1. Openbravo QuickStart 2
User Manual
Chapter 3 – Financial Account
to Reconciliation
v2.0.2
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Introduction ....................................................................................... 1
Abstract Business Process .................................................................. 2
Roles Involved .................................................................................... 2
Configuration ...................................................................................... 2
Financial Accounts .............................................................................. 2
Step by Step ....................................................................................... 4
Register Financial Account Transactions ................................................. 4
Read Bank Statement ......................................................................... 8
Reconcile........................................................................................... 8
Accounting ........................................................................................ 10
Configuration of Financial Account Accounts ..........................................10
Configuration of Payment Methods .......................................................12
Accounting Entries ............................................................................. 14
Introduction
This process manages:
1. The reconciliation of financial account transactions through a bank statement:
◦ Receive a bank statement (paper or electronic).
◦ Using the application, reconcile transactions within the system marked as
deposited/withdrawn not cleared with the actual ones indicated by the bank
statement. This process can be done manually using "Reconcile" option (one
by one through the manual form) or using "Match Using Imported Bank
Statement" (Globally using a matching algorithm).
2. The reconciliation of financial account transactions manually for a cash:
◦ Close petty cash transactions
◦ Using the application, reconcile transactions within the system marked as
deposited/withdrawn not cleared with the actual ones entering a cash
difference when needed. This process can be done manually using
"Reconcile" option (one by one through the manual form)

2. Keep in mind that some processes like creating the invoices that are the origin of payments
are not described here.
Abstract Business Process
The abstract Financial Account to Reconciliation is defined by the following business process
diagram:
It consists of the following sub processes:
• Read/Import Bank Statement or Cash
• Compare to ERP Records
• Reconcile(using automatic feature with the algorithm or manually through the
form).
Roles Involved
The roles required to complete this process are:
• Finance - this role fully manages banks, accounts and the bank statements
Configuration
The Finance role should be used.
Before this process can be fully completed, the following elements need to be configured:
• Financial Accounts with the underlying accounting
• Matching Algorithm
• Bank File Format
Financial Accounts
To create a Financial Account as well as configure the chart of accounts behind them, use
the Financial Management || Receivables and Payables || Transactions || Financial
Account window:

3. Bank information. Fields to note:
• Type - Selecting between Bank and Cash.
• Business Partner - a Financial Account should also link to a business partner (a
vendor in this case) since the bank is a provider of services for which you are
charged (fees). For each new bank, a new business partner (vendor) should also be
opened.
• Bank Code - first four digits of the bank account number that uniquely identify a
bank (Spain)
• Branch Code - second four digits that uniquely identify a specific branch of the
bank (Spain)
• Control Digit - the ninth digit that serves as a control digit (Spain)
Account information. Fields to note:
• Currency - currency of the bank account
• Control Digit - tenth digit of the account number (Spain)
• Partial Account Number - Last ten digits of the account number (Spain)
• Account No. - full account number in a generic format. Used when a bank does not
use the IBAN format.
• IBAN - Unique international account identifier according to the IBAN standard.
Additional field to note:
• Matching Algorithm: Algorithm selected for Matching Using Bank Statement
feature. Standard algorithm is provided as default one to be selected by APR
Module. Any other algorithm can be provided through a module so that it perfectly
manages the bank statement matching.

4. Accounting History is the tab where all the accounting entries related to transactions of
the given financial account are displayed.
Accounting configuration is automatically inherited from the [Default] tab of the
Accounting Schema window. Please review this configuration and adjust it according to
the laws and needs of the specific country and company. See the Accounting section of this
manual.
Step by Step
Register Financial Account Transactions
The Finance role should be used.
To create a Financial Account as well as configure the chart of accounts behind them, use
the Financial Management || Receivables and Payables || Transactions || Financial
Account window tab Transactions:

5. Transactions can be added by pressing Add Transaction button (at bottom) which will
bring up a new window used to present payments (receivables and/or payables) that can be
selected as new transactions in the given Financial Account:

6. If payments are not yet present in the ERP, they can be created by pressing Add Payment
button.

7. Lets notice that as well transactions using GL Items can be added through Add Transaction
button:
In the same way Bank fees can be added as transactions using Add Transaction button:

8. Read Bank Statement
The Finance role should be used.
A bank statement is normally received in a paper or electronic format. Regardless, it is a list
of outgoing and incoming payment transactions that your bank has recorded. Bank
Statements can be imported in an electronic format using one of the existing Bank File
Formats. All those Formats can be deployed through modules into the system . See
Cuaderno 43 for Spain (Commercial).
Import of Bank File can be done through Import Bank Statement button inside
Transactions tab.
Choose the Bank File to imported and select the proper File Format from the ones
available (Previously installed). Press OK button
Reconcile
The Finance role should be used.
The objective of this step is to match the lines of the statement you received from the bank
with the list of transactions that the Openbravo ERP application has recorded as not cleared.
To do so, two different approaches can be taken:
1. Use Reconcile button inside Transactions tab. Enter the ending balance of the
bank statement or petty cash, and flag or create the transactions to meet that
amount:

9. 2. Use Match Using Imported Bank Statement button inside Transactions tab.
The matching algorithm will try to map existing transactions in the financial acount with
the ones coming from the Bank Statement. matches can be:
1. Strong: System has found a full match.
2. Weak: Almost all the info coming from Bank Statement matches the existing
transaction. System proposes that transaction as a match but user has to clear
it manually.

