Bank Reconciliation

Agenda
 Overview
 Configuration
 Unit Testing

Overview
 Bank Reconciliation is a process to ensure that the company’s record is correct with that
of bank’s records.
 Every Bank will have 3 GL A/cs;
o Main GL
o Incoming Bank Transactions – For all receipts
o Outgoing Banks Transactions – For al payments.
 After the reconciliation process, payment and receipt entries in the incoming and
outgoing GL will be transferred in to the bank Main GL. The balance of the main
accounts should be balance with the bank statements.

When the company received its bank statement, they should verify the amount provided by
the bank vs. the company’s GL and ensure they are consistent.

Configuration
 Create and assign business transaction (OTB2)
 *Business transactions decides which open items will be added or subtracted to the
main bank.

 Define posting keys and posting rules for Manual Bank Statement

o Create Account Symbols

o Assign account to account symbols

Standard
Main Bank – GL last digit is “0”
Sub Accounts – GL last digits should not be “0”
 o Create Keys for Posting Rules

o Define Posting Rules

 Define variants for manual bank statement (OT43)

Unit Testing
Tcode -FF67 -Manual Bank Statement –
This business transaction will reconcile the main Bank GL with sub accounts.

Electronic bank statement (Automatic) – This requires bank integration and liaising with banks
for the statement format, file upload like MT940, MT942, etc…