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Derive Greater Value from Little-Known SAP Electronic Bank Statement Functionality
Jaime Ryan e5 Solutions Group
© 2009 Wellesley Information Services. All rights reserved.

Speaker Bio

Jaime Ryan has been successfully implementing the electronic bank statement solution for more than 14 years at client sites across North America, Latin America, Europe, and Asia-Pacific. He was the first in North America to pilot the BAI/BAI2 Bank Statement format He continues to be one of North America’s leaders in SAP Treasury implementations and recommended by SAP Jaime Ryan helped co-found the e5 Solutions Group in early 2001 after being a Platinum Consultant with SAP America

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In This Session …

We’ll address some of the issues facing companies who want to reconcile and apply cash automatically Such things include generic coding by banks and little or no remittance details from sender Our solution will be to explore advanced configurations such as search strings and enhancement programming With these new tools your organization will be able to explore possibilities for increasing hit ratios on your bank statement processing Adding value back to the organization by increasing the timeliness of reconciling or applying cash and reducing the overall number of hours required each month to manually handle such processes
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What We’ll Cover … • • • • An introduction to electronic bank statement (EBS) Understanding the basics of how EBS works Leveraging advanced EBS configuration and enhancements Wrap-up 4 .

Bank Stmt Banks In-House Cash Liquidity Planner Financial Accounting (FI) Controlling (CO) 5 .Electronic Bank Statement’s Place in the SAP Treasury Applications SAP Treasury Applications Analyzers Credit Risk Market Risk Money Market Transaction Manager Securities Foreign Derivatives Exchange Cash Management Elec.

Electronic Bank Statement’s Place in SAP Financials Electronic bank statement is now part of SAP Financial Supply Chain Management (SAP FSCM) Strategic Enterprise Management Business Analytics Stakeholder Relationship Management Financial Analytics Strategy Management Customer Relationship Analytics General Ledger & Sub Ledgers Performance Measurement Supply Chain Analytics Revenue & Cost Accounting Strategic Planning & Business Consolidation Simulation Human Resource Analytics Order & Project Accounting Product Lifecycle Analytics Product & Service Cost Calculation Treasury & Risk Management Accounting Financial Supply Chain Management Corporate Services Financial Portal Solutions Technology Solutions Financial Statements Credit Management Electronic Bill Presentment & Payment Dispute Management In-House Cash Cash & Liquidity Management Real Estate Management Travel Management Incentive & Commission Management Corporate Finance Portal Manager Self-Service SAP Technology Infrastructure (SAP NetWeaver®) 6 .

Brown-Forman Bunge Burger King Colgate-Palmolive Discovery Channel Dyno Nobel GATX Corporation General Mills MeadWestvaco Miller Brewing Co. BASF Corp.Electronic Bank Statement Implementations • Sample listing of companies who successfully implemented electronic bank statements Advanced Medical Optics (AMO) Air Products Ashland Inc. Microsoft Nike Owens-Illinois PayPal PQ Corporation Procter & Gamble Sun Chemical SC Johnson Toro TransAlta 7 .

Electronic Bank Statement Overview • • • • EBS functionality was designed to help companies automate bank account reconciliations Focus on shifting from manual processing of paper-based monthly statements to automated daily statements Single user interface and ability to standardize via “rules-based” processing Multiple banks and formats supported 8 .

Business Challenges for Your Organization • • • • • Overwhelming number of external bank accounts High volumes of transactions Cash sweeps intercompany loans Monthly paper bank statements Usually arriving after month-end close Manually intensive accounting 9 .

Benefits of Electronic Bank Statement • • • • Gain greater control over bank reconciliations through online statement processing Increase timeliness of cash application through daily statements Enable higher accuracy of postings Increase efficiency/productivity through automation and standardization 10 .

What Types of Transactions Can EBS Handle? • • Reconciliations of items initiated from SAP Check payments including updating check register Electronic payments Lockbox deposits Customer collections debits Cash concentration sweeps Reconciliation/cash application of items not initiated in SAP Customer deposits/receipts Rejected/returned payments Supplier direct debits Miscellaneous debits and credits Target balance sweeps 11 .

What We’ll Cover … • • • • An introduction to electronic bank statement (EBS) Understanding the basics of how EBS works Leveraging advanced EBS configuration and enhancements Wrap-up 12 .

a bank account can belong to only one legal entity.Bank Account Structures in SAP Company Code Within SAP ERP. Vendors Note! In the real world. therefore SAP ERP was designed around the concept of a unique bank account being set up only once in one particular company code. the Company Code was intended to represent a “legal entity” House Bank and Account ID House Bank = Bank Branch Account ID = Bank Account General Ledger (GL) and Subledger Accounts GL = Cash. Cash Clearing Subledger = Customers. 13 .

