Electronic Bank Statement

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Agenda : Electronic Bank Statement

Objective What is Electronic Bank Statement BAI And BAI2 Format House Bank and GL Accounts Implementing Electronic Bank Statement Import Bank Statement Questions Feedback Thank You

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Agenda : Electronic Bank Statement

Objective

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Agenda : Electronic Bank Statement

 Objective:  Explain why and how to implement EBS

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Agenda : Electronic Bank Statement

What is Electronic Bank Statement

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What is Electronic Bank Statement

 An Electronic Bank Statement (EBS) is a detailed electronic version of the manual bank statement Each day the bank can send the statement electronically EBS files contain Deposits, Disbursements, Service Fees and other transactions, as well as balance information  SAP has the ability to import and process the Electronic Bank Statement The imported info can be used to reconcile the accounts The checks, Deposits, etc., can be automatically posted to your ledger Account Balances can be updated  Speeds up reconciliation of the bank statement No one has to manually enter your bank statement information  EBS is more accurate no manual entries

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Agenda : Electronic Bank Statement

BAI And BAI2 Format

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What are BAI and BAI2?

 BAI is a standard protocol for electronic exchange of banking data in the U.S. BAI is a standard flat file format Named for the Bank Administration Institute (standards body--bai.org) Used by nearly all U.S. banks First BAI standards came out in 1980  The BAI2 standard came out in 1986 Offers new and different transaction types The first standard was BAI - some banks still use this format Only BAI2 is being enhanced for new transactions/standards

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BAI2 File Format

 Record Types 01 File Header 02 Group Header 03 Account Identifier and Summary Status 16 Transaction Detail 88 Continuation Record 49 Account Trailer 98 Group Trailer 99 File Trailer

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Examples Of BAI Files (BAI2 shown)

EBS 01,122099999,123456789,860621,0200,1,65,,2/ 02,031001234,1220999999,1,860620,2359,,2/ 03,0123456789,,010,+4350000,,,040,2830000,,// 88,072,1020000,,,074,500000,,/ 16,218,20000000,V,860622,,SP4738,YRC065321/ 88,PROCEEDS OF LETTER OF CREDIT FROM ARAMCO OIL CO 16,195,10000000,1,,,,/ 88, SWEEP FROM DEPOSITORY ACCOUNT 49,118000000,3/ 98,118000000,1,5/ 99,345450000,4,31/

Transaction type

Record type

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Why Use R/3 EBS?

 Speeds up reconciliation of your bank statement No one has to manually enter your bank statement information  EBS is more accurate no manual entries  EBS provides new integration channels that allow you to implement cash management functionality in R/3 Once you do your banking electronically in R/3 you can utilize cash management position and liquidity forecast reporting in SAP

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Why Use R/3 EBS?

 BAI2 has addressed certain limitations! The original BAI standard did have a hard time handling these scenarios BAI2 is very flexible in handling short-pays and deductions BAI2 supports one check for multiple invoices BAI2 is able to overcome these limitations by providing many detailed application records per check deposit record in the file One check can be related to the payment of seven invoices. With BAI2 you will be provided with seven detail application records instead of a single application record with BAI

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Agenda : Electronic Bank Statement

Implementing Electronic Bank Statement

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The EBS Configuration Tool

 Virtually all EBS configuration can be done in one tool IMG: Financial Accounting>Bank Accounting>Business Transactions>Payment Transactions>Electronic Bank Statement>Make Global Settings For Electronic Bank Statement

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EBS Implementation Steps


      Step 1 - Configure Your House Banks Step 2 - Define Account Symbols Step 3 - Assign Account Symbols Step 4 - Create Keys for Posting Rules Step 5 - Define Posting Rules Step 6 - Configure Transaction Types Step 7 - Assign BAI Codes to Posting Rules Step 8- Assign Bank Accounts to Transaction Types

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Step 1 - Configure Your House Banks

 Each bank account that you want to EBS-enable must be assigned to a house bank Its the same configuration that you use to set up house banks and accounts for the A/P payment program It is not part of the EBS Configuration Tool If you dont assign the account to a house bank, you cant use EBS on that account IMG: Financial Accounting>Bank Accounting>Bank Accounts>Define House Banks

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Contd.

