Skip to Content
Product Information
Author's profile photo Abhinav Sinha

Bank Reconciliation Accounts in S/4HANA 2020


With an intention of reducing the number of GL accounts and for simplifying the payment process and cash reporting, SAP has introduced a new way of mapping house banks with GL accounts. With this new method, it is possible to assign multiple house bank accounts to the same GL account.

To facilitate this, a new GL account type called ‘Cash Account’ is provided. When user creates a GL account with account type ‘Cash Account’ another field appears called ‘GL Account subtype’. The following values are possible in this field:

  • B – Bank Reconciliation Account

Reconciliation account for house banks. You assign the required clearing accounts to this reconciliation account.

  • S – Bank Subaccount

Clearing account of a bank reconciliation account for payments in transfer. When you create this subaccount, you need to enter the bank reconciliation account it is connected with.

  • P – Petty Cash

Used for petty cash (accounts assigned in cash journal) accounts


A G/L account created with account type ‘Cash Account’ and subtype ‘B’ is called a bank reconciliation account and is the main account for carrying confirmed balances. A bank reconciliation account can be assigned to multiple house bank accounts. You can therefore, for example, decide to set one GL account each for domestic banks and foreign banks. In effect, therefore, bank account has become a sub-ledger of the main general ledger (similar to customer, vendor or asset sub-ledger).

A G/L account created with account type ‘Cash Account’ and subtype ‘S’ is called a bank clearing account. For each main bank reconciliation account created, it is possible to create one clearing bank account for each payment method. When account subtype ‘S’ is selected, you need to assign the clearing account to a main bank reconciliation account.

The new mapping is represented as shown below:

Note: It is still possible to use the previous method of managing banks and their GL accounts. In such cases the GL account type would continue to be created as ‘balance sheet account’ and not as ‘Cash Account’.



User Guidance

In the following section I will show a step-by-step user guidance to demonstrate how the system can be set up and the output expected at each step.

Step 1: Create G/L Account as bank reconciliation account

Note that new G/L Account type ‘Cash Account’ is now available. ‘Cash Account’ is specifically used for bank reconciliation account.

Also, a new field – GL Account Subtype appears when you select GL account type as ‘Cash Account’.

We select ‘B’ indicating that we are creating a main bank reconciliation account.


Output: The G/L account ‘11009990 – Sample Acct for BoA’ is created as bank reconciliation account and it is extended to company code 1710


Step 2: Create a bank clearing account

For bank clearing account also, you enter the account type as ‘Cash Account’.

Note that when you create a GL account with type as ‘Cash Account’ and subtype as ‘S – Bank Subaccount’, another field appears where we need to assign the main bank reconciliation account with the bank clearing account.

We then assign 11009990 as the main bank reconciliation account.

Also note that for each main bank reconciliation account, you need to create one bank subaccount for each payment method.

Output: Bank subaccount ‘11009991 – Bank Clr A/c-BOA’ is created which is assigned to bank reconciliation account 11009990. This account is extended to company code 1710.


Step 3: Create a bank

Create a bank using app ‘Manage Banks’

Output: Bank BoA is created with bank key BOFAUS3N001.



Step 4: Create a house bank

From the ‘House Banks’ section of the ‘Manage Bank’ app, click on ‘Create’ to create new house bank.

Enter the house bank details and assign the bank key just created

Output: House Bank BOA01 is created in company code 1710


Step 5: Create a house bank account

Create a new bank account using app ‘Manage Bank Accounts’

Output: House Bank Account BOA01 is created with account number 100001



Step 6: Assign the bank reconciliation account to house bank account.


In the ‘House Bank Account Connectivity’ tab, create a bank account connectivity by clicking on ‘Create’

Enter the bank reconciliation account created in step 1 in the field ‘G/L account’.

The indicator for ‘Bank Reconciliation Account’ turns to ‘Yes’

Output: House Bank Account BOA01 is assigned to GL account ‘11009990’ for house bank BOA01



Step 7: Assign the bank subaccount in ‘Bank Selection’ for bank customizing

When trying to assign bank subaccount in the customizing for ‘Bank Determination’, the field for Bank Subaccount is greyed out even after selection.


Note that this can be maintained in ‘Bank Accounts (Enhanced)’ tab

Output: Bank subaccount cannot be manually entered in classic ‘Bank Determination’ customizing anymore.


Step 8: Post a supplier invoice

Post a manual FI supplier invoice.

Output: Supplier invoice with document number 1900000001 is posted creating a liability line item.



Step 9: Post outgoing payment.

Use app ‘Post Outgoing Payment’ for posting invoice payment.

Enter house bank and bank account ID.

Enter the GL account. If a GL account other than 11009990 or 11009991 is entered here, the following error is shown.


Correct the GL account to 11009991

Simulate and post.

Output: Journal entry 1500000001 (2020, 1710) was saved successfully




Step 10: Assign the same bank reconciliation account to a different house bank

Create Bank Key

Create House Bank in company code 1710

Create a bank account for house bank HSB01 and assign the GL account 11009990 to it.

Inference: We can assign the same GL account 11009990 to two house bank accounts of different house banks.


Benefits (Point of View):

The new mapping architecture of bank and GL accounts is step forward in rationalizing the chart of account and simplifying the bank process as well. We can foresee several benefits of this new method:

  1. Number of GL accounts is greatly reduced without reducing the granularity of reports since individual bank reports can still be generated.
  2. Easier visibility of the cash balance at GL level without combining several accounts.
  3. Flexibility in displaying bank balance based on desired parameter set – example total balance in domestic banks, total balance in foreign banks.
  4. Since creation of house bank does not entail creation of GL account anymore, the process of creation and use of house bank can be faster especially where they are managed by different teams within an organization.
  5. Bank and payment configuration is simplified with the new setup.

We did not find any specific advantage of using the new account subtype ‘P’ in cash journal except that it is easier to identify in the classification of GL master data as ‘Cash Account’.

I hope this is useful in your conversations with clients on the latest S/4HANA features. Please share your opinion and feedback on this.

Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Sandeep Parasramka
      Sandeep Parasramka

      Hi I have a concern here about how we can do bank reco

      Author's profile photo Abhinav Sinha
      Abhinav Sinha
      Blog Post Author

      Hi Sandeep,

      Could you be more specific or elaborate your concern. 

      Author's profile photo Amar Lal Lohano
      Amar Lal Lohano

      Hi Abhinav,


      Thank you for sharing the document. It is very useful. However, I have noted that while performing outgoing payment, you have used GL Account 11009990 in screen, whereas in document you mentioned use 11009991 G/L Account. I believe, we should use 11009991 account in screen as well and while doing bank reconciliation system will automatically clear the entry from 11009991 to 11009990.


      We would appreciate if you prepare in continuation of this document, a document on performing bank reconciliation with this new account type, so that we can take benefit of out understanding.


      Best Regards,
      Amar Lal Lohano

      Author's profile photo Abhinav Sinha
      Abhinav Sinha
      Blog Post Author

      Hi Amar,

      Thanks for highlighting that. I have changed the screenshots to reflect the text. Just reinforces the fact that either of the two accounts can be used.

      Appreciate you reading through the document. I will try posting another blog with changes in the EBS process as and when possible.



      Author's profile photo Muhammad Hasan Mufid
      Muhammad Hasan Mufid

      Hi, Abhinav


      Thank you for posting, really appreciates.. well done



      Muhammad Hasan Mufid

      Author's profile photo Genevieve NOWACZOWSKI
      Genevieve NOWACZOWSKI

      Hi Abhinav Sinha

      thanks for your post, I would like to know, in my SAP System 1909 on-premises, this kind of reconciliation account B - Bank is not available. I have


      Screenshot of FS00

      what do you do to have this option?



      Author's profile photo Abhinav Sinha
      Abhinav Sinha
      Blog Post Author

      Hi Genevieve,

      This feature is only available from S/4HANA 2020. It is not available in 1909.

      Secondly, the bank reconciliation account option does not appear in this drop down. It must be selected in the 'Type/Description' tab in GL master.



      Author's profile photo Sarankapani Narayanan
      Sarankapani Narayanan

      Thanks Abhinav for your post. Currently, we have 3 GL Accounts for every bank account - i.e. main account, outgoing clearing account and incoming clearing account. I understand that we can create sub account for incoming clearing and outgoing clearing account and the same can be linked to bank reconciliation account. However, how is the main account? Should we create a sub account for main account as well and link to bank reconciliation account ? (or) the bank reconciliation account itself would be used as main account for posting bank statement. Could you please clarify on this?

      Author's profile photo Shadi Sayed
      Shadi Sayed

      Thanks Abhinav for your post it really helped me.

      But I'd like to ask about how the bill of exchange will going to work as it requests an interm account for each bank account id, and since I assigned the same interm account for all the bank account IDs, it keeps giving me the bellow error.


      Cannot determine interim account

      Message no. ICC_TR193


      The bank account where you present a bill of exchange (or check) has to be assigned to an interim account that is used to record bills that you have presented for collection, pending clearing. You have to assign each bank account to a different interim account.

