The Electronic Funds Transfer (EFT) process in SAP S/4 HANA allows for the seamless electronic transfer of funds from one bank account to another without manual intervention. EFT is commonly used for payments such as vendor settlements or payroll, enabling swift, secure, and accurate financial transactions. The process eliminates the need for physical checks or cash transactions, improving operational efficiency and reducing the risk of errors. Once the funds are transferred, the bank statement is reconciled either automatically or manually, depending on the format of the bank statement provided.

The attached flowchart outlines the end-to-end process for Electronic Funds Transfer in SAP S/4 HANA, with the steps specified below:

• Prepare Funds Transfer: The Cash Management Specialist initiates the process by preparing the details of the funds transfer in the SAP system.
• Review Funds Transfer: The Cash Manager reviews the prepared funds transfer to ensure its accuracy and compliance with company policies.
• Approved?: The Cash Manager decides whether to approve or reject the transfer.
  Yes: If approved, the process moves forward to execution.
  No: If not approved, the process is halted, and the funds transfer is not executed.
• Execute Funds Transfer Online: Once approved, the Cash Manager executes the funds transfer online, sending the payment instructions to the bank.
• Reflects Funds Transfer of the Company: The Bank reflects the successful funds transfer by debiting the company’s account and crediting the recipient’s account.
• Sends Bank Statement: The Bank sends a bank statement detailing the funds transfer transaction to the company for reconciliation.
• Receives Bank Statement: The General Ledger Accountant receives the bank statement in the SAP system for reconciliation.
• Check for Acceptable Format: The system checks if the received bank statement is in an acceptable format (e.g., MT940).
  Yes: If the format is correct, the system processes the statement automatically through Electronic Bank Statement Reconciliation.
  No: If the format is incorrect, the system proceeds with Manual Bank Statement Reconciliation.