Bank statement clearing isn’t rocket science. In essence, it’s simply a process to match an item in an electronic bank statement (EBS) with a line item in a general ledger (G/L), customer, or vendor account. The mechanics behind it, of course, are more complex. To initiate the automated bank clearing process in SAP ERP Central Component (ECC) 6.0, you use transaction code FF_5 to import a bank statement. In setting up an EBS, there are lots of specific details around the transaction types used, the G/L account setup, clearing rules, and more. Yet, assuming all that is in place, there is one element of the entire process that still presents a significant challenge. That challenge is the process of selecting and clearing. The process of selecting and clearing is based on interpretation algorithms and the values they populate in table FEBCL.

In accounts payable (A/P), check clearing tends to be the easiest bank clearing transaction type. The reason is that A/P houses a check number for checks issued out of the ECC system, thereby providing one unique field value for clearing. Therefore, when the bank statement is imported into the ECC system, with check numbers included, this is a sure-fire way of linking a bank statement item with the G/L line item to which it belongs. The other point about A/P check clearing is that banks are accustomed to providing the cleared check number in the bank file, so no complications exist in getting the unique field value (i.e. check number) that’s needed for clearing.

For the most part, SAP EBS functionality extends the A/P check clearing process to all other transaction types, assuming that through the use of interpretation algorithms you can simply designate one unique field value (e.g. document number) that can be used to match a bank item to a G/L item. In many ways, this makes sense. In practicality, however, it’s difficult if not impossible for many transaction types to select and clear open items based upon a single field value.

To illustrate the point further, consider the gamut of transaction types represented on a bank statement. In addition to checks in and checks out, you have incoming and outgoing wire transfers, incoming and outgoing ACH transactions, fees, interest, penalties, returns, and more. Some transaction types, such as fees and interest, more often than not don’t even have a G/L item on the books to clear. That’s fine, because standard EBS tools exist for dealing with transaction types such as these.

Yet, for the other transaction types that do have a G/L item available for clearing, it can prove challenging to get a document number, reference number, or other unique field value throughput to the bank statement. If you are able to do so, I encourage it. If you struggle in coordinating these efforts with your business partners, or in getting your banks to cooperate in providing the data at a reasonable cost, the solution offered in this article may be the right solution for you.

Whatever obstacles you may be facing in getting unique field values for clearing, the alternative approach that I describe allows you to clear bank items based on multiple search criteria. In my example, I use amount and posting date as the multiple criteria, yet there is no need to limit your options to only those two fields. Use your imagination, investigate your transaction types, and do your research to find the combination of field values that works for you. Doing so can not only increase your EBS automatic clear rate but also provide greater accuracy in the bank statement clearing process.

Before you delve into the details of the solution, it is critical to understand the relationship between interpretation algorithms and table FEBCL. Interpretation algorithms in the ECC system define how the note to payee field is interpreted in a bank statement. It is assumed in the design of interpretation algorithms that a unique value can be found and assigned in this field that can serve as the basis to search and clear open items on the G/L. Click here for SAP documentation for interpretation algorithms.

To access interpretation algorithms and assign them to bank transactions, execute transaction SPRO and follow IMG menu path Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions > Electronic Bank Statement > Make Global Settings for Electronic Bank Statement. Click the execute icon .

In the initial screen that appears, the global settings for EBS configuration are displayed with a folder structure. Follow the folder structure Create Transaction Type> Assign External Transaction Types to Posting Rules (Figure 1). Notice that each external transaction type (i.e., detailed line item on a bank statement) has an interpretation algorithm assigned to it.

Figure 1

Global settings for electronic bank statements

When you import a bank statement using transaction code FF_5, each external transaction is checked for an interpretation algorithm. If one is assigned, an entry with the clearing information is populated in table FEBCL (Figure 2).

Figure 2

Example values in table FEBCL

Table FEBCL houses clearing information for each bank detail record. An EBS in the ECC system uses transaction code FB05 (post with clearing) to search and select the open item to clear on the G/L based on the record data in table FEBCL. For example, field ZUORN (i.e. Assignment Number) is populated as a field value in the FEBCL table entries shown in Figure 2.  Therefore, in the Post with Clearing Select open items screen (transaction code FB05), the EBS selects the allocation field (i.e., the Assignment field) to choose open items (Figure 3). Consequently, the Assignment radio button in the Additional selections section of Figure 3 is selected by default.

Figure 3

The Assignment radio button

The link between interpretation algorithms and table FEBCL is critical to the solution that I propose. An external transaction type populates table FEBCL only when an interpretation algorithm other than 000: No Interpretation Algorithm is assigned to it in global EBS configuration (Figure 1).

Modify Table FEBCL Entries with Enhancement FEB00001

The first step of the solution is to modify table FEBCL entries with enhancement FEB00001. To do so, you must first ensure that interpretation algorithm 015: Clearing transaction: selection using assignment is assigned to each external transaction relevant to this solution (Figure 1).

The next step is to put ABAP code into enhancement FEB00001 to modify entries in table FEBCL. To do so, execute transaction CMOD. This action displays the Project Management of SAP Enhancements screen (Figure 4). To view the enhancement, you must create one and activate (click the match icon circled in red) an enhancement project. Doing so is beyond the scope of this article and, here, I assume you already have an active project created.

Figure 4

The Project Management of SAP Enhancements screen

To view the enhancement in your project, click the Attributes button in the Subobjects section and click the Display button. After you access the enhancement project, two buttons appear on the next screen for Enhancement assignments and Components (Figure 5).