      The interim account that you have entered is either not assigned to a bank account or is assigned to more than one bank account.



      Maintain your bank data

      Author's profile photo Abhinav Sinha
      Abhinav Sinha
      Blog Post Author

      Hi Sayed,

      It’s a known limitation with the current release that bank reconciliation cannot be used with bill of exchange. In one of the future releases, this may be removed but as of now, you will need to create regular bank GL accounts to work with BoE.



      Author's profile photo Shady Sayed
      Shady Sayed

      I face another problem right now while processing “manual bank statements” in SM35 it kept asking me for House Bank and Account ID for every line item inserted in the statement which may reach 500 or maybe more line items if we go to production with these new banks method.


      Any thought, please?

      Author's profile photo Pedro DE Morais
      Pedro DE Morais


      Why is this considered to be new? In ECC or until s4 hana 1809 you could also have 1 GL main account for many house banks and then have the balance by house bank account Iid combination. Same for bank clearing accounts or petty cash...

      Or was there some issue with this old solution?


      Thanks in advance for your opinion or explanation on this.

      Pedro M.

      Author's profile photo Partheban S Vellingiri
      Partheban S Vellingiri

      Hi Abhinav,

      It is really a good blog and a very useful one. I have one query here.

      You mentioned that we can use same set of bank accounts (main, inc clr & out clr) for multiple bank accounts right. In this case from cash management perspective, how we would be able to see cash position from house bank wise?

      For eg: In current system I have 2 HBs, for those 2 HBs I have 6 GL accounts created. so in FS00 i will be maintaining planning level for all those 6 GLs respectively, now if run FF7AN i would able to see cash position for 2 different house banks based on my settings.

      In 2020 version if we are using same GL for multiple house banks how system will split the respective bank's balance in FF7AN report? as we have both bank's balances are posted to single set of GL accounts (Main, Inc clr & out clr).

      Really appreciate your response on this.



      Author's profile photo Pedro DE Morais
      Pedro DE Morais

      Has SAP provided related infrastructure to cope with this new feature like:

      - be able to do balance interest run by house bank/account id in f. 52? Otherwise how can you compute accrued interest for one g/l account but multiple interest rate calculations for each bank within that same account?

      - be able to configure ff7an/ff7bn on house bank and account id instead of gl account

      - provide house bank and account ID in dynamic selections in fbl3n and similar reports




      Author's profile photo Thomas Janssen
      Thomas Janssen

      That would be interesting for me, too. Is there any information in the meantime espacially for FBL3N?

      Author's profile photo Abhinav Sinha
      Abhinav Sinha
      Blog Post Author

      Bank interest calculation is a known limitation and SAP should provide a solution in future updates.

      Not sure about the other two. Even if house bank is not visible in dynamic selection, it should be possible to bring it in FBL3N reports through config.

      Author's profile photo Adrian Di Nanno
      Adrian Di Nanno


      Thanks for your detailed Blog and explanations, really nice !!

      I just have a question for you. We are trying to do a prototype of this solution to reduce our number of GLs in the CoA and we are running into some issues ...

      Do you know if with Bank Subledger you can have 1 House Bank with Multiple Account IDs / Bank Accounts inside it ? Also some of these Account IDs on different currencies ?

      The system is not allowing us to create more than 1 Account ID inside the same House Bank. Does it mean that we need as many House Banks as Account IDs we have ? Even if then we manage all with the same GL accounts.

      Thanks in advance for your help !


      Author's profile photo Abhinav Sinha
      Abhinav Sinha
      Blog Post Author

      We should not need multiple house banks for multiple account IDs. GL account is assigned to account ID and not house bank.

      What is the error you get when trying to create another account ID within the same house bank?

      Author's profile photo Amar Mohite
      Amar Mohite

      How do you do reclassification for an overdraft account supposed there is an overdraft account in the month-end how we reclassify under liabilities. Previously we can configure on statement version right.

      Author's profile photo Amar Mohite
      Amar Mohite

      The above solution, doesn't work if there is an OD account, because at the month-end you need to reclassify the account, we cannot reclassify the house bank. This means solution all aspects are not tested by the SAP team again.

      Author's profile photo Shan Mahmood
      Shan Mahmood

      Hello Abhinav,

      Thank you for sharing these details. Quick question for you as you seemed to be quite knowledgeable in this newly offered  functionality.

      What's the  recommended practice/approach to setup Bank GL Recon accounts? Is it one Bank GL Recon  account per bank or  one GL Recon account per region (local vs. foreign Housebanks)? Any further thoughts. Thanks.

