Understanding Transit Accounts

To clear all payments and receipts through one bank account and then apply them to a specific bank account during bank statement processing, you can use a transit account. To use a transit account, you specify the transit account in the processing options for the Bank Statement Entry program. When you run the Bank Journal Statement Process program, the system creates a journal entry to reallocate the amounts from the transit account to the bank account. You can use a transit account with these transaction codes only:

When you use transit accounts, you do not need to run the Refresh Reconciliation File program (R09130) to update the F0911R table. However, because you do not update the F0911R table, the Bank Journal Statement Process program cannot compare information between the F0911R and F0917 tables to determine whether an item should be reconciled. The system assumes that the information that you entered in the F0917 table is correct. Therefore, you must reconcile the transit account to ensure the accuracy of the information entered for the bank statement.

When the system reconciles the transaction, it marks the bank account as reconciled but does not mark the transit account.