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Control on Bank CC Accounts

Former Member
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Hi

My client operates a number of bank cash credit (CC) accounts.

Each bank grants a certain CC limit to them, (for example ICICI bank grants Rs 50 lakh CC), beyond which they cannot issue cheques.

They require this to be built into SAP, so that if the limit is reached no further posting of outgoing payments can be made from that bank account and the user gets a warning message.

Could anyone guide me on how i can configure this?

thanks

Roshan

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Roshan,

There is a module in SAP called In-House cash. Using this module will answer your question. Before I go further let me warn you that, implementing this module would be a 'Overkill' just to achieve your requirment (keeping a tab on the CC limits).

Let me explain what this module does.

1. In-House bank is a bank for internal purpose. So like you open a bank account with Bank of India/Bank of America, you open a bank account with the In-House bank.

2.You use this bank account no. (given by the Internal bank) to configure your House Bank (FI12) payment program(FBZP)

3. Internally in the In-House bank, you can set up limits (exactly the same limit you have with your bank BOI/BOA.)

4. So when you run you payment program it updates in-house cash with the outgoing payment automatically.

5. Now there are reports which will tell you whether you are within the limit or you have exceeded the limit.

The real purpose of using the In-house bank is:

1. to reduce the 'real' account with external banks like Bank of India.

2. Have an internal 'payment factory'. What this means is that you can centralize your payment function, in one location when you have multiple company codes which make separate payment to their vendors. This is also called Shared Service Center in some places.

3. All inter company transactions can be routed through the In-house bank. This enables you to do inter-company reconciliation easily at the end of each month. this will also help you to calculate interest on inter-company transactions.

4. You can do Cash Pooling of all your company codes and better utilize your cash.

There are many more benefits of IN-house cash. But as I said earlier, it will be a overkill to implement In-House cash if you are going to use it only to know whether you have exceeded the limits of CC accounts.

I am throwing this in this link so that you guys are aware of this module. This comes under FSCM (Financial supply chain management)

Former Member
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Hi Kalyan

yes i was aware of that from searching SAP help.

In the end we have decided no choice but to go for user exit.

Anybody have insight on the best way to achieve this?

Answers (3)

Answers (3)

Former Member
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question closed

Former Member
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Hello Roshan

Such sorts of limits are placed in case of vendors / customers but not on G/L accounts.

However, somewhat similar things might be achieved through AVC (Availability Control) component of Budget Control System (BCS) which I do NOT advise to use.

More info may be found at: http://help.sap.com/erp2005_ehp_03/helpdata/EN/63/eeec0092069f448ebfc933a6cdc55d/frameset.htm

It is worth to note that situation makes even more complex when clearing accounts (which are most likely in use for bank reconciliation purpose) are used for bank accounts. I mean do you want to place limit on clearing account or main bank accounts.

I think manual monitoring is probably the option at least for the time being.

Ambadas

Former Member
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Actually i have already configured clearing accounts (BRS) for all these accounts.

I was thinking that as the user has to make the f-53 entry using clearing account (CC outgoing payment account), controlling the amount permitted for this account would be sufficient.

Former Member
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Just for the sake of information, the balance in clearing account may not be the actual balance (lying at that point of time in the books of the banks), rather main bank accounts shows actual balance, provided electronic bank statements (EBS) are updated regularly.

Hence I do not think, this approach could supersede manual controls.

Former Member
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Ok then so what you are saying is that i need to get a user exit that checks mainbank balance, compares it to clearing account balance (for dates after date of last recon) and then prevent any transaction that exceeds that calculated limit?

Former Member
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No need of such comparison. Placing a limit on clearing account (provided EBS is updated daily) would serve the purpose. But placing a limit on G/L A/cs is still a real challenge! Isnu2019t it!

Former Member
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The problem is that BRS is only possible for them on a weekly basis, therefore entries would be made for the 6 days of the week until then.

Former Member
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Hi

In the OBVCU settings you can enter the amount in the available bank amount for outgoing payments for the respective banks. Here is you enter 50 lakhs, the amount will be restricted to this amount. You can develop a program so that this amount is updated regularly based on the bank balance.

Hope it helps. You can try for a better solution if anyone provides you with one.

Karthik

Former Member
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Hi

thanks for the reply.

I'm aware of fbzp option but it only works with APP. As our client is not using APP they want the transaction to be blocked whenever that bank account is used in f-53 if maximum amount exceeded.

Former Member
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You would have to use a user exit for this. This cant be done with a standard configuration.