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Derive Greater Value
from Little-Known SAP
Electronic Bank
Statement Functionality
Jaime Ryan
e5 Solutions Group
© 2009 Wellesley Information Services. All rights reserved.
Speaker Bio
• Jaime Ryan has been successfully implementing the electronic
bank statement solution for more than 14 years at client sites
across North America, Latin America, Europe, and Asia-Pacific.
• He was the first in North America to pilot the BAI/BAI2 Bank
Statement format
• He continues to be one of North America’s leaders in SAP
Treasury implementations and recommended by SAP
• Jaime Ryan helped co-found the e5 Solutions Group in early 2001
after being a Platinum Consultant with SAP America
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In This Session …
• We’ll address some of the issues facing companies who want to
reconcile and apply cash automatically
Such things include generic coding by banks and little or no
remittance details from sender
• Our solution will be to explore advanced configurations such as
search strings and enhancement programming
• With these new tools your organization will be able to explore
possibilities for increasing hit ratios on your bank statement
processing
• Adding value back to the organization by increasing the
timeliness of reconciling or applying cash and reducing the
overall number of hours required each month to manually handle
such processes
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What We’ll Cover …
• An introduction to electronic bank statement (EBS)
• Understanding the basics of how EBS works
• Leveraging advanced EBS configuration and enhancements
• Wrap-up
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Electronic Bank Statement’s Place in the SAP Treasury
Applications
SAP Treasury Applications
Analyzers
Credit Market
Risk Risk
Transaction Manager
Money Securities Foreign Derivatives
Market Exchange
Cash Management
Elec. Bank Stmt Liquidity Planner
Banks In-House Cash
Financial Accounting (FI)
Controlling (CO)
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Electronic Bank Statement’s Place in SAP Financials
Electronic bank statement is now part of
SAP Financial Supply Chain Management (SAP FSCM)
Stakeholder
Strategic Enterprise Performance Strategic Planning &
Relationship Strategy Management Business Consolidation
Management Measurement Simulation
Management
Customer
Supply Chain Human Resource Product Lifecycle
Business Analytics Financial Analytics Relationship
Analytics Analytics Analytics
Analytics
General Ledger & Sub Revenue & Cost Order & Project Product & Service
Accounting Financial Statements
Ledgers Accounting Accounting Cost Calculation
Electronic Bill In-House
Financial Supply Credit Dispute Cash & Liquidity Treasury & Risk
Presentment &
Chain Management Management Management Cash Management Management
Payment
Incentive & Commission
Corporate Services Real Estate Management Travel Management
Management
Financial Portal
Manager Self-Service Corporate Finance Portal
Solutions
Technology SAP Technology Infrastructure
Solutions
(SAP NetWeaver®)
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Electronic Bank Statement Implementations
• Sample listing of companies who successfully implemented
electronic bank statements
Advanced Medical Discovery Owens-Illinois
Optics (AMO) Channel
Air Products Dyno Nobel PayPal
Ashland Inc. GATX Corporation PQ Corporation
BASF Corp. General Mills Procter & Gamble
Brown-Forman MeadWestvaco Sun Chemical
Bunge Miller Brewing Co. SC Johnson
Burger King Microsoft Toro
Colgate-Palmolive Nike TransAlta
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Electronic Bank Statement Overview
• EBS functionality was designed to help companies automate bank
account reconciliations
• Focus on shifting from manual processing of paper-based
monthly statements to automated daily statements
• Single user interface and ability to standardize via “rules-based”
processing
• Multiple banks and formats supported
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Business Challenges for Your Organization
• Overwhelming number of external bank accounts
• High volumes of transactions
• Cash sweeps intercompany loans
• Monthly paper bank statements
Usually arriving after month-end close
• Manually intensive accounting
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Benefits of Electronic Bank Statement
• Gain greater control over bank reconciliations through online
statement processing
• Increase timeliness of cash application through daily statements
• Enable higher accuracy of postings
• Increase efficiency/productivity through automation and
standardization
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What Types of Transactions Can EBS Handle?
• Reconciliations of items initiated from SAP
Check payments including updating check register
Electronic payments
Lockbox deposits
Customer collections debits
Cash concentration sweeps
• Reconciliation/cash application of items not initiated in SAP
Customer deposits/receipts
Rejected/returned payments
Supplier direct debits
Miscellaneous debits and credits
Target balance sweeps
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What We’ll Cover …
• An introduction to electronic bank statement (EBS)
• Understanding the basics of how EBS works
• Leveraging advanced EBS configuration and enhancements
• Wrap-up
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Bank Account Structures in SAP
Company Code
Within SAP ERP, the Company Code was intended to represent
a “legal entity”
House Bank and Account ID
House Bank = Bank Branch
Account ID = Bank Account
General Ledger (GL) and Subledger Accounts
GL = Cash, Cash Clearing
Subledger = Customers, Vendors
Note! In the real world, a bank account can belong to only
one legal entity, therefore SAP ERP was designed around
the concept of a unique bank account being set up only
once in one particular company code. 13
Bank Account Structures in SAP (cont.)
