This chapter provides overviews of reconciliation exceptions and reconciliation exceptions workflow and discusses how to process reconciliation errors and exceptions.
When you automatically reconcile bank statements, some bank transactions may not perfectly match system transactions. In these cases, you must analyze the transactions that do not match and determine the source of the errors. Typically, mismatches are due to bank errors in reference IDs (for example, check numbers, amount mismatches, transaction type mismatches, duplicates, items not found, and transactions for which the currency has not been defined at the bank account level).
When you use tolerances to reconcile transactions, the process inserts the differences that are associated with the transaction into the BNK_RCN_TRAN table. You view these differences on the External Transactions page. The system assigns the new lines a unique reference number that begins with BSP (bank statement processing) or whatever has been assigned in the auto numbering, plus a sequential number.
The Cash Management Bank Statement Accounting functionality works similarly to the reconciliation exceptions functionality. When an NTF (No Transactions Found) or MSC (Miscellaneous) exception is matched to a BSA (Bank Statement Accounting) rule (with an accounting template), the system reconciles the exception and enters an external transaction with a unique reference number into the BNK_RCN_TRAN table.
After you determine the source of the errors, you have several options, depending on the type of mismatched information:
If the reference number that is sent by the bank does not match any reference numbers in the system, the transaction is considered an automatic reconciliation error.
The Auto Recon Errors report lists all automatically reconciled errors. You can reconcile these transactions using automatic or manual methods.
To automatically reconcile these transactions, force reconciliation using the Automatic Reconciliation Exceptions page. If the transaction matches the system processing criteria for automatic reconciliation, the system creates the necessary system-side transaction, then reconciles the pair.
To manually reconcile these transactions, you must create an external transaction and reconcile the pair using the Semi Manual Reconciliation page.
Note. If you are using the preceding method to manually reconcile transactions, you are responsible for using the correct accounting template when creating the external transaction to keep your organization's ledgers balanced.
Unpaired transactions are generally third-party external transactions that exist outside your organization's PeopleSoft system. These might be from a legacy system in your organization that reports these transactions to the bank. Because the legacy system is not integrated with your organization's PeopleSoft system, when you receive the bank statement, these transactions do not have a matching system-side transaction in the PeopleSoft system. However, if you map third-party external transactions (meaning that you configure the application to automatically load all external transactions using statement activity types), the force reconciliation process inserts the corresponding system-side transaction into the system when you force reconcile.
The system generates the accounting entries based on the accounting template that you assigned to the statement activity type (if you assign an accounting template). This can apply to only the first notice of items (such as fees and interest) from the bank that are not yet in the system.
If the reference number that is sent by the bank matches a reference number in the system, but the transaction codes, amounts, or dates do not match, the transaction is an Auto Recon Exception.
The Auto Recon Exceptions report lists all reconciliation exceptions. You can force any exception transaction to reconcile despite the discrepancy on the AutoRecon Exceptions page. The system creates external-transaction, offset entries when a transaction meets the following two conditions: the transaction is defined with a valid statement activity type, and this statement activity type is defined with the BNK_RCN_TRAN transaction table.
Pairing a transaction forces reconciliation on the bank side and the system side. When you select only one transaction (you did not pair the transaction because it was not listed on the Recon Exception page), you must manually add the appropriate journal entries for the transaction after you force-reconcile the selected transaction.
If the reference number that is sent by the bank matches a reference number in the system, but the amounts do not match, the transaction is also an exception.
You have two options to resolve the problem:
Change the amount for the reconciliation tolerance for the bank account so that the transaction reconciles, and then run the Bank Reconciliation process (FSPRECON) again.
The system generates the appropriate journals.
Make an adjustment entry on the system side and use the Semi Manual Reconciliation page to reconcile the transactions.
See Also
Setting Up Reconciliation Tolerances
Reconciling Externally Generated Transactions
If you have implemented the Exceptions workflow when you run the Reconciliations Exceptions process (TR_RECON_EXC), the system automatically routes any exceptions to a defined user (or user's) worklist.
