zExplain Bank Statement in Cash Management?

Bank Statement (manual or electronic) functionality runs on the same principle as Check Deposit Processing. Note that it is not necessary for Cash Management to be active for bank statement processing. During processing, customer payments (except checks) are first posted to the bank clearing account; then customer open items are cleared when balancing the bank clearing account. Similarly, vendor payments are posted to a bank clearing account for outgoing payments where the balancing is done from the entries made from the payment program. Other payments such as bank charges, bank interest, etc., are posted to the respective GL accounts, and they will not go through the bank clearing accounts. In the case of unidentified payment transactions, you will post them first to the bank clearing accounts and then clear them when you have the appropriate information.