What is MT940 file format in SAP S4 HANA.
In Electronic Bank Statement (EBS) processing, SAP uses the MT940 file—a standardized SWIFT format—to automatically import and update bank account transactions in the system. This file contains detailed daily statements from the bank, including credits, debits, and balances.
By processing the MT940 file, SAP enables the automated posting and reconciliation of incoming and outgoing payments, significantly reducing manual effort and ensuring accuracy.
The MT940 file also plays a key role in generating the Bank Reconciliation Statement (BRS) in SAP. It allows users to match bank transactions with corresponding SAP entries, ensuring that the financial records in the system are aligned with the bank’s records.
🧾 Structure of the MT940 Template
An MT940 file consists of blocks and tags, each holding specific information. Below is a simplified explanation of the most common tags you’ll find:
| Tag | Description | Demo of MT940 File |
|---|---|---|
:20: | Transaction Reference Number or Statement Date | :20:123456789 |
:25: | Account Identification (Bank account number) | :25:DE12345678900012345678 |
:28C: | Statement Number/Sequence Number | :28C:00001/001 |
:60F: | Opening Balance | :60F:C230428EUR1234,56 |
:61: | Transaction Details (debits/credits, date, amount, etc.) | :61:2304280428C100,00NTRFNONREF// |
:86: | Transaction Description or Narrative about the Transaction | :86:Payment received from Customer 200141 |
:62F: | Closing Balance | :62F:C230428EUR1334,56 |
:64: | Closing Available Balance | :64:C230428EUR1334,56 |
🔧 Prerequisites: EBS Configuration
Before processing the MT940 file using FF_5, certain configurations must be completed to ensure accurate posting and reconciliation:
- OT83 – Configuration part of Electronic Bank Statement (e.g., MT940)
- OBPM1 / OBPM4 – Assign transaction types to posting rules
- OBHC / OBH3 – Define and assign posting rules to house banks
- FI12 / FI12_HBANK – Create and assign house bank and account ID
🔄 How It Works in SAP EBS
- Bank sends MT940 file to the company, usually daily.
- SAP reads the MT940 file via transaction codes like FF_5 or through automated workflows.
- Transactions are posted and reconciled automatically in SAP using configuration rules.
- The system updates bank clearing accounts and generates the Bank Reconciliation Statement (BRS).
✅ Benefits of MT940 Template in SAP
- Enables automated, accurate reconciliation
- It reduces manual work by automating bank statement processing.
- Supports real-time cash position monitoring and financial transparency.
- Integrates seamlessly with house banks and clearing accounts in SAP
SAP FICO Configuration topics:
- SAP Finance Enterprise structure: Click here
- SAP Finance GL Accounting: Click here
- SAP Finance Accounts Payable: Click here
- SAP Finance Accounts Receivable: Click here
- SAP Finance Bank Accounting: Click here
- SAP Finance New Asset Accounting: Click here
- How to Create a Controlling area in SAP: Click here
- SAP Controlling – Cost Element Accounting: Click here
- SAP Controlling – Cost Center Accounting: Click here
What is MT940 file format in SAP S4 HANA
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