Electronic Bank Statement in SAP Author MKS Consultancy

Electronic Bank Statement in SAP Author : MKS Consultancy

What is Electronic Bank Statement • • Electronic Bank Statement business process in SAP Discuss end to end EBS process in SAP Electronic Bank Statement Configuration in SAP EBS is provided in BAI 2 format. Understand BAI 2 layout and field functionality Generate a test BAI 2 file in SAP using testing program Test out EBS configuration using the test file Learn Post processing of EBS file

Electronic Bank Statement Business Process

What is Electronic Bank Statement • • • An Electronic Bank Statement (EBS) is a detailed electronic version of the manual bank statement Each day the bank send the statement electronically This statement is in BAI 2 format and is uploaded in SAP through scheduled batch jobs Other Bank Formats accepted by SAP are : BAI, BAI 2, SWIFT MT 940 EBS files contain customer Deposits, Vendor Disbursements, Service Fees and other transactions, as well as balance information These deposits, disbursement could be through Check, ACH or Wire Payments SAP has the ability to import and process the Electronic Bank Statement The Check, ACH, Wire deposits and disbursements are automatically posted to the GL accounts Clearing Functionality : Checks Payment to Vendor through F 110 in SAP. Accounting entry Vendor Accounts Debit to Check Out (Clearing account) Credit. When EBS is loaded in SAP if money is received for this check in Bank It Debits the Check Out (Clearing) account and Credits the Bank Main Account. Speeds up reconciliation of the bank statement

Accounting Entries • Check Payment to Vendor Account DR To Check Out (113025) Account CR On EBS Upload Check Out (113025) DR To Main Bank Account ( 113020) CR

EBS Implementation Steps ü Step 1 – Define Account Symbols ü Step 2 - Assign Account Symbols ü Step 3 – Create Keys for Posting Rules ü Step 4 – Define Posting Rules ü Step 5 - Configure Transaction Types ü Step 6 - Assign BAI Codes to Posting Rules ü Step 7 - Assign Bank Accounts to Transaction Types

GL Account Creation • EBS is created by bank in format BAI, BAI 2 or MT 940. EBS file can be manually downloaded from Bank website and uploaded in SAP. • However preferred method is automation where a middle ware like EDI server, MQ webserver logs into the Bank website and download the EBS file. This file is than placed on SAP application server directory. This directory is defined by basis team in Tcode AL 11. We set up a routine batch job in SAP which picks this file and post in SAP Below GL Accounts have to created in GL master data : FS 00 GL Account Description 113100 Main Bank Account 113108 Check In ( Received account) 113101 Check Out (Check Issued account) 113456 ACH Out Account 113107 Other Interim Postings 700000 Bank Charges Account

Slide 8 • Tcode : IMG- FA- BK Acct – BT – Payment Transactions – EBS – Global Settings • Specify G/L accounts (Main bank, outgoing checks) to which postings are to be made from the EBS. You assign account symbols to the G/L account numbers. These are required for the posting rules in step 2. © 2008, Cognizant Technology Solutions. Confidential Step 1 Define Account Symbols

Step 2 Assign Account Symbols • Define postings to be triggered by transactions in the EBS • Assign account symbols defined in step 1 to GL Accounts

Step 3 Create Keys for Posting Rules • Posting Rules carry out G/L and Sub-Ledger postings F 110 Payment to Vendor Acct Entry Vendor DR To Check Out (113101) Acct • EBS Posting Entry - Rule Y 50 Check Out (113101) DR To Master Bank Acct (113100)

Step 4 Define Posting Rule • Posting Area 1 : Bank Accounting • Posting Area 2 : Sub Ledger Accounting • A posting type “option” is assigned to each rule • Post To G/L Only • Post to Sub-Ledger Only • Post to G/L and Sub-Ledger • Can use clearing postings as well

© 2008, Cognizant Technology Solutions. Confidential • Transaction types are assigned to bank account. This will determine what posting rules are used for a particular BAI code in that bank account. Slide 12 Step 5 Create Transaction Types

