Bank Reconciliation

Module : Financials – Bank Accounting
Bank Reconciliation
SAS Regional
ERP
© SAS Region ERP - 1 -
3/10/20
Agenda
 Objectives
 Process Requirements
 Process Flow Diagram
 Proposed Solution
 Major Benefits
 Other Requirements
 Open Issues
3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
Objectives
 Bank Reconciliation
 Bank Accounting
 Bank Statement processing
3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
Process Requirements
Highlights of OsA guidelines:
 Electronic Link to Bank
 Outsource all payments to single bank
 Electronic interface with banks to enable automatic matching of AR receipts
and automated letter of credit procedures
Requirement for countries dealing with SGTRE

 Items in bank statement with future value date (not realized) should be
accounted as Cash in transit.
3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
Objectives
 Bank Reconciliation
 Bank Accounting
 Bank Statement
 Electronic Bank Statement upload
 Manual Bank Statement
3/10/20
Bank Reconciliation
Doc. No. FI-BA-01 BankAccounting Date 02nd Feb2007 Statusof Document Completed Page 1
ABB
Doc. Name Process Name: BankAccounting Creator Name ArvindMukadam Revision 0
Receivable
Accounts
Post receiptsto Automaticupdateof Accounts

BankIncoming Receivablewithdirect deposit into
Account Bank by Customers etc.
Automatic updateAccounts
Accounts
Post Payments to
Payable
Bank Outgoing PayablewithBill of Exchange

Start
Account payments andother direct
payments bybank
Receive
Bank
Statement Automatic Accountingfor Bank Clear IncomingandOutgoing
charges, clearingof Customer Bank Accountsfor items
Accounting Center
andVendor Accountsfor direct appearingintheBank

Electronic payment madeby / receivedinto Statement andtransfer them
UploadElectronic
Executive
Bank Account toMainBank Account

Manual
BankStatement
Enter Manual
Bank
Statement
End
3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
Proposed Solution
 Bank Accounting
 For each Account with a Bank, there will be 3 GL accounts operated in
the system
 Main Bank Account – Entries in this account flow automatically at
the time of Bank Statement upload with a corresponding debit or
credit to expense account or Customer / Vendor Account.
 Bank Incoming Account – All Incoming Payment Receipt accounting
will be done in this GL account. These items will be cleared at the
time of Bank Statement Upload, if the proceeds are realized. The
balance in this GL account will consist of ‘items deposited into Bank
but not credited’.
 Bank Outgoing Account - All Outgoing Payments’ accounting will be
done in this GL account. These will be cleared at the time of Bank
Statement Upload, if the money is actually paid by bank. The balance
in this account will consist of ‘payment made to suppliers but not
cleared’.
 Bank Statements
 Electronic Upload of Bank Statements
 Manual – Bank Statements manually keyed in.

3/10/20
Proposed Solution
 Electronic Bank Statement Upload
 Electronic Bank Statement received from Bank will be uploaded into SAP
system. All items in the Bank Statement will be accounted for by system based
on pre-defined rules.
 For all payment instructions honored by bank the Bank, an entry will be
created in the Main Bank Account and the corresponding item in the Bank
Outgoing Account will be cleared.
 For all direct payments by Banks to Vendors, an entry will be created in the
Main Bank Account with corresponding debit to the respective Vendor account
automatically.
 For all cheques honored by Customers, an entry will be created in the Main
Bank Account and the corresponding item in the Bank Incoming Account will be
cleared.
 For all direct deposits into Bank by Customers, an entry will be created in the
Main bank account with a corresponding credit to the respective Customer.
 All Bank charges will be booked automatically by the System
 Items that do not get processed by the system, will remain in errors.
 Post Processing functionality will be used for subsequent analysis of such
items and will be accounted.

3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
Major Benefits
 Bank Accounting
 Automatic Bank Statement Upload and accounting
 No further action necessary in relation to the Bank statement, if the Main
Bank Account Balance matches the Bank Statement Balance.
 Bank reconciliation is available immediately on Bank Statement upload
 No need for preparation of manual Bank Reconciliation statement
 Item-wise details of all items not accounted by Bank
 Post Processing Office provides for error analysis during Bank Statement
upload
 Incoming and Outgoing Bank Accounts provides for details of items that
form part of reconciliation.
3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
Other Requirements
 Master data requirements
 House Bank and Bank Account Creation
 GL Accounts for Banks
 Global Systems
 None
 Reporting Requirements
 None as Bank Reconciliation readily available
 Interface with other processes
 Bank Statement Upload
 Internal Control requirements
 SOX compliant
3/10/20
Agenda
 Objectives
 Major Benefits
 Open Issues
3/10/20
3/10/20
 None
Open Issues
3/10/20

Bank Reconciliation

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Module : Financials – Bank Accounting

Requirement for countries dealing with SGTRE

Post receiptsto Automaticupdateof Accounts

Bank Outgoing PayablewithBill of Exchange

andVendor Accountsfor direct appearingintheBank

Bank Account toMainBank Account

 Manual – Bank Statements manually keyed in.

items and will be accounted.

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