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com

CONFIGURING THE SAP NEW CASH ACCOUNT TYPE

FOR BANK RECONCILIATION
Configuration and End User Testing
[No need for separate Main, Incoming and Outgoing
GL accounts for banks anymore]

Okechukwu Joshua Utazi

SAP FICO Consultant
Linkedin: https://www.linkedin.com/in/okechukwu-utazi/
Email: joshuautazi@gmail.com

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Contents
The BIG Difference (Old vs New Method)..................................................................................................... 3
The Old Method ........................................................................................................................................ 3
The New Method ...................................................................................................................................... 3
Introduction .................................................................................................................................................. 5
Configuration (New Method)........................................................................................................................ 6
Scenario..................................................................................................................................................... 6
Naira accounts .......................................................................................................................................... 6
Domiciliary accounts ................................................................................................................................. 8
Create house banks and account ids ...................................................................................................... 11
MANUAL BANK RECONCILIATION CONFIGURATION .............................................................................. 13
FBZP SETUP ............................................................................................................................................. 16
END USERS .................................................................................................................................................. 25
Change Vendor Master Data................................................................................................................... 25
Test Automatic Payment program(F110) ............................................................................................... 27
Post Outgoing Payment .......................................................................................................................... 30
GL Line Balances...................................................................................................................................... 31
Perform Bank Reconciliation for ZEN01 Account in ZEN01 House Bank only ........................................ 33
SUMMARY ................................................................................................................................................... 36
Key Areas of Change ............................................................................................................................... 36

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The BIG Difference (Old vs New Method)

The Old Method
With this method, one is required to create 3 GLs per house bank and bank Account. Therefore, if the
client has a Total of 3 bank accounts, for each combination of House Bank and Account ID, we must
create 3 GLs (Main, Incoming and Outgoing), which is a total of 9 GLs for 3 bank accounts of the client.
Hence if the client has 50 bank accounts, we are required to create 150 GL master data irrespective of
the payment method.

Often time, this can be stressful, and mistakes are inevitable especially during the FBZP configuration.

The New Method

With the new method, we do not need to create 3 GL master data per combination of House bank and
Account ID anymore. If the client uses:

1. Only One Payment Method for Incoming and Outgoing Payments: All That is require is to
Create 3GLs (1 Main & 2 subaccounts (for incoming and outgoing)) for all the local bank
accounts of the client and another 3GL for all the foreign bank accounts of the client.
2. Only Two Payment Methods (Check and Transfers) for Incoming and Outgoing Payments:
Create 5GLs for all the local bank accounts of the client (1main bank and 4 sub accounts) and
another 5GL (1main bank and 4 sub accounts) for all the foreign bank accounts of the client. See
screenshots below:

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With the new method, one is no longer required to create 3 unique GLs per house bank and bank
Account. Therefore, if the client has a Total of 3 bank accounts and 1 payment method, we only need to
create 3 GLs (Main, Incoming and Outgoing). Same GL will serve all the House banks and Account IDs
Hence if the client has 50 bank accounts and one payment method, we are required to create 3 GL
master data.

Total Number Number of Payment Methods Total Number of GL required Master

of Clients Bank Data
Accounts Incoming Outgoing Total Old Method New Method
10 bank 2 2 4 30 5
Accounts
20 Bank 2 2 4 60 5
Accounts
30 Bank 4 4 8 90 9
Accounts
40 Bank 4 4 8 120 9
Accounts
Etc.

KEY DIFFERENCE

In the Old Method, the subaccounts increases if the bank account increases, while in the new method,
the subaccount GLs increase if the payment method increases.

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Introduction
The Cash Account type in SAP was introduced in s/4 HANA 2020 and higher versions and is not
available for older versions. In the cash account type, there are 3 sub types
1. B – Bank Reconciliation Account

Reconciliation account for house banks. You assign this GL to all account ID and assign all subaccount type S
to this account.

2. 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.

3. P – Petty Cash

This is used for Petty cash transactions. In our case, we will work with B and S subtypes.

OLD METHOD NEW METHOD

NEW METHOD
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Configuration (New Method)

Scenario
In this scenario, we assume a client in the FMCG industry. The client has the following:

- 32 Bank Accounts: The client has 18 Local currency bank accounts and 14 Domiciliary bank accounts. In
some house banks, the client has both local currency and domiciliary accounts.
- 2 Payment Method (Transfers and Cheques for both Incoming and Outgoing Payments: This means that
the client has a total of 4 payment methods. Cheque and Transfer for Incoming and Cheque and Transfer
for outgoing.

See screenshots in the section in the section above titled: “The BIG difference: The new method” see the bank
accounts and the Excel mappings.