Bank Number and
Bank Account Number
combination must be unique
to one company code
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Bank Account Structures in SAP (cont.)
Company Code 1 Company Code 2
House
House Bank
Bank House
House Bank
Bank
Bank Number Bank Number
Acct
Acct ID
ID Acct
Acct ID
ID
Account Number Account Number
Currency Currency
GL Account GL Account
Payment
Payment Item
Item Payment
Payment Item
Item
GL
GL Account
Account
Main Bank Account (Chart Main Bank Account
(Chart of
of
Clearing Acct 1 Accounts)
Accounts) Clearing Acct 1
Clearing Acct 2 Clearing Acct 2
Clearing Acct 3 Clearing Acct 3
Clearing Acct 4 Clearing Acct 4
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Bank Statement Postings
Posting
Cash Management
SAP General Ledger
Bank Statement
Area 1
SAP FI Accounts Receivable
SAP FSCM In-House Cash
Posting
Area 2 Bank
SAP FS-CML Loans Mgmt
Other …
Bank statements have two functional abilities
per transaction known as “posting areas”
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Posting Logic of SAP Banking Transactions
Example 1: Outgoing Disbursement
Outgoing Payment Vendor Clearing Account
(1a) Invoice 100 (1a)
(1b) Payment Run (1b) 100 100 (1b)
(1c) Bank Statement (1c) 100 100 (1c)
Example 2: Unapplied Main
Incoming Payment Customer Cash Account
(1a) Invoice
(1a) 100
(1b) Bank Statement 100 (1b) (1b) 100
(1c) Cash Application 100 (1c) (1c) 100
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How to Process Exceptions
Transaction Code FEBA/FEBAN
Bank Statement
Bank Number: 0213783893 Bank Account: 7328793
Statement No: 256 Statement Date: 03/16/2009
Statement Item: 00001 Status: POSTED
Bank Trans. Code: 475 Algorithm: 011 Posting Rule: ZNCK
Note to Payee:
Check Number 0002095353
Statement Item: 00002 Status: POSTED ON ACCOUNT
Bank Trans. Code: 475 Algorithm: 011 Posting Rule: ZNCK
Note to Payee:
Check Number 0001098723
Statement Item: 00003 Status: TO BE POSTED
Bank Trans. Code: 399 Algorithm: Posting Rule:
Note to Payee:
Returned Check Number 0001073783
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How to Process Exceptions (cont.)
Transaction Code FEBA “Classic View”
1
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How to Process Exceptions (cont.)
Transaction Code FEBA “Classic View” (cont.)
3
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How to Process Exceptions (cont.)
Transaction Code FEBAN “New Design”
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• Greater selection parameters than with the “classic” FEBA!
• Ability to change “standard tree” to your own “tree”
See SAP Note 494777 21
How to Process Exceptions (cont.)
Transaction Code FEBAN “New Design” (cont.)
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• Two new views including
flexible List Viewer
• Ability to edit fields and
post in mass
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• Ability to change
“standard tree” to your
own “tree”
(see SAP Note 738353)
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Electronic Bank Statement Basic Configuration
Company Code 1 Transaction Type
House
House Bank
Bank Bank
Bank Transaction
Transaction Code
Code
Assigned to
Bank Number Example: 495 Outgoing Wire
Bank Number
+/- sign
Acct
Acct ID
ID & Bank Acct
Account Number Combo Algorithm
Currency Posting Rule
GL Account
Posting
Posting Rule
Rule
Posting Area 1
Payment
Payment Item
Item Payment
key Item
Payment
• Credit posting Item
Main Bank Account • Account Symbol 1
• Debit posting key
Outgoing Clearing • Account Symbol 2
Posting Area 2
:
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Electronic Bank Statement Basic Configuration (cont.)
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Electronic Bank Statement Basic Configuration (cont.)
1
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What We’ll Cover …
• An introduction to electronic bank statement (EBS)
• Understanding the basics of how EBS works
• Leveraging advanced EBS configuration and enhancements
• Wrap-up
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Leveraging Advanced EBS Configuration and
Enhancements
1. Advanced Configuration
2. Programming Enhancements
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How Do We Deviate from Default Configuration?
• How can we switch an algorithm?
• How can we switch a posting rule?
• How can we switch or change an account?
• How can we add a cost center or other field value?
• How can we correct the check number?
• How can we correct a customer invoice number?