) Bank Number and Bank Account Number combination must be unique to one company code 14 .Bank Account Structures in SAP (cont.

) Company Code 1 House Bank House Bank Bank Number Company Code 2 House Bank House Bank Bank Number Acct ID Acct ID Account Number Currency GL Account Acct ID Acct ID Account Number Currency GL Account Payment Item Payment Item Main Bank Account Clearing Acct 1 Clearing Acct 2 Clearing Acct 3 Clearing Acct 4 GL Account GL Account (Chart of (Chart of Accounts) Accounts) Payment Item Payment Item Main Bank Account Clearing Acct 1 Clearing Acct 2 Clearing Acct 3 Clearing Acct 4 15 .Bank Account Structures in SAP (cont.

Bank Statement Postings SAP General Ledger SAP FI Accounts Receivable SAP FSCM In-House Cash SAP FS-CML Loans Mgmt Other … Posting Area 1 Cash Management Bank Statement Posting Area 2 Bank Bank statements have two functional abilities per transaction known as “posting areas” 16 .

Posting Logic of SAP Banking Transactions Example 1: Outgoing Payment (1a) Invoice (1b) Payment Run (1c) Bank Statement Vendor 100 (1a) (1b) 100 Outgoing Clearing 100 (1b) Disbursement Account (1c) 100 100 (1c) Example 2: Incoming Payment (1a) Invoice (1b) Bank Statement (1c) Cash Application Customer (1a) 100 Unapplied Cash Main Account 100 (1b) (1b) 100 100 (1c) (1c) 100 17 .

How to Process Exceptions Transaction Code FEBA/FEBAN Bank Statement Bank Number: Statement No: 0213783893 256 Bank Account: Statement Date: Status: POSTED Algorithm: 011 7328793 03/16/2009 Statement Item: 00001 Bank Trans. Code: 475 Note to Payee: Check Number 0001098723 Posting Rule: ZNCK Status: POSTED ON ACCOUNT Algorithm: 011 Posting Rule: ZNCK Statement Item: 00003 Status: TO BE POSTED Bank Trans. Code: 399 Algorithm: Posting Rule: Note to Payee: Returned Check Number 0001073783 18 . Code: 475 Note to Payee: Check Number 0002095353 Statement Item: 00002 Bank Trans.

How to Process Exceptions (cont.) Transaction Code FEBA “Classic View” 1 2 19 .

How to Process Exceptions (cont.) 3 4 20 .) Transaction Code FEBA “Classic View” (cont.

How to Process Exceptions (cont.) Transaction Code FEBAN “New Design” 1 • • Greater selection parameters than with the “classic” FEBA! Ability to change “standard tree” to your own “tree” See SAP Note 494777 21 .

) 2 • • Two new views including flexible List Viewer Ability to edit fields and post in mass 3 • Ability to change “standard tree” to your own “tree” (see SAP Note 738353) 22 .) Transaction Code FEBAN “New Design” (cont.How to Process Exceptions (cont.

sign Algorithm Posting Rule Acct ID Acct ID Account Number Currency GL Account Posting Rule Posting Rule Payment Item Payment Item Main Bank Account Outgoing Clearing Posting Area 1 Payment Item Payment • Credit posting key Item • Account Symbol 1 • Debit posting key • Account Symbol 2 Posting Area 2 : 23 .Electronic Bank Statement Basic Configuration Company Code 1 House Bank House Bank Bank Number Assigned to Bank Number & Bank Acct Combo Transaction Type Bank Transaction Code Bank Transaction Code Example: 495 Outgoing Wire +/.

Electronic Bank Statement Basic Configuration (cont.) 24 .

Electronic Bank Statement Basic Configuration (cont.) 1 2 3 25 .

What We’ll Cover … • • • • An introduction to electronic bank statement (EBS) Understanding the basics of how EBS works Leveraging advanced EBS configuration and enhancements Wrap-up 26 .

2. Advanced Configuration Programming Enhancements 27 .Leveraging Advanced EBS Configuration and Enhancements 1.

How Do We Deviate from Default Configuration? • • • • • • How can we switch an algorithm? How can we switch a posting rule? How can we switch or change an account? How can we add a cost center or other field value? How can we correct the check number? How can we correct a customer invoice number? Answer: Search String Pattern Configuration 28 .

