Automating Electronic Bank Statement Process Using BAI2 Format in S4 HANA

Performing Cash and Bank Reconciliation on a timely basis is a crucial need for any organization to achieve benefits such as accuracy of financial records, detecting fraud, efficient cash management etc. Sourcing organization’s transaction history from the banking institutions and utilizing this information effectively to perform reconciliation can be challenging due to various limitations such as lack of tools and technologies and the effort needed to review large amount of financial data. SAP offers Electronic Bank Statement Functionality which can be used to automate Cash and Bank Reconciliation process using various formats such as BAI, BAI2, MT940, ISO 20022 etc. This article explores what is Cash and Bank Reconciliation, its advantages and how the functionality can be configured and automated in SAP S4HANA.