Explaining Advanced Bank Account Management (J77)

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Describe the scope of Advanced Bank Account Management
  • Use Advanced Bank Account Management
  • Maintain the key configuration Settings for Bank Account Management

Advanced Bank Account Management Overview

Advanced Bank Account Management Overview

With Advanced Bank Account Management, cash managers and bank accountants can manage the bank and account master data centrally and maintain signatories in multiple bank accounts. The result of the maintenance can be activated with different control patterns.

Cash managers and bank accountants can also view the bank and bank account related master data with reports and fact sheets, and look at an annual review.

Bank Account Contract Type

Bank Account Management provides master data for all kinds of bank accounts which are under the control of Treasury and Cash Management processes. It involves accounts under a contractual relationship with an external counterparty (aka "Bank"):

Examples here are current accounts, deposit accounts, sweep accounts held at (classical) banks, and accounts held at a PSP (payment service provider).

The concept Bank Account Contract Type enables you to control major feature differences and enable customers to control UI and process settings for the different contract types.

The Contract Type represents the contractual nature of different kinds of bank accounts, where this contractual nature influences semantics for the following:

  • Logical key
  • Mandatory contractual fields
  • Major status lifecycle

The Account Type is a substructure of the contract type. It allows customer to make specific settings within a contract type. It is used in the following:

  • Custom field control
  • Custom workflow control
  • Authorization

The Bank Account Type is in consequence a substructure of the Bank Account Contract Type. In the example above, the Bank Account Contract Type "Technical Account" defines a certain set of predefined semantics and lays out the lifecycle of all attached accounts / account types.

The Bank Account Type in turn is linked to the Bank Account Contract Type, steers the authorization, is a customer entity and can be administered through configuration.

Bank Account Reconciliation Accounts

If your company runs payment processes involving bank accounts, you need to set up corresponding G/L accounts so that your company’s payment transactions are also recorded in General Ledger Accounting. To be able to run your payment processes, you need to assign each of your house bank accounts to a G/L account acting as a reconciliation account. In addition, for each payment method supported for a house bank account, you need a separate G/L account. This means that for each of your house bank accounts, you first need to assign a "main" G/L account which in turn is connected to one open-item managed clearing account per payment method.

Depending on the type of G/L account used for the house bank connection, one set of G/L accounts is sufficient for multiple house banks or a new set of G/L accounts has to be created each time a new house bank is to be connected.

You can use two ways of creating the required sets of G/L accounts:

  • Bank Reconciliation Accounts
  • Balance Sheet Accounts

Depending on the type of G/L account you want to assign to your house bank account, refer to either of the following procedures to assign a G/L account to the house bank account.

Bank Reconciliation Accounts:

You can simplify your payment processes by creating new house bank accounts and connecting them to a new type of G/L account, that is, a bank reconciliation account. A G/L account with this new G/L account type can be assigned to more than one house bank account. In other words, you can cut down on the number of G/L accounts needed by creating just one bank reconciliation account and assigning it to several house bank accounts.

Balance Sheet Accounts:

Create the required reconciliation account and clearing accounts with balance sheet accounts as their G/L account types. Using this approach, you usually need to create a new set of G/L accounts every time you set up a new house bank account connection.

The Bank Account Reconciliation approach is designed to be a further option for customers to run their business.

There is no need to migrate or move from the known Balance Sheet Approach to the Bank Reconciliation Ledger. Since you control the method through master data settings in the House Bank Account an individual approach for each House Bank Account is possible. Thereby a side-by-side approach is feasible. This also implies that no big-bang solution must be implemented as customer have to option to gradually move to the Bank Account Reconciliation, if desired.

Furthermore, there is also no disruption when it comes to the payment processes itself. All payment related apps in the SAP S/4HANA Cloud system work as known. There is no new app or parallel payment process established when using the Bank Reconciliation Ledger.

Advanced Bank Account Management Process

Cash managers and accountants in the subsidiaries can get rid of tedious manual reconciliation processes when creating, changing, or closing a bank account. Advanced Bank Account Management is equipped with three different revision processes.

You can manage banks and bank accounts in Direct Revision Activate, Dual Control Revision Activate, and Workflow Revision Activate mode. Furthermore, it is possible to maintain signatories in multiple bank accounts in Direct Revision Activate, Dual Control Revision Activate, and Workflow Revision Activate mode.

No information is lost along the way and bank account information is always harmonized. After opening a bank account at an external party, the creation of information in the SAP S/4HANA Cloud application is straightforward.

Bank account master data is identified as house bank information and is linked to a general ledger account in financial accounting.

Pain Points and SAP Benefits

Typically, organizations lack a centralized process for bank relationship management. Inconsistent processes across subsidiaries create challenges in terms of overall governance, audit, and transparency.

Furthermore, processes are frequently not harmonized and lack integration with related processes, such as payment management.

SAP S/4HANA Cloud and Advanced Bank Account Management help enterprises to run more effectively by breaking down silos, reducing manual effort, and standardizing processes.

Hierarchies

The solution enables organizations to effectively manage bank accounts and bank account relationships.

Integration with Bank Communication Management

The solution provides user-defined groups, which help users to group bank accounts according to the specialized requirements of end users.

The signatories maintained in the Bank Relationship Management master data can be integrated with Bank Communication Management (BCM) payment approval so that it simplifies signatory management, which was previously maintained in the release strategy of the BCM component payment approval.

Revision Process

The solution provides predefined workflow steps for the approval process of opening, changing, and closing bank accounts. This workflow process is also flexible enough for customers to change or redefine the steps as required.

The bank account review process helps customers to easily manage and review bank accounts on a yearly or quarterly basis. Cash managers can initiate the review process and internal company contacts perform the review to finish the workflow. The cash manager can then quickly analyze the review processes for the bank accounts.

Mass Maintenance

The solution provides the Upload and the Download Bank Accounts functionality to help the customers to migrate bank accounts or make mass changes to bank accounts. Customers can download all bank accounts into a Microsoft Excel file, make a mass change, and upload the file again to the system.

The above offerings facilitate simplified and auditable bank account management processes. Organizations are thereby enabled to streamline the process of opening, maintaining, and closing accounts. Reduced effort to administrate workflows and reports results in reduced costs overall in the Cash Management area.

Advanced Bank Master Data

Manage Banks App

The Manage Banks app comes with a set of features that help cash managers and cash specialists to standardize and harmonize the management of banks.

The app forms the central entity to facilitate further processes. If you are looking for ways to structure banks in hierarchies or to understand which accounts are held with each bank, the app bundles all of that information in one place. The app is not only used to create, display, and change data for your own house banks, but also to transact business with the bank data of your customers and your suppliers.

One of the most important features is that you can maintain all of the master data for the bank and link that to house bank information in the system.

The Manage Banks app allows you to display, create, and change data about the banks your company, your customers, and your suppliers use to transact business.

The main elements of a new bank in the system are outlined in the figure, Manage Banks App, and include the bank country or the bank number. It is also possible to search or filter the criteria as business needs require.

Key features of the app include:

  • View a central repository of addresses, risks, and other kinds of general bank data
  • Create, display, and edit data for banks and house banks in which your company has one or more accounts
  • Create, display, and edit data for banks that your customers and suppliers use to transact business with your company
  • Associate house banks, contact persons, and business partners with your banks

Within the Manage Banks app, there is a variety of filter options and display modes.

For the bank master, there is the option to only show banks with a linked house bank account, or filtered by bank country for example. If you need to work on the information in a spreadsheet, you can export the data to one of the common formats like Microsoft Excel.

A new bank is easily integrated by choosing Create Bank. All of the common account properties such as general data, house bank information, and contact details can be maintained there.

When you select a bank in the list view, you can access the following types of information as shown in the figure, Display Bank:

  • General Data

    Information on the bank country, bank key, or the assigned business partner. You can also directly link to the Maintain Business Partner app or display the advanced address information.

  • House Banks

    The house banks of your company are the banks that your company has an account with. You can use them to process payment transactions.

  • Contact Info

    Information about who to contact with questions for the account.

  • Related Branches

    All of the related branches for the main bank can be stored here.

  • Change History

    Changes for the account are logged here.

Technical Banks

You can define technical banks and technical bank accounts using the Manage Banks and Manage Bank Accounts apps.

In the bank master data, on the General Data tab, use the Bank Category field to define which kind of category applies to this specific bank.

In the Manage Bank Accounts app, define bank accounts for the bank.

All bank accounts defined under a technical bank (here the example of bank key 70050000) are regarded as technical bank accounts.

Unlike normal bank accounts, each technical bank account is uniquely identified by the combination of company code, house bank, and house bank account ID. Therefore, for each technical bank account, you must define one and only one house bank account with the connectivity ID category of Central System: House Bank Account.

You can also use the Split Technical Bank Accounts app to process existing technical bank accounts in your system.

With this activity, you can identify bank accounts that are marked as technical bank accounts, but contain multiple house bank accounts. You can use this activity to split additional house bank accounts from the original technical bank account and create a new bank account for each house bank account that has been split away. This way, you ensure that each technical bank account is uniquely represented by one house bank account.

To split technical bank accounts, select all entries with a red status, and then choose Split.

