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Office of Management & Finance

Office of the Chief Administrative Officer

Phone: 503-823-5288

1120 SW 5th Ave, Room 1250, Portland, OR 97204

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Process Details: Auto-Clearing Bank GL Account Line Items (FV50)

1.    Project Background and Description

EBS and Treasury have worked collaboratively to develop improvements to the Cash Module (CM).  The changes being implemented will increase SAP’s automated clearing of Bank GL account line items, and decrease staff’s manual clearing of these items.  Automated clearing statistics for CM over the last year have been substandard; at a rate of 30% of all Cash / Revenue Posting (CR) Journal Entries (J/E). This project is expected to increase automated clearing of CR J/E to 70-80% while providing bureaus faster clearing of their entries.

2.    Clearing Issues

  • Timeliness of J/E clearing.
  • No standardization of J/E fields (CR, Z3, SB) and Bank postings (ZR).
  • Difficulty identifying bank transaction owners.
  • SAP configuration.

3.    Recommended Solution / Implementation

  • Use standard SAP functionality to automatically clear bank items.
  • Electronic Bank Statement
  • Nightly Automated Bank Clearing Process
  • Standardize Clearing Criteria for CR & ZR document types.
  • Assignment Field:
    • Credit Card deposits:          Merchant ID # (MID)
    • Cash & Check deposits:     Location ID # (LID)
  • Posting Date
  • Text Field
  • Create Note / Attachment

4.    Affected Bureaus

ALL - City Bureaus and Staff who enter J/E’s with CR document types (Cash / Revenue Posting). 

FV50 – Edit or Park G/L Document

5.    New Business Processes

The SAP CM configuration changes will affect bureaus entering CR Cash Journal entries. When entering a J/E in FV50 – Park G/L Account Items, currently the Assignment field is left blank by most users. To ensure an accurate, automatic reconciliation process, this field will be crucial to match bank activity with the J/E. Another critical field is the Posting Date. To automatically reconcile, the Posting Date in the J/E will need to match the date in the bank file of the matching transaction.

NEW REQUIREMENTS:

Assignment Field

For the majority of Bureaus, this field is not currently used. This will be a required field when entering a J/E with CR type.

Cash/Check bank deposits:

  • Enter the assigned 3 to 4-digit Location ID in the Assignment Field.
  • If you currently do not have deposit slips with a unique Location ID, treasury can assign you one, and order new deposit slips with the Location ID pre-printed on the deposit slip.
  • Multiple line J/E is acceptable, but the Assignment Field must be populated on each line.
  • Multiple transactions on different Posting Dates cannot be combined on one J/E.
  • Treasury has posted a reference document for City employees to identify the appropriate Location ID to use.  Link provided at the end of this document.

Credit Card (ACH) deposits and fees:

  • Enter the assigned Merchant Identification (MID #) number in the Assignment Field.
  • Multiple line J/E is acceptable, but the Assignment Field must be populated on each line.
  • Multiple transactions on different Posting Dates cannot be combined on one J/E.
  • Treasury has posted a reference document for City employees to identify the appropriate MID # to use.  Link provided at the end of this document.

Posting Date

When entering a JE, the Posting Date defaults to the current day the JE is created. This is not always the date the transaction posts at the bank (see: SAP Transaction FF_6: Bank Statement Display), and will result in an un-cleared document.  The posting date needs to match the date of the bank statement.

Cash/Check bank deposits:

  • This is the date that the activity is recorded at the bank.  The Posting Date is usually the date of the deposit.  This can be verified by looking at FF_6 : Bank Statement in SAP.

Credit Card (ACH) deposits and fees:

  • For Credit Card transactions, the Posting Date is two business days after the date of the transaction.
    • Example:  Credit Card sales/batch closed and sent to the Merchant Bank Monday, Aug. 29th.  The actual deposit of funds in the bank account occurs on Wednesday, Aug. 31st.   Aug. 31st would be the Posting Date.  This can be verified by looking at FF_6 : Bank Statement in SAP.

Text Field / Note / Attachment

Currently, the Text Field is not utilized in all J/E’s. This field is not necessary for automatic reconciliation, but is useful for manual reconciliation and identifying postings.  This information will vary by J/E and bureau, but should include information regarding the bureau, the nature of the transaction, or any additional helpful information.  Additionally, a short note can be attached to the J/E or an optional business document attachment that’s helpful to other employees when they look at the J/E.

6.    Specific Exclusions from Scope

Water Bureau Cayanta related J/E’s.

7.    Launch Date

Thursday, September 1, 2016

8.    Additional Reference Material

Should you have any questions about this process, please contact the Treasury Division at (503) 823-4220.

Link to the Treasury contact list:   http://www.portlandoregon.gov/brfs/article/562460

Link to the Location ID’s reference list: http://www.portlandoregon.gov/brfs/article/587830

Link to the MID’s reference list:  http://www.portlandoregon.gov/brfs/article/587830

Project Partners

Role Name
Executive Sponsor Jennifer Cooperman, City Treasurer
Project Lead Michael Montgomery, Investment Officer
Project Manager Joan Martin, EBS Sr. Business Analyst
Project Team Charlie Chau, Treasury
Project Team Patricia Yates, Treasury
Project Team Andrew Powers, Treasury
Project Team Jack Liang, Accounting Manager
Project Team Bich Tran, Technical Accounting
Project Team Anand Adayappurath, EBS Technical
Project Team Cindy Delozier, EBS FILO Team Lead
Project Team Charlie Dudley, EBS Training & Development Officer