Bank accounting
Bank Accounting in FI manages the organisation’s bank transactions, bank master data, bank statements, payments and reconciliation, connecting the ledgers to actual cash movements.
Bank accounting connects to AP (vendor payments), AR (customer receipts), and the G/L (bank and clearing accounts).
- It manages how money physically moves: defining bank accounts (house banks), processing incoming/outgoing payments, importing and…
- House banks & bank accounts: the organisation’s banks.
- Payment program (F110): outgoing payments to vendors.
- Watch out: Manual reconciliation instead of automated EBS.
What bank accounting does
It manages how money physically moves: defining bank accounts (house banks), processing incoming/outgoing payments, importing and reconciling electronic bank statements, and clearing the bank accounts in the G/L against actual bank activity. It is where the ledgers meet the bank.
Key elements
- House banks & bank accounts: the organisation’s banks.
- Payment program (F110): outgoing payments to vendors.
- Electronic Bank Statement (EBS): importing and auto-reconciling statements.
- Bank reconciliation & clearing.
Integration
Bank accounting connects to AP (vendor payments), AR (customer receipts), and the G/L (bank and clearing accounts). Automated EBS processing reconciles bank statements to open items, a major efficiency and control point. In S/4HANA, Bank Account Management centralises bank master data.
Common pitfalls
- Manual reconciliation instead of automated EBS.
- Unreconciled clearing accounts accumulating.
- Wrong house-bank configuration breaking payments.