Create Bank GLs

Naira accounts
1. First, we create the Main GL(reconciliation account) for all the Naira Accounts (XXXXXXX0)

2. Create the Incoming and Outgoing Subaccounts for Payment Methods used in the Naira accounts and
assign them to the reconciliation account.
- Sub- Accounts for Incoming payment methods (XXXXX1)

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- Subaccount for Outgoing payment methods (XXXXXX2)

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Domiciliary accounts
1. First, we create the Main GL (reconciliation account) for all the Naira Accounts (XXXXXXX0)

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2. Create the Incoming and Outgoing Subaccounts for Payment Methods used in the Naira accounts and
assign them to the reconciliation account.
- Sub- Accounts for Incoming payment methods (XXXXX1)

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- Subaccount for Outgoing payment methods (XXXXXX2)

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Note: All subaccounts (xxx1 and xxxx2) have the Open Item Management checked. The Tick box is hidden and not
required for reconciliation accounts(xxxx0)

Create house banks and account ids

Assign the GL 2000000030 to all the Local currency account ID, and the GL 2000000050 to all the Domiciliary
bank accounts. For Example, in our case, the client has a Local currency Naira Account and a USD account in Zenith
Bank and many other banks. For Zenith bank, we will therefore create 1 house bank and 2 account IDs in that bank.
The first account ID (Naira Account) is assigned to 2000000030, and the other account (USD) is assigned to
2000000050. See screenshot below:

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House Bank ID: ZEN01 Account ID: ZEN01

House Bank ID: ZEN01 Account ID: ZEN02

You need to create all the House banks and banks accounts assign GL 2000000030 to all NGN bank accounts and
2000000050 to all USD bank accounts.

See a few more screenshots:

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ETC.

MANUAL BANK RECONCILIATION CONFIGURATION

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FBZP SETUP

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Ranking Order for Cheques incoming in NGN

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Ranking Order for Cheques incoming in USD

Ranking Order for Checks Outgoing in NGN

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Ranking Order for Checks Outgoing in USD

Ranking Order for Bank Transfers Incoming in NGN

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Ranking Order for Bank Transfers Outgoing in USD

Ranking Order for Bank Transfers Outgoing in NGN

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Ranking Order for Bank Transfers Outgoing in USD

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Note: we no longer need to assign Bank Subaccounts. If you want to assign specific bank accounts, you can do so
under the Bank Accounts (Enhanced Tab)

Set Up Available Amounts in the various Accounts

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Set up value date for every payment method.

Assign Account Symbol to Payment Methods

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END USERS
Change Vendor Master Data

Change the Vendor Master record according to your specifications in FBZP

Assign a Payment Method and house bank on the transaction tab

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Post Vendor Invoices

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Test Automatic Payment program(F110)

Create and Save Parameters

Create Proposal

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View Proposal

Automatic Payment is fine

Note: I will be manually posting outgoing payment for this vendor to show the difference between the
old and new method

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Post Outgoing Payment

Enter the Date and other parameters. In our case, we will use the Outgoing Cheque payment methods
GL

Note: from the screenshot above, a big change has occurred here.

OLD METHOD NEW METHOD

Account Field and House Bank You only need specify GL You must specify GL account,
Field account and the system the House bank and account ID
automatically knows the House because there is a 1 to many
bank and account ID because relationships. If you specify only
there is a 1 to 1 relationship. If the GL or House bank/Account
you specify only the GL or ID, the system throws error
House bank/Account ID, the
system throws error

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You must enter a House bank and Account ID.

Because we have specified the GL for all local banks outgoing, the system will only pop-up local
banks and account ID for selection.
Go ahead and post the payment

GL Line Balances
Have a look at the GL Line balances

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Note: that for this outgoing GL, we could have multiple combination of House bank and Account
ID. Therefore, you must filter by House bank and Account ID to perform bank reconciliation

See Carry forward balances for the specified bank

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See Outgoing payments for the month

Perform Bank Reconciliation for ZEN01 Account in ZEN01 House Bank only

The balances above is only for ZEN01 Account ID

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The amount has now been reconciled and posted to the reconciliation GL

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SUMMARY
Key Areas of Change
Areas Old Method Screenshots New Method Screenshots
GL Balance Cash Account
Account sheet for for both
Type both Main & reconciliation
sub and
accounts subaccounts
GL Sub - B for recon
Type A/C, S for sub-
A/C and P for
petty cash.

Create You assign -

Bank or each Main
Interest GL to only 1
Tab House bank
and A/C ID
combination
Assign GL Reconciliatio Reconciliation
to House n status is status is YES
bank NO
FBZP: Required No longer
Assign Field required.
Bank You can
Sub choose to
account assign in
s enhanceme
nt tab
Create No need Checked
A/C
symbols
. Self-
Initiate
d
Paymen
t (SIP)

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