If you want to process bank accounts individually, you can also select a single entry to split the bank account.

For each technical bank account, the system keeps only one house bank account and unlinks all other house bank accounts. Then the system automatically creates new bank accounts for each of the unlinked house bank accounts, with a new technical ID, the original bank account number, bank, bank country, currency, and the company code of the house bank account. Each technical bank account is uniquely identified by the combination of company code, house bank, and house bank account ID.

Example

Technical bank account 12345678 (company code 1000) is linked to two house bank accounts:

  • Technical ID XXXX, bank account number 12345678, house bank account A, company code 1000
  • Technical ID XXXX, bank account number 12345678, house bank account B, company code 2000

In this activity, you see two entries with a red status representing the different house bank accounts. You select the two entries and then choose the Split button. The system automatically splits house bank account B from bank account 12345678 to create a new bank account.

After the activity is finished, you see both entries acquire a green status with the following attributes:

  • Technical ID XXXX, bank account number 12345678, house bank account A, company code 1000
  • Technical ID YYYY, bank account number 12345678, house bank account B, company code 2000
Note

Before you perform this activity, make sure that you have specified Activate Directly for the Bank Account Revision setting in the configuration

Use the bubbles in light yellow of the interactive element to learn more about business partners associated with banks in SAP S/4HANA, public cloud edition.

Business Partners in Manage Banks

House Banks

The house banks of your company are the banks that your company has an account with. You can use them to process payment transactions.

In the SAP system, house banks have the following characteristics:

  • They are assigned to company codes.
  • Each company code can have multiple house banks.
  • Each house bank of a company code is represented by a bank ID.
  • Every account at a house bank is represented by an account ID.

Export Data

As well as maintenance of the bank master data in the Manage Bank app, you can also make use of a download function. It is possible to export list data to a spreadsheet for further processing.

The export function of the application fetches all relevant data from the SAP S/4HANA Cloud system and prepares the spreadsheet data accordingly.

Depending on the filters in the application, the Microsoft Excel sheet contains information such as the bank name, bank country, or the business partner. This data can be used afterwards for further analysis.

Import BIC data

Upload files, compare them with existing bank data, and save the new and changed data in the bank master table using a global bank directory. With the Transfer BIC Data app, you can upload bank directories. The bank directory contains the bank master data, including bank address data and control data, such as the SWIFT code and bank groups.

Note
The bank directory must contain the master data for all the banks that you require for payment transactions with your business partners. Therefore, you have to include your banks and the banks of your business partners.

While uploading, there are several data administration options available. Further details on the options are as follows:

  • You want to use a specific branch for some countries, but not for all the countries contained in the file. To do this, you have to upload the file in two steps. For step one, select the Branch Code XXX for Head Office checkbox and restrict the selection of countries using the Country Key field. For step two, deselect the checkbox and exclude the countries selected in step one.
  • The file you want to upload contains different branches of the same bank. This bank uses the bank number of their head office for all their branches, but the BIC is different for each branch. In the system, the bank number is used for each country, which in turn means that you cannot save all branches. Also, the SWIFT codes necessary for foreign payments are missing. Therefore, you have to change the bank key type to type 4. By doing this, you make sure that the existing bank data is not changed, and the missing banks are added with the SWIFT code being used as the bank key. Set the Bank key when Type 4 field to National ID/BIC Code when uploading the data.
  • You want to upload a file, but, for some banks, the SWIFT code (BIC) of the head office is used for all branches, whereas different bank numbers are assigned to each branch. In the system, the bank key is the SWIFT code (type 4) for each country. This means that you cannot save all branches because the missing bank numbers are needed for domestic bank transfers. Add the missing branches by setting the Bank key when Type 4 field to BIC Code/National ID when uploading the data. This way, the bank numbers are used as the bank key.
  • You want to upload a delta file. Select the Delta Upload checkbox to make sure that the app uses the special logic for delta files.
  • You want to transfer funds to a country as a SEPA payment. To do this, select the SEPA Mode (IBAN BIC) checkbox. Here is what happens: First, the system transfers the IBAN data if this data is contained in the file. Next, the SWIFT code is used as the bank key and the system saves the IBAN national ID in the bank number field. If the bank key is the same as the bank number, the system saves the IBAN BIC in the SWIFT code field. This way, IBANs can be easily maintained in the system.

The system displays the changes in an ALV list. You can drill down to the old and new values by double-clicking a changed bank. The system displays a summary for each country at the end of the change overview. This summary contains the total figures of the banks that have been added, changed, or flagged for deletion. Alternatively, if the data of a country could not be processed, the summary contains an error message.

Note
We recommend that you always upload full files because delta files only contain the changes of the last full version of the file. Using delta files makes it necessary to locate the appropriate bank key first, which makes it more difficult to assign the uploaded data to the data that already exists in the system.

Advanced Bank Account Master Data

Bank Account Master Data Overview

The concept, Bank Account Contract Type, enables you to control major feature differences and enable customers to control UI and process settings for the different contract types.

Bank Account Management provides master data for all kinds of bank accounts which are under the control of Treasury and Cash Management processes. It involves accounts under a contractual relationship with an external counterparty (aka "Bank").

Examples here are current accounts, deposit accounts, sweep accounts held at (classical) banks, and accounts held at a PSP (payment service provider).

The Account Type in turn is a substructure of the Bank Account Contract Type and is the object that is set when creating new bank account master data. The Bank Account Contract Type is derived from this setting.

You can use the Manage Bank Accounts app to define bank accounts according to your company's business requirements. The bank account master data provides the following attributes or functions:

  • General data that enables you to check the common account properties, such as the bank account number, account holder, IBAN, and customer-defined attributes.
  • Bank relationship data that enables you to maintain bank-related information, such as internal and bank contact persons and bank statement data.
  • House bank account connectivity that enables you to configure the integration from a bank account to the corresponding house bank accounts, or other account records in either the central system or other remote systems.
  • Payment signatories that enable you to define payment approval processes for payments that are made through a bank account.
  • Overdraft limits that enable you to manage the overdraft limits of a bank account.
  • Cash pools that enable you to maintain cash pools and perform cash concentration activities.
  • Multi-language descriptions that allow you to define account descriptions in different languages.
  • File or hyperlink attachments as reference documents.

Bank Account Attributes

Bank account master data comprises of several tabs. Each tab holds data relevant for a certain process.

The header data comprises information on bank country, currency, and the revision status. In addition, the bank control key is maintained here in the bank account master.

In the Manage Bank Accounts app, the IBAN button has been replaced with the Generate IBAN and Generate Account Info buttons, which allow you to generate an IBAN from specified account information or to generate account information from a specified IBAN.

The following buttons are now available:

  • Generate IBAN

    Generates an IBAN from account number, bank country, bank key, and bank control key

  • Generate Account Info

    Generates account number, bank country, bank key, and bank control key from an IBAN

If you are importing bank statements with the Manage Incoming Payment Files app or with SAP Multi-Bank Connectivity, you have to maintain the Transaction Type field for a bank account in the Manage Bank Accounts app.

If the transaction type is maintained in the Manage Bank Accounts app, the system automatically uses this information for the import of the bank statement. If you do not maintain the transaction type in the Manage Bank Accounts app, the system is not able to post and clear bank statement items correctly, or to post and clear them at all. To avoid this problem in the area of bank statement processing, we recommend that you maintain the Transaction Type field for every bank account manually in the Manage Bank Accounts app.

The house bank accounts of your company are the bank accounts that your company owns. You can use them to process payment transactions. Each house bank account is linked to a bank account in bank account master data through the house bank account connectivity.

House bank account connectivity enables you to link a bank account to its corresponding house bank account in the Cash and Liquidity Management system.

To create a house bank account, complete the following steps:

  1. In the Manage Bank Accounts app, open a bank account.
  2. On the House Bank Account Connectivity tab, create an entry using the following values:
    • House Bank
    • Valid From and Valid To
  3. Below the table, on the House Bank Account Data tab, specify a unique ID for this house bank account.

    The account ID can be alphanumeric. The length limit is 5 digits.

  4. Specify the G/L account to which payment transactions must be posted.

The original term, signatory, has been renamed to payment approver to distinguish it from the term signatory as used in the context of signatory cards. The two concepts are defined as follows:

  • Signatory

    A person who holds a mandate from a bank for certain bank account operations.

  • Payment Approver

    A person who has the authorization to approve bank payments.

There is also a separate app that you can use to maintain a payment approver in multiple bank accounts called Maintain Payment Approver.

Depending on the role to which you are assigned, you can perform the following tasks:

  • Replace a payment approver in multiple bank accounts.
  • Add a payment approver to multiple bank accounts.
  • Revoke the authorization of a payment approver in multiple bank accounts, by changing the validity period of the payment approver.

In the Manage Bank Accounts app, you can give payment approvers the right to approve all payments irrespective of the amount by setting the Unlimited Approval indicator.

You can find the Unlimited Approval checkbox in the Payment Approvers section of the Manage Bank Accounts app. If you have selected this checkbox and specified the amount limits for an approver at the same time, the amount limits is ignored and the approver can approve payments irrespective of the defined amount limits for single payments and payment batches.

