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Don
Your strong beliefs are well founded. SAP definitely has a tool for managing bank reconciliation and it is an increasingly robust tool, especially given the enhancements provided in 4.6C for the Search String functionality. You can find the most of the relevant IMG configuration nodes under the path
IMG > Financial Accounting > Bank Accounting > Business Transactions > Payment Transactions > Manual Bank Statements or Electronic Bank Statements.
If you look through the other questions I have recently answered you will also find a rough overview of the configuration points necessary to get this process up and running in SAP.
Additional information is also available in the SAP Library under Financial Accounting – Bank Accounting (FI-BL)
This was first published in August 2004