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House bank

Former Member
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2,201

How to maintain Main bank account?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

HI Rama krishna.

Accounts Payable

AP is a subledger with strong integration with MM, AR,and reasury Module.

House Banks

First Step: We first create House Banks. These are the banks for

your clients. Your client uses these for its banking transactions. One House Bank can have multiple bank accounts assigned to it.

During the implementation one can try to rationalize both, the Banks and the Accounts.

A House Bank has

a Unique Bank Key. Bank Keys differ by each country's norms. The US Bank Key is called ABA (American Banking Association) number. Normally each House Bank can have its own Company Code. In some cases, where the Banks use a different ABA key for paper Transactions and a different one for Electronic Transactions, you Create Two House Banks instead of one for One

Physical Bank. Also, Two Bank Accounts will be created for a Single GL Account.

T-Code: FI12

Menu Path:

Financial Accounting > General Ledger Accounting > Bank-Related Accounting > Bank Accounts > Define House Banks

Config

Steps:

A House Bank is tied to a Company Code and each Bank Account is tied to a House Bank. So first we Select the Company Code for which the House Bank is to be created.

The Create Bank icon is clicked and it brings up a pop up for

House Bank Identifier and House Bank Country. House Bank ID is a number decided by you. You can specify a number based on

your numbering conventions.

The Next screen requires entry of the Bank Key - the ABA number is the House Bank country

selected was US. On this screen you also enter the House Bank Address data as well Control Data - comprising of SWIFT COde,

Bank Group and Bank Number.

Once the House Bank data has been entered and filled up, you click on Bank Accounts and

you are taken to the screen to configure the Bank Accounts. On the Next screen click on the "Create Acct" icon.

A pop up comes up where you enter the House Bank Identifier in your system as well as the Bank Account identifier in your system along with a text description. Once this is done, we get to the main screen where we enter the following data:

Bank Account: The Bank Account given BY the Bank.

Altern. Acct No.: This field is used when two accounts at the same bank use the same account number. This situation may arise when the bank manages the accounts in two different currencies. This field has a different number than the Bank Account field.

Currency: This is the currency in which the account is managed.

Control Key: For US Banks, this is used to identify whether the account

is a Checking or Savings account. The key is 01 for Checking and 02 for Savings. The Default value is checking account if nothing is specified.

GL Account: Each Bank Account is assigned to a GL Account Number. The Bank Account updates

the GL Account entered here.

Discount Account: If the company uses the Bill of Exchange facility then we enter the

Cash Discount Account for Credit Memo Postings that this Bank Account should update.

Bank Account

Structure

It is important to have the right structure for Bank Accounts, GL Accounts and the Clearing Accts.

It is important to know how much of:

- Confirmed Cash,

- Floating Cash out, and

- Floating Cash

In is available for the company on a particular day.

There should be Only One Confirmed Cash GL Account with many

Bank Clearing Accounts. So, the Checks Outgoing Clearing, Wire Outgoing, ACH Out, and Deposits clearing need to be set up for each Bank Account. It is also important to leave room for additional clearing accounts that may be needed in future.

For this, we may have a range of 10 GL Accounts for each Bank Account. The numbering, for example, can have the GL Account

ending with 0 for each Confirmed Cash Balance (eg: 110000); each deposit clearing account will end up with a 1 (110001); each

outgoing check clearing account will end with a 2. each outgoing ACH account will end with a 3 and each outgoing wire

account may end up with a 4.

regards

jagadeesh sap fico

green line software

Former Member
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thanks for reply,

Its wounderful

and need little bit

that is one company use ABC company use 5 SBI accounts a/cs and 5 ICICI accounts a/cs in different locations and different types like savings, current, loans, od a/c

in every a/c they are doing payments as well as receipts and they are doing recouncilation. In this situation how to i configured the system. pls give me detail about gls also, thankful to you for your response

Answers (3)

Answers (3)

Former Member
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Hi,

I would like to ask one question. Is it a problem if I assign one GL clearing account tor more the one account IDs? Because I know that a House Bank is a combination of a Bank and a Branch, Account id is the account number, a house bank can have multiple account IDs.

I suppose that this wont be a problem, but I'm not sure. Because our client wants to have more than one accounts IDs for one house bank in one company code, but till now in every similar cases I saw in the system that before me thy assign different GL account.

Thanks in advance

Former Member
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Hi,

While defining House bank and assigning Bank Key through transaction FI12, you need to maintain all relevant data for that bank under Bank Data.

In Bank Account Data, you need to assign Bank Main Account. At the end of Bank reconciliation all your payment and reciept transaction are reconciled with you bank main account maintained here. Before creation of this main account, it need to create through FS00.

Pls get back for further query.

Thanks & Regards,

Taral Patel

Former Member
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Hi Ram,

You need to create a GL Account for main house bank in the TCode FS00.

After that you need to maintain House Bank in TCode FI12 and link your GL Account to the house bank with the help of Account ID.

Hope this helps you...

Regards,

Sreekanth....