You can use the Maintain Payment Approver app to maintain a payment approver in multiple bank accounts.

The system automatically sends a request to the responsible cash manager. After the cash manager approves the changes, you can see the updated payment approver in the bank account master data.

In the Maintaining a Payment Approver app in Multiple Bank Accounts, you can also use background processing to maintain a payment approver in multiple bank accounts. If you are using workflows to manage bank accounts, you can also use background processing when you are approving related change requests in the My Inbox - For Bank Accounts app.

To process payment approvers in the background, set the Run in Background indicator. With the new Bypass Validation indicator, you can update the payment approver in selected bank accounts irrespective of any existing errors in the bank account master data. If this indicator is not selected and the bank accounts you want to update happen to contain errors, you need to fix these errors before you can save your changes to the payment approver.

You can maintain one or more overdraft limits for a bank account. The overdraft limits are time-dependent, therefore the total overdraft limit of the bank account may vary with time if you maintain multiple overdraft limits for different periods of time.

The bank grants your company an overdraft limit of 100,000 EUR for the year 2019. Your company requests an additional overdraft limit of 50,000 EUR for the end of the first quarter.

You define the overdraft limits in the system as follows:

  • EUR, 100,000, valid from January 1, 2019 to December 31, 2019

  • EUR, 50,000, valid from March 25, 2019 to March 31, 2019

When cash pools are defined in the Manage Cash Pools app, you can maintain bank account and other related information for the cash pools in the bank account master data. For this, you need to specify if the bank account serves as the header account of a cash pool or as a sub-account. Furthermore, the following values are only relevant when the cash pool is a physical cash pool:

  • Target balance
  • Minimum transfer amount
  • Payment method

The Bank Correspondence tab in the Manage Bank Accounts app shows you the output details of the bank correspondence. In the case of an account closure, a mail can be generated reflecting the change in the system.

In some circumstances, companies need to communicate with banks in written format regarding important changes in their bank accounts. For example, the decision to close a bank account or an update about authorized signatories. To assist companies in bank correspondence automation, SAP provides a Bank Correspondence business rule for generating email or PDF correspondence letters automatically.

The following scenarios are supported:

  • When a bank account is closed in the system, an email is generated and sent to the defined contact persons.

  • When the signatories are updated in the system, a PDF correspondence letter is generated.

Before using the bank correspondence feature, the administrator must make sure the settings for Output Parameter Determination are properly defined. You can also customize the templates and the output parameters according to your company's business needs.

One of the steps to be defined is the output type to use in the app. An output type defines the output parameters for the bank correspondence letters. SAP provides a predefined output type, BANK_CORRESPONDENCE. If necessary, you can change the dispatch time.

Account History

In the Manage Bank Accounts app, the Revision Number field has been hidden. Instead, Activation Sequence is shown as the differentiator for bank account revisions.

The revision number is a technical concept and can cause confusion as it changes after a revision is activated. With the Activation Sequence field, it is now easier for users to identify which revision is an earlier version.

If you want to make the Revision Number field visible in the Change History and Activate Revision dialog box, choose the Settings icon, select Revision Number, and save your changes.

Advanced Bank Account Status

Bank Account Status

An account in the SAP S/4HANA Cloud environment can hold several different statuses. At the beginning of the bank account lifecycle, you can distinguish between inactive accounts and active accounts. Right at the beginning you would still be able to delete a bank account in the system. With time, at the end of the lifecycle, you might want to close down an account or even consider reopening accounts.

Inactive Bank Accounts

Depending on the status of the bank account, only specified actions are available.

The standard logic for the bank account status is as follows:

  • A bank account is created and saved with the status Inactive.
  • A bank account with the status Inactive can be either activated (status Active) or deleted (status Deleted).
  • A bank account with the status Active can only be closed (status Closed). When a bank account is activated, it can not be deleted due to audit purposes.
  • If a bank account has the status Inactive and is in the approval workflow process, then it can not be deleted until the approver rejects the workflow.

Closing and Reopening Bank Accounts - without Bank Account Contract Type enabled

If you no longer use a bank account and the bank account has an Active status, you can close the bank account. You can reopen a closed bank account when necessary.

Above are the bank account closing process steps shown in case the Bank Account Contract Type is not enabled in the SAP S/4HANA Cloud system.

You can only close bank accounts that have an Active status.

To close a bank account, complete the following steps:

  1. In the Manage Bank Accounts app, find the bank account and open it.
  2. Choose one of the following buttons:
    • Mark for Closing

      Choose this button to initiate the closing process. The bank account is then set to the Marked for Closing status.

    • Confirm Closing at Bank

      If the bank account has already been closed at its bank, choose this button to set the bank account to the Closed at Bank status.

    • Send Closing Request to Bank

      Choose this button to confirm that you are about to send a bank account closing request to the bank or that you have already done so. The bank account status is then set to Closing Request Sent to Bank.

    • Additionally, depending on your settings, a bank account closing request letter can be automatically generated and sent to the bank account contact person via email. The receiver can then send the letter to the corresponding bank to request closure of the bank account.
  3. When the bank account is closed at the bank, you can close it completely in the system by choosing the Confirm Closing at Bank button.
  4. In the Set Up Bank Determination for Payment Transactions configuration step, check and update the payment settings of the house bank accounts that are linked to this bank account.

In the Manage Bank Accounts app, select the bank account to close. Depending on the current status of the account (02 – Active), subsequent processing options are available.

Choose the account status according to your underlying business process.

Bank accounts with a Marked for Closing status can still be viewed or processed in the following apps:

  • Review Bank Accounts: Review bank accounts with this status.
  • Maintain Payment Approver - For Multiple Bank Accounts: Update payment approvers for bank accounts with this status.
  • Import Bank Fees: Import bank fee data for bank accounts with this status.
  • Monitor Bank Fees: Monitor bank fee import status for bank accounts with this status.
  • Bank Statement Monitor - Intraday: Monitor the import of intraday bank statements for bank accounts with this status.
  • Bank Statement Monitor - End-of-Day: Monitor the import of end-of-day bank statements for bank accounts with this status.
  • Manage Bank Account Balances: Enter or import bank account balances for bank accounts with this status.
  • Monitor Bank Account Balances: Monitor bank account balances for bank accounts with this status.

If necessary, you can reopen a bank account that was previously closed.

To reopen a bank account, complete the following steps:

  1. In the Manage Bank Accounts app, find the bank account to reopen.

  2. Choose the Initiate Reopening button.

    The bank account status is set back to Closed at Bank.

  3. Depending on the process used to close the bank account, you can reopen it using one of the following buttons:
    • Change Back to Active

      If you started the closing process directly using the Confirm Closing at Bank button, you can choose this button to change the bank account status back to an Active status.

    • Reopen at Bank

      If you started the closing process using the Send Closing Request to Bank button and then the Confirm Closing at Bank button, you can choose the Confirm Closing at Bank button to change the bank account status first to Closing Request Sent to Bank and then use the Change Back to Active button to set the bank account back to an Active status.

If reopening a closed bank account, several processing options are available.

Either complete the closing of the account or revert back to an Activestatus.

Closing and Reopening Bank Accounts - with Bank Account Contract Type enabled

The lifecycle of a bank account with enabled Bank Account Contract Type enabled differs from one without this setting.

Due to the Bank Account Contract Types and the resulting possibility to split the bank account lifecycle at this attribute the default process is altered at some steps. Compared to the process without Bank Account Contract Types more options to personalize the process are given.

For a bank account where the contract type is enabled the closing process includes five steps in the default setup.

When it comes to reopening a bank account with enabled contract type there is only the option to return to the preceding status available. The process chain is to be followed strictly with no option directly change the account status back to active.

Due to the configuration option to enable certain statuses per Bank Account Contract Type not only the rigid six-step lifecycle is possible but customizable derivations of this process.

This way it would be possible to establish a closing process consisting of the two mandatory step elements (inactive and active) plus a self-defined set of the additional four optional process steps.

Note

For the closing process the status inactive (mandatory) is not illustrated here.

For the exemplary technical bank account process the system uses the Return to Preceding Status procedure. Depending on the configured setup the account status is adjusted.

In the described case the system is changing back the status of the bank account to active without any further intermediate steps.

Bank Reconciliation Ledger

Bank Reconciliation Accounts Overview

G/L accounts are needed to record business transactions and make period-end postings in General Ledger Accounting.

If your company runs payment processes involving bank accounts, you need to set up corresponding G/L accounts so that your company's payment transactions are also recorded in General Ledger Accounting.

To run your payment processes, you need to assign each of your house bank accounts to a G/L account acting as a reconciliation account. In addition, for each payment method supported for a house bank account, you need a separate G/L account. This means that for each of your house bank accounts, you first need to assign a "main" G/L account, which in turn is connected to one open-item managed clearing account per payment method.

You can create and edit G/L accounts using the Manage G/L Account Master Data configuration step in your quality (Q) system. Using this configuration step, you can create all available G/L account types by copying an existing account and then editing it according to your requirements. Take note, however, that you can only change the G/L account types if no postings exist for the relevant G/L account.

