Bank statements include information on bank accounts, deposits received by the bank, and checks cleared.
Each bank statement is composed of one bank statement header and several bank statement lines or called Transmision lines.
The bank statement header record identifies the statement number, bank account number, and statement date. It also contains optional information like the bank name, bank branch name, bank account currency, and control amounts.
A bank statement line can refer to one or more payments, receipts, miscellaneous transactions, open interface transactions, or journal entry lines.
Each line has a line number, transaction type, date cleared (bank transaction date), and amount. Optional information includes the bank transaction code, number, bank transaction identifier (such as the payment or deposit number), currency information (currency code, original amount in transaction currency, exchange rate), value date, customer or supplier details, customer or supplier bank account, a comment, and a descriptive flexfield for user-defined additional information.
A bank statement line's status can be one of the following:
- Reconciled: A few transactions have been matched against this line and the statement line may not be fully reconciled.
- Unreconciled: No transactions have been matched.
- Error: This status is a warning that the line cannot be reconciled because of an error in the bank statement that cannot be resolved. This line must be manually marked as Error. The transaction remains unreconciled because there is no corresponding transaction to which the line can be reconciled.
- External: The line does not correspond to any transaction in General Ledger, Payables, Receivables, Payroll, or the Reconciliation Open Interface, but corresponds to a transaction in another system. You then manually mark the statement line as External, which is then treated by Cash Management as reconciled.
Before you can reconcile transactions against a bank statement, you need to enter the bank statement information into Cash Management.
Bank statements can be either manually entered or loaded electronically from information received directly from your bank.
If your bank provides account statements in a flat file, using a defined format like BAI or SWIFT940, you can use the Bank Statement Open Interface to load this information into Cash Management.
Bank Statements can be in any of the following formats:
Next Post will discuss on different file formats.