SAP FI Bank Accounting SAP FI Financial Accounting

SAP Electronic Bank Statements (Interpretation Algorithm)

Learn about SAP Electronic Bank Statements and how Interpretation Algorithm is utilized in SAP.

Interpretation Algorithm can be found in OT83 or in the β€œAssign External Transaction Types to Posting Rules” configuration.

Interpretation Algorithm is assigned to an External Transaction under a specific Trans. Type.

What is the Use or Importance of Interpretation Algorithms in SAP?

Interpretation Algorithm = Clearing Logic

You can think of Interpretation Algorithm as a standard SAP functionality that helps facilitate auto-clearing. Basically, you are telling the system to look for a certain criteria in the concerned electronic bank statement. This criteria is based on what you set in the Interpretation Algorithm.

In this context, the system is now required to follow the assigned posting rule for auto clearing. It is like setting the conditions / criteria in the Interpretation Algorithm field.

If this is not needed and in scenarios where the business users prefer to do this manually, you can always select 000 (No interpretation). The same selection applies if you will be doing functional enhancements / user exits.

Available Options

The available options are listed in this SAP Help document and additional reference is provided in SAP Note 114713. In case the requirement you need is not listed in the available options, you are free to do some functional enhancement / customization / user exits.

For example, you can create an enhancement or setup where SAP can look for a certain “reference number” from the electronic bank statement and match it to an executed SAP payment run. If this criteria matches, the entry would proceed with an auto-clearing functionality.

On the configuration level, you can specify how the clearing is done through the posting rule (posting type). Here are some examples of posting types:

  • Clear debit GL account
  • Clear credit GL account
  • Clear debit sub ledger account
  • Clear credit sub ledger account

I hope this helps. Good luck! πŸ™‚

Need more help? Free SAP Bank Accounting EBS Learning Kit!

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