Reconciling SAP Bank Accounts

Reconciling SAP bank accounts with physical bank statements and balances can be a time-consuming process.

BEST Balance Sheet Recons provides functionality for reconciling different types of general ledger accounts, including bank accounts, directly within SAP.

A bank reconciliation in SAP consists of two principal parts: reconciling the main bank account and managing the open items held in the associated bank subaccounts.

1. Reconciling the Main Bank Account in SAP

The first part of the reconciliation is a three-way comparison between:

• The balance of the main bank GL account in SAP
• The bank statement balance recorded in SAP
• The balance shown on the physical or externally obtained bank statement

This comparison helps confirm that the main SAP bank account balance is both accurate and complete.

A three-way check is important because bank statements or individual bank statement transactions may be missing from SAP. For example, an expected bank statement file may be late or missing, or a technical error may have occurred within the SAP bank interface.

Bank statements are generally loaded electronically into the SAP bank tables, with the corresponding entries posted to the main bank GL account.

During the month-end close, or more frequently when bank reconciliations are completed daily or weekly, finance teams can obtain a bank statement by email, post or online banking and compare its balance with the information held in SAP.

When the external bank statement balance is entered into BEST, it can be compared with:

• The balance held in the SAP bank statement header table, FEBKO
• The balance of the associated main bank GL account in SAP

The physical or downloaded bank statement can also be attached to the reconciliation as supporting evidence.

2. Reconciling the Bank Subaccounts in SAP

The second part of the bank reconciliation concerns the open items held within the SAP bank subaccounts.

When a bank statement is posted in SAP, its transaction lines are posted as open items to the relevant bank subaccounts. Corresponding open items are also created when outgoing or incoming payments are processed.

Examples include:

• Outgoing payments made to settle vendor invoices
• Incoming payments received against customer invoices

These corresponding entries should be matched and cleared against the bank statement open items.

Where required, BEST Open Item Clearing can automate the matching and clearing of eligible entries.

Some items may remain open because:

• The payment references in SAP and on the bank statement do not align
• The relevant entries contain incomplete or inconsistent information
• A timing difference exists between the payment and the bank statement entry
• The corresponding transaction has not yet been posted

Unmatched or uncleared entries appear on the bank reconciliation for investigation. Users can assign reason codes, enter detailed explanations or attach supporting documents to explain why an item remains open.

Ageing reports can also be used to identify items that have remained outstanding for an extended period.

Bank Reconciliation Reporting and Audit Evidence

These tools allow SAP bank reconciliation issues to be identified more quickly. They also make relevant information available within SAP with real-time status updates.

Because BEST operates within SAP, the reconciliation can bring together:

• The main bank account
• The associated bank subaccounts
• The SAP bank statement tables
• The external bank statement balance
• Supporting documentation, including the original bank statement

This information is consolidated into a single bank reconciliation report within SAP.

Once the reconciliation has been completed and approved, the relevant information remains available through BEST management reporting, including:

• Online bank reconciliation reports for both current and historic reconciliation periods
• Supporting documentation attached during preparation or approval
• Approval and rejection actions recorded in the audit trail report
• Entered bank balances, reason codes and supporting explanations

By combining BEST reconciliation functionality with controls designed specifically for SAP bank accounts, bank reconciliations can be:

• Completed more quickly and efficiently
• Used to confirm that bank account balances are complete and accurate
• Reviewed online for both current and historic periods
• Supported by a complete audit history of the activities performed

Further Guidance on Bank Reconciliation in SAP

Neil Pryce of FinOwl, a BEST partner at the time this article was published, has extensive banking, finance and SAP experience. His career has included working as a chartered accountant, an SAP financial consultant on large global projects and a chief operating officer at ABSA Corporate and Barclays.

Read Neil’s article about GL-based bank reconciliation in SAP.

Watch the demonstration and find out more about bank reconciliation using BEST Balance Sheet Recons.

Contact BEST to arrange a demonstration of automated bank reconciliation within SAP.