What's changed in the House Bank Process In SAP S/4HANA?

S/4HANA has introduced a new procedure that simplifies the house bank process. 

In SAP ECC creating a new house bank through which to process payments and receipts meant creating a new set of bank GL accounts and sub-accounts that were connected to the house bank as well as a set of bank clearing accounts.

For companies operating a significant number of bank accounts the upshot was a huge number of bank GL accounts within the Chart of Accounts which was far from ideal.

Depending on the approval process workflow for the GL account this meant it could take days for a new bank account to be set up and ready to use.

Key changes to S/4HANA bank account functionality

S/4HANA introduces the concept of a bank reconciliation account, a new type of GL account.

The benefit of the bank reconciliation account is that it can be connected to multiple house banks as a 1:N assignment and multiple house bank accounts assigned to the same GL account.

This Reduces the number of GL accounts needed and simplifies the payment process.

What does that mean for the user?

A simplified and harmonized Chart of Accounts alongside simplified bank configuration. 

The use of this new procedure and the introduction of bank reconciliation accounts helps organizations to simplify their bank accounting process. There are fewer GL accounts to create and maintain, a streamlined process for setting new bank accounts up and making them available for use, and simplified reporting.

This new procedure isn’t mandatory - you can still continue to use the old familiar way of doing things - but it’s there as an option in S/4HANA.

Build your SAP S/4HANA migration business case with FusionGraph

With the help of FusionGraph it's easy to discover and understand new functionality like House Bank, and add it to your business case for S/4HANA migration. 

Click the link the request a demo.