Configuring House Banks in SAP FICO

House banks in SAP FICO represent the financial institutions where a company holds its bank accounts. Configuring house banks is a crucial step in ensuring seamless payment processing, bank reconciliation, and cash management within SAP. This article explains the step-by-step process to configure house banks in SAP with examples.

Steps to Configure House Banks in SAP FICO

Step 1: Access the House Bank Configuration Screen

Navigate to the configuration screen for house banks using the following menu path or transaction code:

• Menu Path: SAP Easy Access → Accounting → Financial Accounting → Bank Accounting → Master Data → Bank Accounts → Define House Banks
• Transaction Code: FI12

Step 2: Create a New House Bank

On the house bank configuration screen:

• Enter the Company Code for which you are configuring the house bank (e.g., 1000).
• Click on the "Create" button to add a new house bank.

For example, if the company code is 1000, the screen will allow you to create a house bank for this specific company.

Step 3: Enter House Bank Details

Fill in the following details for the new house bank:

• House Bank ID: A unique identifier for the bank (e.g., HB01).
• Bank Key: The unique key for the bank in the SAP system (e.g., 123456 for the bank's SWIFT code or routing number).
• Bank Country: The country where the bank is located (e.g., US).
• Bank Name: The name of the bank (e.g., "ABC Bank").

Example:

• House Bank ID: HB01
• Bank Key: 123456
• Bank Country: US
• Bank Name: ABC Bank

Step 4: Define Bank Accounts for the House Bank

After creating the house bank, define the bank accounts associated with it:

• Select the house bank and click "Create Bank Account."
• Enter the Account ID, which is the unique identifier for the bank account (e.g., ACC01).
• Provide the Bank Account Number, as used by the financial institution (e.g., 9876543210).
• Specify the Currency of the account (e.g., USD).

Example:

• Account ID: ACC01
• Bank Account Number: 9876543210
• Currency: USD

Step 5: Assign G/L Accounts to the Bank Account

Each bank account must be linked to a General Ledger (G/L) account for recording transactions. Assign a G/L account to the bank account as follows:

• Select the bank account.
• Enter the G/L Account number in the respective field (e.g., 110100 for "Bank Current Account").

This step ensures that all transactions related to the bank account are reflected in the appropriate G/L account.

Step 6: Save the Configuration

Once all the details are entered, click the Save button to store the house bank configuration. The system will validate the entries and create the house bank with its associated accounts.

Example Scenario: Setting Up a House Bank for ABC Corporation

Suppose ABC Corporation needs to configure a house bank for its operations in the United States. Here are the details:

• Company Code: 1000
• House Bank ID: HB01
• Bank Key: 123456
• Bank Country: US
• Bank Name: ABC Bank
• Account ID: ACC01
• Bank Account Number: 9876543210
• Currency: USD
• G/L Account: 110100

Following the above steps, the configuration for the house bank "HB01" will be completed successfully, linking the bank account and G/L account for efficient transaction processing.

Conclusion

Configuring house banks in SAP FICO is a critical step in managing a company's financial transactions and ensuring seamless integration with bank systems. By defining house banks and their associated accounts, businesses can automate payments, handle cash management, and reconcile bank statements efficiently. Following these steps ensures accurate financial records and streamlined operations.