🎯 State of SAP 2024 ReportFind the State of SAP 2024 ReportCheck Report
Back to Glossary

Bank Reconciliation

Finance

Definition

The process of matching and comparing figures from accounting records against those shown on a bank statement.

Detailed Description

Bank reconciliation in SAP involves verifying the balance in an organization’s accounting records with the corresponding information on a bank statement. This process ensures the accounting records are correct and helps identify discrepancies due to errors or unauthorized transactions. The reconciliation is crucial for maintaining financial accuracy and is a fundamental aspect of financial management in SAP systems.

Key Features

  • Automated transaction matching
  • Customizable reconciliation criteria
  • Discrepancy management and resolution
  • Handling of differing currencies
  • Integration with various banking systems

Common Modules

SAP FI (Financial Accounting)

Core component that supports the overall financial processes and operations.

SAP TRM (Treasury and Risk Management)

Facilitates management of corporate treasury operations and financial risk.

Popular Implementations

Bank Reconciliation Implementation in a Multinational Corporation

This implementation entailed configuring SAP FI and TRM modules to handle multiple currencies, automate matching of transactions, and integrate with international banks’ systems for a multinational corporation.