Lesson 1 of 5
House banks and accounts
6 min
Bank accounting connects SAP S/4HANA to the company's real bank accounts. Payments leave through them, customer receipts arrive in them, and the bank statement is the external proof of what actually happened. Before you can import statements or match items, you need to understand how SAP represents a bank account and how it links to the G/L.
Banks, house banks and house bank accounts
A bank in SAP is master data about a financial institution: name, address, routing number or SWIFT code. A house bank is a bank the company itself uses, identified per company code by a short house bank ID. SAP's learning content explains that the house bank holds the bank master data and the details needed for electronic payments, and that the payment program uses the house bank ID to choose which bank pays. Each actual account at that bank is a house bank account, identified by the combination of house bank ID and account ID.
In SAP S/4HANA, bank accounts are maintained in the Fiori app Manage Bank Accounts. SAP's learning content lists what it holds: general data such as account number, holder and IBAN; bank relationship data such as contacts and bank statement settings; house bank account connectivity, which links the bank account to its house bank account; overdraft limits; and descriptions and attachments. Without a cash management license this is the "lite" scope of bank account management; the cash management course covers the full scope and its approval workflows.
Linking to the G/L
Every house bank account needs G/L accounts. SAP supports two approaches. In the classic balance sheet approach each house bank account has its own G/L account of type balance sheet account, one to one, with the same currency. From SAP S/4HANA 2020 the bank reconciliation account approach uses the G/L account type cash account: a main G/L account with subtype B (bank reconciliation account) can be shared by many house bank accounts, and bank clearing accounts with subtype S (bank subaccount) are assigned to it, typically one per payment method. The two approaches can run side by side.
| Balance sheet approach | Bank reconciliation account approach | |
|---|---|---|
| Main G/L account type | Balance sheet account | Cash account, subtype B |
| Relationship to house bank accounts | One G/L account per house bank account | One G/L account for many house bank accounts |
| Clearing accounts | Separate G/L accounts per account and purpose | Bank subaccounts (subtype S), per payment method |
| Available since | Long-standing | SAP S/4HANA 2020 |
| Effect | Many G/L accounts | Fewer G/L accounts; house bank and account ID identify the account on each line |
Why bank clearing accounts exist
A payment and the bank statement that confirms it rarely happen on the same day. When Contoso's Friday payment run pays Lakeside Components, the run posts debit supplier, credit outgoing transfer clearing. The money leaves the bank account Monday, and Tuesday's statement shows it. Statement processing then posts debit outgoing transfer clearing, credit main bank account and clears the clearing item. The main bank G/L account therefore always mirrors the bank's own view, and the clearing account holds items in transit.
- Friday: payment runDebit Lakeside Components; credit outgoing transfer clearing 9,800
- Monday: bank executesMoney leaves the account; nothing posted in SAP yet
- Tuesday: statement importedDebit outgoing transfer clearing; credit main bank account 9,800
- ResultClearing item cleared; main bank G/L equals the bank's balance
What would you do?
A key user proposes posting the payment run directly to the main bank G/L account to "save a step". What is the main problem?
- Bank master describes the institution; a house bank is the company's bank; a house bank account is house bank ID plus account ID.
- Manage Bank Accounts maintains bank accounts and their connectivity to house bank accounts.
- Since SAP S/4HANA 2020, cash account type with subtypes B and S lets many accounts share one G/L account.
- Clearing accounts hold items between payment and statement; the main bank account mirrors the bank.
Check your understanding · not graded
Lesson check
1. What identifies a house bank account?
2. What is the main purpose of a bank clearing account?
3. Which G/L account type is used for the bank reconciliation account approach?
4. Which app maintains bank accounts in SAP S/4HANA?