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Author's profile photo Viswanatha Reddy

S/4HANA 2020 changes in FINANCE – Payments and Minimizing GL Accounts

S/4HANA 2020 changes in FINANCE – Payments

Major changes and simplifications to mapping GL for Payments / outbound:

  1. Minimize the GL accounts for Banking (Payment / Collections / Reconciliations etc (Single set of GL’s)
  2. How to Create/Setup Bank relevant GL master Records.
  3. Additional payment method setting configuration steps.
  4. End user process.

Introduction:

The S/4HANA (2020 on-premise release) new release came up with simplified solution to minimizing the bank GL accounts and introducing additional configurations for the payments.

Existing approach: –

Until now we have been creating separate bank GL’s for each house bank account like.

  • Ending with “0” Main Bank GL
  • Ending with “1” Collection / Receiving GL
  • Ending with “2” Payment GL
  • Ending with “4” LockBox GL Etc

Example:1

If we have two house banks and one house bank has one account and another one having 2 account, then we used to have GL mapping like below.

House Bank Bank Account GL Mapping
HSBC 123456 XXXXXXX100
CITY 98765 XXXXXXX110
CITY 123987 XXXXXXX120

 

GL accounts are required to create in system for the above house banks.

Main Bank GL Receiving GL Payment GL
XXXXXXX100 XXXXXXX101 XXXXXXX102
XXXXXXX110 XXXXXXX111 XXXXXXX112
XXXXXXX120 XXXXXXX121 XXXXXXX122

 

House Bank Accounts V/S GL Mapping:

Existing%20design%20Bank%20Account%20v/s%20GL%20Mapping

Existing design Bank Account v/s GL Mapping

 

Simplified Design:

The GL Account type: C-Cash Account has been introduced, and It should be a Balance sheet accounts that are specifically used for payment processes.

Underneath, Cash accounts must have one of the following GL Account subtype assigned:

  • Bank Reconciliation Account (B)
  • Bank Subaccount (S)
  • Petty Cash (P)

For all house banks and account id’s in the system, we can create single set of GL accounts in the following combination.

GL Account Type GL Account Subtype Usage Connecting to Main Account
C B Main – Main GL Account which matches with Stmt Balance by House bank and Account Id. No
C S Sub Accounts-Clearing accounts for the Incoming, outgoing payments. Yes
C P Petty Cash – Cash in hand and Cash journal. No

 

The house bank and account ID will be populated for all bank postings including bank reconciliation transactions. This will enable bank or cash reports by using single set of GL’s.

Example:2 with simplified solution

If we have two house banks (comparing with Example:1) and one house bank has one account and another one having 2 account, then we used to have GL mapping like below with in simplified solution.

House Bank Bank Account GL Mapping
HSBC 123456 XXXXXXX100
CITY 98765 XXXXXXX100
CITY 123987 XXXXXXX100

 

GL accounts are required to create in system for the above house banks (Single set of the GL accounts only).

Main Bank GL Receiving GL Payment GL
XXXXXXX100 XXXXXXX101 XXXXXXX102
XXXXXXX100 XXXXXXX101 XXXXXXX102
XXXXXXX100 XXXXXXX101 XXXXXXX102

 

Simplified%20Design%20Bank%20Accounts%20v/s%20GL%20Mapping%20%28Single%20set%20of%20GL%20for%20All%20House%20bank%20accounts%29

Simplified Design Bank Accounts v/s GL Mapping (Single set of GL for All House bank accounts)

 

Note:

Here you see the examples and come to know the how many GL’s are required in both cases.

  • Earlier design, we used to create multiple GL accounts (Main & Clearing GL’s) for different house bank accounts. (as per above example 9 GL accounts for 3 Bank accounts)
  • In the new design, we will be using single set of GL accounts (Main & Clearing GL’s) for different house bank accounts. (as per above example 3 GL accounts for 3 Bank accounts)

Pre- Requisites:

  1. The main Bank GL must be creating with GL Account type “C-Cash” under COA level.
  2. GL sub-type muse be B/S/P
    1. B-Main Bank (Ending with “0”)
    2. S- Bank Sub Account (Ending with “1 / 2 etc”)
    3. P- Petty Cash (Ending with “Any”)

 

3. If Sub type “s” then must be entering the main bank GL account as a “Reconciliation Accnt”.

4. Make sure while creating bank account and assign main bank GL under the Connectivity path          the status must be Reconciliation Account “Yes”, if not then the process will work as per     old design.