See Also
Routing Exceptions to a User's Worklist
Delivered Workflows for Banks Setup and Processing
This section lists prerequisites and discusses how to:
Run error and exception reports.
Force exceptions to reconcile.
Resolve exceptions using semimanual reconciliation.
View accounting for forced reconciliations.
If you plan to route exceptions for automatic reconciliation to a user's worklist, you must first selectEnable Workflow for the bank account on the Account Reconciliation page.
See Also
Selecting a Reconciliation Method
Page Name |
Definition Name |
Navigation |
Usage |
Route Reconciliation Exception |
TR_AE_RUNCNTL |
Banking, Analyze Exceptions, Route Reconciliation Exception |
Route exceptions to a user's worklist. Define the run parameters for the Reconciliation Exceptions process. |
Automatic Reconciliation |
BNK_RCN_CYC_STSA |
Banking, Reconcile Statements, Automatic Reconciliation |
Determine whether a bank statement has reconciliation errors. Run the Auto Recon Errors report (FIN3002 [Crystal] or FSX3002 [BI Publisher]). Use this report to view a list of all reconciliation errors for a bank statement. Run the Auto Recon Exceptions report (FIN3001 [Crystal] or FSX3001 [BI Publisher]). Use this report to view a list of all transactions with exceptions for a bank statement. |
Automatic Reconciliation Exceptions |
BNK_RCN_VUE_UNR |
|
Click to force an automatic-reconciliation exceptions to reconcile. You can also create external transactions for bank-side transactions with no corresponding system-side transactions. |
Semi Manual Reconciliation |
BNK_RCN_SEMI_MAN |
Banking, Reconcile Statements, Semi-Manual Reconciliation |
Resolve exceptions using semimanual reconciliation. Select a transaction on the bank side to match a transaction on the system side. |
BSP Accounting Events (bank statement processing accounting events) |
TRA_EVENT_CAL_2 |
Cash Management, Treasury Accounting, Accounting Events, BSP Accounting Events |
View the accounting events that are scheduled for force-reconciled transactions. |
Transactions by Account |
BNK_RCN_ALL_GEN |
Banking, Analyze Exceptions, Transactions by Account |
Search and review transaction reconciliation information by a defined bank account. You can also run the Account Register report (FIN4004 [Crystal] or FSX4004 [BI Publisher]). |
Access the Route Reconciliation Exception page (Banking, Analyze Exceptions, Route Reconciliation Exception).
Select a bind variable name of either BNK_ID_NBR or BANK_ACCOUNT_NUM and enter a value.
Access the Automatic Reconciliation page (Banking, Reconcile Statements, Automatic Reconciliation).
Select either Errors or Exceptions in the Reports field, and then click Run Report.
See Also
Reconciling Transactions Automatically
Access the Automatic Reconciliation Exceptions page (Banking, Analyze Exceptions, Auto Reconciliation Exceptions).
The page displays a combination of all potential matches based on date, amount, and reference ID number. Use your own judgement when you force items to reconcile. In some cases, transactions appear multiple times after being forced to reconcile, so you must be careful that you select the correct reconciled combination.
Note. Some automatic reconciliation exceptions may be the result of unbalanced payments in PeopleSoft Accounts Receivable. To remedy this, you should balance the payment on the Regular Deposit pages in Accounts Receivable.
Search Criteria
If you access this page by clicking the Exceptions link on the Automatic Reconciliation page, the exceptions for the selected bank's statements automatically appear in the grid. Otherwise, you must enter your search criteria and click Search.
Search By |
Select how you want to search for transactions: by reference number or by date. The fields in the Search Criteria group box vary based on your selection. |
Auto Reconciliation Exceptions
For the system to force a transaction to reconcile, the transaction must match the following criteria. If the transaction does not match these criteria, the Force Reconciliation option is unavailable.
Note. These criteria are applicable only if you are using a Treasury application. If you are using the PeopleSoft force-reconciliation functionality with PeopleSoft Payables or PeopleSoft Receivables, the Force Reconciliation check box is always enabled.
