Tips For Bank Account Processing with Bank Reconciliation Accounts In SAP S/4HANA 2020

Bank account processing is one of the central parts of a business’s financial recording process. SAP S/4HANA makes this process a lot easier than manually updating your bank records. However, S/4HANA is a dynamic platform. As the system evolves, so do the protocols for doing transaction migrations and updates. In the previous iteration of S/4HANA, we’d use Sub GL accounts as proxies to update the main GL account assigned to a particular bank. The newest iteration of S/4HANA changes this slightly, enabling us to simplify the transaction process. Now, only a single GL account is needed with each house account referenced to that one central account.

The New Method of Updating GL Accounts

The new S/4HANA system allows for creating a new type of GL account known as a Bank Reconciliation Account. Using this Bank Reconciliation Account, we can define clearing accounts for each payment method your business utilizes. When we need a new house account, we don’t need to create a new GL account to hold it. We can make it as a sub-account to the current GL account. There’s less clutter and confusion since all your accounts are now in the same place.

For this system to work, our GL account type needs to be a “Cash Account,” and the Clearing Account (as a sub-account) should have the GL Account Subtype as “S.” The Reconciliation Account will be the main GL account that we created. Creating a new Bank Reconciliation Account can be done either through the traditional method of spawning a new balance sheet account, or creating a new cash account, as we mentioned prior. For each payment method you intend to use, you’ll need to have a subaccount to handle it. Each of these house accounts can be held as subaccounts under the Bank Reconciliation account.

Migrating GL Accounts

Migrating GL accounts to replace the Bank Reconciliation Accounts is a simple matter in the current iteration of S/4HANA. Transaction code FS00 will bring up the window, allowing you to make a new account with the subtype “C.” You’ll link this account to the central bank account that your balance is supposed to reside. In the Manage Bank Accounts app, you’ll be opening the House Bank Account Connectivity tab. Choose the house account connected to your bank account (type X), which holds the balance you want to move. Under the House Bank Account Data section, you should see the option to Migrate Account. This action switches the status to “In Migration.”

From here, you’ll enter the type C account number you created previously in the target Bank Reconciliation Account field. Finally, hit save. You’re not ready to start the migration process. For this, we’ll need to run transaction code FB_MIG_HBA_COCKPIT to bring up the migration cockpit. We’ll need to begin by searching for the GL accounts we want to migrate from. These accounts should have their balances marked as “In Migration,” thanks to our earlier work. Choose one or more GL accounts and hit the “Post Selected Account” button. Once you hit the button, the status fields are updated to see the migration taking place. You would be well advised to avoid posting new transactions while the migration is underway, as the system doesn’t approve them to maintain synchronization. You also can reverse the migration if you so choose by selecting the “Reverse Migration” button.