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GL Account Creation
GL Account 113300 Name & Description Concentration Account BankBoston This is the master account. The balance in this account should always be the same as the balance in the bank account. All master accounts should end with a 0. Concentration Account Checks In This is the clearing account for incoming Checks to the concentration account. Relevant Settings This account should have line item display, but not be open item managed. Planning level B0 should be assigned to this account.

113308

This account should have line item display and be open item managed. Planning level B6 should be assigned to this account.
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Step 2 - Define Account Symbols

 Account Symbols are mnemonic names that represent one or more G/L accounts. Symbols are used in Treasury postings and subsequent EBS configuration.

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Step 3 - Assign Account Symbols

 The account symbols should be linked to the Bank Account G/L Structure Logic, since the Bank Account G/L Structure provides the posting and reporting framework. You can use wildcards to represent numbers in the assignment

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A Well Thought-Out G/L Structure Is Key!

 What and Why Your bank account G/L structure is the basis for how all of your banking transactions will post. The bank account G/L structure will be used as the lowest base for reporting so that we can see when transactions that are in-transit are expected to clear the bank. Also important for Cash Management Position Reporting. The structure allows you to have common posting transactions across bank accounts and to easily see what amount of your book balance relates to intransit items and what amount relates to confirmed bank balances.  How to do it The bank account G/L structure # is merely a simple way to number G/L accounts that are related to a bank account. This strategy should be implemented as part of your overall Chart of Accounts strategy, Electronic Banking Strategy, and Cash Management Reporting Strategy.
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A Well Thought-out G/L Structure Is Key! (cont.)

Assuming a 6 digit Chart of Accounts with Bank Accounts in the 100000 199999 range of accounts A + symbol stands for a numeric wild card G/L Account 00001++++0 Confirmed Cash (Transactions that have cleared the bank should equal bank statement balance) 00001++++1 Check Deposits In Transit (Deposits that are recorded on the books but havent cleared the bank yet) 00001++++2 Outgoing Checks In Transit (Outgoing checks we have sent to vendors that havent cleared the bank yet) 00001++++3 Check Deposit Clearing Account (Clearing account used in the journal entry to record deposits) 00001++++4 Wire Deposit In Transit (Wire deposits recorded on the books that havent cleared the bank yet) 00001++++5 Outgoing Wire In Transit (Outgoing wires we have sent to vendors that havent cleared the bank yet) 00001++++6 Credit Card Deposit In Transit (Credit card deposits recorded on the books but havent cleared the bank yet) First Local Bank 0000100000 FLB Confirmed Cash 0000100001 FLB Check Deposits In Transit 0000100002 FLB Outgoing Checks In Transit 0000100003 FLB Check Deposit Clearing Account 0000100004 FLB Wire Deposit In Transit 0000100005 FLB Outgoing Wire In Transit 0000100006 FLB Credit Card Deposit In Transit Second Local Bank 0000100010 SLB Confirmed Cash 0000100011 SLB Check Deposits In Transit 0000100012 SLB Outgoing Check In Transit 0000100013 SLB Check Deposit Clearing Acct 0000100014 SLB Wire Deposit In Transit 0000100015 SLB Outgoing Wire In Transit 0000100016 SLB Credit Card Deposit In Trans

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A Well Thought-out G/L Structure Is Key! (cont.)

Recording of Business Transaction Outgoing Wire from FLB to Clear Vendor Account 123A A/P(vendor 123A) 100004 (Wire Out) 25,000 25,000

Recording of EBS transaction that clears the outgoing wire at FLB 100004 (Wire Out) 100000 (Confirmed Cash) 25,000 25,000

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Step 4 - Create Keys for Posting Rules

 Posting Rules carry out G/L and Sub-Ledger postings

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Step 5 - Define Posting Rules

 The Posting Rules will create automatically Journal Entries in the G/L and Sub ledgers  The Business Processes and Banking Transactions will determine what posting rules are to be configured  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

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Contd..

