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JD Edwards World General Accounting I Guide
Release A9.3.x

E21540-03
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29 Overview to Account Reconciliation

This chapter contains these topics:

29.1 Objectives

  • To set up account reconciliation

  • To reconcile accounts manually

  • To reconcile accounts automatically

29.2 Overview

You can reconcile bank accounts, selected expense accounts, and other general ledger accounts in the General Accounting system. After you perform the initial setup requirements, you can reconcile your accounts easily on a periodic basis.

Account reconciliation consists of:

  • Reconciling voided payments

  • Creating the reconciliations worktable

  • Working with manual reconciliations

  • Working with bank tape reconciliations

  • Reconciling transactions within accounts

29.2.1 Which Method Should You Choose?

The following methods of account reconciliation are available:

Method Description
Manual reconciliation Use this method to manually reconcile your bank accounts, or debits and credits, for transit or clearing accounts.
Bank tape reconciliation Use this method to have the system reconcile your bank account. You can use this method only if your bank provides a magnetic tape with transaction information. This method reconciles payments and receipts.
Reconciliation of transactions within accounts Use this method to automatically match and reconcile debits and credits within the same account. You can reconcile multiple accounts at the same time. You must use manual reconciliation to reconcile transactions that are not within the tolerance limit that you set up.

Whichever method you choose, you can create your own reconciliations worktable for accounts you are responsible for reconciling. This allows you to reconcile accounts without affecting the accounts assigned to another person for reconciling.

29.2.2 Manual Reconciliation

Manually reconciling your accounts consists of three steps:

  • Reconciling voided payments with zero amounts automatically (optional)

  • Creating or refreshing the reconciliations worktable for unreconciled transactions

  • Performing the manual reconciliation for bank accounts, or for transit or clearing accounts

29.2.3 Bank Tape Reconciliation

Reconciling your accounts using a bank tape consists of these steps:

  • Reconciling voided payments with zero amounts automatically (optional)

  • Creating or refreshing the reconciliations worktable for unreconciled transactions

  • Reconciling cleared payments and receipts automatically using the Match Tape in Reconciliation File program

  • Reconciling manually any accounts that were in error from the automatic reconciliation

29.2.4 Transactions within Accounts Reconciliation

Reconciling transactions within accounts consists of three steps:

  • Creating or refreshing the reconciliations worktable for unreconciled transactions

  • Matching transactions (debits and credits) automatically within accounts and reconciling them using a batch program

  • Reconciling manually any accounts that were in error from the automatic reconciliation

29.2.5 What Should You Consider Before Using Account Reconciliation?

You can avoid manually reconciling old transactions in each account when you first set up your system for account reconciliation. The General Accounting system provides a "catch-up" procedure that globally updates selected accounts in the Account Ledger table (F0911) as already being reconciled. Use the global data reset procedure only if you want to reconcile your account history.

Generally, you run the reset procedure only once, for each reconcilable account. However, in certain situations, you might use this procedure to globally unreconcile all transactions within an account.

Caution:

You can damage your data if you run the reset procedure for an account that has already been reconciled for the period.

29.2.6 Before You Begin

  • Set up AAIs to identify account ranges that must be reconciled

  • Set up a DREAM Writer version for each account that must be reconciled using Start Up Global Data Reset

  • Set up a reconciliation code in the user defined code list 09/RC to use in manual reconciliation

See Also: