Reconciliation Tolerances (Oracle Cash Management User's Guide)


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Reconciliation Tolerances

You can define reconciliation tolerances that the AutoReconciliation program uses to match bank-cleared transactions with those entered in Oracle Payables or Oracle Receivables. You enter reconciliation tolerances as percentages and/or amounts.

For example, assume you've defined the following tolerances:

Amount = 70

Percent = 10%

Now assume the program encounters a statement line with an amount of $1,000. It first computes the tolerance percentage amount (10% of $1,000 = $100). The program then selects the smaller of the computed amount or the defined tolerance amount--in this case, the program selects $70. The program then attempts to match the statement line against a payment or receipt transaction in the range $930 to $1,070 ($1,000, plus or minus $70).

Posting Amount Differences Within Tolerances

If the difference between a payment amount and the statement line amount is within defined tolerances, Cash Management posts the difference to either the Payables Bank Charges account or the Bank Errors account, depending on how you defined the Cash Management AP Tolerance Differences system parameter.

If the difference between a receipt amount and the statement line amount is within defined tolerances, Cash Management posts the difference to the Receivables Bank Charges account.

For matching remittance batches using reconciliation tolerances, you can choose to create a miscellaneous transaction for the difference between the remittance batch amount and the bank statement line. To select this option, you make an entry in the Cash Management Receivables Activity system parameter.

Document Matched against: If within Tolerances:

Payment Batch 1. Reference
2. Payment Batch Name
Difference posted to Bank Charges or Bank Errors account.

Payment 1. Invoice Number and Agent Bank Account
2. Invoice Number
3. Payment Number

Remittance Batch 1. Remittance Batch Deposit Number
2. Remittance Batch Name Miscellaneous transaction created for amount of difference.

Receipt 1. Invoice Number and Agent Bank Account
2. Invoice Number
3. Receipt Number Difference posted to Bank Charges account.

Document	Matched against:	If within Tolerances:
Payment Batch	1. Reference 2. Payment Batch Name	Difference posted to Bank Charges or Bank Errors account.
Payment	1. Invoice Number and Agent Bank Account 2. Invoice Number 3. Payment Number	Difference posted to Bank Charges or Bank Errors account.
Remittance Batch	1. Remittance Batch Deposit Number 2. Remittance Batch Name	Miscellaneous transaction created for amount of difference.
Receipt	1. Invoice Number and Agent Bank Account 2. Invoice Number 3. Receipt Number	Difference posted to Bank Charges account.

Reconciliation Tolerances

Posting Amount Differences Within Tolerances

See Also