 

  1. Setup Master Data:

              A. Main Bank GL Account.

FIORI Screen:

GUI Screen:

Note:

  • Main Bank Account create as Reconciliation account under COA Level and it should not be a open item management account.

 

  • GL account does not have Currency field in Control data tab. (this is the certification question, what are the GL master fields which we will not able control from the GL account group, the answer would be the GL currency and FSG “By design those are required fields, but now what is the answer?

 

             B. Bank Sub GL Account.

 

FIORI Screen:

GUI Screen:

              C. Create / Display Bank Account:

 

  1. Configuration:

             A. Payment method setup (Bank Determination “Bank accounts – Enhanced”).

 

Note:

  • FBZP settings remain same, except the GL assignment.
  • No need to maintain Bank Sub GL Account in setting Bank Accounts Enhanced. However, we should maintain other details as like below, Maintain GL is not relevant for payments / Direct debit Collections (FIORI-Manage Automatic Payment / GUI Transaction: F110). No other implications if at all maintain here.

             B. Create and Assign Accounts to Account Symbol. (S_P00_07000249)

SPRO > Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions > Electronic Bank Statement > Make Global Settings for Electronic Bank Statement

 

  • GL should be a payment / Direct debit collection GL (Open item management).
  • Must be select SIP Relev Check Box.
  • System will take Payment or Direct Debit collection GL account “Bank sub Account GL” from this assignment.
  • Configuration update in table “T033I & T033G”

 

               C. Assign Account Symbol to Payment Methods (S_ER9_11001586)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Method/Bank Selection for Payment Program > Assign Account Symbol to Payment Methods

 

  1. End user: Run Automatic Payment – F110 / FIORI: Management Automatic Payment:

 

Report: Journal Entry analyzer:

Useful Links (SAP Help):

 

  1. On-Premise: https://help.sap.com/viewer/e296651f454c4284ade361292c633d69/2020.000/en-US/93ffc74c8c5643f9a703391ff7f6e1f4.html?q=Bank%20Reconciliation%20Account

 

  1. Cloud: https://help.sap.com/viewer/085edb30fb3d413da552832f3d5c01c0/2008.500/en-US/9c02122bef3c482aa2d8640d89ba85eb.html?q=Bank%20Reconciliation%20Account

 

 

Error Message:

if we are missing the above configuration then we will get the error message “No bank account entered in table T042I for pmnt method “C” curr. XXXX  “FZ314 / FZ661.

 

Take Away points:

  1. N:1 Bank Accounts and GL mapping.
  2. House bank and account id is mandatory while posting the transaction for all the Bank GL’s (Created under GL Account type “C”).
  3. System fetch the clearing GL account wile running automatic payment from the Electronic Bank Statement settings not from FBZP.
  4. Main Bank GL should not be an open item management.
  5. Business Benifit and time taking decession – Minimizing the Bank GL accounts and Banking team no more depending on GL team.
  6. Bank Sub account postings always carry House bank and Account ID.

 

Assigned Tags

      21 Comments
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      Author's profile photo Vamsi Manne
      Vamsi Manne

      Good one Viswa

      Author's profile photo Viswanatha Reddy
      Viswanatha Reddy
      Blog Post Author

      Thanks Vamsi for the inputs provided.

      Author's profile photo Chang-Hee Kim
      Chang-Hee Kim

      Hi, can you explain how to do configuration on S4 Cloud also?

      Author's profile photo Viswanatha Reddy
      Viswanatha Reddy
      Blog Post Author

      Hi Chang-Hee Kim,

       

      please go through the link given below and however the steps remain the same for cloud too (instead of SPRO settings we do have FIORI app (Assign the account symbol to the payment method.) to do the necessary assignments.

