Understanding the Debit and Credit Reconciliation Process
This chapter provides an overview of the debit and credit reconciliation process and discusses how to reconcile debit and credit transactions manually.
Understanding the Debit and Credit Reconciliation Process
You can use the Debit/Credit Match program (P09131) to reconcile debits and credits within a particular account, such as a trade or suspense account. For example, if a trade account is out of balance, you would use this program to match debit transactions to credit transactions to locate the transaction that is causing the account to be out of balance.
The process to reconcile debit and credit transactions consists of these steps:
Reconcile voided payments and receipts.
Refresh account information.
Reconcile or unreconcile debit and credit transactions.
Prerequisites
Before you complete the tasks in this section:
Run the Auto Reconcile Void Payment program.
Run the Auto Reconcile Void Receipt program.
Run the Refresh Reconciliation File program.
Reconciling Debit and Credit Transactions
This section discusses how to:
Set processing options for the Debit/Credit Match program
Reconcile debit and credit transactions manually.
Forms Used to Reconcile Debit and Credit Transactions
|
Form Name |
FormID |
Navigation |
Usage |
|
Reconciliations |
W09131D |
Manual Reconciliation (G09209), Manual Reconciliation |
Use this form to select the type of reconciliation. |
|
Bank Account Reconciliation |
W09131A |
Select Debit Credit/Match on the Reconciliations form. |
Manually reconcile and unreconcile debit and credit amounts. |
Setting Processing Options for Manual Reconciliation (P09131)
The processing options for the Debit/Credit Match program appear on the Debit/Credit Edits tab of the Manual Reconciliation program. Use these processing options to specify whether a debit and credit transaction must balance before you can continue the manual reconciliation process.
Debit/Credit Edits
The processing options on this tab are used only by the Debit/Credit Match program.
|
1. Debit/Credit Balance |
Specify whether debits and credits are required to balance. Values are: Blank: Debits and credits are not required to balance. 1: Debits and credits are required to balance. If you enter 1 for this processing option and you leave the Tolerance Limit processing option blank, the debit and credit transactions must balance exactly; otherwise the system issues an error message. |
|
2. Tolerance Limit |
Specify the tolerance amount by which debit and credit transactions can be out of balance. This processing option is used only when you enter 1 in the Debit/Credit Balance processing option. If you enter 1 in the Debit/Credit Balance processing option and you leave this processing option blank, debits and credits must balance exactly or the system generates an error. If you enter 1 in the Debit/Credit Balance processing option and you specify an amount for this processing option, the difference between the debit and credit transactions must be less than or equal to the tolerance amount. If the debit and credit transactions are out of balance by the tolerance amount, they are considered reconciled and the system does not generate an error message. For example, if you enter 5.00 in this processing option, debits and credits can be out of balance by 5.00. If debits and credits are greater than the tolerance amount, the system generates an error message.
|
|
3. Sort By |
Specify how the system should sort transactions. Values are: Blank: Sort transactions by general ledger date. 1: Sort transactions by amount. The system sorts the transactions by amount, regardless of whether they are debits or credits. You will be able to see an amount with the debit and credit together as opposed to searching for the offset of the amount by the general ledger date. |
Reconciling Debit and Credit Transactions Manually
Access the Bank Account Reconciliation form.
The steps to reconcile debit and credit transactions manually are the same as those for reconciling bank account transactions manually with the exceptions described in these steps.
To reconcile debit/credit transactions manually:
To mark the transactions as reconciled in the F0911R worktable, double-click the transaction or select the transaction and then select DB/CR Recon/Unrecon from the Form menu.
As you mark transactions as reconciled, the system updates the Total Debits and Total Credits fields.
To unreconcile a reconciled transaction, double- click the transaction or select the transaction and select DB/CR Recon/Unrecon from the Form menu.
To complete the reconciliation process, select Update F0911 from the Form menu.
The system updates the GLRCND field in the F0911R workfile with an R (or the reconciliation code that you selected) only if these conditions are met:
You entered 1 for the Debit/Credit Balance processing option in the Manual Reconciliation program and the debit and credit transactions net to zero or the difference between the two transactions is within the tolerance limit that you entered in the Tolerance Limit processing option.
You left the Debit/Credit Balance processing option blank in the Manual Reconciliation program.
If these conditions are not met, the system displays an error message and does not update the transactions as reconciled in the F0911R workfile.
To print a report that lists outstanding items that have not been reconciled, select Reconciliation Print from the Report menu.