Automatic Processing of Bank Statements

This document explains how you automate the processing of bank statements and specifications of customer payments and supplier payments.

Both categories are referred to as bank statement files in this process documentation.

Outcome

The processing of bank statement is completed. The open customer/supplier invoices allocated to the bank statement lines are closed. The general ledger transactions are created, and one or several vouchers are created.

Any variances, cash discount, and tolerance days for payment are managed automatically.

These files are updated:

Note:  The remittance details table (FAPRED) and the remittance header table (FAPREH) are updated only when the bank statement contains supplier payments set up for electronic bank confirmation in 'Suppl Payment. Report Electr Bank Conf' (APS187) and 'Electronic Bank Confirm. Open Details' (APS188). This setup is made on the payment method defined in 'AP Payment Method. Open' (CRS071) by setting the parameter 'Bank Confirmation' to 3='Yes, electronic by ABS'.

Before you start

Follow these steps - Basic

  1. Receive bank statement file through Infor Enterprise Collaborator

    Infor Enterprise Collaborator uses the ABS100MI program to update the main M3 files for managing bank statements based on the received bank statement file. The results are displayed per division, status, and bank statement date in 'Bank Statement. Open' (ABS100).

  2. Specify bank statement manually

    The bank statements can also be entered manually, if you receive the statement on paper. You may specify information about opening and closing balances as well as detailed information about the statement lines. Depending on your routines, you can select to allocate invoices automatically or manually once the statement is validated.

  3. Initiate automatic validation of bank statement file

    In (ABS100/B), select the validation option to carry out a check of the bank statement validity.

    Examples of controls are:

    • The currency must be valid.
    • The total currency amount in the bank statement lines must equal the total amount in the header.
    • The opening balance of the bank statement must equal the closing balance of the previously processed bank statement.
  4. Correct any errors

    Any errors are logged in the FABERR file and are displayed with an error code in 'Bank Statement. Display Errors' (ABS103). Adjust the errors before proceeding.

  5. Initiate automatic allocation of open items to bank statement lines

    In (ABS100/B), select the automatic allocation option to match one or several open invoices to each bank statement line, depending on the line type. This is a preliminary allocation that blocks the affected invoices from being included in another routine. Preliminary journal voucher postings can be created automatically and used for the allocation as well.

    User-defined scenarios determine how the allocation is carried out.

    Review the statuses and amounts resulting from the allocation on-screen.

    Note:  You can always release all allocated open items as long as the ledgers are not updated, if necessary.
  6. Allocate remaining items to bank statement lines

    If the total number of open items allocated to each line does not equal the bank statement line amount or the variance between the two values exceeds the maximum variance allowed, you need to finish the allocation manually based on the bank statement information.

    From the bank statement line, you can display these programs to carry out the remaining allocation or create corresponding journal voucher entries:

    • 'Payment Received. Record' (ARS110/F) and (ARS118/F)
    • 'Suppl Payment. Enter Manual' (APS120/F)
    • 'Journal Voucher. Enter' (GLS100)
  7. Print preliminary accounting journal

    During the process, you can print a preliminary accounting journal reflecting the changes in (ABS100/B) to check the results.

  8. Update the general ledger and the sub-ledgers

    When the allocation is finished, use the update option in (ABS100/B). The ledgers are now updated and one or several voucher(s) are created.

Follow these steps

You can select to what extent the flow described above will be automated by using the 'Next Manual Step' functionality. The degree of automatization can be specified at any time, once the bank statement is displayed in (ABS100) (regardless of whether this has been received as a bank file or entered manually).

The 'Next step' field in (ABS100) determines what will happen automatically when the option 21='Validate bank statement' is used, and which will also be the next manual step in the processing of the bank statement.

Similarly, the 'Next Manual Step' field in (ABS900) determines what will happen automatically when ABS100MI, transaction ValidateStatmt, is executed, and which will also be the next manual step in the further processing of the bank statement in (ABS100).

Valid alternatives

2 = Allocation. This means that the statements will be validated automatically. You must manually start the allocation of the statement.

3 = Update of the general ledger. This means that the statements will be validated and allocated automatically. You must manually trigger an update of the general ledger.

4 = Completely automatic. This means that all the activities mentioned above will be carried out automatically.

Selecting an automated flow speeds up the bank statement process and minimizes your work effort. On the other hand, selecting a less automated flow gives you full control over the activities performed in the process.

Note:  If an error occurs when a statement is validated in (ABS100) or through MI transaction ValidateStatmt, the process is halted. Similarly, if not all statement lines are automatically allocated, there will be no update of the general ledger.

If an error occurs during the processing of the MI transaction ValidateStatmt, the bank statement will remain in the original status and an error message can be reviewed in the error log in (ABS103).

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