When completing Month End Reconciliations in SAP, a Bank Reconciliation is unique.  This is because of the way in which Bank Statements are handled within SAP – from the setup of the Bank GL accounts to the processing of the Bank Statement transactions. This unique approach to Bank Accounts in SAP is why the BEST GL Reconciliation Module has a unique and tailored approach to bank reconciliations in SAP.

What makes a Bank Reconciliation in SAP unique?

Firstly, the accounts involved make the bank reconciliation in SAP unique. A typical bank account in SAP is managed across multiple GL Accounts, consisting of a Main Bank GL account and several Bank Sub Accounts. Bank Statement entries are loaded into SAP, either electronically or manually, and are always posted to the Main Bank GL account, with the contra entries being posted (in most cases) to the Bank Sub Accounts. The Main Bank Account is only ever posted to with Bank Statement entries – and should therefore always balance to the Bank Account or Bank Statement Balance. The Bank Sub Accounts are where the true “reconciling” takes place, and the items are cleared off against their relevant contra entries – such as outgoing payments from your Procure-to-Pay process, or against or incoming payments from your Order-to-Cash process.

The posting of Bank transactions in this manner results in two unique reconciliation objectives:

  • Ensuring that the Main Bank GL account always reconciles to the Bank Statement (Accurate & Complete)
  • Ensuring the Bank Sub Accounts are cleared regularly and do not contain long outstanding items.

How does BEST handle Bank Reconciliations in SAP?

BEST understands how SAP handles Bank Accounts and has therefore designed a unique bank reconciliation approach within its BEST Reconciliation module. To meet the unique reconciliation objectives, BEST has the following functionality built into is Bank Reconciliation in SAP:

  • To group the Main Bank Account with its Sub Accounts into one reconciliation. Therefore, to look at the entire Bank Account transactions holistically.
  • To validate the Main GL Account Balance to ensure it is accurate and complete. This is achieved by,
    • Automatically reconciling the Bank GL Balance to the SAP Bank Statement Balances (Table FEBKO)
    • Allowing for the Bank Reconciliation preparer to enter the physical Bank Statement value at the time of Approval.

Only when all 3 balances agree, can the reconciliation be completed.

  • The physical statement, or SAP Statement, can be attached directly in SAP to the reconciliation for validation at the time of approval, or for historic review via the Audit Trail Report.
  • The Bank Sub Accounts are included in the reconciliation and can be managed using:
    • An open item count per account
    • Ageing of line items
    • Reason codes assigned to line items and
    • Long Text explanations

By applying this specific logic and unique approach to a Bank Reconciliation in SAP, the BEST GL Reconciliation Module can not only help to ensure your period end Bank Accounts Balances are complete and accurate, but to also ensure your Bank Sub Accounts are well maintained and open items are cleared regularly.

Watch our demo video and find out more about the BEST GL Recons Module here.

Contact BEST to find out how the BEST GL Recons module can manage your accrual reconciliations in SAP.