What is transaction type in EBS SAP?

What is transaction type in EBS SAP?

5. Create transaction type – Transaction type contains the external transaction type. External transaction types are codes used by banks to specify the business transaction in bank file. Transaction types in turn are link between External Transaction Types, Posting Rules and Interpretation Algorithms.

What is external transaction type in SAP?

External transactions (also known as business transaction codes) are bank-specific codes for business transactions, each of which involves a different type of payment. The SAP system requires this code in order to identify the business transaction.

What is electronic bank reconciliation in SAP?

SAP have the features of Electronic Bank Reconciliation Statement (EBRS) process where you can directly upload the Bank Statement in a format called MT940. In this process SAP will upload statement automatically & at the same time will do sub-ledger posting & clearing.

What is BAI format in SAP?

BAI and BAI2 file format is a specialized and standardized set of codes used for cash management by the Bank Administration Institute (BAI). The account holder then imports the files to a bookkeeping application (in our case SAP) and performs bank reconciliation if necessary.

What are external transactions?

Definition: An external transaction is an exchange of value between two entities that changes the accounting equation. In other words, an external transaction takes place between two entities or companies in which an account is changed.

What are internal transactions external transactions?

An internal transaction is a business transaction which is not undertaken with any external third party. An external transaction is a business transaction which is undertaken with one or more external third parties.

What is lock box in SAP?

Lockboxs are special depository accounts set up at a bank to which customer remit their invoice payments. Company’s than upload these files in SAP and update their balance and clear customers i.e. A/R accounts.

What is the difference between posting keys and posting rules?

When you assign your Adjustment Accounts you also define posting rules. In the posting rules you specify according to which Posting Keys the Reconciliation Postings are to be made. The posting keys determine whether the posting is made to the debit side or the credit side of an account.

What is manual bank statement in SAP?

Manual bank statement (MBS). If you get your statement in a paper format or the format that cannot be automatically imported into SAP, you have an option to enter the statement details manually using the SAP transaction FF67. Manual postings.

What is the difference between BAI and BAI2?

BAI and BAI2 formats differ in their level of information detail. BAI does not separate out the incoming check line items by invoice subtotal reference. Conversely, BAI2 splits the check total into separate invoice references and associated payment amounts.