Figure 5

FEB00001 attributes

After you click the Enhancement assignments button, you see the assignment of enhancement FEB00001 (Figure 6). If you are creating the enhancement project for the first time, this is where you assign FEB00001 while in change mode.

Figure 6

Assign enhancement FEB00001 in an enhancement project

With FEB00001 assigned, click the Components button. Contained therein is the specific function module and user exit name (e.g., EXIT_RFEBBU10_001) as shown in Figure 7. This defaults in this screen after you assign FEB00001 to your enhancement project.

Figure 7

The components view

Double-click EXIT_RFEBBU10_001. In the screen that appears (Figure 8), click the Source code tab. In this tab, key information is provided on the relevant import parameters, export parameters, and tables. Trying to do anything outside these parameters is a clear indication that you are not using the enhancement properly.

Figure 8

The Source code tab for function module EXIT_RFEBBU10_001

As you can see in Figure 8, the Source code tab for EXIT_RFEBBU10_001 contains Include ZXF01U01. After you double-click Include ZXF01U01, the system displays the screen shown in Figure 9 in which coding for enhancement FEB00001 is entered and activated. In this example, I manually entered the ABAP code and clicked the match icon to activate it (Figure 9).

Figure 9

Inside include ZXF01U01

In this example, ABAP code is provided (Figure 10) to modify table FEBCL entries in two ways. The first set of ABAP code, in lines 90 to 97, provides logic to support a date range for the search by extending the posting date minus one day to posting date plus one day. For example, if the posting date is 08/02/2015, the date range for the search is 08/01/2015 to 08/03/2015.

Figure 10

Enhance FEB00001 code to modify table FEBCL

The second set of ABAP code logic, lines 101 to 111, adds a second line to table FEBCL to search on amount (e.g., field WRBTR).

The first set of ABAP code adds a date range to fields FEBCL-SELVON (i.e., from value) and FEBCL-SELBIS (i.e., to value). The basis for the date range calculation is field FEBEP-BUDAT, which is the posting date in the bank statement line-item table.

The second set of ABAP code creates a second line item for the detailed bank transaction. It creates another clearing rule to search for and select open items by amount.

Figure 11 is an example of how this ABAP code in enhancement FEB00001 affects entries in table FEBCL.

Figure 11

Modified entries in table FEBCL

Screen Enhancement for Program SAPMF05A

The last part to the solution is a screen enhancement for program SAPMF05A, the program called by transaction code FB05 to search and select open items for clearing. Creating and displaying screen enhancements is beyond the scope of this article. However, the code in the enhancement is provided for your reference in Figure 12.

Figure 12

Code for the screen enhancement

The purpose of the screen enhancement is to change the search criteria from an Or condition, which is the default, to an AND condition, as shown in Figure 13. Without this enhancement, the bank clearing would choose for clearing all open G/L items with the same amount or within the date range specified. In other words, the program would select open items with any of these attributes.

Figure 13

Search criteria changed from Or condition to AND Condition

As a result, the only items selected for clearing are open items in the G/L account that have the exact amount and are posted within the posting date range. Even if the result doesn’t provide only one exact match, it significantly reduces the number of entries typically found, thereby reducing the effort when manual clearing is required.

The Impact on Automated Match Rates

Matching data is a two-way street. Although you have a unique document number or reference document in your G/L line item, it does no good for EBS clearing unless that identifier also comes across on the bank statement. The first challenge typically is to determine what unique identifiers to use for each transaction type. When a unique identifier doesn’t exist, try to implement a business process that uses one. You’d be surprised how often you can do so with success.

The next challenge is making this unique identifier available on the EBS. SAP provides several tools for interpreting and using data coming through on a bank statement. Interpretation algorithms and search strings, of course, are the primary tools. The process outside of the SAP system, however, is where the major data challenges exist. Most companies have thousands, if not tens of thousands, of business partners. You may need to coordinate with them and get their cooperation in providing the necessary information on the bank statement.

In an ideal world, getting the cooperation of business partners in these efforts would be easy. However, even if it were, you still need your bank’s cooperation. Moreover, the sheer number of business partners, and the turnover, can make this coordination a daunting effort.

Also, it’s no small order coordinating with the banks to get the data you need coming across on a bank statement in the format you need. Even if the data you need for clearing is being provided by all your business partners, it’s not uncommon for banks to object, saying they have system limitations or simply want to charge you for reprogramming fees or for the additional data. Over the years many clients have told me their banks simply said they cannot provide the data they need. My response is always the same. Go to a more customer-oriented bank if the bank you are with isn’t considering your request.

There are several reasons why one unique field value for EBS clearing may not exist. In such circumstances, standard interpretation algorithms can’t provide the complete solution. However, by putting together multiple search criteria, such as dollar amount and a posting date range, you can still manage to increase your automatic match rate. The solution outlined in this article can be implemented with minimal effort. All it takes is a little ABAP code in enhancement FEB00001 and a screen enhancement to program SAPMF05A. It is definitely worth the investment, but make sure to clearly define your business rules and requirements before you get started.

David Burns

David Burns is owner and managing partner of Prime, LLC. David has specialized in SAP Financials since 1998. Since founding Prime, LLC in 2008, he focuses on techno-functional consulting on a cross-modular basis, with a special emphasis on SAP configuration optimization and FI integration.

You may contact the author at david.burns@primepsm.com.

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