Depending on the type of G/L account used for the house bank connection, one set of G/L accounts is sufficient for multiple house banks, or a new set of G/L accounts has to be created each time a new house bank is to be connected.

There are two methods of creating the required sets of G/L accounts:

  • Bank Reconciliation Accounts
  • Balance Sheet Accounts
Note
The Balance Sheet Accounts scenario is the currently known and used deployment for all customers.

Bank Reconciliation Accounts

For each house bank account, you need to assign a G/L account to which payment transactions are posted. You can specify either a bank reconciliation account or a balance sheet account for this purpose. The two types of G/L account correspond to two different approaches for maintaining G/L accounts for bank account payments:

  • One Set of G/L Accounts for One Bank Account

    For this approach, you assign a unique balance sheet account to each house bank account. You also need to set multiple clearing G/L accounts for this balance sheet account. As a result, you need to define a set of G/L accounts, including the balance sheet account and its clearing accounts, for each bank account.

  • One Set of G/L Accounts for Multiple Bank Accounts

    For this approach, you assign a bank reconciliation account to several house bank accounts. You also need to set multiple clearing G/L accounts for this bank reconciliation account. However, the set of G/L accounts, including the bank reconciliation account and its clearing accounts, can be shared by multiple house bank accounts.

Note
The Setup and Payment Configuration pillars will be described in the section Maintain Key Configuration Settings for Bank Account Management.

Depending on the type of G/L account you want to assign to your house bank account, refer to either of the following procedures to assign a G/L account to the house bank account:

  • Bank Reconciliation Accounts

    You can simplify your payment processes by creating new house bank accounts and connecting them to a new type of G/L account, that is, a bank reconciliation account. A G/L account with this new G/L account type can be assigned to more than one house bank account. In other words, you can cut down on the number of G/L accounts needed by creating just one bank reconciliation account and assigning it to several house bank accounts.

  • Balance Sheet Accounts

    Create the required reconciliation account and clearing accounts with balance sheet accounts as their G/L account types. Using this approach, you usually need to create a new set of G/L accounts every time you set up a new house bank account connection.

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.

With the new procedure, you can create bank reconciliation accounts that can be assigned to multiple house bank accounts. For this bank reconciliation account, you can create and assign bank clearing accounts for each of your payment methods. When this set of G/L accounts is set up according to your requirements, you can assign this to all relevant new house bank accounts that you create.

For example, if your company makes payments using multiple national and international banks, you can just define two sets of G/L accounts. For the national banks, you assign all your local house bank accounts to one bank reconciliation account with one bank subaccount (that is, clearing account) per payment method. For international banks, you assign all your foreign house bank accounts to one bank reconciliation account with one bank subaccount (that is, clearing account) per payment method.

The Bank Account Reconciliation approach is designed to be a further option for customers to run their business.

There is no need to migrate or move from the known Balance Sheet approach to the Bank Reconciliation Ledger. Since you control the method through master data settings in the house bank account, an individual approach for each house bank account is possible. Thereby, a side-by-side approach is feasible. This also implies that no big-bang solution needs to be implemented, as customers have the option to gradually move to Bank Account Reconciliation, if desired.

Furthermore, there is no disruption to the payment process itself. All payment-related apps in the SAP S/4HANA Cloud system work as expected. There is no new app or parallel payment process established when using the Bank Reconciliation Ledger.

Powers of Attorney

Overview

You can represent and manage the powers of attorney for banking transactions for your company codes. A power of attorney for banking transactions represents the legal power of attorney that a company has granted to one or more persons to carry out banking transactions on behalf of the company. In the power of attorney, you assign the principals, the authorized representatives, the bank accounts, and the permitted activities. 

Terminology

The most important terms used in the Manage Powers of Attorney for Banking Transactions app are:

Power of Attorney for banking transactions

Represents the legal power of attorney that a company has granted to one or more persons to carry out banking transactions on behalf of the company. Within a power of attorney, the principals, the authorized representatives, the bank accounts, and the permitted activities are assigned.

Principal

Company that granted the power of attorney to one or more persons (authorized representatives). In the system, the company codes represent the principals of the powers of attorney.

Authorized representative

The authorized representatives are the persons (usually employees) to whom your company has given power of attorney.

Activities of the Power of Attorney for banking transactions

Banking transactions for which authorization has been granted. There are predefined activities in the system, and users can define custom activities.

Example: SPAY Approve Payments (predefined activity)

Authorization group for the power of attorney for banking transactions

The authorization group for powers of attorney controls access to powers of attorney for banking transactions. Each power of attorney must be assigned to an authorization group.

Relationships

The Power of Attorney strings together several objects to model the relationship between them. The key objects for the Power of Attorney are:

  • The Business Partner in the role of the authorized representative
  • The Company Code acting as the principal
  • The allowed activities within the Power of Attorney
  • The associated bank accounts where the Power of Attorney is allowed for

For your authorized representatives, you must create a business partner and assign the business partner role TR1000 Authorized Representative. Only business partners with this role can be assigned as authorized representatives in a power of attorney.

Select the play button to watch the video on how to create a Power of Attorney in the SAP S/4HANA Cloud, public edition.

You can create a power of attorney using the Manage Powers of Attorney for Banking Transactions app.

Enter the following header data for the power of attorney:

  • Enter a descriptive name for the power of attorney.
  • Enter the power of attorney ID, which is used to identify the power of attorney. The ID is unique. It is not possible to use the same ID twice.
  • Specify an authorization group in the Authorization Group field.
  • Enter the valid-from date. This is the date from which the authorized representatives assigned to the power of attorney are legally authorized to use the power of attorney. If this is a temporary power of attorney and the valid-to date is already known, you can also enter this date.
  • Choose the Bank Account Assignment Type. You use this indicator to control the assignment of the bank accounts to the power of attorney. The following options are available:
    • Via Selection: Only Existing Bank Accounts. If you choose this option, the existing bank accounts at the activation date are assigned to the power of attorney according to the selection criteria you enter. During the lifetime of the power of attorney no new bank accounts can be assigned to the power of attorney. If you retrieve the bank accounts for an active power of attorney only closed bank accounts are removed but no new bank accounts are assigned.
    • Via Selection: Existing and Future Bank Accounts. If you choose this option, the bank accounts are assigned to the power of attorney according to the selection criteria you enter and in addition, all future bank accounts that also match the selection criteria will automatically be assigned during the lifetime of the power of attorney. If you retrieve the bank accounts for an active power of attorney closed bank accounts are removed and new bank accounts that fulfill the selection conditions are assigned.

On the Principals tab, you enter the company codes that represent the principals of the power of attorney.

On the Bank Accounts tab, you must assign the bank accounts for which the authorized representative are authorized. Only bank accounts of the company codes assigned on the Principals tab can be assigned.

The following fields are available:

  • Bank Account Type
  • Bank Country/Region
  • Currency
  • Bank Account Technical ID

In addition to this you can also use selection groups.

Selection groups are sets of bank account selections that are independent of each other. This means that the selection conditions of each group are applied independently of the conditions of the other groups.

Within a group, bank accounts are retrieved according to the general rules for the bank account retrieval based on bank account selections of a selection group. The bank accounts determined for the respective groups are all assigned to the power of attorney. This means that an active bank account is assigned to the power of attorney if it matches the bank account selections of at least one group.

When you have finished entering bank account selections, run the Retrieve Bank Accounts function. The system now searches for the bank accounts that fulfill all added selection conditions and assigns those bank accounts to the power of attorney.

Assign the authorized representatives by adding the relevant business partners in the role of Authorized Representative to the power of attorney. You can assign multiple authorized representatives to a single power of attorney.

Assign the activities for which authorization has been granted. The SPAY Approve Payments activity is predefined in the system. All other activities are customer defined and can also be assigned.

Powers of attorney always have a status. Depending on the current status of a power of attorney, you can perform different actions. Some actions change the status, and some do not. The status is set by the system according to the actions executed by the user. You cannot set the status manually. Use the interactive graphic below to learn more about the Powers of Attorney:

If you would like to learn more about the status options available for a Power of Attorney in SAP S/4HANA Cloud, public edition use the interactive graphic below. Click the boxes in light yellow to see additional information.

Status for Power of Attorney

Open the Manage Powers of Attorney for Banking Transactions app in the Bank Relationship Management business group on the SAP Fiori launchpad. Use the search function to get an overview list of the available powers of attorney.

From the overview list of powers of attorney, the status Create and Delete are available. All other actions are available within the detail view of a single power of attorney.

If the power of attorney has the status In Approval, you can withdraw the power of attorney from the approval process. You use this function if you have accidentally submitted the power of attorney for approval, but you still need to make changes to the power of attorney.

After you withdraw the power of attorney from the approval process, the power of attorney has the status Created again.

Implementation of Powers of Attorney for Banking Transactions

After the powers of attorney have been granted and the power of attorney is active, administrative tasks have to be performed to implement the powers of attorney, for example, at the bank branch or for online banking administrated by the bank. The Implement Powers of Attorney app supports you during this process. For each power of attorney, you must create exactly one power of attorney implementation.

With the Implement Powers of Attorney for Banking Transactions app, you can monitor the implementation process of powers of attorney for the different channels. To do this, you create exactly one implementation for a power of attorney for banking transactions. Within the implementation, you assign the channels for which you want to implement the powers of attorney. For each channel, you create correspondence objects representing the correspondence that you have sent to or received from your banks.

Key features of the Implement Powers of Attorney for Banking Transactions app include:

  • Create the Implementation of a Power of Attorney
  • Create a Correspondence Object
  • Delete a Power of Attorney Implementation
  • Revoke a Power of Attorney Implementation

Proceed to create a new Implementation for Implement Powers of Attorney for Banking Transactions. Go to the respective app and choose to create a new entry.

Enter the Implementation ID (mandatory) and the Implementation Description for the implementation.

On the Power of Attorney tab, you must assign the relevant power of attorney. You can assign only one power of attorney to an implementation because there is always a 1:1 relationship between a power of attorney and the implementation of the power of attorney.

You can only assign active and currently valid powers of attorney to the implementation.

The system copies all relevant channels with the relevant correspondence objects to the new implementation according to the following rules:

  • All outgoing correspondence object in the status Sent and Confirmed and their related incoming correspondence objects are copied to the new implementation.
  • Channels which only contain correspondence objects in the status Replaced or Obsolete are not assigned to the successor implementation.

On the Channels tab, you assign the channels for which you want to implement the power of attorney. Add all channels required.

You can now create the outgoing and incoming correspondence objects according to the correspondence you have sent to or received from the banks for each channel and manually change the status of outgoing correspondence objects.

For each channel assigned to the implementation, you can create correspondence objects representing the outgoing correspondence you sent to your banks or the incoming confirmations from your banks.

  • You create an outgoing correspondence object for a channel after you sent correspondence to your bank to inform the bank about the authorizations you have granted to the authorized representative for this channel.
  • When you receive a confirmation for an outgoing correspondence from your bank, you create an incoming correspondence object for the corresponding outgoing correspondence object.

SAP ships two channels:

  • SBRA - Bank Branch
  • SOBB - Online Banking (Administrated by Bank)

From this list of channels, you can open a channel to display, create or edit the outgoing and create or display incoming correspondence objects for this channel. Set the values for the:

  • Correspondence Object
  • Authorized Representative
  • Banks
  • Activities

The app provides you with an overview table showing all correspondence objects that you have sent or received for a channel. From this table, you can open the correspondence objects to display it or change the status of the correpondence object.

  • You can change the status of an outgoing correspondence object to confirmed, replaced, or obsolete.
  • You can use the Create Incoming button in the row of an outgoing correspondence object to create an incoming correspondence object.

You can delete an implementation, if you haven't assigned a channel to the implementation. You can only remove a channel from the implementation if no correspondence object exists for the channel.

Revoke a power of attorney implementation

  • You can only revoke an implementation that either has the status Active or Power of Attorney Revoked.
  • You can only revoke an implementation if all outgoing correspondence objects of all channels are either in status Obsolete or Replaced.

Bank Account Applications

Involved Personas

The Bank Account Application is designed to facilitate the end-to-end process for the application for a new bank account in SAP S/4HANA Cloud. No third-party tools (like mails or spreadsheets) are needed if the applicant is applying for a new bank account to be created.

There are three main actors in the Bank Account Application process.

  • Applicant

    The applicant is the person requesting a new bank account to be created in the SAP S/4HANA Cloud system. This could be, for example, a sales representative requesting a new bank account for a new customer in Norway.

  • Cash Manager

    The person receiving and processing the information about the new bank account is the Cash Manager. He is also the one to either approve or reject the bank account application.

  • Cash Specialist

    Once a bank account application is approved, the system automatically creates an inactive bank account according to the information specified in the application. The Cash Specialist is the person responsible to flash out the remaining information of the bank account and activates the account.

Submit Bank Account Applications

The applicant for a new bank account is using the Fiori app Submit Bank Account Applications to request a new bank account and track the status of the application.

To make the app available to all sorts of business users the business catalogue SAP_FIN_BC_CM_BAA_SUBMIT_PC is used. This way it can be easily assigned to users outside the Cash Management area.

You can use this app Submit Bank Account Applications to do the following:

  • Create a bank account application and submit it for approval. An email will be sent automatically to people who have the authorization to approve the application.
  • Check the status of your applications, view approval steps, and get information about the bank account created for your application
  • Withdraw a submitted bank account application. You can withdraw a bank account application when it has been submitted and is awaiting approval, or after it has been approved but the bank account is not yet activated.
  • Delete a bank account application that is not yet submitted
Note

The following validation checks have been enforced for bank account applications:

  • Withdrawal of an application is not allowed when the generated bank account is locked in a workflow process or dual control process.
  • In the Manage Bank Accounts app, it is not allowed to activate an inactive bank account in the bank account control mode Direct Change when the associated bank account application is in status To be Withdrawn.

  • In the Manage Bank Accounts app, it is not allowed to submit a bank account for approval or activation when the associated bank account application is in status To be Withdrawn.

Approve Bank Account Applications

After a bank account application is submitted, authorized users can approve or reject the application in the Approve Bank Account Applications app.

To use this app, you must be assigned a business role that contains the business catalog Cash Management - Approve Bank Account Applications (SAP_FIN_BC_CM_BAA_APPROVE_PC).

Use the app Approve Bank Account Applications to do the following:

  • Approve or reject a bank account application

    Once a bank account application is approved, the system automatically creates an inactive bank account according to the information specified in the application.

    An email notification will be sent automatically to the applicant who submitted the application.

  • Confirm the withdrawal of a bank account application

    When confirmed, the bank account creation process will be stopped.

Bank Account Applications

The Cash Specialist is picking up the information about the approved applications with the Fiori app, Bank Account Applications. There is also the option to activate bank accounts created for approved applications.

To use this app, you must be assigned a business role that contains the business catalog Cash Management - Bank Accounts Management (SAP_FIN_BC_CM_BAM_PC).

The Bank Account Application app can be used for the following process steps:

  • Search for or filter bank account applications using various attributes, for example, application status, company code, and applicant.
  • View bank account application details, including the application information, approval history, and the created bank account.
  • Check the bank account applications that are awaiting approval and view processors who are authorized to approve a bank account application.
  • Navigate to the Manage Bank Accounts app to add the necessary information for the bank account created and activate the bank account.

Bank Account Origination Process

When the bank account contract type is enabled but the bank account origination processes not enabled in the configuration activity Define Settings for Bank Account Contract Types,the default opening process is used.

The diagram above shows the default process for opening a bank account when the bankaccount contract type is enabled but the bank account origination process is not enabled.

The diagram shows the bank account origination process for opening a bank account.

In order to use the process, the following prerequisites must be met:

  • In the configuration activity Define Basic Settings, set the Enable Bank Account ContractType option
  • In the configuration activity Define Basic Settings, the Bank Account Control Mode field is set as Direct Change, Two-Person Verification, or Workflow
  • In the configuration activity Define Settings for Bank Account Master Data, specify a bankaccount contract type for each account type

Once enabled the bank account origination process comes with the benefit of:

  • Reducing the configuration efforts for workflows by adopting the bank account application process and bank account origination process
  • Enabling a fine-grained process for bank account opening with additional steps and statuses
  • Providing a new status "Opened at Bank" in configuration, for better testing process before go-live
  • Enabling the "Opened at Bank" status for audit and review processes

To enable the bank account origination process, proceed as follows:

  • In the configuration activity Define Settings for Bank Account Contract Types, go to Enable Bank Account Origination Process
  • Define the company codes and bank account contract types for which you want to enable the bank account origination process
  • In Configure Statuses and Bank Account Control Modes, define the statuses you would like to use in the bank account origination process and the control modes that apply for status changes

Bank Account Control Modes

Overview

The SAP S/4HANA Cloud System uses the Bank Account Control Mode to define the process you want to implement for managing your bank account data and lifecycle.

There are generally four options available in the General Settings for Cash Management:

  • Direct Change
  • Dual Control
  • Workflow
  • Two-Person Verification

The two comparison tables describe the features available per control mode. Depending on the requirements and the functionality offered you should set the control mode accordingly.

Direct Change

In the Self-Service Configuration User Interface, you can set the bank account activation mode to Direct Change. When doing this, an activation step is now required after a user creates a new bank account and saves the data. The user who created the account or other authorized users can activate the new bank account by choosing the Activate button.

The following activities are not affected and do not require activation:

  • Making changes to an existing bank account in the Activate Directly mode
  • Importing bank accounts by using the Import and Export Bank Accounts function
  • Migrating house bank accounts to create bank accounts

This setting is the standard for the Basic Bank Account Management scope item (BFA) but can also be used with the Advanced Bank Account Management (J77).

Dual Control

To implement dual control for bank account management, set the Dual Control option for bank account revision. With dual control, revisions are saved when users create or edit bank accounts in the following scenarios. The revisions have to be activated by another authorized user before they become effective.

The dual control is applied for following activities:

  • Opening a new bank account
  • Copying an existing bank account to create a new one
  • Modifying a bank account
  • Changing a signatory in multiple bank accounts
  • Closing a bank account
  • Reopening a bank account that is already closed

Every time the bank account master data is changed in dual control mode a new revision is created for the account. The person changing the bank account master needs to submit the change for activation.

An authorized user is informed that there is a new revision for that bank account. The approver can either use the notifications or the Manage Bank Accounts app on the SAP Fiori launchpad to access the information.

Through Activate Revisions, the approver gets an overview of the pending revisions and the status. Until the bank account is activated it stays with status "To be activated".

In the account revision detail page, you can check all the specifics to be updated (including changes made). If there are no problems found, you can activate the revision so that the update to the account will be effective.

In the Manage Bank Accounts app, you can now use the new button Save as Inactive before you submit a new bank account for activation or approval. This enables you to save your changes to a revision and to edit the revision later before you are ready to submit the account creation request officially.

The Save as Inactive button is now available when you create bank accounts in the dual control mode and workflow mode. With this button, your changes are saved to a revision that you can view and edit later:

  • Dual control mode: The revision is saved with the revision status -> To Be Submitted for Activation.
  • Workflow mode: The revision is saved with the revision status -> To Be Submitted for Approval.

At the top you will also find the button to further edit, delete, or submit the account information for activation.

Activate via Workflow

Next to the dual control and direct activation of bank accounts there is the option to activate via workflow.

SAP provides predefined workflow processes for bank accounts. This can be applied in the following cases:

  • Copying an existing bank account to create a new one
  • Making changes to a bank account
  • Changing a signatory in multiple bank accounts
  • Closing a bank account
  • Reopening a bank account that is already closed

Depending on the workflow settings the process is started for opening, changing, or deleting a bank account.

If, for example, there is a change to an existing bank account (with workflow activated) the processor can only submit the change for activation. The actions triggers a workflow and another authorized person is needed to accept and activate the changes.

Until the revision is activated the bank account cannot be used for outgoing payment processes. This should protect the company from any fraud resulting from a change in bank account master data.

Through Activate Revisions, the approver gets an overview of the pending revisions and the status. Until the bank account is activated it keeps the To Be Activated status.

In the account revision detail page, you can check all the specifics to be updated (including changes made). If there are no problems found, you can activate the revision so that the update to the account will be effective.

To track bank-account-related requests that you have initially created you can use the My Sent Requests app.

The initiator of the change will be able to complete the following:

  • Check the requests in terms of request status, action (what has been done in the request), next processor, creation date, and last change date
  • View change request details including approval history
  • Cancel sent requests that have not yet been processed
  • Navigate to see bank account details
  • Filter or search for a sent request

With this feature you can cancel your workflow requests in the My Sent Requests app for bank account management. You can only cancel requests that have not yet been processed, for example, approved, rejected, or canceled.

To cancel your workflow requests, do either of the following: In the request list view, select one or more requests and choose the Cancel Requests button. Find and open the request that you want to cancel. Then on the object page, choose Cancel Request to cancel the current request.

After you cancel a workflow request, the triggered workflow is deleted and the request is set to Canceled. The involved bank accounts are then unlocked from the workflow and can be edited again.

Users who are dealing with bank account master data in various scenarios can check and process their workflow tasks with the My Inbox - For Bank Accounts app.

This tile is especially helpful for managers who need instant access to all open workflow tasks where their action is needed.

Users will be able to process your workflow tasks in the following scenarios:

  • Opening a bank account
  • Modifying a bank account
  • Maintaining a signatory in multiple bank accounts
  • Closing a bank account
  • Reopening a bank account
  • Adding attachments and comments

Finally, the user must approve or reject the request from their colleague. Through exception handling it is also defined which action is initiated if the request is rejected.

Two-Person Verification

The bank account control mode Two-Person Verification is available for controlling the process of making changes to bank accounts in the Manage Bank Accounts app. With this mode, you can implement a simple two-person approval process for managing the master data and lifecyle of your bank accounts.

When using the two-person verification mode it is possible that the submitter chooses to cancel the changes in the Manage Bank Accounts app.

The app Approve Bank Account Changes – Two-Person Verification an overview of the bank account change requests that were triggered in the two-person verification mode and are awaiting approval. You can check the changes and decide whether to approve or reject the change requests.

To use this app, you must have the authorization to approve bank account change requests.

With the app Bank Account Change Requests, you get an overview of all the bank account change requests that were triggered in the two-person verification mode. You can also check the details of each bank account change request to see what is tobe changed or has been changed.

You can use this app to:

  • View all bank account change requests that were triggered in the two-person verification mode in one central place.
  • Filter bank account change requests using various attributes, for example, company code, bank key, request status, contract type, and so on.
  • Check details of each bank account change request, including a detailed log of what is to be changed or has been changed.

Bank Hierarchies

Business Partners and Hierarchies

The Manage Bank Accounts - Bank Hierarchy View app acts as the basis for the creation of bank hierarchies. To do this, the assignment of Business Partners is mandatory.

The Manage Bank Accounts - Bank Hierarchy View app gives you the option to get an overview of your bank accounts in the bank hierarchy view and maintain bank account groups.

You can use this app to have an overview of your bank accounts and maintain bank account master data according to your business needs. From here you can create, display, edit, and delete bank account groups.

The bank hierarchy view displays banks in a hierarchical structure. The hierarchical relationship is constructed by business partners that represent banks or bank groups. By default, only organization business partners assigned with the role Bank (TR0703) are displayed in the structure. If you have banks that are assigned to an organization business partner without the role Bank (TR0703), or not assigned to any business partner, they are not displayed in the bank hierarchy.

In addition to the bank hierarchy, you can also define your own views for displaying bank accounts in hierarchical structures, by using the bank account group hierarchies. It enables you to define different views for different management purposes and use various structures in displaying reports. You manage bank account group hierarchies in the Manage Global Accounting Hierarchies - For Bank Accounts app.

Maintain Hierarchies

The following functions are provided to help you group and organize banks and the bank accounts:

  • Standard bank hierarchy:

    Add the banks into the hierarchy by leveraging the business partners. The bank accounts under each bank will be displayed automatically in the bank hierarchy. So, from this view, you can have a complete view of all the banks and bank accounts within the company.

  • Account list:

    Display all bank accounts in a flat structure. By leveraging the framework of Web Dynpro tables, you can easily sort groups and bank accounts in the account list.

    In the Manage Bank Accounts - Bank Hierarchy View app, choose Bank Hierarchy and then choose Edit .

    The left pane displays all the available banks in your system. To add a bank into the bank hierarchy, on the left pane, select the bank.

    On the right pane, select a business partner under which you want to add the bank.

    Do either of the following:

    • To add the bank directly under the business partner on the right pane, choose Add Bank.
    • To assign the bank to a business partner before adding it under the business partner on the right pane, choose Add Bank with BP.
    • You can either use an existing business partner that is not yet in the bank hierarchy, or create a new business partner for this bank.

Banks and their corresponding business partners are displayed in the bank hierarchy in either of the following ways:

  • If a business partner corresponds with multiple banks, the banks are displayed as subnodes under the business partner.

    To remove one of the banks from the bank hierarchy, select the bank and then choose Remove Bank.

  • If a business partner corresponds with only one bank, the bank information is displayed together with the business partner name.

    To remove the bank from the bank hierarchy, select the business partner entry and then choose Remove Bank.

The bank information is removed from the entry, while the business partner stays in the hierarchy. If you want to remove the business partner also from the bank hierarchy, in the SAP GUI transaction BP, remove the role Bank (TR0703) from the business partner.

Bank Account Group Hierarchies

In addition to the bank hierarchy, you can also define your own views for displaying bank accounts in hierarchical structures, by using the bank account group hierarchies. It enables you to define different views for different management purposes and use various structures in displaying reports.

You manage bank account group hierarchies in the Manage Global Accounting Hierarchies - For Bank Accounts app.

With the Manage Global Accounting Hierarchies app, you can create and edit bank account group hierarchies and their validity time frames. You can also quickly create hierarchies based on existing hierarchies in case of structure changes or changing reporting needs. Additionally, you can easily expand hierarchies by adding levels or importing nodes from other hierarchies.

Perform one of the following tasks to create or copy a bank account hierarchy:

  1. Define New Hierarchies:

    To define a bank account group hierarchy choose Add (+). To add bank accounts to the hierarchy, select the hierarchy from the list to display it, and then choose Edit to edit it. If the hierarchy is ready for use in business, choose Activate. Only activated bank account group hierarchies can appear in related apps and be used in business.

  2. Copy Existing Hierarchies:

    If you want to create a hierarchy that resembles an existing hierarchy, you can do so by copying the existing hierarchy. Open the hierarchy that you want to copy from. On the detail screen, choose Copy  To New Hierarchy. In the dialog, enter a hierarchy ID and a description, and choose Copy.

  3. Import Existing Bank Account Groups:

    If you have defined bank account groups in the Manage Bank Accounts - Bank Hierarchy View app in earlier releases, you can migrate the bank account groups or nodes of the bank account groups to this app by using the import function. To do so, choose Import Hierarchy. Use the default source Bank Account Group, and then specify a bank account group that you want to import.

Specify required information for the new hierarchy and then choose Create. The complete bank account group is migrated to this app as a new bank account group hierarchy.

To import a certain node of an existing bank account group, on the detail screen, choose the More icon, and then choose Import Node. Specify the node that you want to import.