Answer: Search String Pattern Configuration
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How Search String Patterns Work
Example: Switch Posting Rule for old legacy checks
Check 000200321 Check 0001098723
Basic configuration assigns standard Posting Rule for check clearing
Posting Rule: ZNCK Posting Rule: ZLCK
DB New Check Clearing DB Legacy Check Clearing
CR Main Bank Account CR Main Bank Account
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How Search String Patterns Work (cont.)
Example: Switch Posting Rule for old legacy checks (cont.)
Pattern Definition Bank Statement
Name: LEGACY_CHECK Bank Number: 0213783893
Bank Account: 7328793
Search for: 0001###### Statement No: 256
Statement Item: 009
Pattern Assignment Bank Trans. Code: 475
Algorithm: 011
Assignment: CoCd, House Posting Rule: ZC10
Bank, Acct ID, BTC, ZLEG
Algorithm, +/-
Note to Payee:
Check Number 0001098723
Target Field: Posting Rule
Target Value: ZLEG
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How Search String Patterns Work (cont.)
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How Search String Patterns Work (cont.)
Example: Switch Posting Rule for old legacy checks
1
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How Search String Patterns Work (cont.)
Results: Switch Posting Rule for old legacy checks (cont.)
1
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How Search String Patterns Work (cont.)
Additional Target Fields for
improving the automation
and accuracy of postings to
the general ledger and sub-
ledgers
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How Search String Patterns Work (cont.)
• Test your Pattern Searches using existing bank statements in the
SAP ERP system
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How Do We Deviate from Default Configuration?
What if the Search String Pattern is not enough?
Answer: Programming Enhancements
Custom programming should be designed
by only experienced resources, as a poor
design or coding can negatively impact
performance, functionality, and even the
integrity of the data.
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Leveraging Advanced EBS Configuration and
Enhancements
1. Advanced Configuration
2. Programming Enhancements
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Types of EBS Programming Enhancements
Enhancements – Technical types
Customer Exits
Business Transaction Events (BTEs)
Business Add-Ins (BAdIs)
Interpretation enhancements
Occur during the RFEBBU10 “interpretation” logic and used to
prepare the item for posting in area 1 and area 2
Posting enhancements
Occur during the RFEBBU00 “posting” logic and used to
prepare the item for posting in area 1 and area 2
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Interpretation Enhancements
• Publish and Subscribe BTE 2810
Used to determine which application is
to be used for posting areas 1 and 2
• Process BTE 2820 and BAdI
CHANGE_DATA
Ability to change data within the
statement item before pattern search
• Non-SAP Algorithms
Ability to create/change A/R Payment
Advices to apply cash to customers
• Customer Exit ZXF01U01 and
BADI2 CHANGE_DATA
Ability to change data within the
statement item after pattern search
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Posting Enhancements
• Process BTE 2810
Used to post bank statement item in SAP non-Financial Accounting (SAP
FI) module
f Examples include In-House Cash (FSCM-IHC).
• BADI CHANGE_POSTING_DATA and FEBCL function modules
Ability to change posting data for FB01 and FB05 transactions
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What We’ll Cover …
• An introduction to electronic bank statement (EBS)
• Understanding the basics of how EBS works
• Leveraging advanced EBS configuration and enhancements
• Wrap-up
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Resources
• SAP www.sap.com
White Paper “mySAP™ ERP FINANCIALS AT BROWN-
FORMAN”
f www.sap.com/usa/industries/consumer/pdf/CS_mySAP_ERP
_Financials_at_Brown_.pdf
FEATURES & FUNCTIONS: SAP ERP Financials TREASURY
APPLICATIONS
f www.sap.com/usa/solutions/business-suite/erp/financials/
featuresfunctions/treasury_applications.epx
• Americas’ SAP Users’ Group
Treasury Special Interest Group (SIG)
f www.asug.com
Requires user name and password for access
• e5 Solutions Group
f www.e5solutions.com
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7 Key Points to Take Home
Electronic bank statement (EBS) within SAP ERP
• Companies can reduce costs through automation and increased
efficiency
• Companies can increase accuracy and reduce month-end closing
times
• Used primarily for bank reconciliation and cash application,
though it can also post to SAP non-FI applications (e.g., FS-CML)
• Flexible for multiple banks and bank formats
• Single user interface and ability to standardize via “rules-based”
processing
• Search strings configuration where necessary to deviate from
basic config
• Enhancements (Exits/BTE/BAdI) for enriched interpretation and
posting
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Your Turn!
How to contact me:
Jaime Ryan
jaime.ryan@e5solutions.com
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Disclaimer
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet™, PartnerEdge, and other SAP products and services mentioned herein as
well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All
other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor
controlled by SAP.
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