You must have installed one or more of the Treasury applications, such as Cash Management, Deal Management, or Risk Management. The force-reconciliation functionality uses statement activity types for storing the accounting template and the source table (BNK_RCN_TRAN) information, from which the system creates the offset entries. However, the ability to define statement activity types is available only if you install a Treasury product.
The bank statement transaction must have a valid statement activity type on the Bank Transaction Entry page.
You must complete all three fields for the statement activity type that is associated with the bank statement transaction in the Force Reconciliation Options region of the Statement Activity Type page. These fields are Allow Force Reconciliation, Transaction Table, and Accounting Template ID.
You must select the Statement Accounting option on the External Accounts page. This ensures that the correct ChartFields for first-notice items, such as fees and interest, are established. In addition, when the system creates the offsetting external transaction, it sets the internal Build Accounting status to yes. This ensures that these transactions are properly built during the next Automated Accounting process (TR_ACCTG) run.
In addition, when forcing transaction pairs of unlike amounts to reconcile, the system automatically generates a balancing transaction. For example, if the bank statement amount is 100 USD and the system transaction amount is 99.99 USD, then the system creates a balancing transaction, which results in a credit in the amount of 0.01 USD. This credit is recorded in the table that is specified in the associated Statement Activity Type definition (either BNK_RCN_TRAN or CASH_FLOW_TR). If the system transaction is of a greater amount than the bank statement amount, then the system creates a debit and records it to the appropriate table. Using the preceding example, if the bank statement amount is 100 USD and the system transaction amount is 100.01 USD, then the balancing transaction is a debit of 0.01 USD.
In the Description field for each exception, details from the bank transaction file appear along with the reason that the transaction did not reconcile. Possible values are:
Alignment Check |
Payables check that is used to align the printer. |
Amounts Not Equal |
Bank amount does not match system amount. |
Ambiguous Match |
An unreconciled, bank-statement transaction could match more than one unreconciled system transaction. This occurs most frequently when large tolerances are defined for the amount or date. An ambiguous match could also occur even with zero tolerances defined, however, if the reference IDs do not match. |
Currency |
The transaction currency was not defined (Accounts Receivable only). |
Currency Not Defined |
The transaction currency was not defined at the bank account level. |
Duplicate Input Transaction |
Duplicate bank transaction. A transaction appears more than once on a given statement with the same date, amount, and reference ID. (AR deposits are an exception to this.) Duplicate transactions are transactions that appear more than once on a given statement with the same date and amount (AR Deposits do not use ID's for matching). |
Duplicate Transaction |
Duplicate system transaction. |
Miscellaneous Transaction |
Miscellaneous transaction, such as bank fees or interest. |
Payee Names Not Equal |
Payee names don't match. |
Not Found In System |
Transaction is not found in the system. |
Null Transaction ID Ref |
Blank transaction ID. |
Overflow |
Overflow Payables check. |
Pending Reconciliation |
Prereconciled. |
Reconciled |
Already reconciled. |
Reprinted Check |
Reprinted payables check. |
Stop Check |
Check was issued a stop payment to the bank. |
Wrong Transaction Type |
Wrong transaction type for source. |
Tran Date Different <> Bank Clear |
System transaction date is different from the bank clear date. |
Unreconciled |
Not processed by the Bank Reconciliation process. |
Voided Check |
Payables void. |
To force a transaction to reconcile, select the transaction and click Reconcile.
See Also
Understanding Reconciliation Exceptions
Access the Semi Manual Reconciliation page (Banking, Reconcile Statements, Semi-Manual Reconciliation).
If the Bank Reconciliation process could not reconcile a transaction, you can try to manually match transactions from the bank side to transactions on the system side, as long as the amounts match.
You can reconcile transactions only by matching one bank transaction to one system transaction (one to one) or one bank transaction to many system transactions (one to many). Select the transactions on each side that you want to reconcile, and click Reconcile.
See Also
Reconciling Transactions Semi-manually
Access the Bank Statement Processing Accounting (BSP) page (Cash Management, Treasury Accounting, Accounting Events).
To view all journal entries for transactions that were forced to reconcile, run the Automated Accounting (TR_ACCTG) process prior to accessing this page.
See Also
Reviewing Accounting Information