SAP - FI AR BK: Electronic Bank Reconciliation

The EBS is used to automatically assign incoming and outgoing payments to house bank accounts when they relate to items already posted in the system to customer/vendor/clearing accounts and, where appropriate, the clearing of them.
Each uploaded electronic bank statement will be assigned with a unique no. in SAP and can be printed retrospectively.

 

Steps in Electronic Bank Reconciliation:

1. Electronic Bank Statement file (in SWIFT MT940 format) is extracted from BANK
2. Data (SWIFT MT940 for BANK) is imported into a temporary dataset in SAP
3. Batch input sessions are generated (per bank statement: one session for G/L Accounting and one for Subledgers- AR/ AP).  Bank accounting and subledger accounting batch session can be executed separately or jointly
4. Posting rules and account determination are defined in TR-CM customization
5. As an electronic bank statement is being imported, the system identifies the transactions in it and determines how they are posted. 
6. The note-to-payee fields in the electronic bank statement contain various information relevant to open item clearing.  Note to payee fields can be interpreted by document number or reference document number for the clearing transaction (example: standard algorithm).  If the algorithms we deliver are not sufficient, it is possible to program a user exit tailored to your business (e.g. change the posting rule; influence account determination by means of account modification).
7. Post-processing for posting proposals(line items) which cannot be cleared

Note:
Electronic Bank Statement format SWIFT MT940 is compactable with SAP TR-CM.  Standard algorithm for clearing documents is available in the predefined form in SAP.  Customisation, as stated in point 6 above, will be needed to cope with AAA specific requirements on Bank Reconciliation.  The review task will be performed on the Detail Design Phase, detail of which will be incorporated into the respective customisation functional specifications.

Reasons for adopting Costing-Based COPA

SAP CO-PA was intended for use with a cost-based approach that stores different currencies, quantities and values from SD, FI, MM and PP as PA value fields to manipulate for a variety of reports.  This is the recommended path as it allows more variability in collecting data for PA reports (related to details of cost components for variances, etc.)

In case of High-Tech industry companies using SAP CO-PA, the majority of them utilitise Costing-Based COPA to enable more detail level of Cost of Sales analysis. 

 

Costing-Based CO-PA sometimes does not match with legal book values.  Such discrepancies can be explained mainly by 3 big factors:

Timing differences: When the Delivery step is performed in SAP SD, but Billing is not, nothing gets booked into COPA, but COGS is already booked in the FI legal book.  During the SD Prototype, since Billing Due List (a batch program) will be executed each day, which perform the billing step for Sales Order with Delivery but not yet billed, the COGS and Revenue will be in syn in both FI and COPA for AAA.

 

Accruals: It is possible that accrued values are posted in COPA (might be triggered by program in Sales Order conditions), without any posting in FI legal book
 

Rounding differences from Foreign Currency Translations

Note:
Management using/ viewing these COPA reports need to be acknowledged the fact that due to the intended design of the Costing-Base COPA, values not necessarily always tie to FI legal book. Discrepancies to FI might occur, but explainable.s

SAP- CO : Some of the Product Cost Approaches

§ Finished Goods Inventory in Production Plant AAAA

• Valuation at moving average price per batch (FIFO batch valuation) 
• A new batch number will be generated for each production order (work order) producing the finished product
• Each batch will have a unique material cost
• The material cost of a batch is calculated from semi-finished goods and raw materials that are directly constituting to the finished product according to the BOM

§ Semi-finished Goods Inventory in Production Plant AAAA

• Valuation at standard price updated from standard cost estimates
• All inventory of each semi-finished product will be valuated the same (at the defined standard cost)
• The standard cost can be updated either: 1) manually, or 2) automatically from the cost roll-up (can be using weighted average) of the lower levels of the BOM and can be selectively updated only for certain semi-finished products.
• Re-valuation of existing inventories for semi-finished product will happen whenever the standard cost is updated.  The gain or loss will post to the P/L accounts

§ Raw Materials Inventory in Production Plant AAAA

• Raw materials will be valuated for each batch of the receipts of purchase using the purchase order price.
• The batches of raw materials will be issued to production orders at FIFO.
• No re-valuation of raw materials will be required.

§ All Inventory in Branches

• Inventory will be valuated for each batch of the receipts of STO using the STO price (transfer prices plus the landed costs).
• The batches of goods will be delivered to customers at FIFO.
• No re-valuation of inventory will happen.