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Wire transfer between banks

Former Member
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Please explain.

1) How does SAP handle wires from one bank to another bank, if suppose the client wants to move money from one bank to another bank and also please explain how the money is tranferred from one bank account to another in same bank. How is it done in SAP

Thanx

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Answers (1)

Answers (1)

Former Member
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Sheena,

SAP can created wire details using DMEE to settle payments for vendors. However, I have not seen clients generating bank to bank wire transfers from SAP. It is something that happens online on the bank's website. When the transaction is done, the same is sent by the bank thru the Electronic Bank Statement and the transaction then gets recorded in SAP.

So in that sense SAP is just a transaction recorder. You may be able to do what you are saying by creating the bank as a vendor. But it is a work around and I frankly don't have all the answers to all the related issues that may arise. This is something you may like to test.

Regards,

Former Member
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Vishal,

If the transaction gets recorded in SAP through EBS, it will update only one bank . How will the second bank get updated. Can you please explain the whole process how it will happen. Let me explain how i understand it and you tell me if I am correct or not.

Bank A send wire to Bank B on bank A's website. When the EBS is imported in SAP< bankA gets credited and the clearing account of Bank A gets debited. But this BS does not upddate Bank B. So int his case we do a journal entry, crediting Bank A clearing account and Bank B gets debited. This is going to happen if Bank B is set up just as a G/L account not a house Bank. But if Bank B is also setup as house bank, then we will ahve to get EBS for Bank B also and in that case Bank B will get debited and Bank B clearing account gets credited when EBS is imported in SAP.

Tell me if my understnaidng is corrrect.

Thanx.

Former Member
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Hi Sheena,

Yes your understanding is correct.

Bank to Bank Transfers can be handled using BRS,

In first case your House Bank A clearing account would become NIl after entire process (JV + BRS ) is complete.

However if you setup Bank B as a House Bank, which I think you should, the only problem would be nullifying the Clearing accounts of Bank A and Bank B, as they would both be left with just one side of the entry. You would have to clear them against each other via JV.

Also, since you may be having other transactions in Bank B, it needs to be setup as a Bank account in a House Bank, and not just a GL account.

Thanks

Uma

Former Member
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There is no other activity in Bank B except for receving wires. So then it does not need to be setup as house bank?? Correct??

What is BRS?

Former Member
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Hi Sheena,

BRS is Bank Reconciliation Statement . If you are just receiving wires in Bank B it need not be setup as a House bank....but it is safer to set it up as a House Bank, because they may decide to make payments etc from the Bank at a later date.

for the customer I work: For all different company codes they use Bank accounts only to receive cheques and wires from customers...and all payments are made from a single company code using In - house cash functionality. So technically they never pay from their individual Bank accounts but from the common bank account. yet each bank account has been setu as a House Bank.

Hope this helps.

Regards,

Uma