Electronic Bank Statement Configuration

14th February 2017

White Paper
GSK SAP SERVICEs

Mohammed Khalid Ahmed

SAP - FICO
m.khalidahmed@tcs.com
 Confidentiality Statement
Include the confidentiality statement within the box provided. This has to be legally
approved
Confidentiality and Non-Disclosure Notice
The information contained in this document is confidential and proprietary to TATA
Consultancy Services. This information may not be disclosed, duplicated or used for
any other purposes. The information contained in this document may not be
released in whole or in part outside TCS for any purpose without the express written
permission of TATA Consultancy Services.

Tata Code of Conduct

We, in our dealings, are self-regulated by a Code of Conduct as enshrined in the
Tata Code of Conduct. We request your support in helping us adhere to the Code in
letter and spirit. We request that any violation or potential violation of the Code by
any person be promptly brought to the notice of the Local Ethics Counsellor or the
Principal Ethics Counselor or the CEO of TCS. All communication received in this
regard will be treated and kept as confidential.

TCS Internal 2
 Table of Content

Electronic Banking Statement ........................................................................................................................................... 4

1.1 Introduction ...................................................................................................................................................... 4
1.2 Examples ........................................................................................................................................................... 4
1.3 Understading Bank Clearing Accounts .............................................................................................................. 4
1.4 House Bank Data ............................................................................................................................................... 6
2. EBS Configuration in SAP........................................................................................................................................... 7
2.1 Create Account Symbols ................................................................................................................................... 7
2.2 Assign GL accounts to Account Symbols ........................................................................................................... 7
2.3 Create Posting Rules ......................................................................................................................................... 8
2.4 Define Posting Rules......................................................................................................................................... 8
2.5 Create Transaction Types ................................................................................................................................ 10
2.6 Assign External Transaction Types .................................................................................................................. 10
2.7 Assign Bank Accounts to Transaction Types ................................................................................................... 11
3. Testing EBS configuration ....................................................................................................................................... 12
3.1 Create Vendor Invoice .................................................................................................................................... 12
3.2 Payment to Vendor - F110 .............................................................................................................................. 12
3.3 Upload Bank Statement - FF.5 ........................................................................................................................ 13

TCS Internal 3
1. Electronic Bank Statement

1.1 Introduction

Electronic bank statement is used to transfer bank statement data to SAP electronically. EBS is
an electronic document provided by bank to customer. Different formats are used by different
banks to send the data. Some of the majorly used formats are BAI, Multi Cash or SWIFT. EBS
contains the details of the accounting transactions done by the account holder. This statement is
uploaded in SAP and it automatically post documents as per the configuration made in system. It
clears the different Bank clearing accounts with the main bank account.

Electronic bank statement is kind of reconciliation document which needs to get uploaded in SAP
to make SAP bank balance equal with the balance of accounts at the bank. Because some
transactions occur at SAP side which bank is not aware and vice-versa.

1.2 Example

Bank service charges are fees deducted from the bank statement for the bank's processing of
the checking account activity. This occurs at bank side with decrease in bank balance and the
same should happen in SAP also. This can be done by including Bank service transaction in EBS
file and process the same file in SAP. Which decrease the bank balance in SAP Books.

Outstanding cheque: Written and recorded in the company's Cash account, but not yet cleared
the bank account.

1.3 Understanding Bank Clearing Accounts

We maintain cash GL account for each bank in SAP to process future transactions. Whenever we
do payments to vendors or receive payments from customers in the form of cheques, ACH, Wires
etc. We normally don’t use cash GL account directly. We use clearing accounts to record all these
transactions. Cash GL account will normally get affected when we get the confirmation from bank
that cash flow actually happened at bank side. This information we get in EBS file.

For example: We have following GL accounts in SAP for one Bank account depends on the
functionality we are using.

Bank Name: ABC Bank with cash GL account as 100000.

Main bank account 100000

Wires Out 100001

Wires In 100002

Cheque Issued 100003

Cheque Received 100004

ACH Out 100005
ACH In 100006

TCS Internal 4
Accounting Entries

Vendor

a. Invoice

Vendor account CR
Expense account DR

b. Payment to vendor through cheque

Vendor account DR
Cheque Issued (100003) CR

c. Cheque is presented in bank and cleared and information came in EBS file

Cheque Issued (100003) DR

Main Bank account (100000) CR

Customer

a. Invoice

Customer account DR
Revenue account CR

b. Payment from customer through cheque

Customer account CR
Cheque Received (100004) DR

c. Cheque received (EBS Upload)

Main bank account (100000) DR

Cheque Received (100004) CR

Thus after uploading the bank statement in the system, Balance in all the clearing accounts will
become zero and if any clearing account is having balances then it will be the reconciliation items.

The Main Bank account (GL account 100000) will reflect the actual balance with bank.

TCS Internal 5
1.4 House Bank Data

Before starting configuration of EBS, ensure that House Bank & Bank Account (Account ID) for which
you want to configure EBS are correctly configured.

Here, the important fields are ‘Bank Key’ in House Bank data and ‘Bank Account number’ and ‘GL account’
in Bank Account data. Electronic Bank Statement identifies the Bank account in SAP from all these fields.

TCS Internal 6
EBS Configuration in SAP
Transaction Code: OT83

EBS configuration is done at Chart of Account level.

