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Derive Greater Value from Little-Known SAP Electronic Bank Statement Functionality Functionality Jaime Ryan e5 Solutions Group © 2009 Wellesley Information Information Services. All rights reserved.
Derive Greater Value from Little-Known SAP Electronic Bank Statement Functionality Functionality Jaime Ryan e5 Solutions Group © 2009 Wellesley Information 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.
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He was the first in North America to pilot the BAI/BAI2 Bank Statement format
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He continues to be one of North America’s leaders in SAP Treasury implementations implementations and recommended by SAP
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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
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Our solution will be to explore advanced configurations such as search strings and enhancement programming programming
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With these new tools your organization will be able to explore possibilities for increasing hit ratios on your bank statement processing
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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 3
What We’ll Cover … •
An introduction to electronic bank statement (EBS)
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Understanding the basics of how EBS works
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Leveraging advanced EBS configuration and enhancements
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Wrap-up
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Electronic Bank Statement’s Place in the SAP Treasury Applications SAP Treasury Applications Analyzers Credit Risk
Money Market
Market Risk
Transaction Manager Securities Foreign Derivatives Exchange
Cash Management Liquidity Planner
Elec. Bank Stmt 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) Strategic Enterprise Management
Stakeholder Relationship Management
Strategy Management
Business Analytics
Financial Analytics
Customer Relationship Analytics
Supply Chain Analytics
Human Resource Analytics
Product Lifecycle Analytics
Financial Statements
General Ledger & Sub Ledgers
Revenue & Cost Accounting
Order & Project Accounting
Product & Service Cost Calculation
Accounting
Financial Supply Chain Management
Corporate Services
Financial Portal Solutions Technology Solutions
Credit Management
Electronic Bill Presentment & Payment
Real Estate Management
Manager Self-Service
Performance Measurement
Dispute Management
Strategic Planning & Business Consolidation Simulation
In-House Cash
Travel Management
Cash & Liquidity Management
Treasury & Risk Management
Incentive & Commission Management
Corporate Finance Portal
SAP Technology Infrastructure (SAP NetWeaver ®)
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Electronic Bank Statement Implementations •
Sample listing of companies who successfully implemented electronic bank statements Advanced Medical Optics (AMO)
Discovery Channel
Owens-Illinois
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 7
Electronic Bank Statement Overview •
EBS functionality was designed to help companies automate bank account reconciliations
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Focus on shifting from manual processing of paper-based monthly statements to automated daily statements
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Single user interface and ability to standardize via “rules-based” processing
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Multiple banks and formats supported
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Business Challenges for Your Organization •
Overwhelming number of external bank accounts
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High volumes of transactions
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Cash sweeps intercompany loans
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Monthly paper bank statements
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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
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Increase timeliness of cash application through daily statements
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Enable higher accuracy of postings
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Increase efficiency/productivity through automation and standardization
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What Types of Transactions Can EBS Handle? •
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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 11
What We’ll Cover … •
An introduction to electronic bank statement (EBS)
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Understanding the basics of how EBS works
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Leveraging advanced EBS configuration and enhancements
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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.