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Step 6 - Configure Transaction Types

 Transaction Types are used to group together a set of BAI2 codes with posting rules Transaction types are assigned to bank accounts. This will determine what posting rules are used for a particular BAI2 code in that bank account. You can and will probably have different transaction types for different banks because not all banks use the BAI2 codes in the same way. You will need unique groupings for different banks when a single BAI2 code is used by more than one bank to represent different business transactions at your company.

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Step 7 - Assign BAI2 Codes to Posting Rules

 Next, assign BAI2 codes/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 The BAI2 codes are likely to map to different posting rules in different transaction types

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Contd..

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Step 8 - Assign Bank Account to Transaction Types

 Next, assign a bank account to each transaction type This is the step where the transaction type are matched with its related bank account(s). A bank account can be assigned to only one transaction type A transaction type can be assigned to more than one bank account

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Other Configuration: Search Strings

 Theres another powerful EBS configuration option, not found in the standard configuration screen: search strings  Search strings allow you control how a transaction is processed based on the note to payee field Using search screens, R/3 searches for a string of characters within a transaction's note to payee field. The note to payee field is the 88 record type in EBS BAI and EBS BAI2. You can then change posting rules, interpretation algorithms, the profit center or cost center used, etc., based on this field This comes in particularly useful when One BAI2 code needs to be mapped to multiple posting keys You need to find the correct cost center to post to for bank fee posting You need to find the correct document number to clear

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Other Configuration: Search Strings (cont.)

IMG: Financial Accounting>Bank Accounting>Business Transactions>Payment Transactions>Electronic Bank Statement>Make Global Settings for Electronic Bank Statement

Enter the text you want to search for here.

Insert your mapping results here

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Other Configuration: Search Strings (cont.)

In this screen you activate the search string and define the target field that you want to use

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Other Configuration: User-Exits & Test Files

 Coding with EBS User-Exits There are a number of user exits available to enhance EBS functionality User-Exits are another advanced configuration technique that can be used to solve complex EBS problems OSS Note 494777 contains a complete listing and explanation of all EBS User-Exits  R/3 Can Automatically Generate EBS Test Files! You can create EBS test files using SAP Program RFEBKAT1 You can also get test files from your bank Make sure you do this as part of your testing plan You can also create an Excel spreadsheet template to generate EBS files
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Agenda : Electronic Bank Statement

Import Bank Statement

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Customer Invoice

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Bank File (Text Format)

01,SAPtestprogramRFEBKAT,KATReceiver,080301,1527,1,99,99,2,,,,,,,/ 02,KATReceiver,123123123,1,080301,1527,USD,,,,,,,,,/ 03,11112222 ,USD,010,10000,,,015,100000,,,045,13600000,,,/ 16,175,10000,S,0,10000,0,1800000007,,,,,,,,/ 88,1800000007/ 49,100000,99,,,,,,,,,,,,,/ 98,100000,1,99,,,,,,,,,,,,/ 99,100000,1,99,,,,,,,,,,,,/

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Execute Bank Statement (FF_5)

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Execute

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Contd..

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Contd

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Document Display

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Contd..

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Customer Line Item Display

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GL Line Item Display

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Understanding R/3 EBS Structures

 SAP Structures The exact file format needed by SAP can be determined by viewing the following SAP structures via SE11 or SE12 Knowing the SAP file format is important so that you can determine if the Banks BAI2 file format matches SAP If the banks BAI2 file format doesnt match the SAP BAI2 format you can: Work with the bank to send you the file in the proper format Write an ABAP pre-processing program that takes the banks file and then recreates the file in SAPs BAI2 format.

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Agenda : Electronic Bank Statement

Thank you

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