Setting Up Reconciliation This chapter discusses how to:
Set up reconciliation rules.
Perform instrument-level reconciliation.
Perform balance sheet reconciliation.
Perform application-level reconciliation.
Setting Up Reconciliation This section discusses how to set up reconciliation rules.
The three types of reconciliation are:
Instrument level.
Balance sheet.
Application level.
Pages Used Set Up Reconciliation|
Page Name |
Object Name |
Navigation |
Usage |
|
FI_RECON_DEFN |
Financial Services Industries, Financial Rules, Reconciliation Rules |
Reconcile instrument or account data to the performance ledger using dimensions from source data. |
|
|
Reconciliation Rules - Notes |
FI_RECON_DESCRLONG |
Financial Services Industries, Financial Rules, Reconciliation Rules, Notes |
Enter text about the Reconciliation Rule. |
Setting Up Reconciliation Rules Access the Reconciliation Rules page.
To set up reconciliation rules:
Specify the instrument tables and ledger tables that you want to reconcile. To do so, set up the balance type code, reconciliation type code, ledger type, and account node. The account node that you select specifies the PF Ledger (Performance Ledger) tree node that contains the PF Ledger accounts that are related to this rule. (Click the Tree button to view the tree for this account node).
(Optional) Select an uppermost constraint code to filter the accounts that are assigned to the basis ID.
(Optional) To filter the instruments that fall under a specific product node, select in the Product Tree Detail group box a product tree node and corresponding constraint code.
Performing Instrument-Level Reconciliation The Instrument-Level Reconciliation application engine (FI_RECON) enables you to reconcile ledger balances with the equivalent tables at the instrument level by using specific reconciliation rules. Instrument-level reconciliation makes it possible for you to quickly analyze data, generate ad hoc reports, and update ledger information as frequently as business needs dictate.
Instrument-level reconciliation facilitates comparison between any one of the summary-level balance tables that are listed on the left side of the following table with any one of the instrument-level balance tables listed on the right side:
|
PF_LED_ADB_F00 The ADB Ledger table stores average daily balances at the summary ledger-account level. |
FI_IINC_R00 Stores income statement transactions and balances at the instrument detail level. Choose balances from this table for reconciliation by selecting Income Statement from the available options that are in the Reconciliation Type field (Reconciliation Rules page). |
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PF_LGR_RCN_F00 Stores any summary ledger balances that you may want to reconcile against the instrument balance tables. |
FI_IBAL_R00 Stores balance sheet statement transactions and balances at the instrument detail level. The application engine obtains the dimensions from the parent, FI_INSTR_F00. All transactions matching a specific instrument ID receive the same dimensions. Choose balances from this table for reconciliation by selecting Balance Sheet from the available options in the Reconciliation Type field (Reconciliation Rules page). |
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PF_LEDGER_F00 Stores current, end-of-period balances at the summary ledger-account level. |
FI_IBALANCE_R00 Stores balance sheet statement transactions and balances at the instrument detail level. Each transaction balance has its own dimension and account information. Choose balances from this table for reconciliation by selecting Balance Sheet with Dimensions from the available options in the Reconciliation Type field (Reconciliation Rules page). |
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FI_ILDGR_F00 Stores multidimensional instrument balances (instrument balances by dimension), using the precise dimension proportions that are in the source data. Choose balances from this table for reconciliation by selecting Reconciled Ledger from the available options in the Reconciliation Type field (Reconciliation Rules page). |
Using the Reconciliation Rules page, instrument-level reconciliation summarizes balances first by account, then by the selected table dimensions that are on the Model Definition - Engine Settings page, and puts the results to a specified table for further analysis or processing.
The Instrument-Level reconciliation process can be run as needed to reconcile instrument-level balances to their respective ledger balances based on specific reconciliation rules that you define.
Performing Balance Sheet Reconciliation The Balance Sheet Reconciliation application engine (FI_RCN_BS) facilitates comparisons between the sum of the ledger-level totals (from PF_LEDGER_F00 or PF_ADB_LDGR_F00) with the sum of the instrument-level balances (from FI_IBAL_R00 or FI_POOLBAL_R00). The balances are calculated according to each balance sheet rule, for PF Ledger or ADB Ledger accounts, instruments, and positions. The process is based solely on the balance sheet rules that are defined on the Balance Sheet Rules page.
Run and review the reconciliation differences prior to running the financial services industry application engines. The Balance Sheet Reconciliation application engine evaluates every active balance sheet rule during processing. Significant differences that are posted in the reconciliation table alert you to errors or omissions in the rule setup, or they may alert you to invalid mappings between the PF Ledger (Performance Ledger) account balance and the instrument or position balances for a given rule. Differences may also be caused by errors or omissions during the extract, transform, and load (ETL) process.
You can run the Balance Sheet Reconciliation process to verify the balance sheet rules. During this process, the system:
Calculates the PF Ledger account balances, the instrument, and the treasury position balances relating to each rule.
Compares the PF Ledger account balances to their related instrument balances and the PF Ledger account balances to their related treasury position balances.
Posts both balances to the FI_RCN_BS_F00 table and the FI_RCN_DIM_F00 table.
Dimensions are factored into balance sheet reconciliation when you set up the Model Definition - Engine Settings page.
Note. Balance sheet reconciliation does not insert difference records into FTP, RWC or Liquidity Reprice Gap output tables, unlike application-specific reconciliation. Output is placed onto special output tables for review and analysis. This program can run repeatedly.
Performing Application-Level Reconciliation The Application-Level Reconciliation process ensures that all account balance amounts are processed and that reconciliation is performed by the applications based on information set in the balance sheet rules.
You must create specific balance sheet rules, as defined on the Balance Sheet Rules component, for the applications to perform reconciliation.
On the Ledger Accounts page of the component, select the Account Node.
On the Products/Positions page of the component, select the instrument node in the Product Tree Node field.
Select the Product Detail Processing option for the appropriate application engine.
In the Reconciliation Rules group box, select the Reconcile option to reconcile PF Ledger account balances to the product or position balances that are processed by the appropriate application engine based on the specified basis ID.
Select the Use WAVG option for the Funds Transfer Pricing application to use a weighted average rate. For Risk-Weighted Capital, the system always selects this option and makes it unavailable for edit because Risk-Weighted Capital always uses a weighted average rate.
See Defining Balance Sheet and Income Statement Rules.
For Funds Transfer Pricing and Risk-Weighted Capital, select a Ledger Event Code to which the reconciliation results are posted. For Risk-Weighted Capital, you can also select a Normalized Loss Event Code to which the results for normalized loss are posted.
This configuration defines normal instrument level processing and special treatment for the reconciled balance amounts only.
Because the reconciliation process uses the balances from the output of the instrument processing, there are two things to keep in mind:
You use this rule for instrument processing.
The applications recognize this rule for processing by looking at the Product Detail Processing flag that you set on the Products/Positions page.
You run instrument processing before running ledger processing so that the instrument balances are ready for reconciliation.
The reconciliation process nets the instrument balances from the account balances and applies the processing rules that you select in the Ledger Balance Rules group box on the Ledger Accounts page to the difference.
The reconciliation process posts the results to the regular application output tables.
See PeopleSoft Enterprise Funds Transfer Pricing 9.0 PeopleBook