Hi All ,
I need information on House Bank Configuration/ Assignment with respect to business area. Its very urgent.....
Bank that your company used for banking purposes.
It is also the first step for configuring your Account Payable Modules.
FI12 - Configure House Bank
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
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.
Financial Accounting > General Ledger Accounting > Bank-Related Accounting > Bank Accounts > Define House Banks
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.
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
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.
It is important to have the right structure for Bank Accounts, GL Accounts and the Clearing
It is important to know how much of:
Floating Cash out, and
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.
Check Lots and Void Reason Codes
The final step in configuring of the AP Bank
Account is to assign it to a check lot.
If the company has a MICR printer then a blank
check lot can be used for Payables. The check lot determines the check number that is used on payments.
step is to bring up the "Check Lots" screen.
Menu Path: Financial Accounting >
Accounts Receivable and Accounts Payable > Business transactions > Automatic Outgoing Payments > Payment media > Check
Management > Define Number Ranges for Checks
On the main screen you need to fill up Company Code, House Bank number,
and the Account ID for which the checks are being created (?)
After saving the information click on "Change Status"
icon. This takes you to "Maintain Check Lots" screen. Most of the information will come filled up. You can enter the From
and To check Numbers.
To create a new check lot and assign it to the account, you can click on the "Create" icon. In
the pop up enter the Lot number identifier and he range of the check numbers and also the next lot number if
Void Reason Codes
In SAP, it is not possible to void a check without a valid reason code. We
can have any number of Void Reason codes. There should be at least one Void reason Code configured in the
Menu Path: Financial Accounting > Accounts Receivable and Accounts Payable > Business
Transactions > Automatic Outgoing Payments > Payment media > Check Management > Define Void Reason Codes.
reason Codes come pre-configured - 1, 2, and 3. They deal with the problems encountered with the printers. There are
indicators to be assigned which define whether the Reason Code is due to Manual or Print program. Any codes created by the
users are only assigned Manual.
Payment Program Configuration
This step determines how to process
the payment transactions in the system.
The Payment Program is a series of steps within one Program.
configuration occurs in table T042 and other variations of table T042 that end in a letter.
Menu Path: Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing
Payments > Automatic Outgoing Payments > Payment Method/Bank Selection > Configure Payment Program
assign points if useful