

2.2 Manual Check Deposit

Via Menus Accounting-->Financial Accounting --> Banks -->Incomings --> Check Deposit --> Manual Entry

Via Transaction Code Select Settings-->Specifications and provide details

FF68

Press Enter and provide below details

Press Enter

Click on Save

Executing Batch Input

Go to Batch input session (SM35) as below

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 Via Transaction Code Accounting -->Financial Accounting --> Banks -->Incomings --> Bank Statement Entry --> Manual

FF67

Select Settings --> Specifications and provide below details

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

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

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 Via Transaction Code

Accounting --> Financial Accounting --> Accounts Payable --> Outgoing Payment --> Post 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 Go to Settings --> Specifications and Provide below information

FF67

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

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 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.

FF67

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.

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

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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