EBS- Electronic Bank statement

===============================

Reconcilation between

Accounts maintained by company Accounts maintained by bank

Company ----- cheque --- vendor---- >cheque submited to bank

Company Accounts -- Payment

entry

Vendor a/c dr

To Bank A/c

Common reasons for preparing Bank reconciliation statement

==========================================================
>> Unpresented cheques
>> Unrealized cheques
>> dishonor of cheques
>. clarical mistakes
>> stale cheques (cheque issued but payee not presented in bak within the local
banking law of six months)
>> credit transfers
>>Direct debit

Document

difference between Account manitanied by company

acccounts maintanied by bank

In sap you will be receiving two types of bank statement:

> Electronic Statement

>Manual Statement

Chapter -2
==========

EBS ---- > Recon --- > Automated

> Electronic document remitted by bank FORMAT MT940, SWIFT , Multi cash ,BAI

The statement is uploaded in SAP and it clears the various bank clearing
accounts such as the CHK OUT, CHK IN Account to the main bank account.

> EBS is upload in SAP (FF.5) t.code

> View Bank statement and GL Balances (FF67,FEBA,FEBAN,FBL3N)

Chapter - 3
===========

Business process accounting entries after reconciliaion of EBS

Bank main account bal is the actual bal as per statement received where as The sub
accounts denote
the Reconciliation items. sub accounts which are not cleared in the bank's
statement.

Adding or subtracting the bank sub a/c's will help in the EBS.

Accounting entry:

cheque received from customer at the time of deposit:

====================================================
Bank cheque deposit a/c Dr.
Customer A/c CR.

Cheque cleared :
==============
Main bank a/c dr.

Bank cheque deposit a/c cr.

Cheque issued to vendors:

=======================

Vendor's a/c dr.

Bank cheque payment a/c cr.

cheque presented in bank:

=======================
Bank cheque payment a/c dr.
Main bank a/c cr.

Accounting entry for Direct Debit:

=================================

Direct debit instructions will be given to the bank fro LC PAYMENTS or

certain bank charges are directly debited in the bank statement.

In this case accounting entry is passed only after the entry is passed in the bank
statement.

Vendor / Expense A/c DR.

Bank clearing A/c cr.

CUSTOMER RECEIPT DIRECT DEBIT:

============================

BANK CLEARING A/C DR.

CUSTOMER A/C CR.

MAIN BANK A/C DR.

TO BANK CLEARING CR.

ENTRY OF FIXED DEPOSITS:

======================

COMPANIES HAVE A PRACTICE OF CONVERTING ANY AMOUNT ABOVE A LIMIT IN ITS MAIN BANK
ACCOUNT,
TO A FIXED DEPOSIT subject to a minimum of limit. the FDR number can be filled in
one of the fields
available in the accounting document.

Chapter - 4:
============

Mian purpose of uploading the bank statement into SAP is to make your bank mainm
account and physical bank statement in sync.

To set up Electronic Bank statements(EBS) :

========================================

TREASURY TEAM DONING , WE ARE ONLY CONFIGURATION PART

1)Create House bank and Account ID (FI12)

2) Set up bank selection payment programme - 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 fro payment transaction
e.Setup bank determination for payment transaction

Full configuraion od SAP (FBZP,OT83,OTPM,DMEE,OBMP..)

.>Setup EDI partner profile for FINSTA message type (WE20)

.>Lisiting of External transaction codes (BAI codes) used by bank
.>Decide posting rules that need to be created
.>Link up external symbols provided by the bank with posting rules and give proper
alograithms for
posting and clearing logic.

.> Create GL accounts

Main bnak account

outging bank a/c (open item)
incoming bank a/c (open item)
Bank charges
other expenses
interest receipt
other incomes

Creation Global settings for EBS (IMG)

================================

>Create account symbols

>Assign accounts to account symbols
>crate key for posting rules
>define Posting rules
>Create Transaction Types
>Assign External transaction types
>Assign Bank accounts to transaction types
Define search string for EBS(optional)
============================

>search string definition

>search string use

goto OT83

Create keys for posting rule-

k100 --- MAIN BANK A/C DR. CUSTOMER A/C CR.

K200 --- OUTGOING BANK A/C MAIN BANK A/C CR.
K300 --- BANK CHARGES A/C DR. MAIN BANK A/C CR
k400--- other expenses ar main bank a/c

Chapter 6:
=========

Chapter 7:
=========

Interpretaiton Algorithm:
========================

Interpretation algorithms are used to identify open items that you wish to clear
after
receiving bank statement.

To do that they use data which is on the bank statement to compare them with the
open item in the system.

Interpretation Algorithm as a standard SAP functionality that helps

Facilitate auto - clearing

Interpretation Algorithm = clearing Logic

the system to look for a certain criteria in the concerned electronic bank
statement.

this criteria is based on what you set in the interpretation Algorithm.

CITI BANK

EDI/MQ/PI Interface/Web servers

Server AL11
Batch job

EBS

Transaction T.code INPUT OUTPUT

1 Upload bank statement FF_5 BA12/MT940 BANK DATA UPLOAD

2 DISPLAY Document FB03 Company code.Doc Display uploaded doc.

no.Fiscal year

3 Bank GL balance FBL3N/FAGLB03 DISPLAY GL ACCOUNT Recon bank GL'S are

cleared

4 Force Match option FEBA Company code & payment Open Documents are
cleared.
details