TMS Solution: Export GL Journals from TMS to ERP SAP S4 Hana
- Peter Quarre RT
- Jan 1
- 4 min read
Updated: Jan 9
GL Export from TMS to ERP SAP S4 Hana
Managing treasury transactions manually can lead to errors, inefficiencies, and delays in financial closing. An accounting department faced these challenges while processing bank statements and creating GL journals.
By leveraging their Treasury Management System (TMS), we implemented solutions ranging from custom reports to fully automated journal creation. The most advanced configuration allowed the TMS to generate journal entries for bank transactions without manual input, streamlining the process and reducing errors.
Integration with SAP S4 Hana was achieved through a custom developed interface, ensuring seamless data flow. The result? The GL Export from TMS to ERP SAP S4 Hana led to faster financial closes, increased productivity, and significant cost savings.
The Challenge:
The accounting department was responsible for processing all bank statement transactions, including creating general ledger (GL) journals for treasury transactions and cash flows. However, this process was entirely manual.
The team relied on the remittance information included in the transactions to accurately record treasury entries.
For instance, the team manually created the necessary journal entries for interest payments:
1) Interest on Loan Booking:
Debit: Interest Expense (P&L account) (Reflects the cost of the interest incurred.)
Credit: Interest Payable (Balance Sheet - Liability) (Records the liability to pay interest to the lender.)
Journal entry for the Interest Accrual
2) Payment of Interest via Bank
Debit: Interest Payable (Balance Sheet - Liability) (Reduces the liability for the interest accrued.)
Credit: Bank Account (Balance Sheet - Asset) (Reflects the outflow of cash from the bank account.)
Journal Entry for Interest Payment
The Solutions:
The remittance information on the bank statements was highly limited, forcing the accounting team to sometimes make assumptions about the nature of transactions. This led to errors in the journal entries, creating inefficiencies and inaccuracies.
These mistakes often surfaced during the month-end reconciliation, requiring additional time to identify and correct discrepancies in the accounting. This not only increased the workload but also delayed the financial closing process, impacting overall efficiency.
Solution 1:
The TMS can generate custom reports containing the necessary transaction details and automatically send them to the accounting team. While this solution allows the accounting to access the required information, they would still need to manually input the data into the system for journal entries, such as the example bookings mentioned earlier. Although functional, this approach is less efficient and relies heavily on manual effort.
Solution 2:
The TMS can be configured to generate GL journals using a predefined GL template. Based on specific treasury actions—such as new contracts, interest payments, repayments/drawings, cash transfers, or other transactions—the TMS automatically creates journal entries. These entries include all relevant details, such as amounts, descriptions, posting dates, and GL accounts.
The generated journals are exported through a custom-developed interface and sent to the ERP system overnight. Additionally, if required, functionality can be developed to enrich the journals with supplementary information, ensuring a seamless and efficient integration process.
The following day, the accounting team can easily reconcile the incoming bank transactions with the pre-generated treasury action journals, ensuring accuracy and streamlining the process.
Solution 3:
Taking automation a step further, the TMS can be configured to automatically generate journal entries for incoming bank transactions, eliminating the need for manual intervention and further streamlining the process.
Integration with SAP S4 Hana:
The journals needed to be transferred to the ERP system, SAP S4 Hana. To facilitate this, an existing Excel template for importing GL journals was utilized, as it provided the most straightforward integration option.
An interface was developed within the TMS to generate and export the journals in this format. Additionally, the exported data was enriched with supplementary information from the TMS database, making the reconciliation process more efficient and accurate.
Since these interfaces were designed and built in-house, we ensured swift development and seamless deployment, minimizing implementation time and maximizing efficiency.
The Results:
The process of journalizing treasury transactions became significantly faster and more accurate, reducing errors and saving valuable time for the accounting team. This efficiency ultimately led to cost savings.
The streamlined workflow enabled a faster financial closing process. With fewer manual corrections needed, the accounting team could focus on more value-adding activities, enhancing overall productivity.
Why This Matters:
This is just one example of how we’ve helped a client optimize their processes and improve efficiency. We can do the same for your organization—streamlining your workflows and delivering results without long implementation timelines.
With our deep expertise in treasury processes and TMS systems, we’re ready to help you achieve your goals efficiently and effectively.
Contact us today and share your challenge—free of charge. Let us help you build a strong business case for your next improvement!
Other solutions:
 | This article is written by Peter Quarré RT, who played a key role in designing, building, and implementing this solution. He is ready to assist you with your challenges and help optimize your processes. |  |
