How to post cash in SAP and perform daily cash reconciliation. This presentation is targeted to B2B type sales.

1. Cash Receipts in SAP ERP
B2B Sales
Bill Hanna, CPA
Date prepared: September 22, 2015

2. Objective
Discuss best practices in handling/posting cash
receipts in SAP ERP

3. How customers pay – B2B
Check – I recommend setting up a lockbox
This is the most common form of payment.

4. How customers pay – B2B
Check – A lockbox is recommended. Refer to the lockbox slide
This is the most common form of payment.
ACH
Less common but a more favorable form of payment because it’s easier to post
and is received/processed more quickly than a check.

5. How customers pay – B2B
Check – A lockbox is recommended. Refer to the lockbox slide
This is the most common form of payment.
ACH
Less common but a more favorable form of payment because it’s easier to post
and is received/processed more quickly than a check.
Wire
Usually received from customers in foreign countries. There may be an
associated wire fee (usually between $10 and $40).

6. How customers pay – B2B
Check – A lockbox is recommended. Refer to the lockbox slide
This is the most common form of payment.
ACH
Less common but a more favorable form of payment because it’s easier to post
and is received/processed more quickly than a check.
Wire
Usually received from customers in foreign countries. There may be an
associated wire fee (usually between $10 and $40).
Cash
In a B2B environment, you will rarely see the paper notes. We will skip it in this
presentation.

7. Check – There are 2 ways to process checks
1) Lockbox – I prefer this method.

8. Check – There are 2 ways to process checks
1) Lockbox – I prefer this method.
2) Remote deposit – Scan checks in the office.

9. Checks - Lockbox
A lockbox is a post-office box (PO box) that is accessible by a bank. A company may
set up a lockbox service with its bank for receiving customers' payments. The
company's customers send their payments to the PO box. Then the bank collects and
processes these payments directly and deposits them to the company's account.

10. Why Lockbox is a preferred method in
receiving checks?
Automation: lockbox file is download from the bank and imported to SAP. The
SAP lockbox program translates the file and posts to a GL cash account, creates
payment advices that are matched against accounts receivable open items and clears
those items.

11. Why Lockbox is a preferred method in
receiving checks?
Automation: lockbox file is download from the bank and imported to SAP. The
SAP lockbox program translates the file and posts to a GL cash account, creates
payment advices that are matched against accounts receivable open items and clears
those items.
Outsource the tedious work: The bank personnel will key-in all the info
from the check to the lockbox file.

12. Why Lockbox is a preferred method in
receiving checks?
Automation: lockbox file is download from the bank and imported to SAP. The
SAP lockbox program translates the file and posts to a GL cash account, creates
payment advices that are matched against accounts receivable open items and clears
those items.
Outsource the tedious work: The bank personnel will key-in all the info
from the check to the lockbox file.
Segregation of duty: This one is obvious.
How to set up lockbox? Talk to your SAP consultants. It should be fairly simple.

13. Checks – Remote Deposit
Somebody from the AR department will deposit the checks once or twice a week
using the check scanner provided by your bank. He/she will print out a “deposit
report” that will used later in posting cash. The deposit report will include details
such customer name, invoice number, etc.

14. Posting Cash in SAP
Cash from Lockbox:
1. Print the Lockbox Report from bank’s website.
2. Upload the lockbox file to SAP. Ask your SAP consultant for t-code.
3. Use the “reprocess” function (ask your SAP consultant for the t-code) to find if
any errors exist.
4. Fix the errors: There will be some cash items generating errors because the
invoice number keyed-in by the bank does not match SAP due to typo.
5. Tie out: Go to GL line item (T-code FBL3N) and get the total Lockbox for the day
and tie it to your Lockbox Report. Include this tie out in your hard-copy daily cash
package.

15. Posting Cash in SAP
Cash from Remote Deposit:
1. Print the bank report from bank’s website.
2. Print the Remote Deposit summary. You should print this at the time you make
the deposit and keep it handy.
3. F-26 T-code in SAP. Be mindful of the “Posting date” as it should equal the date
you deposited the checks. Enter the total dollar amount of all checks deposited on
that day as one line item. Use that one line to clear it against open invoices in the
system.

16. Posting Cash in SAP
Cash from Wires and ACH:
1. Print the bank report from bank’s website.
2. Search in SAP using FBL5N for open invoices using the name of payer that is
showing on the bank report.
3. Write the customer number you find on the bank report. This should make entry
easier.
4. F-26 t-code to enter cash.
5. Wires often times have $10-$40 deducted as a fee. So write that off against a
bank-fee expense account.

17. Daily Cash Reconciliation
I see this as a crucial step. If cash is reconciled on daily basis,
this means month-end reconciliation will be a breeze.
Your Bank Rec will have the following doc:
1. Bank Report.
2. GL line item of these accounts (for the posting date at hand): Cash,
Lockbox and Lockbox Clearing (if applicable).
3. Supporting docs: Payment devices, Lockbox Report from bank and
Remote Deposit Report if applicable.
Tie total balance per bank to the sum of GL cash and GL Lockbox.
You are done!