Bifurcation of GL Accounts in House Banks

[Former Member]

Hi All,

In definition of a House Bank we can have a main GL account for that particular House Bank and seperate GL Accounts for collections, payments, others, etc. They do not exist in the actual Bank but only exist in system for bifurcation of the transactions. But the balance of the main GL accounts needs to confirm with the actual Bank Account balance. But since there are seperate accounts for collections, payments, etc the balance of all the accounts will need to be transferred to the main GL account. I am not clear as to how this will happen. Will that be done manually or there are some settings in SAP which will do that activity?

Thanks and Regards,

Sameer

[former_member348872]

These subaccounts are clearing accounts to reflect that transaction is not completed yet. Main Bank account gets reconciled while posting Bank statement. Bank statement will credit or debit main bank account and debit or credit clearing account. Clearing account gets balanced and Main bank account will have balance which will be reflected in Balance sheet.

[Former Member]

Hi Sameer

The basic purpose of having main, outgoing and incoming is to do BRS.

Normally whenever you issue check you would credit the outgoing account

same way you debit incoming account. You can do the BRS manually or

automatic BRS, provided your bank gives you statement in MT940 format.

When you do the BRS all the checks debited by bank would be transfered

to your main acccount and all the checks deposited by you and credited by

bank would also be transfered to your main account.

By this way, your bank balance as on last day of the month and main account

balance would remain same till you do the next month BRS.

The line itmes that are appearing in outgoing and incoming account are items

to be reconciled, in short outgoing account shows checks issued but not debited by your bank and incoming account shows checks deposited but not credited by bank.

To accomdate unexpected debit/credit by banks, you can have a separte GL account in SAP

Regards

Chandrasekaran A

[Former Member]

Hi Mr. Chandrasekaran,

This was indeed a very helpful answer. But can you please elaborate a bit on, in case the BRS is manually done, how does the entries get posted to the main GL account?

Thanks in advance..

Sameer

[former_member348872]

Whether it is manual or electronic, following entries are expected..

for eg in case of vendor payment.

Invoice

CR VENDOR INR-100

DR xxx

PAYMENT

DR VENDOR ( Vendor cleared)

CR BANK CLEARING ACCOUNT

BRS

DR BANK CLEARING AC (Balanced / Cleared)

CR BANK

[Former Member]

I have done the configuration of manual BRS. But after the payment of a check from the designated subaccount the entry of transfer to main GL account is not happening. Can I know what can be the reason for this?

Thanks and Regards,

Sameer