Save your changes.

Bank Account Review Process

Review Bank Accounts

To ensure the bank accounts in your system are up-to-date, you might need to organize bank account reviews from time to time. To do so, follow the process below:

  1. In the Manage Bank Accounts app, a review initiator starts a review process. Note that only people who have the authorization to change a bank account can initiate a review process. After a review is initiated, all the users that have the authorization to change the relevant bank accounts receive the review requests and are able to perform the review. In addition to the notification from the SAP Fiori launchpad, reviewers also receive an e-mail notification.
  2. In the Review Bank Accounts app, reviewers check the account information, make necessary changes, and then mark the bank accounts as review completed. After all the bank accounts in a review request are marked as review completed, the review request is set to completed.
  3. In the Review Bank Accounts app, the review initiator can check the review requests, monitor the review status, and check review notes from reviewers.

Initiate Review Process

In the Manage Bank Accounts app, you can start a review process by choosing the Initiate Review Process button. The designated reviewers then receive a notification from the SAP Fiori launchpad. By clicking the notification, they are navigated to the review request.

In the Review Bank Accounts app, you can search for specific reviewers and display their review tasks, navigate to a bank account, and complete the reviews.

The reviewers itself can add review notes to bank accounts. These review notes can also be displayed in the bank account history in theManage Bank Accounts app.

Review initiators can search for and display the review requests that they have created, and monitor the review status by checking review tasks that are not yet completed.

In this way, both can keep track of all the review requests that are in process and completed.

Bank Account Management Reporting

Bank Relationship Overview

You can customize the overview page by rearranging cards and by hiding or showing them. You can drag and drop cards to rearrange them.

The following cards are available in the Bank Relationship Overview app:

  • Payments by House Bank:

    Shows you the total number and amount of incoming and outgoing payments by house bank in the last 90 days.

  • Bank Profiles by Bank Group:

    Shows you how many banks and bank accounts your company has under each bank group.

  • Bank Fees by Bank Group:

    Shows you the total amount of bank fees by bank group.

  • Bank Accounts by status:

    Shows you the number of bank accounts by bank account status - active or closed.

  • Workflow requests by status:

    Shows you the number of bank accounts by workflow status.

  • Bank Accounts by revision status:

    Shows you the number of bank accounts by revision status.

The Bank Relationship Overview app gives you access to key information about your bank relationship management and gain insights into current trends. The app provides a central source of information for recent payments, bank profiles, bank fees, and bank account statuses.

Foreign Bank Account Report

With the app Foreign Bank Account Report you can identify foreign bank accounts your company owns and employees who have the powers of attorney over these accounts. You can use the information to file legitimate reports, if required in your country/region, for example the Report of Foreign Bank and Financial Accounts (FBAR) required for United States persons.

When using the Foreign Bank Account Report, there are several filter and output options available.

Next to the company code, region and time range you can decide to have the account value considered in the filter criteria. On the other hand, in the result output there is the possibility to have the list shown for authorized persons (power of attorney) or for companies.

To view employees who have the powers of attorney over the foreign bank accounts, define powers of attorneys for your bank accounts and assign authorized employees as representatives, in the Manage Powers of Attorney for Banking Transactions app.

Key Features for reporting:

  • Check foreign bank accounts for one or more company codes
  • Display the maximum account value for each foreign bank account in the specified time range
  • Apply the minimum aggregate value condition to each selected company code so as to calculate whether foreign bank accounts in a certain company code need to be reported
  • Check employees who have the powers of attorney over the foreign bank accounts
  • Export foreign bank accounts that match your search into a spreadsheet

When running the Foreign Bank Account Report there are two options available as for the data source of the report.

  • Cash Flows from One Exposure from Operations
  • Value Date Balances from Manage Bank Account Balances

Depending on your requirements you can choose which data source will be used in the report in the user area of the SAP Fiori Launchpad. Select the item User Settings (that option is available when the app Foreign Bank Account Report is open).

By default, the option Cash Flows from One Exposure from Operations is set.

Setup Bank Account Contract Types

Overview

The configuration for the Bank Account Contract Type consists mainly of three parts:

  • Configure the relationship between the Bank Account Type and the Bank Account Contract Type. When creating a new bank account there is no option to directly set the Bank Account Contract Type. This value is derived from the Bank Account Type.
  • Configure the action and status values for the Bank Account Contract Types. In this step you define the optional statuses used for the bank account lifecycle and their mode of control mode.
  • Define the tabs available or hidden for each of the Bank Account Contract Types. Through this configuration step you can hide optional tabs from the Bank Account Master e.g. Technical Accounts would not need a Bank Correspondence tab.

The Bank Account Contract Types are enabled through the General Settings for Cash Management in the Manage Your Solution app.

Note
Bank account contract types are not supported in the dual control mode. To enable bank account contract types, make sure that the Bank Account Activation field is not set to Dual Control.

Relationship

Once the Bank Account Contract Type functionality is enabled additional fields become available in the already existing Self-Service Configuration User Interfaces (SSCUI).

You can map a Contract Type to each of the Account Types defined in the SAP S/4HANA Cloud system.

Go to FinanceCash and Liquidity ManagementBank Account ManagementSettings for Payment Approval Processes to perform this step.

Note
As the default setting the Contract Type Current Account will be assigned to the existing Account Types.
Note
In order to make sure that all of the settings are fine you can schedule a sanity check in the app Schedule Jobs for Health Check - With Free Selections.

Use the template Health Check for Bank Accounts to run this check.

Configure Status and Action

You use this activity to define what statuses are relevant in the bank account lifecycle, how bank accounts are activated in each status, and what tabs are visible in the bank account master data for a certain type of bank account. You can define different settings for different bank account contract types, account types, and company codes.

Requirements

You have defined the following settings in your configuration environment:

1. In the configuration activity Define Basic Settings, set the Enable Bank Account Contract Type option.

2. In the configuration activity Settings for Payment Approval Processes, define bank account contract types.

Activities

You use this activity to define the following settings:

Configure statuses for the bank account lifecycle and the bank account control modes for status changes

SAP has predefined a set of statuses for the bank account lifecycle.

Mandatory statuses are always enabled, regardless whether there is an entry for these statuses in this activity. For optional statuses, they are enabled by default, unless you create an entry and deselect the Enable Status option.

  • Inactive (mandatory)
  • Active (mandatory)
  • Marked for Closing (optional)
  • Closing Request Sent to Bank (optional)
  • Closed at Bank (optional)
  • Closed (mandatory)

For each entry, you can specify the relevant bank account contract type, account type, and company code. The following combinations are supported (priority from high to low):

a) Contract type + account type + company code

b) Contract type + account type

c) Contract type

For each status entry, you define two bank account control modes:

  • Control Mode to Next Status: Specify a control mode for going forward to the next status in the bank account lifecycle.
  • Control Mode to Preceding Status: Specify a control mode for going backward to the preceding status in the bank account lifecycle.
Note
  • For the Closed status, there is no need to specify an activation mode.
  • Once a bank account is activated, the active status cannot be changed back to inactive.

Recommendation:

After you have defined the settings, we recommend that you use the Simulate button to review the simulation results. It displays the defined statuses and processes for managing bank account status changes.

With the tab Configure actions and bank account control modes you define the bank account control mode for actions performed on bank account master data, for example, changing a bank account or deleting a bank account.

Tab Display

In the same Self-Service Configuration User Interface (SSCUI) there is also the possibility to define the tabs that are visible in the bank account master data. For example, you don't need the Cash Pools tab for technical bank accounts. You can then deselect this option for bank accounts with the contract type Technical Bank.

For each entry, you can specify the relevant bank account contract type, account type, and company code. The following combinations are supported (priority from high to low):

a) Contract type + account type + company code

b) Contract type + account type

c) Contract type

The tab setting overrides the field status group setting in the activity Manage Field Status Groups.

Example:

You have defined the following:

  • In this activity, hide the Overdraft Limits tab for bank accounts with the contract type Technical Bank.
  • In the activity Manage Field Status Groups, define fields for overdraft limits as mandatory for bank accounts with the contract type Technical Bank.

In this case, the settings made in the activity Manage Field Status Groups are ignored because the Overdraft Limits tab is hidden.

Setup Bank Reconciliation Ledger

Setup

It is important to understand the implications that Bank Reconciliation Accounts has on configuration.

When you are setting up the Bank Reconciliation Account approach, there are two main areas to work on, which are as follows:

Financial Accounting and G/L Account Setup
  • Set up G/L accounts used as bank reconciliation accounts.
  • Fill in house bank account data for the bank reconciliation accounts in financial accounting.
Bank Account Management Setup
  • Change house bank account connectivity in bank account management if bank reconciliation accounts are used.
  • Set a posting block date if bank reconciliation accounts are used, but house banks are no longer used.

The general ledger account types determine how the general ledger account can be used in Financial Accounting (FI) and Controlling (CO). The cash account has been newly added as a G/L account type that you can view and maintain in the Manage G/L Account Master app.

Make sure that the G/L account type is Cash Account and the G/L account subtype is Bank Reconciliation Account for the Main Bank Account (leading account).

