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Version 1.0
Contents
1 Introduction ................................
1.1 Context................................
1.2 About This Document
2 Overview of the process
2.1 Inputs and triggers
2.2 Process step details
3 Document Control ................................
3.1 Revision History
3.2 Approvals ................................
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Document ...............................................................................................
Overview of the process ................................................................................................
Inputs and triggers ................................................................................................
Process step details ................................................................................................
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Version 1.0
1 Introduction
1.1 Context
This is a work instruction for Bank Reconciliation process
function. The objective of this process is to
1.2 About This Document
1.2.1 Document Purpose
This document is a work instruction
substitute for training.
This is a living document that is constantly updated and improved.
1.2.2 Intended Audience
This document is intended to be read by:
• The Finance Team
1.2.3 Roles and Responsibilities
Role
Cash Management
Team
• Obtain bank statements from online banking on
Export
• Classify reconciliation type required into Manual or Automatic.
• For manual reconciliation, compare bank statement balance to
corresponding Bank GL
• For automatic recon
a file or
Bank Reconciliation process which is part of the Cash Management
. The objective of this process is to ensure all cash movements are recorded accurately.
About This Document
n. It should be used as reference guide and as a support but not a
is is a living document that is constantly updated and improved.
This document is intended to be read by:
Roles and Responsibilities
Responsibilities
Obtain bank statements from online banking on a weekly basis
xport bank statement to spreadsheet and save.
Classify reconciliation type required into Manual or Automatic.
For manual reconciliation, compare bank statement balance to
corresponding Bank GL balance.
o If comparison matches, then update excel rec.
o If comparison doesn’t match, then create in spreadsheet a
reconciliation between bank statement balance and GL
balance to identify errors / missing postings in payment /
receipt.
For automatic reconciliation, identify whether the upload is done
a file or manually.
o If manual, process manual bank statement in SAP
o If file upload, save bank statement in MT940 format and
Cash Management
ensure all cash movements are recorded accurately.
. It should be used as reference guide and as a support but not a
weekly basis.
Classify reconciliation type required into Manual or Automatic.
For manual reconciliation, compare bank statement balance to
If comparison matches, then update excel rec.
If comparison doesn’t match, then create in spreadsheet a
reconciliation between bank statement balance and GL
balance to identify errors / missing postings in payment /
the upload is done via
cess manual bank statement in SAP
save bank statement in MT940 format and
Version 1.0
• SAP will match bank
accounts where it can. Manually match off remaining transactions
where possible in SAP
Cash Collection (CC) • Correct error / missing postings in payment; send confirmation
Accounts Payable
(AP)
• Correct
There are key dependencies with the
• Account Payable need to complete payment postings.
• Credit Control team needs to
import file with parameters “Post Immediately”
SAP will match bank transactions against items posted in clearing
accounts where it can. Manually match off remaining transactions
where possible in SAP
Correct error / missing postings in payment; send confirmation
Correct error / missing postings in receipt; send confirmation email
There are key dependencies with the Account Payable and Cash Collection teams.
need to complete payment postings.
to complete receipt postings.
import file with parameters “Post Immediately” in SAP
transactions against items posted in clearing
accounts where it can. Manually match off remaining transactions
Correct error / missing postings in payment; send confirmation
; send confirmation email
Version 1.0
2 Overview of the process
2.1 Inputs and triggers
The process starts with Cash Management Team
banking as weekly activity.
2.2 Process step details
2.2.1 Obtain Statement
1. Cash Management Team
And, export bank statement to
folder.
2. Classify reconciliation type
a. Manual; compare bank statement balance to corresponding bank GL balance
refer to section 2.2.5
b. Automatic; check file upload type and classify
i. Manual;
continues in SAP
Overview of the process
Cash Management Team obtaining bank statements from online
Cash Management Team to obtain bank statements from online banking on weekly basis
xport bank statement to spreadsheet (MS Excel) and save in bank statement
Classify reconciliation type into any one of the below categories
Manual; compare bank statement balance to corresponding bank GL balance
section 2.2.5
Automatic; check file upload type and classify it into manual or automatic
Manual; copy and paste bank statement from spreadsheet. This process
continues in SAP, refer to section 2.2.2 for further instructions.
from online
banking on weekly basis.
in bank statement
Manual; compare bank statement balance to corresponding bank GL balance,
automatic
opy and paste bank statement from spreadsheet. This process
for further instructions.
Version 1.0
ii. Automatic;
with parameters “Post Immediately”. This process continues in SAP
to section 2.2.3
2.2.2 Copy and Paste bank statement in Excel
1. Use transaction code “FF67
Enter:
2. “Specification” screen is displayed.
else goes to next screen)
Enter the following fields in
• Tick on “Import advices
Automatic; resave bank statement as MT940 file format. Then, Import file
with parameters “Post Immediately”. This process continues in SAP
section 2.2.3 for further instructions.
