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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
ΠSuch 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
ΠUsually 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
ΠCheck payments including updating check register

ΠElectronic payments

ΠLockbox deposits

ΠCustomer collections debits

ΠCash concentration sweeps

• Reconciliation/cash application of items not initiated in SAP

ΠCustomer deposits/receipts

ΠRejected/returned payments

ΠSupplier direct debits

ΠMiscellaneous debits and credits

ΠTarget 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
ΠWithin SAP ERP, the Company Code was intended to represent
a “legal entity”
House Bank and Account ID
ΠHouse Bank = Bank Branch
ΠAccount ID = Bank Account
General Ledger (GL) and Subledger Accounts
ΠGL = Cash, Cash Clearing
ΠSubledger = 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”
1

• Greater selection parameters than with the “classic” FEBA!

• Ability to change “standard tree” to your own “tree”
ΠSee SAP Note 494777 21
 How to Process Exceptions (cont.)
Transaction Code FEBAN “New Design” (cont.)
2

• Two new views including

flexible List Viewer
• Ability to edit fields and
post in mass
3

• 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

ΠCustomer Exits

ΠBusiness Transaction Events (BTEs)

ΠBusiness Add-Ins (BAdIs)

Interpretation enhancements
Œ Occur during the RFEBBU10 “interpretation” logic and used to
prepare the item for posting in area 1 and area 2
Posting enhancements
Œ 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

ΠUsed to determine which application is
to be used for posting areas 1 and 2
• Process BTE 2820 and BAdI
CHANGE_DATA
ΠAbility to change data within the
statement item before pattern search
• Non-SAP Algorithms
ΠAbility to create/change A/R Payment
Advices to apply cash to customers
• Customer Exit ZXF01U01 and
BADI2 CHANGE_DATA
ΠAbility to change data within the
statement item after pattern search

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Posting Enhancements

• Process BTE 2810

ΠUsed 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

ΠAbility 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
Œ White Paper “mySAP™ ERP FINANCIALS AT BROWN-
FORMAN”
f www.sap.com/usa/industries/consumer/pdf/CS_mySAP_ERP
_Financials_at_Brown_.pdf
ΠFEATURES & FUNCTIONS: SAP ERP Financials TREASURY
APPLICATIONS
f www.sap.com/usa/solutions/business-suite/erp/financials/
featuresfunctions/treasury_applications.epx
• Americas’ SAP Users’ Group
ΠTreasury Special Interest Group (SIG)
f www.asug.com
ƒ 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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