How Search String Patterns Work Example: Switch Posting Rule for old legacy checks Check 000200321 Check 0001098723 Basic configuration assigns standard Posting Rule for check clearing Posting Rule: ZNCK DB CR New Check Clearing Main Bank Account DB CR Posting Rule: ZLCK Legacy Check Clearing Main Bank Account 29 .

) Pattern Definition Name: LEGACY_CHECK Search for: 0001###### Bank Statement Bank Number: Bank Account: Statement No: Statement Item: Bank Trans. Algorithm. Acct ID. Code: Algorithm: Posting Rule: 0213783893 7328793 256 009 475 011 ZC10 ZLEG Pattern Assignment Assignment: CoCd. House Bank. +/Target Field: Posting Rule Target Value: ZLEG Note to Payee: Check Number 0001098723 30 .How Search String Patterns Work (cont.) Example: Switch Posting Rule for old legacy checks (cont. BTC.

) 31 .How Search String Patterns Work (cont.

How Search String Patterns Work (cont.) Example: Switch Posting Rule for old legacy checks 1 2 32 .

) Results: Switch Posting Rule for old legacy checks (cont.) 1 2 33 .How Search String Patterns Work (cont.

How Search String Patterns Work (cont.) Additional Target Fields for improving the automation and accuracy of postings to the general ledger and subledgers 34 .

) • Test your Pattern Searches using existing bank statements in the SAP ERP system 35 .How Search String Patterns Work (cont.

functionality. as a poor design or coding can negatively impact performance. 36 . and even the integrity of the data.How Do We Deviate from Default Configuration? What if the Search String Pattern is not enough? Answer: Programming Enhancements Custom programming should be designed by only experienced resources.

Leveraging Advanced EBS Configuration and Enhancements 1. Advanced Configuration Programming Enhancements 37 . 2.

Types of EBS Programming Enhancements Enhancements – Technical types Customer Exits Business Transaction Events (BTEs) Business Add-Ins (BAdIs) Interpretation enhancements Occur during the RFEBBU10 “interpretation” logic and used to prepare the item for posting in area 1 and area 2 Posting enhancements Occur during the RFEBBU00 “posting” logic and used to prepare the item for posting in area 1 and area 2 38 .

Interpretation Enhancements • Publish and Subscribe BTE 2810 Used to determine which application is to be used for posting areas 1 and 2 • Process BTE 2820 and BAdI CHANGE_DATA Ability to change data within the statement item before pattern search • Non-SAP Algorithms Ability to create/change A/R Payment Advices to apply cash to customers • Customer Exit ZXF01U01 and BADI2 CHANGE_DATA Ability to change data within the statement item after pattern search 39 .

Posting Enhancements • Process BTE 2810 Used to post bank statement item in SAP non-Financial Accounting (SAP FI) module Examples include In-House Cash (FSCM-IHC). • BADI CHANGE_POSTING_DATA and FEBCL function modules Ability to change posting data for FB01 and FB05 transactions 40 .

What We’ll Cover … • • • • An introduction to electronic bank statement (EBS) Understanding the basics of how EBS works Leveraging advanced EBS configuration and enhancements Wrap-up 41 .

com/usa/industries/consumer/pdf/CS_mySAP_ERP _Financials_at_Brown_.com/usa/solutions/business-suite/erp/financials/ featuresfunctions/treasury_applications.asug.epx Americas’ SAP Users’ Group Treasury Special Interest Group (SIG) www.e5solutions.sap.com Requires user name and password for access e5 Solutions Group www.Resources • • • SAP www.sap.com 42 .sap.pdf FEATURES & FUNCTIONS: SAP ERP Financials TREASURY APPLICATIONS www.com White Paper “mySAP™ ERP FINANCIALS AT BROWNFORMAN” www.

though it can also post to SAP non-FI applications (e.g.. FS-CML) Flexible for multiple banks and bank formats Single user interface and ability to standardize via “rules-based” processing Search strings configuration where necessary to deviate from basic config Enhancements (Exits/BTE/BAdI) for enriched interpretation and posting 43 43 .7 Key Points to Take Home Electronic bank statement (EBS) within SAP ERP • • • • • • • Companies can reduce costs through automation and increased efficiency Companies can increase accuracy and reduce month-end closing times Used primarily for bank reconciliation and cash application.

ryan@e5solutions.com 44 .Your Turn! How to contact me: Jaime Ryan jaime.

mySAP.com. SAP NetWeaver®. and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. PartnerEdge. xApp. Wellesley Information Services is neither owned nor controlled by SAP.Disclaimer SAP. xApps. 45 . All other product and service names mentioned are the trademarks of their respective companies. mySAP. Duet™. R/3.

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