• • 01 – File Header 02 – Group Header 03 – Account Identifier and Summary Status 16 – Transaction Detail 49 – Account Trailer 98 – Group Trailer 99 – File Trailer Slide 13 © 2008, Cognizant Technology Solutions. Confidential Bank File Format – BAI 2

External TT Des. +/- Posting Rule Des. Rule Interpretation Algorithm 115 Lockbox deposit + Y 06 DR MASTER, CR CHECK IN STD 455 ACH PAID - Y 30 DR ACH OUT, CR MASTER DME 475 CHECK PAID - Y 50 DR CHECK OUT, CR MASTER OUTGOING CHECK 699 MISC FEES - Y 80 DR OTHER, CR MASTER STD Unallocated + Y 08 Unallocated _ Y 80 399 Misc. Refund + Y 08 STD DR OTHER TRANSFER, CR MASTER STD © 2008, Cognizant Technology Solutions. Confidential External TT Slide 14 Contd……. .

Step 6 Assign External Transaction Types to Posting Rules • Next, assign External Transaction types to Posting Rules so that R/3 knows what to do with incoming EBS transactions • Choose + or – depending on whether the transaction increases (+) (deposit) or decreases (-) (withdrawal) the bank account balance

Slide 16 • Assign a bank account to the transaction type (BAI) © 2008,

Create Test EBS File • EBS Configuration is complete • Now we will test the configuration. EBS is received from Bank. But for testing purpose we will create EBS in SAP • Program to upload EBS in SAP : RFEBKA 00 • Program to generate BAI 2 file for testing : RFEBKAT 5 • Program to delete EBS files from SAP Tables : RFEBKA 96 • Important tables: • FEBKO – EBS Header Data • FEBEP – EBS Line Item Details

• Upload Bank Statement (EBS) : FF_5 • Display Bank Statement (EBS) : FF_6 • Manually process un clear line items in EBS : FEBA © 2008, Cognizant Technology Solutions. Confidential EBS Business Process

Description 01 File Header 02 Group Header 03 Account Header 16 Transaction details 88 Continuation of previous record 49 Account Trailer 98 Group Trailer 99 File Trailer Slide 19 Codes © 2008, Cognizant Technology Solutions. Confidential BAI 2 Format Explanation

Field 1 2 3 4 5 Description File Header Sender ID Receiver ID File Creation date File creation time Content ABA/ Routing Code 02 Field 1 2 3 4 5 6 7 Description Group Header Receiver ID Originator ID Group Status As of Date As of Time Currency Code Content HONDA 952 ABA/ Routing Constant as 1 YYMMDD Blank YYMMDD Slide 20 Code 01 © 2008, Cognizant Technology Solutions. Confidential BAI 2 Format Explanation… continued

Field Description Content 03 1 Account Header 2 Bank Account Number 200 3 Currency Code USD 5 Type Code 015 6 Amount Code Field Description Content 16 1 Transaction data 2 Identifies type of Transaction data 169: Misc. ACH Credits 3 Amount 4 Fund Type. 0 : Immediate Availability Code Field Description Content 88 1 Continuation of preceding record 2 Continuation of preceding record Code Field Description Content 49 1 Account Trailer 2 Sum of all amount fields from code 03 and 16 3 Total Number of records Slide 21 Code © 2008, Cognizant Technology Solutions. Confidential BAI 2 Format Explanation… continued 2

Field Description 98 1 Group Trailer. Always 98 2 Sum of total fields for all 49 records for this Group 3 Total number of 03 records in the group 4 Total Number of all records in the group -16 1 File Trailer 2 Sum of all 98 records in this file- Group Control Total 3 Total number of 02 records in this file 4 Total number of records (16) in the file 99 Content Slide 22 Code © 2008, Cognizant Technology Solutions. Confidential BAI 2 Format Explanation… continued 3

Slide 23 © 2008, Cognizant Technology Solutions. Confidential Execute Bank Statement (FF_5)

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