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.

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

House Bank Accounts V/S GL Mapping:

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.

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.

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

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:

2. 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

3. 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

2. 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.