Bank Reconciliations in SAP with BEST GL Recons

When completing month-end reconciliations in SAP, bank reconciliations require a specific approach. This is because of how bank statements are handled within SAP, from the structure of the bank general ledger accounts to the processing of bank statement transactions. BEST Balance Sheet Recons therefore provides functionality specifically designed to manage bank reconciliations in SAP.

What Makes a Bank Reconciliation in SAP Unique?

The accounts involved are one of the main factors that make a bank reconciliation in SAP unique. A typical bank account in SAP is managed across multiple general ledger accounts, consisting of a main bank GL account and several bank subaccounts.

Bank statement entries are loaded into SAP, either electronically or manually, and posted to the main bank GL account. The corresponding entries are usually posted to the bank subaccounts. The main bank account should only contain bank statement entries and should therefore always reconcile with the bank statement balance.

The bank subaccounts are where the detailed reconciliation takes place. Items are cleared against their relevant corresponding entries, such as outgoing payments from the procure-to-pay process or incoming payments from the order-to-cash process.

Processing bank transactions in this way creates two important reconciliation objectives:

• Ensuring that the main bank GL account always reconciles with the bank statement and is accurate and complete
• Ensuring that the bank subaccounts are cleared regularly and do not contain long-outstanding items

How Does BEST Handle Bank Reconciliations in SAP?

BEST understands how SAP manages bank accounts and has therefore developed a tailored bank reconciliation process within BEST Balance Sheet Recons.

To meet the specific objectives of a bank reconciliation, BEST provides the following functionality:

• Groups the main bank account and its associated subaccounts into a single reconciliation, providing a complete view of the bank account and its transactions
• Validates the main bank GL account balance to ensure it is accurate and complete by:
  • Automatically reconciling the bank GL balance with the SAP bank statement balances held in table FEBKO
  • Allowing the reconciliation preparer to enter the physical bank statement balance at the time of approval

The reconciliation can only be completed when the bank GL balance, SAP bank statement balance and physical bank statement balance all agree.

• The physical bank statement or SAP statement can be attached directly to the reconciliation in SAP. It can then be reviewed during approval or accessed later through the audit trail report.
• The bank subaccounts are included within the reconciliation and can be managed using:
  • An open-item count for each account
  • Ageing of individual line items
  • Reason codes assigned to line items
  • Detailed long-text explanations

By applying this specific logic to bank reconciliations in SAP, BEST Balance Sheet Recons helps ensure that period-end bank account balances are complete and accurate. It also helps finance teams maintain their bank subaccounts and clear outstanding items regularly.

Watch the demo and find out more about the BEST Balance Sheet Recons module.

Contact BEST to find out how BEST can help your team manage bank reconciliations in SAP.