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Now in this blog we will see one of the features of EBRS i.e.Search String.
Search String is a very useful functionality in EBRS process. with this you can directly change or default the some parameters in combination of Company Code,House Bank & Account ID.
Search strings can also be used to substitute fields based on Profit Center, Cost Center, Offsetting Account, etc.
Here we will see one example of search string use.
E.g. if in the Bank Statement as below you find every time that Bank is mentioning “Consolidated Charges for A/c” while debiting Bank Charges & in this case you want system should pass the entry automatically by debiting GL Account of Bank charges.
For simulation enter the text in entry text filed & click on the Test button.
Search String Definition
2.Search String Definition
Now click on Search String use to assign this rule for particular House Bank/Account ID.
Give Co Code/House Bk/Acct ID
Select external transaction as NCHG (which is defined for bank charges)
Select Posting value as negative.
Select Search string name as Consolidated Charges.
Target field will be Posting Rule.
Now save the assignment.
Search String Use
So now when you upload the Bank Statement which have above text for Bank charges e.g. Consolidated Charges for A/c. then system will automatically pass the entry by debiting bank charges account & credit to main bank account.
So Conclusion is by this search string you can easily change the posting rule & other Parameters & assign it for a particular Bank Account or Company Code.
SAP have the features of Electronic Bank Reconciliation Statement (EBRS) process where you can directly upload the Bank Statement in a format called MT940.
In this process SAP will upload statement automatically & at the same time will do sub-ledger posting & clearing.
So here in this blog we can see the basic steps to configure the EBRS for MT940 Format.
Path for configuration EBRS is go to SPRO-IMG
Financial Accounting–Bank Accounting–Business Transactions–Payment Transactions–Electronic Bank Statement–Make Global Settings for Electronic Bank Statement (T Code – OT83)
here specify the nature of Transactions happened in the Bank
Generally you need to create new entries for 4 Common Transactions in the Bank & 1 entry for Main Bank as below,
Create Account Symbol
2) Assign GL Accounts to the Accounts Symbol
Create new entry’s for GL Account assignment to Accounts symbol
For Bank Charges (EBCG) & Interest Account (EBIN) give GL Account Code as mostly it may account in respective GL only.
For Cheque Deposited (EBCD) & Cheque Issued (EBCI) give +++++++++1 for IN Bank Account & +++++++++2 for OUT Bank Account in case of multiple bank accounts.(If you have IN Bank Account GL Code last digit is 1 & OUT Bank Account GL Code last digit is 2)
Assign GL Accounts to the Account Symbol
3) Create Key for Posting Rule
This is required for automatic Posting of entry’s while reconciliation as per the nature of transaction Deposited, Cheque Issued, Bank Charges, Bank Interest.
Create Key for Posting Rule
4) Define Posting Rule for Posting key
Define Posting Rule
Please understand this as per below illustration of accounting entries.
Illustration
5) Create Transaction type
Required to create Transaction types for EBRS
e.g. here we have created EB1 for the organisation
There are also some Standard Transaction types are available.
Create Transaction Type
6) Assign External Transaction Type to posting Rule
External Transactions Types are those which is mentioned in the bank statement for each & every transaction.
i.e. NCHK, NTRF, NSTO, NCHG, etc. as bank mentioned their MT940 bank statement format as below
E.g. MT940 Format
This Transaction types require to assign to the posting rule which we have created in point No.3 as below with Debit/Credit indicator & Algorithm
Assignment of External transaction type to posting rule
If you are maintaining cheque Number in Assignment than use Algorithm 15 against transaction type of cheque. with this system will clear the entry’s by matching the cheque number from the statement.
Other cases you can give simple logic as No Interpretation.i.e.system will clear based on the amount.
Sign + means incoming entry’s & Sign – means outgoing entry’s
7) Assign Bank Accounts to Transaction Types
Here you require to give Bank Key, Bank Account Number of all the banks where you want to activate this process & give Transaction Type against all the bank (i.e. EB01) which created as per point no.5
Assign Bank Accounts to Transaction Types
So in conclusion basically once you complete the above 7 Steps in SPRO than you can start using the functionality of electronic bank reconciliation in MT940 Format as it saves a lot of time & is error free compare to uploading manual bank statement which is time consuming & prone to clerical errors.
In my next blog i will cover some other features & the transactions related steps.
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