2.1 Create Account Symbols

In this step, we have to create Account Symbols which will be used in next step to assign GL accounts.

Continuing our initial example with cheques, created three Account symbols:

Main Bank Account

Incoming Cheque
Outgoing Cheque

2.2 Assign GL accounts to Account Symbols

Here we have to assign a G/L account to an Account symbol.

It can be done in two ways:

Constant/Fixed assignment:

Directly the G/L account number is specified here. Example: Bank Changes, Interest.

Variable assignment:

TCS Internal 7
The reference GL account used here is the Bank account GL which is picked up from FBZP-House bank
based on the Bank key and Bank account and its number are replaced based on the masking method
used.
For e.g. the bank account GL is 0000100000 in FBZP and the masking method used here is
+++++++++1, then during posting the document, it would get posted to GL 0000100001.
For Cheque we have given +++++++++3 and +++++++++4.

To avoid having to define a separate account symbol for every single house bank account (with a different
G/L account in each case), variable assignment is used.

2.3 Create Posting Rule

In this step Posting Rule is created which will be defined in the next step.

2.4 Define Posting Rule

In this step we use the definitions of posting rules to define which account to debit and credit with what
posting key and in which posting area.

Click on display to view the posting key assignment in posting rule.

TCS Internal 8
Posting Rules XX11

Posting Rules XX30

Second column is for Posting Area.

In addition to automatic document posting, if you want that system should also clear the line
item automatically then same can also be defined this step.

For example when payment is made to vendor, the Vendor line item gets cleared and the corresponding
line item of Bank clearing a/c is opened.

So during the incoming bank statement if you want to clear the Bank clearing a/c in addition to posting
document then it can be configured as below:

TCS Internal 9
In this case, we have to keep Debit side blank and use the posting type as 4 (which is Clear debit G/L
account) then based on the interpretation algorithm used in the external Transaction type assignment
(Step 6) system will clear the line item.

In some cases the interpretation algorithm might not work (say check number is not in Bank file, etc.)
so due to which the automatic clearing document won’t be posted through EBS. So in order to post at
least the incoming record, ‘on account posting key’ is used.
In above case, on account posting key 40 is used, so system will use posting key 40 if it’s unable to auto
clear.

[Vice versa setting to be maintained if Credit side to be cleared]

Below are the available posting types which can be used based on nature of transaction.

2.5 Create Transaction Type

The EBS file being sent by Bank comprises of various external transaction types. In the below step, one
Transaction type is created under which different external transaction types are maintained.

2.6 Assign External Transaction Types

We need to assign External Transaction to posting rule. It is linking Bank defined codes with our internally
defined codes (posting rules), which in turn post the transaction in the system.

TCS Internal 10
Here, “+” sign means it is inflow or receipt and “-” sign it is outflow or disbursement. This sign should
be set based on the nature of transaction.

An interpretation algorithm enables you to find separate outgoing payments using the reference
information returned by the bank.

2.7 Assign Bank Accounts to Transaction Types

In this step, combination of Bank Key & Bank account is assigned to Transaction type and company code.

I have configured only for Outgoing cheque, same way we can create the Bank account in FBZP, add GL
account for Incoming cheque and assign Bank account to transaction types here.

Please Note that if the Bank Account Number appearing in the bank statement is different from the
account number assigned in the House Bank/Account ID configuration (T-code FBZP) then mapping need
to be maintained in transaction OT90 (table T028Q).

This will map the account number given in the bank statement with the House Bank/Account ID in SAP
even if they are different.

This will complete the EBS configuration in SAP.

We will test this EBS configuration set up to check whether we are able to post the payment and upload
Incoming Bank statement. Test will show the Bank clearing postings and the Main Bank account will
reflect the actual amount after uploading Electronic Bank statement via transaction code FF.5.

TCS Internal 11
Testing EBS Configuration

3.1 Create Vendor Invoice

3.2 Payment to Vendor – F110

F110 payment program executed and payment made to Vendor and line item got cleared and the
corresponding line item of Bank clearing a/c is opened. While doing payment to Vendor, clearing
account 1701013 is used.

3.3 Upload Bank Statement – FF.5

Upload EBS confirming that cash flow happened at bank side.

EBS file received from the bank

Execute Transaction code FF.5

FF.5 uploaded successfully

Execute F8

TCS Internal 13
Open the document 73000000 posted above.

The Main Bank Account 1701010 credited and reflects the actual balance and corresponding
Bank clearing 1701013 line item got cleared.

TCS Internal 14
 Thank You

Contact

For more information, contact gsl.cdsfiodg@tcs.com (Email Id of ISU)

About Tata Consultancy Services (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions

organization that delivers real results to global business, ensuring a level of certainty no
other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-
enabled infrastructure, engineering and assurance services. This is delivered through its
unique Global Network Delivery ModelTM, recognized as the benchmark of excellence in
software development. A part of the Tata Group, India’s largest industrial conglomerate,
TCS has a global footprint and is listed on the National Stock Exchange and Bombay
Stock Exchange in India.

For more information, visit us at www.tcs.com.

IT Services
Business Solutions
Consulting

All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content /
information contained here is correct at the time of publishing. No material from here may be copied, modified,
reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from
TCS. Unauthorized use of the content / information appearing here may violate copyright, trademark and other applicable
laws, and could result in criminal or civil penalties. Copyright © 2011 Tata Consultancy Services Limited

TCS Internal 15