AK2110

Financial Accounting
Application
Bank Accounting

ACCOUNTING PROGRAM
Overview
• Introduce bank master records and learn what a
house bank is
• Study the new petty cash journal and learn how
to post a check deposit list
• See how posting the check deposit list clears the
invoices paid
• Discuss processing manual bank statements

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Unit Objectives
After completing this unit, you’ll be able to:
• Maintain the bank directory
• Describe the relationship of G/L accounts to
bank accounts
• Maintain bank data for a customer
• Enter transactions into the cash journal
• Create and process a check deposit list
• Create and post an account statement

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Contents
• Master Records in Bank Accounting
• Business Transactions in Bank Accounting

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Master Records in Bank
Accounting
Lesson Overview
• Study bank master records and learn the
difference between house and non-house banks
• See how bank accounts are linked to G/L
accounts
• Discuss the bank directory

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Lesson Objectives
After completing this lesson, you’ll be able to:
• Maintain the bank directory
• Describe the relationship of G/L accounts to
bank accounts
• Maintain bank data for a customer

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Bank Directory

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Bank Directory
• The bank directory contains the addresses and valid control data (such
as Swift code) of all banks used in the SAP system
• The bank directory can be:
• Automatically imported, as long as the bank directory is available on
diskette and an import program exists for this data
• Manually created
• If a bank is set up in the bank directory, its basic data can be accessed, for
example, when entering the bank information in a customer or vendor
master record
• User only has to enter the country of the bank and the bank key
• The system finds the name and address of the bank in the Bank Directory
table
• If the bank is not yet in the Bank Directory, it can be entered directly
• It is then added to the Bank Directory, if it has been added to the customer
and vendor master record

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Bank Accounts

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Bank Accounts
• House banks are banks where we (the company code) have an
account(s)
• Eg.: When user created a single check in the accounts payable unit, user
used the Deutsche Bank
• That house bank had the house bank ID 1000
• Each house bank is represented in the SAP system by a house bank ID,
and each account at that bank is represented by an account ID
• These IDs are codes of up to four characters, which can be alphanumeric
• The house bank ID and account ID are then entered in a G/L account
master record, which represents a bank account in the general ledger
• Thus the following relationship exists:
• Bank account at house bank → combination house bank and account ID
→ G/L account

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Lesson Summary
You should now be able to:
• Maintain the bank directory
• Describe the relationship of G/L accounts to
bank accounts
• Maintain bank data for a customer

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Business Transactions
in Bank Accounting
Lesson Overview
• Explain the use of the petty cash journal
• Deal with the clearing of open items from
customers by posting a check deposit list and a
manual account statement

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Lesson Objectives
After completing this lesson, you’ll be able to:
• Enter transactions into the cash journal
• Create and process a check deposit list
• Create and post an account statement

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Cash Journals

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Cash Journals
• Since the 4.6 release, SAP offers cash journals to
manage petty cash
• User can create cash journals that are uniquely
identified by a four-character code
• Each cash journal must be assigned to one G/L
account, which represents the petty cash journal
account in the general ledger
• Cash transactions are saved separately in the
cash journal and are transferred periodically (for
example, daily) to the general ledger
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Cash Journal Transaction

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Cash Journal Transaction
• The data entry screen for cash journal transactions is divided into three
sections:
• Data selection
• Here, the time period of the data can be selected
• Balance display
• This displays the totals of incoming and outgoing cash and the beginning and ending balance
• Accounting transactions
• Here, the cash journal transactions can be entered
• A distinction is made here between “Cash payments”, “Cash receipts”, and “Check receipts”
• The offset account for each transaction (and tax code if required) are set up ahead of time in
configuration

• Accounting transactions are saved separately in the cash journal and are
transferred periodically to the general ledger
• The transferred transactions can be printed as a journal
• A receipt can be printed for each individual transaction

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Types of Cash Journal
Transactions

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Types of Cash Journal
Transactions
• There can be many concrete accounting transactions
with specified bank clearing accounts, revenue accounts,
and expense accounts, all with a descriptive text
• One example for a business transaction of the type
Expense posting is cash purchase of office supplies
• Here, the expense account Office material is used
• The accounting transactions are set up in customizing
but can also be created directly from the application, if a
new accounting transaction is deemed necessary during
daily operations
• User can see the possible types of cash journal
transactions set up in configuration in the Transaction
field in either the Payments or Receipts tabs
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Types of Cash Journal
Transactions (Cont.)
• Although customer and vendor payments can be
made using the cash journal, the payment does
not clear the open item
• This clearing is not done until a second step as part of
the accounts payable or the accounts receivable
• Use the menu path Account → Clearing and select the
invoice and the payment
• Incoming and outgoing bank payments are not
posted directly to bank accounts
• Rather, they are first posted to bank clearing accounts
• The bank clearing accounts are then cleared when
processing the account statement from the bank

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Processing Incoming Checks

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Processing Incoming Checks
• The processing of incoming checks is handled
differently internationally
• The two most common procedures are represented
on the slide based on IDES company codes 1000
(Germany) and 3000 (USA)
• In Germany, payments are often made using bank
transfers; in the United States, checks are the most
common method of payment
• For this reason, the number of incoming checks in
Germany is relatively small and can be handled by the
accounting department
• In the USA, many companies use a special bank
service, the so-called Lockbox
• This makes check processing considerably easier
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Processing Incoming Checks
(Cont.)
Germany USA
• The checks are sent directly from the • The checks are sent directly from
customers to the IDES AG accounting customers to the company's
department lockbox
• The paid items are cleared, the • The bank collects the money and
checks received are posted to special records the checks and payment
incoming check accounts, and the
checks and a check deposit list are information in a lockbox file
sent to the bank • The bank sends this lockbox file
• The bank collects the money from the to the accounting department
customers and posts it to the bank
account • By posting the lockbox data, the
paid items are cleared in
• The posting appears on the bank accounts receivable and the
account statement and the amount check amounts are posted
received clears the incoming check directly to the bank incoming
account in the general ledger
checks G/L account