10. This way, payments that have been checked off will be included in this reconciliation. You
can repeat the process of clicking the Save button as many times as necessary to include
all necessary payments in the Reconciliation.
Once all the pending lines of the bank statement have been matched the reconciliation can
be processed by clicking on Reconcile button.
Once the Reconciliation has been processed payment statuses move to Cleared.
Accounting
Configuration of Financial Account Accounts
The Company Admin role should be used.
Upon creating a new bank account, the system automatically assigns its accounting based
on the defaults configured inside the Financial Management || Accounting || Setup ||
Accounting Schema window, [Default] tab:

11. These accounting settings can be modified per individual financial account. To do so, use the
Financial Management || Receivables and Payables || Transactions || Financial
Account, window and see the [Accounting Configuration] tab:
The Finance role should be used.
Here is the explanation of these accounting fields:
• Bank Fee Account - Account used to post the commissions or minimum amount
differences to as explained earlier.
• Bank Revaluation Gain Account - Account used to post the currency conversion
gains to.

12. • Bank Revaluation Loss Account - Account used to post the currency conversion
losses to.
• Payment out:
▪ In Transit Payment Account - Transitional account used to post
to upon completion of each financial account transaction.
▪ Withdrawal Payment Account - Account used upon each
outgoing transaction for a financial account.
▪ Cleared Payment Account -Account used upon each outgoing
transaction reconciliation for a financial account.
• Payment In:
▪ In Transit Payment Account - Transitional account used to post
to upon completion of each financial statement.
▪ Deposited Payment Account - Account used upon each incoming
transaction for a financial account.
▪ Cleared Payment Account -Account used upon each incoming
transaction reconciliation for a financial account.
Once the defaults and the individual bank accounts are configured according to national
accounting laws, the postings of a Bank Statement are as follows:
Configuration of Payment Methods
These Payment Method settings can be modified per individual financial account. To do so,
use the Financial Management || Receivables and Payables || Transactions ||
Financial Account, window and see the [Payment Method] tab:
The Finance role should be used.
When adding a new payment method to a financial account system assigns the default
configuration defined for that given payment method. Those default values can be
overwritten for each financial account.

13. Here is the explanation of the main fields:
• Payment In:
▪ Allowed - Indicates whether this payment method is
allowed for receiving payments in the given financial
account. Once a payment method allows payment in
transactions the rest of configuration values are displayed.
▪ Automatic Receipt - When flagged system automatically
generates a received payment transaction when the Sales
Invoice is processed for the given pair of payment method
and financial account (taken from customer tab).
▪ Automatic Deposit - When flagged system automatically
generates a financial account transaction once a Receive
Payment document is processed, moving its status from
Payment Received to Payment Deposited Not Cleared.
▪ Execution Type - Drives the way a payment is executed.
When Manual is selected, system assumes that the
execution of the payment will be done manually outside OB
application. Execution processes (such as electronic
instructions for the bank to collect or pay an amount) can be
deployed through modules.
▪ Upon Receipt Use - Account to be used as target account
for posting of Received Payment transactions.
▪ Upon Deposit Use - Account to be used as target account
for posting of Financial Account Deposit transactions.
▪ Upon Clearing Use - Account to be used as target account
for posting of Financial Account Reconciliation
transactions.
• Payment out:
▪ Allowed - Indicates whether this payment method is
allowed for making payments against the given financial
account. Once a payment method allows payment out
transactions the rest of configuration values are displayed.
▪ Automatic Payment - When flagged system automatically
generates a make payment transaction when the Purchase
Invoice is processed for the given pair of payment method
and financial account (taken from vendor tab).
▪ Automatic Withdrawn - When flagged system
automatically generates a financial account transaction once
a Make Payment document is processed, moving its status
from Payment Made to Payment Withdrawn Not
Cleared.
▪ Execution Type - Drives the way a payment is executed.
When Automatic is selected, system displays additional
fields to be configured:
• Execution Process - Business logic applied to a payment to be
made. Additional modules can be installed to provide additional
business logics for payment execution (Example: Printing of a check
in a given format).
• Deferred - When flagged, system assumes that the execution event
will be manually launched. When unflagged system automatically
triggers the execution process at processing time.

14. ▪ Upon Payment Use - Account to be used as target account
for posting of Make Payment transactions.
▪ Upon Withdrawal Use - Account to be used as target
account for posting of Financial Account Withdrawn
transactions.
▪ Upon Clearing Use - Account to be used as target account
for posting of Financial Account Reconciliation
transactions.
Accounting Entries
From now on the accounting configuration allows to decide when you want to recognize the
received amount in the Bank or Cash Account.
Now system can be configured in such a way that user can decide which account to be used
in each of the steps of the payment
cycle (Receipt/Made - Deposited/Withdrawn - Cleared/Reconciled). This will allow user to
decide wether they want to use an intermediate account or not for the bookings and also
when they want to recognize the bank or cash asset.
General ledger posting of the Payment Receipt (Using Upon receipt use "In Transit Payment
Account"):
General ledger posting of the Payment Receipt (Using Upon receipt use "Deposited Payment
Account"):
There is even a third account (clearing Account) that can be defined so that every step in
the flow can generate its own accounting entry. Accounting can be configured to decide
which steps will generate accounting and which accounts
will be used in each of the steps. User can decide whether the payment event generates
accounting or not, whether financial account transaction recognition event generates
accounting or not and whether Reconciliation events generates
accounting or not and as well which account will be used for each event. This configuration
can be defined per financial account and payment method as we saw in last section.
Whenever a event is disabled for accounting the document will show the following message
when trying to post it: