Steps to Activate Electronic Bank Reconciliation Statement - MT940 Format - Part I

[former_member687826]

Hi,

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)


• Give your Chart of Accounts

You will get below screen to process :

1. 

OT83

1) Create Account Symbol for Transaction

• 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 Acccounts 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 

• 


• 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.

I really hope this will be helpful to you.

Please give your feedback/suggestion if any.

Thanks & Regards,

Vicky Gandhi

SAP FI Consultant

[former_member599057]

Well Done Mr. Vicky, I’m waiting for Part II

[ignacio_kristof]

Nice work!

[thisisrr37]

Hi vickygandhi ,

How the system will clear transaction having same amount in the same day but we need to clear only one transaction out of those 2.

Suppose on 20th July 2020 two outgoing transaction is posted with Amount 1000 and the document no is 1001 & 1002 but we want to clear only 1002. How it is possible?

Waiting for the second part!!!

Best Regards,

Ratul

[former_member687826]

Hi Ratul,

This is good question.

You can use algorithm as per point no.6 i.e.clearing of transaction based on the assignment fields.e.g. you have two same amount transaction of Rs.1000 which have Cheque no.99990 for Doc no.1001 & Doc no.1002 have Cheque No.99991 which should be mentioned in assignment field while entry.

So while uploading bank statement system will identify on the basis of assignment field that out of same amount of transaction which amount is cleared in the bank.

Hope this will clear your doubt.

Thanks & Regards,

Vicky Gandhi

[tapan_rana]

Very nice details....

[former_member737186]

Hi, Can you tell me. In which Tcode we have to upload the EBS to do auto bank reconciliation?

 

Thanks.

[thirumalesh_b]

Hi Vicky,

Can you please clearly explain us, Why we given +++++++1 & ++++++2 in GL account field?

You can reach out me by sending mail to avv.thiru@gmail.com or replying to this comment.

[former_member687826]

Hi,

TCode is FF.5 for upload automatic EBS.

Thanks

 

 

 

[former_member687826]

Hi,

It is given generally people maintained In account ends with 1 & Out account ends with 2. So if you have multiple bank account then no need to maintain each & every Bank Account for the Same.

Thanks

[former_member767627]

Hi,

Nice explanation.

Can you guide the table to identify "Electronic bank statement format" which is used to upload the statement.

There is a case where we have statement details of year 2020 but user do not know in which format statement was uploaded.

Can you guide us the table where we can identify the statement upload format is in used.

In Mt940 statement there is no 86 tag.

only 61 and 62M tag.

For: e.g T.code  -  FF_5

Format are - S swift MT940 with field 86 structure

I - Swift MT940  International Format (field 86 UnStructure)

G - Swift MT940  - Field 86 : Structure recognized Automatically

Thanks in Advance.

[marika_decesare]

Hi Vicky,

where can i see all external transaction of MT940?

Are the ones seen in step 6  sufficient?

Thanks in Advance

[ziessemic]

Vicky,

Nice outline!  Regarding MT940...I am looking for settings that would allow me to load the MT940 for some of the accounts on the statement but not all.  In other words, the statement has bank accounts 0001, 0002, 0003, 0004, 0005.  But I only wish to load 0001 & 0003 to one SAP system and 0002, 0004, and 0005 to another.

For BAI format, I know this is possible using the BAI Preprocessor flag in FF.5 and update to T028Q, for posting flagged or not, (TCode OT90).  But is this possible for MT940?

Your quick reply is greatly appreciated!

Thank you.

[goody-1]

Is anyone aware of a blog regarding the closing tags on the file?

[pranav_gupata]

Hi Vicky Gandhi,

Very clear and step by step process to EBRS, Sir, i have one doubt for CITI Bank also the same Transaction type or others, how could i know, we have CITI Bank House Bank and customer wants Electronic BRS FF_5, how to do.

Thanks & Regards

Pranav

 

 

[iraladamodara_reddy]

Nice and Very helpful..