Bank Reconciliation Statement

Cheque received from the customer will be deposited to respective bank account through cheque deposit slip in the system on day to day basis. Direct transfers from the customer’s banks account to company banks account and will be accounted in the system based on the bank advice issued by the Bank. As such it is necessary to reconcile these differences and track the unmatched items that may be cleared later or may need to be reversed. Accounting for bank charges and interest is also necessary. The bank reconciliation process for AL-NUKALY will be carried out in SAP for selected major bank accounts.

Soft copy of Bank Statement will be received from the bank in required format (MultiCash, Swift MT940, DTAUS) supported by SAP for uploading. The soft copy needs to contain a unique field (e.g. Check number or bank advice number) which will be captured in SAP at the time of deposit/ issue of the check.

In SAP the bank reconciliation process is carried out by initially segregating the incoming and outgoing payments at the source of entry in two or more different GL Accounts managed on open item basis. A batch input program created for the purpose. Incoming cheques, outgoing cheques and debits / credits for bank charges / interest will be entered in the same process using appropriate transaction types. In the process of reconciliation system checks the entries & the matched items are transferred to the main bank account that is always kept in synchronization with the bank statement. Unmatched items will remain un-posted in the bank statement. Bank charges and interest can also be posted in the process by defining appropriate posting rules. Unidentified sums that need checking with the bank are transferred to a pre-designated Suspense Account.

Bank Reconciliation Details

Cheque received from the customer will be deposited to respective incoming bank account. Direct transfers from the customer’s banks account to company banks account and will be accounted in the system based on the bank advice issued by the Bank.

All the receipts and payments from the bank accounts are recorded as and when they are transacted. Bank statements are received from the banks at regular intervals.

There is a time gap between dates of cheque deposits and issue of cheques in the books of account and their realisation and presentment at the bank. Also there are items like bank charges and interest and / or reversal of these charges, which are generally accounted in arrears. 

In view of this, at every month / period end there are unmatched items between the books of account and the bank statement. It is necessary to reconcile these differences and track the unmatched items that may be cleared later or may need to be reversed. Accounting for bank charges and interest is also necessary.

The bank reconciliation process for AL-NUKALY will be carried out in SAP for selected major bank accounts as follows:

Soft copy of Bank Statement will be received from the bank in required format for uploading (MultiCash, Swift MT940, and DTAUS).

In SAP the bank reconciliation process is carried out by initially segregating the incoming and outgoing payments at the source of entry in two or more different GL Accounts managed on open item basis.

Manual input transaction is run with Transaction Code FF67 through a batch input program created for the purpose. Incoming cheques, outgoing cheques and debits / credits for bank charges / interest will be entered in the same process using appropriate transaction types.

In the process of reconciliation system checks the entries & the matched items are transferred to the main bank account that is always kept in synchronization with the bank statement. Unmatched items will remain un-posted in the bank statement.

Bank charges and interest can also be posted in the process by defining appropriate posting rules.

After posting the bank statement, a post process activity Transaction Code FEBA to deal with not-yet-posted items as follows:

q  Identify the accounts to be posted and manually post these documents

q  Unidentified sums that need checking with the bank, are transferred to a pre-designated Suspense Account