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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
Main Bank Account Clearing Acct 1
GL GL Account Account (Chart (Chart of of Accounts) Accounts)
Main Bank Account 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
SAP General Ledger
Posting Area 1
SAP FI Accounts Receivable SAP FSCM In-House Cash SAP FS-CML Loans Mgmt Other …
Posting Area 2
C B a a s n h k M S a t n a a t e g m e e m n e t n t
Bank
Bank statements have two functional abilities per transaction known as “posting areas” 16
Posting Logic of SAP Banking Transactions Example 1: Outgoing Payment
Vendor
(1a) Invoice (1b) Payment Run
100 (1b)
(1b) 100
(1b) Bank Statement (1c) Cash Application
100 (1c)
(1c) 100
Example 2: (1a) Invoice
Disbursement Account
100 (1a)
(1c) Bank Statement
Incoming Payment
Outgoing Clearing
Unapplied Customer
Cash
Main Account
(1a) 100 100 (1b) (1b) 100 100 (1c) (1c) 100
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How to Process Exceptions Transaction Code FEBA/FEBAN
Bank Statement Bank Number: Statement No:
0213783893 256
Bank Account: Statement Date:
7328793 03/16/2009
Statement Item: 00001 Bank Trans. Code: 475 Note to Payee: Check Number 0002095353
Status: POSTED Algorithm: 011
Statement Item: 00002 Bank Trans. Code: 475 Note to Payee: Check Number 0001098723
Status: POSTED ON ACCOUNT Algorithm: 011 Posting Rule: ZNCK
Posting Rule: ZNCK
Statement Item: 00003 Status: TO BE POSTED Bank Trans. Code: 399 Algorithm: Posting Rule: Note to Payee: Returned Check Number 0001073783 18
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
4
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How to Process Exceptions (cont.) Transaction Code FEBAN “New Design” 1
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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
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How to Process Exceptions (cont.) Transaction Code FEBAN “New Design” (cont.) 2
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Two new views including flexible List Viewer
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Ability to edit fields and post in mass 3
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Ability to change “standard tree” to your own “tree” (see SAP Note 738353) 22
Electronic Bank Statement Basic Configuration Transaction Type
Company Code 1 House House Bank Bank Assigned to
Bank Bank Transaction Transaction Code Code
Acct Acct ID ID
& Bank Acct
Example: 495 Outgoing Wire +/- sign
Account Number
Combo
Algorithm
Bank Number
Bank Number
Posting Rule
Currency GL Account
Posting Posting Rule Rule Posting Area 1
Payment Payment Item Item
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Main Bank Account
Payment Payment Item Credit posting key Item •
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Outgoing Clearing
Account Symbol 1
Debit posting key •
Account Symbol 2
Posting Area 2 : 23
Electronic Bank Statement Basic Configuration (cont.)
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Electronic Bank Statement Basic Configuration (cont.) 1
2
3
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What We’ll Cover … •
An introduction to electronic bank statement (EBS)
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Understanding the basics of how EBS works
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Leveraging advanced EBS configuration and enhancements
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Wrap-up
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Leveraging Advanced EBS Configuration and Enhancements 1.
Advanced Configuration
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Programming Enhancements
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How Do We Deviate from Default Configuration? •
How can we switch an algorithm?
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How can we switch a posting rule?
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How can we switch or change an account?
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How can we add a cost center or other field value?
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How can we correct the check number?
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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 DB CR
New Check Clearing Main Bank Account
Posting Rule: ZLCK DB CR
Legacy Check Clearing Main Bank Account
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How Search String Patterns Work (cont.) Example: Switch Posting Rule for old legacy checks (cont.)
Pattern Definition Name: LEGACY_CHECK Search for: 0001######
Pattern Assignment Assignment: CoCd, House Bank, Acct ID, BTC, Algorithm, +/Target Field: Posting Rule
Bank Statement Bank Number: Bank Account: Statement No:
0213783893 7328793 256
Statement Item: Bank Trans. Code: Algorithm: Posting Rule:
009 475 011 ZC10 ZLEG
Note to Payee: Check Number 0001098723
Target Value: ZLEG 30
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
2
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How Search String Patterns Work (cont.) Results: Switch Posting Rule for old legacy checks (cont.) 1
2
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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 subledgers
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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. 36
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
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Process BTE 2820 and BAdI CHANGE_DATA
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Ability to change data within the statement item before pattern search
Non-SAP Algorithms
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Used to determine which application is to be used for posting areas 1 and 2
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
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Process BTE 2810
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Used to post bank statement item in SAP non-Financial Accounting (SAP FI) module 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 40
What We’ll Cover … •
An introduction to electronic bank statement (EBS)
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Understanding the basics of how EBS works
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Leveraging advanced EBS configuration and enhancements
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Wrap-up
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Resources •
SAP www.sap.com White Paper “mySAP™ ERP FINANCIALS AT BROWNFORMAN” www.sap.com/usa/industries/consumer/pdf/CS_mySAP_ERP _Financials_at_Brown_.pdf FEATURES & FUNCTIONS: SAP ERP Financials TREASURY APPLICATIONS www.sap.com/usa/solutions/business-suite/erp/financials/ featuresfunctions/treasury_applications.epx Americas’ SAP Users’ Group Treasury Special Interest Group (SIG) www.asug.com Requires user name and password for access e5 Solutions Group www.e5solutions.com
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7 Key Points to Take Home Electronic bank statement (EBS) within SAP ERP •
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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 43 43
Your Turn!
How to contact me: Jaime Ryan
[email protected] 44