Copy and Paste bank statement in Excel (Process Manual Bank Statement)
FF67” in command field of SAP Easy Access screen and press
screen is displayed. (Screen appears when you process for first time only
else goes to next screen):
Enter the following fields in “Specification” screen:
Import advices”
esave bank statement as MT940 file format. Then, Import file
with parameters “Post Immediately”. This process continues in SAP, refer
(Process Manual Bank Statement)
P Easy Access screen and press
hen you process for first time only
Version 1.0
• Start variant : select
• Process type : Select “4”
• Press Enter or click on
3. “Process Manual Bank Statement
Enter the following fields in
• Bank Key (Sort Code
• Bank Account (Account #
• Currency (as applicable)
• Statement Number
Please note: click on Overview button
• Statement Date : date on the
On the same screen go to “
select “SAP01” from the drop-down menu (Memo record entry section)
Select “4” from drop-down menu (Further processing section)
click on
Process Manual Bank Statement” screen is displayed:
Enter the following fields in “Process Manual Bank Statement” screen:
Sort Code)
Account #)
(as applicable)
(as applicable)
: click on Overview button to get the last statement #
ate on the bank statement
On the same screen go to “Control” section enter the following fields:
(Memo record entry section)
(Further processing section)
Version 1.0
• Opening Balance :
• Closing Balance : from the bank statement
• Posting Date : week ending
• Press Enter
4. The below “Process Manual Bank Statement
Enter the following fields in
statement items:
• Trans : 009+ (use this transaction type for cash receipt)
• Value date : statement
• Amount : value on the statement from the customer
• Doc. No. : customer
Please Note: Copy / paste bank statement items from soft copy as applicable
5. On the “Process Manual Bank Statement
click on “Save” as displayed below:
: previous day’s closing balance
rom the bank statement
week ending date
Process Manual Bank Statement” screen is displayed:
following fields in “Bank statement items” section of the screen for each bank
(use this transaction type for cash receipt)
statement date
alue on the statement from the customer
ustomer invoice #.
Copy / paste bank statement items from soft copy as applicable
Process Manual Bank Statement” screen, click on “Bank Statement” menu and
“Save” as displayed below:
for each bank
Copy / paste bank statement items from soft copy as applicable.
screen, click on “Bank Statement” menu and
Version 1.0
6. On the “Process Manual Bank Statement
“Post” and click on “Individual s
7. “Update Account Statement/
• The amount posted on the Bank Account # can
• The below confirmation message is displayed at the bottom of the screen
Process Manual Bank Statement” screen, click on “Bank Statement” menu, select
“Post” and click on “Individual statement” as displayed below:
tatement/Check Deposit Transaction” screen is displayed
sted on the Bank Account # can be viewed in above screen.
confirmation message is displayed at the bottom of the screen
.
Statement” menu, select
s displayed:
be viewed in above screen.
confirmation message is displayed at the bottom of the screen.
Version 1.0
2.2.3 Import Bank Statement File
1. Use transaction code “FF_5
Enter:
mport Bank Statement File
FF_5” in command field of SAP Easy Access screen and press
in command field of SAP Easy Access screen and press
Version 1.0
2. “Bank Statement Various Formats (Swift, Multicash, BAI..,)
Enter the following fields in
File Specification section:
• Tick Import data
• Electronic Bank Statement format
the drop-down menu
• Statement file: click
• Tick on Work station upload
Posting parameters section:
• Select option “Post Immediately
Bank Statement Various Formats (Swift, Multicash, BAI..,)” screen is displayed:
Enter the following fields in above screen:
File Specification section:
Electronic Bank Statement format: select “SWIFT MT940 with field structure
down menu
click on to get the path of Imported Bank statement File location.
on Work station upload
parameters section:
Post Immediately”
is displayed:
SWIFT MT940 with field structure” from
ted Bank statement File location.
Version 1.0
• Tick on “Assign value date
Output Control section:
• Tick on Print bank statement
• Tick on Print Posting log
• Tick on Print statics
• Click on Execute
3. “Bank Statement Various Formats (Swift, Multicash, BAI..,)
• The above screen confirms that the bank statement upload was successful.
• Check closing balance agrees to statement closing balance.
• Once the Bank reference
invoice is offset against the payment.
• The invoices which do not get posted against the Payment need to be done manually
by FEBAN.
2.2.4 Manually Match Off Transactions
1. Use transaction code “FEBAN
Enter:
Assign value date”
Tick on Print bank statement
Tick on Print Posting log
Tick on Print statics
Bank Statement Various Formats (Swift, Multicash, BAI..,)” screen is displayed:
The above screen confirms that the bank statement upload was successful.
Check closing balance agrees to statement closing balance.
ank reference number (Invoice # or customer #) match against each other
invoice is offset against the payment.
