- Have you ever got lost in the enormous chart of accounts due to thousands bank accounts?
- Have you ever struggled for weeks for treasury operation only because there are so many g/l accounts to be set up ?
- Have you ever lost in the complex setting/configurations for bank payment?
With the newest release of CE2008, you might take a relief from all the tedious task, and be more focus on what's important. But how to do that? Let's get started with general introduction and public documentations you could refer to so far.
- Help portal: Assigning G/L Accounts to House Bank Accounts
- Help portal:Automatic Determination of Bank Sub Accounts
- SAP Best Practice scope item Basic Bank Account Management (BFA) -> section 4.1.3 GL Account Reduction and Migration (Optional)
In this blog, I plan to use one example to helps you better understand the logic behind and how to set up G/L Account as well as house bank accounts in a more simplified way.
Instead of using G/L Accounts (bank), the principle is treating 'House Bank Account' as a bank account in all payment and posting processes.
----------------------------- WHY? ----------------------------------------------------------------
- ONLY one time configuration --> Set up a set of G/L accounts
- Multi-times usage --> Link one bank reconciliation account to multi new house bank connections
- ALL payment transaction/apps work out of the box --> with ZERO configuration
- * provided that the set of accounts with its settings matches the requirements of the connected house bank
One extreme case is that, you might need 9000 G/L Accounts in the past for 1000 bank accounts. But now, you only need several bank sub account to reflect each of your payment methods.
----------------------------- WHAT? ----------------------------------------------------------------
Now let's do a very simple counting game to make it more real to you.
Until CE2005 - an operational chart of Accounts looks like this....
M *(N+1) = 3 * (1 +4 ) = 15 G/L accounts
the more house bank accounts we have, (N+1) times the more G/L Accounts we need to created.
Up to now, each time you created a new house bank account, you also had to create a new G/L account to enable payment processes for the new house bank account. Depending on the number of house bank accounts that you needed to create. Over time this could lead to a high number of G/L accounts.
|Chart of Accounts||G/L Acct External ID||Short Text||G/L Account Type|
|YCOA||11001000||Bank1 Main Account||Balance Sheet Account|
|YCOA||11001010||Bank1 Cash Payment||Balance Sheet Account|
|YCOA||11001020||Bank1 Bank Transfer||Balance Sheet Account|
|YCOA||11001050||Bank1 Check Out||Balance Sheet Account|
|YCOA||11001060||Bank1 Check In||Balance Sheet Account|
|YCOA||11002000||Bank2 Main Account||Balance Sheet Account|
|YCOA||11002010||Bank2 Cash Payment||Balance Sheet Account|
|YCOA||11002020||Bank2 Bank Transfer||Balance Sheet Account|
|YCOA||11002050||Bank2 Check Out||Balance Sheet Account|
|YCOA||11002060||Bank2 Check In||Balance Sheet Account|
|YCOA||11003000||Bank3 Main Account||Balance Sheet Account|
|YCOA||11003010||Bank3 Cash Payment||Balance Sheet Account|
|YCOA||11003020||Bank3 Bank Transfer||Balance Sheet Account|
|YCOA||11003050||Bank3 Check Out||Balance Sheet Account|
|YCOA||11003060||Bank3 Check In||Balance Sheet Account|
|Chart of Accounts||G/L Acct External ID||Short Text||G/L Account Type||G/L Sub Account Type|
|YCOA||11501000||Bank Main Account||Cash Account||Bank Reconciliation Account|
|YCOA||11501010||Bank Cash Payment||Cash Account||Bank Sub Account|
|YCOA||11501020||Bank Bank Transfer||Cash Account||Bank Sub Account|
|YCOA||11501050||Bank Check Out||Cash Account||Bank Sub Account|
|YCOA||11501060||Bank Check In||Cash Account||Bank Sub Account|
You can reuse a bank reconciliation account and assign it to multiple house bank accounts. This helps you reduce the number of G/L accounts significantly and reduce the effort required to update your chart of accounts. To this bank reconciliation account, you can assign a bank sub account, also known as a bank clearing account, to each of your payment methods.
one time Configuration: Set up a set of G/L accounts
1. Create a bank reconciliation account
Fiori app: Manage G/L Account Master data (either SSCUI 150001)
Task: created the G/L account with the type Cash Account and subtype Bank Reconciliation Account, i.e. YCOA/11501000。
2. Create a(N) bank sub account(s) for above bank reconciliation account, each as clearing accounts for your payment methods
in this case, you could create 11501010 for cash payment. , then 11501020 for Bank Transfer, 11501050 for Check Out, and 11501060 for Bank Check In.
3. Enable payment method for automatic payment processing using the bank reconciliation account
3.1 Assign a bank sub account to an account symbol
SSCUI 101024: Make Global Settings for Electronic Bank Statement
Create an account symbol. Select the SIP Relev. (Self-Initiated Payment) checkbox for the account symbol to enable it for use in automatic payment programs.
Assign a G/L account to the account symbol.
3.2 Assign the account symbol to the payment method.
Do you have any local/global financial accounting principles to show the bank balance under different items?
- If so, you would need to create separate bank reconciliation account(s) as for now.
2. Is the company with Japan version?
if so, currently this is not supported.
3. Do you have any requirement for FI-CA Payment? Bill of Exchange? Interest Calculation?
In CE2008 it is not supported. But we would like to use this chance to collect the requirement. Kindly contact Cao, William <firstname.lastname@example.org>