       

      https://help.sap.com/viewer/085edb30fb3d413da552832f3d5c01c0/2008.500/en-US/9c02122bef3c482aa2d8640d89ba85eb.html?q=Bank%20Reconciliation%20Account

       

       

       

      Author's profile photo Pavan Kumar Uppada
      Pavan Kumar Uppada

      Valuable inputs , thanks for bringing it to us!

      Author's profile photo Muhammad Hasan Mufid
      Muhammad Hasan Mufid

      Thank Viswa, Good Explanation

       

      Regards,

      Muhammad Hasan Mufid

      Author's profile photo Orbit Chemicals
      Orbit Chemicals

      Great Piece, thanks Viswa

      Author's profile photo Ankish Chaudhari
      Ankish Chaudhari

      Hi Viswa, Very nice and detailed explanation of the functionality which was much awaited and will change the way we create the Bank GLs today.

      Author's profile photo Govindasamy Bhaskaran
      Govindasamy Bhaskaran

      Hi Viswa,

      Good blog with explanation.   Valuable inputs.    Hats Off!

      Thanks for sharing.

       

       

      Author's profile photo pankaj pandey
      pankaj pandey

      Hi Vishwa,

      Nice explanation 👍

      That means all sub GL account type S should be created as account symbol with SIP activated right? in old approach we normally used to do general masking to derive sub GL -clearing account from main GL account.

      Thanks

      Pankaj

      Author's profile photo Viswanatha Reddy Singamala
      Viswanatha Reddy Singamala

      yes, you are correct

      Author's profile photo Anjana Parwal
      Anjana Parwal

      Hi Viswanath,

      Great content.. specially, screenshots were helpful in understanding. Do you have any idea what approach will be used to for maintaining the currencies in the reconciliation account and the main bank account?

      Thanks,

      Anjana

      Author's profile photo Ramanaiah Katari
      Ramanaiah Katari

      Hi Viswa,

      The explanation is really nice. Regarding GL account maintenance in S4 HANA 2020, only one Main bank GL account can be used for all house banks.

      The question is how can we show all bank gl balance in the Financial statement, whereas GL line item we can segregate by house bank but the main concern in the final Financial statement.

      Could you please clarify this.

       

      Regards,

      Ramana.

      Author's profile photo Ramadazkia .
      Ramadazkia .

      Hi Viswa,

      Nice explanation,

      I notice by using this setup, it become mandatory to enter HBANK and ACCOUNT ID in transaction for every Bank GL Account.

      Somehow it got error when you run EBS because the HBANK and ACCOUNT ID is blank, is there any additional setup for EBS ?

       

      Thank you.

       

      Author's profile photo Sadique Hussain
      Sadique Hussain

      Hi @ramadazkia

       

      Were you able to get the answer for EBS HBANK and Account ID blank error?

      Author's profile photo Ramadazkia .
      Ramadazkia .

      Yes, there is note 3023814

       

      But in the end we don't implement this new bank ledger concept because there is another issue in revaluation for this bank GL.

      Author's profile photo VENKATESH B
      VENKATESH B

      Hi Viswa,

      Very well articulated.

      i'm getting the below error after running the proposal in F110, after maintaining all the settings

      "BTE 00001820 is active (see long text)
      G/L account does not exist in company code"

      Have you come across this error and i'm running for FB60 KR docs, where i haven't selected any bank information and is it mandatory to select in the vendor invoices.

      Thanks/ Venkatesh

      Author's profile photo Nicolas A
      Nicolas A

      Hi Venkatesh,

       

      Did you find the solution to solve the error message " G/L account  does not exist in company code" ?

       

      Thanks, Nicolas

      Author's profile photo Adrian Di Nanno
      Adrian Di Nanno

      Hi,

      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 !

      Adrian

      Author's profile photo Lelani Van der Merwe
      Lelani Van der Merwe

      Dear all

      After all the new functionality is activated I see that I can do a manual journal to my new Bank recon account.  In addition, App:  "Post outgoing Payments" also allow me to use the main bank account to pay out instead of the new sub account.

      Any comments is welcome please.

      Lelani

      Author's profile photo Zaid Umer
      Zaid Umer

      Dear ,

      where to assign PROFIT CENTER against house bank & account id.As i am unable to find a field anywhere.

      Thanks in advance.