The invoices which do not get posted against the Payment need to be done manually
f Transactions
FEBAN” in command field of SAP Easy Access screen and press
screen is displayed:
The above screen confirms that the bank statement upload was successful.
) match against each other
The invoices which do not get posted against the Payment need to be done manually
y Access screen and press
Version 1.0
2. “Selection of bank statements by banks and Account Nos.
Enter the following fields in
• Company Code
• House Bank
• Account ID
Selection of bank statements by banks and Account Nos.” screen is displayed:
Enter the following fields in “Hdr data” section of the above screen:
” screen is displayed:
Version 1.0
• Press Execute button
3. “Edit Bank Statement” screen is displayed:
Enter the following fields in
• The transactions #
• The transactions #
These will have to be processed manually.
4. To process / post manually on the “
red, click on “Statement
Execute button
” screen is displayed:
Enter the following fields in “Edit Bank Statement” screen
# posted successfully is in green.
# that weren’t automatically matched in red.
be processed manually.
To process / post manually on the “Edit Bank Statement” screen, select the statement in
click on “Statement Items” menu, click on “Post” as displayed below:
select the statement in
Version 1.0
5. “Post with Clearing Select open items
Enter the following fields in
elect open items” screen is displayed:
Enter the following fields in “Post with Clearing Select open items” screen:
Version 1.0
• Company Code
• Account (incoming / outgoing as applicable
• Click on “Process Open Items”
6. “Post with Clearing Process open items
Enter the following fields in
• Allocate the payment received
amount for the relevant invoice.
• Click on Post button
7. Use transaction code “FEBAN” in command field of SAP Easy Access screen and press
Enter. This is to verify if payment is posted. The below screen
posted automatically before
incoming / outgoing as applicable)
Open Items”
Post with Clearing Process open items” screen is displayed:
Enter the following fields in “Post with clearing select open items screen” screen
Allocate the payment received (Not assigned) to the invoice by double-clicking on the
amount for the relevant invoice.
Post button
Use transaction code “FEBAN” in command field of SAP Easy Access screen and press
Enter. This is to verify if payment is posted. The below screen displays a transaction
before but manually posted successfully after:
” screen
clicking on the
Use transaction code “FEBAN” in command field of SAP Easy Access screen and press
transaction # not
Version 1.0
2.2.5 Complete Bank Reconciliation
1. Cash Management Team
balance.
2. If bank statement balance and corresponding bank GL balance match, then
Management Team update Excel rec
The process ends.
3. If bank statement balance and c
Management Team create in Excel a reconciliation between bank statement balance and
GL balance to identify errors / missing postings.
4. Cash Management Team
the below two categories and send emails to respective team for corrections.
a. Payment; Account Payable
confirmation email to
b. Receipt; Cash Collection
confirmation email to
5. After receiving confirmation from Cash Collection / Account Payable teams that
missing posting has been corrected,
reconciliation type and classify it into any one of the below two categories.
a. Manual; Cash Management Team
b. Automatic; Cash
nk Reconciliation
Cash Management Team to compare bank statement balance to corresponding bank GL
If bank statement balance and corresponding bank GL balance match, then
update Excel rec. Financial Accountant then reviews and
If bank statement balance and corresponding bank GL balance don’t match,
create in Excel a reconciliation between bank statement balance and
GL balance to identify errors / missing postings.
Management Team classify each identified error / missing posting into any one of
the below two categories and send emails to respective team for corrections.
Account Payable team to correct error / missing posting; send
confirmation email to Cash Management Team
Cash Collection team to correct error / missing posting; send
confirmation email to Cash Management Team`
After receiving confirmation from Cash Collection / Account Payable teams that
been corrected, the Cash Management Team check the
reconciliation type and classify it into any one of the below two categories.
Cash Management Team to continue process with Section 2.2.5
Cash Management Team to continue process with section 2.2.4
to compare bank statement balance to corresponding bank GL
If bank statement balance and corresponding bank GL balance match, then Cash
then reviews and approves it.
n’t match, then Cash
create in Excel a reconciliation between bank statement balance and
classify each identified error / missing posting into any one of
the below two categories and send emails to respective team for corrections.
team to correct error / missing posting; send
team to correct error / missing posting; send
After receiving confirmation from Cash Collection / Account Payable teams that error /
check the
Section 2.2.5
section 2.2.4
Version 1.0
3 Document Control
3.1 Revision History
Version Date Author
0.1
3.2 Approvals
The following roles relate to the most recent version of this
History above.
Name Title
Emily Burlington Process Owner
Agnes Muszynska Process
Mike Pollard Head of Finance
Control
Author Description
The following roles relate to the most recent version of this document as listed in the Revision
Title Signature Date
Process Owner
Process Sponsor
Head of Finance
document as listed in the Revision