Bank Reconciliation Statement in SAP – BRS

Bank Reconciliation Statement in SAP – BRSBank reconciliation statement is reconciliation between the account maintained by your company and the account maintained by the bank. There can be some instances where both the accounts will not tally.

For example: suppose you have given a cheque to your vendor and your vendor has not presented it to bank for payment till date. Because of this transaction there will be a mismatch between the account maintain at your company and the account maintained by bank (while giving a cheque to your vendor you have entered it as a business transaction to your books of account by crediting your bank account but bank is not aware such transaction as they have not received the cheque yet). There can be some other reason for which your company’s account and the bank statement will not tally. Periodically it is the responsibility of the accountant to prepare a bank reconciliation statement and produce the same before the management to know if there are any discrepancies.

In sap you will be receiving two types of bank statement;

  • Electronic statement
  • Manual statement

If you receive an electronic statement then you just need to upload it to sap for the purpose of preparation of bank reconciliation statement. If it is manual one then you need to enter the statement manually into sap. 

Steps for Bank reconciliation statement (BRS)

Create General Ledger Accounts for your Bank reconciliation statement (BRS) – FS00

In the first step for creation of bank reconciliation statement you need to create reconciliation general ledger account for following accounts by using transaction code FS00;

  • Cheque issued out (used when you issue a check to vendor)
  • Cheque wire transfer
  • Cheque Received (when you receive cheque from a customer)
  • Cheque Other interim posting

Accounting entries for Bank Reconciliation Statement (BRS)

For cheque issued out

  • When you issue a cheque to vendor

Vendor Account Dr

To Check Issued Out A/c

  • When cheque is cleared (at the time of BRS preparation)

Check Issued Out A/c Dr

Bank Account

By this entry the cheque issued out account is cleared. In the same way others are also entered and cleared at the time of Bank reconciliation statement (BRS) preparation.

For cheque Received

  • Cheque received from Customer

Cheque received A/c Dr

To Customer A/c

  • Cheque cleared by Bank and payment made (At the time of BRS preparation)

Bank Account Dr

To Cheque Received A/c

Configuration for Bank Reconciliation Statement (BRS)

Make Global settings for Electronic bank statement

SPRO > Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions > Electronic Bank Statement > Make Global settings for electronic bank statement

Enter your chart of account here

  • Create Account Symbol

Create your account symbols here which will be assigned to the general ledger account for posting at the time of BRS preparation.

To do that click on new entries and create account symbols for followings;

  1. Account
  2. Bank charges
  3. Cheque received
  4. Cheque issued
  5. Wire transfer
  6. Other items

Save it

  • Assign accounts to account symbol

For this step you need to double click on the assign accounts tab on the right hand side of the screen. Click on new entries and enter your general ledger accounts against your account symbols created.

Save it

  • Create Keys for posting rules

Double click on create keys for posting rules option available on the right hand side and fill out following for different keys.

  1. Bank charges
  2. Cheque received
  3. Cheque issued
  4. Wire transfer
  5. Other items

You can name anything to identify these kyes

Save it

  • Define posting rules

Click on new entries to define posting rules for the keys we defined in earlier steps. By selecting one keys and double click on the define posting rules and enter followings;

  1. Debit posting key
  2. Credit posting key
  3. Account symbol
  4. Document type to be used
  5. Posting type
  • Create transaction type (required only for electronic bank reconciliation statement (BRS))

Select create transaction type and enter your own transaction type and save it

  • Assign external transaction type to your posting rules (required only for electronic bank reconciliation statement (BRS))

Select the transaction type you created and double click on Assign external transaction option from the right hand screen. Then click on new entries

Enter your posting rules created against external transactions and save it.

  • Assign account to transaction type (required only for electronic bank reconciliation statement (BRS))

Double click on assign bank account from the right hand side screen and enter followings;

  1. key
  2. account
  3. Transaction type
  4. Company code

Extra configuration for manual bank statement

You need two additional configurations for your manual bank statement processing.

  • Create and assign business transaction

To do create and assign business transaction you need to use following path;

SPRO > Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions > Manual Bank Statement > Create and Assign Business Transactions

Click on new entries

And enter the transaction types and posting rules with debit and credit symbol.

Save it.

  • Define variants for manual bank statement

To define a variant you need to use following path;

SPRO > Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions > Manual Bank Statement > Define Variants for Manual Bank Statement

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