When the G/L account type is the cash account, a G/L subtype must be specified for further categorization. The following subtypes are available for the cash account:

  • B - Bank Reconciliation Account

  • P - Petty Cash

  • S - Bank Sub Account

For each payment method you require, create a clearing account (bank subaccount). Use the Manage G/L Account Master app to create the bank subaccount for your company code, with the required description and account number.

Note

Make sure that the G/L account type is Cash Account and the G/L account subtype is Bank Sub Account. This setting will activate the additional Reconciliation Account field. Set the Bank Main Account (often referred to as Zero Account) to link the subaccount per payment method to the leading account.

When the bank reconciliation account exists, you can select it in the Manage Bank Accounts app and assign it to a house bank account. The Bank Reconciliation Account indicator is then set to Yes to confirm that you have assigned a bank reconciliation account to the house bank account.

In financial accounting G/L account setup it is important to maintain the house bank and house bank account ID.

During accounting document creation, the system checks whether this information is set in the G/L account. If it is not maintained, the system will reject any posting to the G/L account.

The tasks within Bank Account Management start with the assignment of the Bank Reconciliation Account to the House Bank Account. Go to the app Manage Bank Accounts, look up your bank account that should be handled using the Bank Reconciliation Ledger.

When you create a new house bank account, you can decide whether you use the new procedure with the bank reconciliation account approach or whether you use the known procedure of creating a new G/L account as a balance sheet account.

When opening the details of the bank account navigate to the tab House Bank Connectivity. Create or change an entry depending on your setup and requirements.

It is important to set the ID Category of the Connectivity Path to Central System: House Bank Account. This way the G/L Account in the House Bank Account Data section becomes a mandatory field. The matchcode only shows Bank Reconciliation Accounts. Once set the Indicator of the Bank Reconciliation Account is automatically switched to Yes.

Closing a Bank Account in BAM is a pure master data representation:

  • No interaction with Payment Processes
  • No interaction with GL Account and Accounting Interface
  • Still manual posting block is necessary

In order to have the House Bank Account blocked against any further processing a new entity called G/L Posting Block date is introduced. This field is checked in case a new accounting document is created for a house bank account. In case the block is set the posting gets rejected.

Payment Configuration

There are some changes in the payment configuration when working with the Bank Reconciliation Ledger.

In the app Manage My Solution look up the step Make Global Settings for Electronic Bank Statement under Finance -> Bank Accounting -> Electronic Bank Statement.

There is a new field with the Account Symbol that indicate if they are used for Self Initiated Payments (SIP)

Further there is a new configuration step for the Bank Reconciliation Accounts under Finance -> Accounts Payable -> Automatic Payments -> Assign Account Symbol to Payment Method.

This setting is needed for self initiated outgoing payments in order to determine the bank sub-account.

When working with the Bank Reconciliation Accounts and self initiated outgoing payments the bank sub-account determination is slightly different to the current setup for Balance Sheet Accounts.

The bank sub-account for outgoing payments in this case is not determined anymore through the Ranking Order assignment in the SSCUI task Finance -> Accounts Payable -> Automatic Payments -> Setup Bank Determination for Payment Transactions.

In case of self initiated payments (SIP) in combination with the Bank Reconciliation Accounts, the two aforementioned configuration tasks are used in the following way.

  1. Through the task Finance -> Bank Accounting -> Electronic Bank Statement -> Make Global Settings for Electronic Bank Statement set the account symbols relevant for self initiated payments
  2. In SSCUI Task Finance -> Accounts Payable -> Automatic Payments -> Assign Account Symbol to Payment Method define the country, payment method, and the linked account symbol
  3. Through the task Finance -> Bank Accounting -> Electronic Bank Statement -> Make Global Settings for Electronic Bank Statement and the assignment of accounts to account symbols the system is able to determine in a combination of the masked entry
  4. Setting of the GL Account in the House Bank Account Data
  5. G/L Clearing Account as a combination of the masked entry and the master data settings of the house bank account -> here 11310000 plus the +++++++040 = 11310040.

Situation Handling for Bank Account Management

Situation Handling in Bank Account Management

You can use situation handling to bring important circumstances or business situations to your end users' attention. This helps them focus on specific circumstances, for instance, by giving them a heads-up about an upcoming deadline or by informing people across work streams about an event.

Key users can use the Manage Situation Types app to adapt messages and notification recipients. You can see the status of the situation instances. This helps you monitor and optimize situation handling and the related business processes.

Users are directed to situations and provided with contextual information and actions, all in one place.

Situation Components

The Manage Teams and Responsibilities app allows the business process specialist to manage teams, team members, and their responsibility definitions, such as functions. The teams or team members can then be mapped as responsible for an activity type in a process step of a workflow or a normal business scenario.

In the Manage Situation Types app, you can maintain situation types that represent real-life business situations requiring attention. You can also define which users should receive notifications about these situations.

Situation types let you manage a large variety of circumstances that are critical to your business processes by automatically notifying the right users either as soon as the situations occur or at a defined time.

To set up a team in SAP S/4HANA Cloud, log on as a configuration expert and choose the Manage Teams app.

This application allows the business process specialist to manage teams, team members, and their responsibility definitions, such as functions. The teams or team members can then be mapped as responsible for an activity type in a process step of a workflow or a normal business scenario.

Select the type FCLM0, set the Responsibility Definitions, and assign a function to the team members. For the dual control mode, this is SFCLM_DC, and, for the house bank configuration payment configuration, choose SFCLM_CPC.

Use Cases for Situation Handling

There are two uses cases where situation handling can be applied in the Bank Account Management context:

  1. If you are using the dual control mode for approving bank accounts, you can use a situation template to inform business users that a new approval process was started.

  2. If, for example you are closing a bank account from the SAP S/4HANA system, you can inform specific members in your organization that a house bank account is still used in payment configuration even though its linked bank account is closed.

In dual control mode, you can configure a situation type to inform a specific group of users about bank account revisions that are pending activation for a certain number of days.

To create a new situation type for the bank account revision process, complete the following steps:

  1. Open the Manage Situation Types app.

  2. Search for the FIN_BANKACCOUNTREVTOBEPROCESSED template.

  3. Select the template and choose the Copy button to copy the template to a new situation type.

  4. In the new situation type, define the following settings according to your needs:

    • Conditions: Define the conditions for triggering the notification. For example, you can define the account type, company code, and a pending period for triggering the situation (in the Not Processed For Days field).
    • For the dual control scenario, the Revision Status needs to be kept as 02.
    • Notification Details: Define the notification message. You can choose to aggregate notifications and resend notifications each day.
    • Situation Monitoring: Define whether you want to monitor this situation type in the Monitor Situations app.
    • Batch Job Scheduling: Schedule a time for running the batch job.
    • Manage Responsibilities: Define recipients for notifications. You can use either the default team or the default responsibility rule, or both.
      • Responsibility by Teams: Add the default team Bank Account Management and select the Function for Dual Control Situation option.
      • You can define users for this team in the Manage Teams and Responsibilities app.

If the conditions are met, respective users will be informed. Depending on the setup, the texts are displayed. The recipient will also be informed via e-mail about the new situation.

Extensibility

Extensibility: Custom Field

You can extend the Manage Bank Accounts app according to your business needs.

This process enables you to create and maintain custom fields that can be used to enhance applications which contain APIs and data sources that have been released by SAP to add custom fields.

You can extend the Manage Bank Accounts app according to your business needs.

Key users can extend the Manage Bank Accounts app in the Custom Fields and Logic app using the business context Bank Account Master Data.

First you need to define the field properties of the new custom field. Give it a label, type, and length. Depending on the type you will be able to provide a certain set of values.

When you have set these parameters, you need to enable the field for UIs and Reports within the Custom Fields and Logic app. Finally, you publish the new custom field.

Once the custom field is defined in the app Custom Fields and Logic, you can turn to the Manage Bank Accounts app to extend the information already given in this application.

The newly created field, here we used the SWIFT Service Code, should be added to e.g. the Bank Details section.

Use the user menu at the top to adapt the UI of the Manage Bank Accounts app. Look up the required field and publish the change. Finally, save the adapted UI.

If the UI adaption process is finished, you will find the additional field, e.g. SWIFT Service Code, in the Bank Details section of your Manage Bank Accounts app.

Extensibility: Custom Logic

Next, you can also add custom logic to a custom field.

This process enables you to create and maintain custom logic that can be used to enhance applications that contain internal APIs that have been released by SAP for use in ABAP code and data sources.

With the Custom Logic tab in the Custom Fields and Logic app, you can create and maintain implementations of custom logic that can be used to enhance applications and change application behavior.

You can implement custom logic for the following Business Add-Ins (BAdIs):

  • Automatic Field Population upon Field Update
  • Automatic Field Population upon Account Creation
  • Field Status Control for Bank Accounts in Workflow Processes

Use these predefined BAdI implementations to to enable approvers to make changes to bank accounts in workflow approval steps, define how custom fields are filled automatically or by default.

For the BAdI implementation itself you can refer to the attached documentation. You are able to import your custom code to the BAdI and also test the implementation once set.

Ifyou are satisfied with the implementation, you can publish the custom logic.

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