Reporting for Banks and Bank accounts

Objectives

After completing this lesson, you will be able to:

  • Explain relevant global business and finance theories
  • Navigate the Manage Bank Account and Bank Relationship Overview apps

Global Company Codes and Banks

Sometimes, working with international companies and banks means understanding the theory behind the practice. The most common theories include globalization, internal business, and finance theory.

  • Globalization: Globalization theory describes how individuals, firms, and governments interact globally, enabling cross-border business operations and collaboration with international banking systems.
  • International Business Theory: This involves commercial transactions between two or more countries, including resource leveraging, selling goods, and providing services across national borders. Companies typically have different codes for each country of operation and work with banks from various countries.
  • Modern Portfolio Theory (MPT): MPT recommends diversifying investments to optimize returns and minimize risk. This applies to business management by spreading risk with multiple company codes or overseas bank relations.
  • Product Life-Cycle Theory: This theory outlines the stages of a product's lifespan, from conception to retirement. In the maturity phase, companies seek new markets to maintain growth, expanding into different countries with new codes and banks.
  • Exchange Rate Theory: This theory explains how currency values compare. Companies working in multiple countries must manage exchange rate risk, often working with different banks.
  • Institutional Theory: Companies must comply with local rules and regulations to gain legitimacy and survive. Expanding into a new country may require creating a new company code and working with local banks to comply with local norms.

These theories and concepts demonstrate the business's need to diversify operations globally using different company codes and overseas bank relations.

A company code is a unique key that classifies an independent accounting entity in an organization. In other words, it is the smallest organizational unit for which a complete, self-contained set of accounts can be drawn up for purposes of external reporting. For instance, a multinational firm may have different company codes for each of its foreign and domestic subsidiaries.

This allows for detailed accounting and reporting for each distinct entity, even when they belong to the same overall organization. And not only is it important to work with different company codes or with banks, but it's even more crucial to report these data in a careful and detailed manner in order to improve your own business.

Reporting in the Manage Bank Accounts app

Manage Bank Accounts app has filter options to display/search bank accounts. The upper section has filters, and lower section displays results.

For example, in the first scenario, the app displays Malaysian banks based on filter criteria, and in the second scenario, the app displays bank accounts from Germany with the bank key 82080000 with more information per line.

Bank Relationship Overview app

The Bank Relationship Overview app provides vital information about your bank relationship management. It provides a central source of information for recent payments, bank profiles, fees, and account statuses. Three filters are mandatory for the correct display: Display Currency, Exchange Rate Date, and Exchange Rate Type.

You can modify the overview page by reordering and showing or hiding cards. Drag and drop cards to reorder. See some further information on the available cards below:

  • Payments by House Bank: This report displays the total number and value of payments received and sent by the House Bank in the past 90 days.
  • Bank Profiles by Bank Group: Your company's bank accounts are organized into different bank groups. This report displays the number of banks and accounts within each group.
  • Bank Accounts by Status: This report displays the number of bank accounts by account status - active or closed.
  • Bank Accounts by Revision Status: This report displays the number of bank accounts by revision status.
  • Bank Fees by Bank Group: This report displays the total bank fees by bank group.
  • Workflow Requests by Status: This report displays the number of bank accounts by workflow status.

Display House Banks app

The Display House Bank app in S/4HANA helps users view detailed information about their organization's house banks.

Display House Banks App - Overview: It shows an overview of house bank data such as company code, bank ID, country, and key.

Display House Banks App - House Bank Details: Users can also view details of a particular house bank including its bank data, control data, and assigned house bank accounts with their IDs, currency, and account number.

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