      Author's profile photo Matthias Lasnik
      Matthias Lasnik

      Thanks Abhinav for your post

      I have a question regarding the clearing of the respective GL accounts. Our accounting colleagues noticed the new field house bank in transaction f-03 after the upgrade to s4 2020.

      Do you happen to know if the transaction was changed due to the new functionality? can this be used to clear the reconciliation account separately for each bank?






      Author's profile photo Fatima Mustafayeva
      Fatima Mustafayeva

      Hi, I also want to tuse this fucnction for my client but in our system(1909) there is no Cash Account G.l Account type nor subaccount filed in control tab. Could you tell me please  how can I unhidden this features in FS00?

      Author's profile photo Thilak Chagantipati
      Thilak Chagantipati


      By using this new functionality for house bank while making payment to vendor in F-53 when i selecting house bank and house bank id system will triggered main bank gl account ("B" Recon GL) automatically instead of outgoing bank account ("S" Sub Account), is there any config is missing please let me know 



      Thilak Chagantipati


      Author's profile photo RAHUL SINGH

      Hi Abhinav

      Thanks for sharing the step by step process

      do we have any standard t.code/table where we can check the reports?



      Rahul Singh

      Author's profile photo Ahsan Khurshid
      Ahsan Khurshid

      please mention here if you have found any information about reports

      Author's profile photo AMANDEEP GARG

      Hi Abhinav

      Thanks for sharing step by step functionality of new banking concept.

      We are trying to use the same in S4HANA 2021 and stuck in Step 6: Assign the bank reconciliation account to house bank account where we are not able to assign reconciliation bank account in connectivity path as system is throwing error "Bank reconciliation account is not in use. Specify another G/L account".

      We found that there is one missing field "The indicator for ‘Bank Reconciliation Account’ turns to ‘Yes’" in our screen.

      Can you please help on above said issue.



      Author's profile photo Former Member
      Former Member

      Hi Abhinav,

      thanks for sharing the new concept of setting up new banking concept.


      I have a small question, do we need to split and set up the clearing GL account per incoming and outgoing clearing account for each of main bank reconciliation GL accounts?

      thanks in advance for your reply. Cheers.

      Author's profile photo Ahsan Khurshid
      Ahsan Khurshid

      please tell me if you found any solution for this


      Author's profile photo Okechukwu Utazi
      Okechukwu Utazi


      When I implement this new method,

      I am getting this error when I try posting a G/L Transaction

      An entry is required in house bank field for account 2000000031 (goto item detail).

      I have checked the field status for my account group and its optional.

      Message no. FINS_ACDOC_POST125

      Author's profile photo Shimaa Ibrahim
      Shimaa Ibrahim

      is it must to create reconciliation per each bank currency also if you have an idea if the issue related to BOE have been resolved or not.


      Author's profile photo Marina Ekman
      Marina Ekman


      I am working with S4HANA Cloud for a client. I see that it has been asked several times how the Bank account reconciliation is carried out with this new way of having one bank reconciliation account with multiple house bank accounts. I am also interested in this and it is not easy to find any good documentation. Please share if you can recommend some documentation or if you wish to share it here. Thanks.



      Author's profile photo Ibrahim Mohamed
      Ibrahim Mohamed

      thank you , but i have a comment about this point :

      it is possible to create one clearing bank account for each payment method, How come ?

      Actually i can assigned multiple  same bank account with clearing bank account with different payment terms

      Author's profile photo Marvelous Ajumuka
      Marvelous Ajumuka

      I noticed a problem with automatic bank reconciliation using the new cash account type. The opening and the closing balance do not agree to the MT940 format provided from bank. There should be a way to restrict the reconciliation to a combination of housebank and accountID

      Author's profile photo Albert S
      Albert S

      We are using version 2022.  I am using the Bank Reconciliation Account however I have 7 bank accounts associated with the same gl.  How would I load each bank account using the same reconciliation gl account?  I found something called FQM_INIT_BALANCES but I don't believe that is correct.  It didn't work as it didn't indicate by Account ID.  It has ID on there but it doesn't mean HKTID.

      Any idea?

      Thank you

      Author's profile photo Ahsan Khurshid
      Ahsan Khurshid

      please tell me how to generate individual bank reports?

      as you mentioned in benifit no1.

      Author's profile photo Kishore babu Kamarthapu
      Kishore babu Kamarthapu

      Hi Team,


      Is there any return status from Bank after clearing happened.


      Best Regards,