Changes to FINANCE – Payments in S/4HANA 2020

Major alterations and outbound GL mapping simplifications:

1. Reduce the number of GL accounts for banking (payments, collections, reconciliations, etc.) by using a single set of GLs.
2. How to set up/create the necessary GL master records for the bank.
3. Additional configuration procedures for the payment method option.
4. Final user procedure

Introduction:

The S/4HANA (2020 on-premise release) new update developed a straightforward method for reducing the number of bank GL accounts and adding more options for payments.

Existing strategy:

Up until this point, we have been making distinct bank GLs for each house bank account.

• Having the number “0” Main Bank GL
• GL Collection / Receiving, ending in “1”
• Payment GL with a “2” ending
• With “4” LockBox GL Etc.” at the end

Example:1

If there are two home banks and one has one account and the other has two, the GL mapping would look like the example below.

In the system, GL accounts must be created for the aforementioned house banks.

GL Mapping vs. House Bank Accounts:

Map of current design’s bank accounts and general ledgers

Design That’s Simpler:

C-Cash Account is a new form of GL account that should be used on the balance sheet solely for payment activities.

The following GL Account subtypes must be applied to Cash Accounts:

• Reconciliation Account with the Bank (B)
• Banking Subaccount (S)
• Pay As You Go (P)

We can build a single set of GL accounts in the following combination for all house banks and account ids in the system.

For all bank postings, including bank reconciliation transactions, the house bank and account ID will be filled in. This will allow the use of a single set of GLs for bank or cash reports.

Example 2 and its streamlined resolution

If there are two house banks (in contrast to Example 1), one house bank has one account, and the other has two accounts, we used to have a GL mapping that looked like the one below with a streamlined approach.

In the system, GL accounts must be created for the aforementioned home banks (Single set of the GL accounts only).

GL Mapping vs. Simplified Design Bank Accounts (Single set of GL for All House bank accounts)

Note:

Here, you may see samples and learn how many GLs are needed in each situation.

• For various home bank accounts, we previously created numerous GL accounts (Main & Clearing GL’s). (9 GL accounts for 3 Bank accounts, as in the aforementioned case)
• We will employ a single set of GL accounts (Main & Clearing GL’s) in the new design for various home bank accounts. (3 GL accounts for 3 Bank accounts, as in the aforementioned case)

Before you start:

1. The “C-Cash” GL Account type under the COA level must be used when constructing the primary bank GL.
2. Muse be of GL sub-type B/S/P

• B-Main Bank (“0” at the end)
• “1 / 2 etc.” at the end of the S-Bank Sub Account
• Petty Cash, with a “Any” at the end

3. If Sub type “s,” then “Reconciliation Accnt” must be entered for the primary bank GL account.

4. Make sure the status is Reconciliation Account “Yes” while creating bank accounts and assigning main bank GL under the Connectivity path; if it is not, the procedure will function according to the previous design.

1. Configure Master Data:
   A. The primary bank GL account.

FIORI Display:

GUI Display:

Note:

• The Main Bank Account should not be an open item management account and should be created as a reconciliation account under the COA Level.
• Currency is not a field in the Control data page for GL accounts. The GL currency and FSG are the GL master fields that we are unable to alter from the GL account group (this is the certification question). By design, they are needed fields, but what is the solution?

B. GL Sub Account with the Bank.

FIORI Display:

GUI Display:

C. Open a bank account or display one:

2. Configuration:
        A. Setup of the payment method (“Bank accounts – Enhanced” determination by the bank).

Note:

• The only change to the FBZP parameters is the GL assignment.
• Setting up Bank Accounts Enhanced does not require maintaining a Bank Sub GL Account. Retain GL is not relevant for payments or direct debit collections, but we need maintain other information as shown below (FIORI-Manage Automatic Payment / GUI Transaction: F110). There are no additional implications at all.

                 B. Create new accounts and assign them to account symbols. (S P00 07000249)

Make global settings for the electronic bank statement in SPRO > Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions

• GL must represent a payment or direct debit collection (Open item management).
• Checking the SIP Relev box is required.
• The system will use the “Bank sub Account GL” from this assignment for Payment or Direct Debit collection.
• Table “T033I & T033G” configuration update

                   C. Account symbols should be assigned to payment methods (S ER9 11001586).

Assign Account Symbol to Payment Methods in SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments

  3. User: Manage Automatic Payment (F110/FIORI): Run Automatic Payment

Journal Entry Analyzer Report:

Link Resources (SAP Help):

1. On-Site: http://help.sap.com/viewer/e296651f454c4284ade361292c633d69/2020.000/en-US/93ffc74c8c5643f9a703391ff7f6e1f4.html?
   q=Bank%20Reconciliation%20Account
2. Cloud: 085edb30fb3d413da552832f3d5c01c0/2008.500/en-US/9c02122bef3c482aa2d8640d89ba85eb.html?
   q=Bank%20Reconciliation%20Account

Mistake Message:

We will receive the error message “No bank account entered in table T042I for pmnt method “C” curr.” if the aforementioned setting is lacking. “FZ314 / FZ661,” XXXX

Takeaway ideas:

1. Bank account and GL mapping for N:1.
2. For all Bank GLs (created under GL Account type “C”), the house bank and account id must be included in order to post the transaction.
3. When automatic payments are being made, the system retrieves the clearing GL account from the electronic bank statement settings rather than from FBZP.
4. The main bank GL shouldn’t be managed as an open item.
5. Reducing the bank’s GL accounts and the banking team’s reliance on the GL team will benefit business and save time.
6. House bank and Account ID are always included in bank sub account postings.