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Depositing Checks

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Depositing Checks
• The process for depositing checks is as follows:
• The incoming checks can be processed manually or
with a check scanner
• After all checks have been entered, a list of checks to
be deposited is available in the system and can be
corrected if necessary
• The check deposit lists can be printed out and sent to
the bank along with the checks
• Batch input sessions are created from the check
deposit lists and have to be processed in order to
create the related postings
• Posting can be completed directly, without a batch
input session

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Posting a Check Deposit

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Posting a Check Deposit
• When posting a check deposit list, two batch input
sessions are generated
• The subledger session
• The bank posting session
• Both sessions must be processed, in order to make
the associated postings in the General Ledger
• The bank ledger accounting session should be
processed first so cash management receives the
most up-to-date information in a timely manner
• When processing the subledger accounting session,
payment differences may, in certain cases, need to be
dealt with manually
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Posting a Check Deposit (Cont.)
Subledger Session Bank Posting Session

• The subledger accounting • The bank posting session is

session is generally processed normally processed by the
from accounts receivable and financial department (or by
clears the open items paid Cash Management)
• The offsetting posting is made • They post check amounts to the
to a check clearing account incoming checks account
• The items to be cleared are • The offsetting posting is made
found based on the data to a check clearing account
included on the check deposit
list provided (such as delivery
number, document number, and
so on)

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Lockbox

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Lockbox
• When using a lockbox, the customers send their
checks and payment information directly to the bank
• The bank is paid a fee to input the data about the checks
received
• The bank saves the check and payment information in a
file and sends it to the accounting department using data
transfer (diskette, data line, or EDI)
• The lockbox file is recorded in the SAP system
• The incoming checks account is posted to and the paid
invoices are cleared
• Complete payment information allows the SAP system to
proceed reliably with the clearing
• If the system cannot find an invoice to be paid, the
payment information has to be processed manually
afterwards using the Post processing function

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Bank Statement

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Bank Statement
• The bank informs the accounting department about
the transactions on the company's bank account
using account statements
• The postings recorded on the bank statements must be
entered in accounting
• The company can receive the bank statement in two
different ways:
• As a form:
• In this case, the account statement must be created manually in
the SAP system
• As a file:
• The file is either provided on a data carrier or it can be called
up from the bank using a transfer program (bank-specific)
• An SAP report imports this file into the bank temporary storage
of the SAP System

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Bank Statement (Cont.)
• The further processing is as follows:
• The bank statements in the bank temporary storage
can be printed for documentation purposes
• Batch input sessions are created from the bank
statements in the bank temporary storage
• User has to run these sessions to create the required
postings
• User can also post directly (without batch input)
• User can carry out any postprocessing either by
running the batch input sessions online or – if user
posts directly – using a special postprocessing
transaction

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Check Receipts and Issues

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Check Receipts and Issues
Check Issues Check Receipts
• The payment program creates the • Two different procedures
check and posts the check issue,
whereby the open vendor items are • In the USA, all the required postings
cleared are carried out with the lockbox
functionality
• The check issue is posted on an
outgoing check account set up for • In the other procedure, the check
that purpose receipt first posts to an incoming
checks account and clears the open
• When the check is then deposited by items. In a second step, the bank
the vendor and the bank account is ledger accounting session posts the
debited, this appears on the bank incoming cash using “Bank to
statement and the bank ledger incoming cash”
accounting session of the bank
statement functionality posts “Check
issued to bank”
• If user are using the check
management, this posting is carried
out via the cashed checks

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Transfers

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Transfers
Outgoing Transfers Incoming Transfers

• The payment program creates the • Incoming transfers appear on the

transfer and posts it to an outgoing bank statement
cash account
• The bank statement function posts
• The open vendor items are cleared the incoming cash, “Bank to
at the same time incoming cash” using the bank
ledger accounting session
• The cash outflow later appears on
the bank statement and the bank • The subledger accounting session
ledger accounting session creates clears the paid items from the
the posting “Cash outflow to bank” customer account
• The bank statement function gets
the assignment information from
the transfer field “Note to payee”

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Lesson Summary
You should now be able to:
• Enter transactions into the cash journal
• Create and process a check deposit list
• Create and post an account statement

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Unit Summary
You should now be able to:
• Maintain the bank directory
• Describe the relationship of G/L accounts to
bank accounts
• Maintain bank data for a customer
• Enter transactions into the cash journal
• Create and process a check deposit list
• Create and post an account statement

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Test Your Knowledge
1. For house banks, the bank key is tied to a ____________________ and the
account is tied to an ____________________.
2. All bank accounts are represented by G/L accounts in SAP.
o True
o False
3. Before the details of a bank can be entered in a customer or vendor
master record, that bank must exist in the bank directory.
o True
o False
4. When you enter a transaction in the Cash payments tab of the cash
journal, you automatically ____________________ the petty cash journal
account.
5. When you process the subledger session created when a check
deposit list is posted, the ____________________ is balanced.

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