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 theReconcile 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 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 aNormalized 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 Funds Transfer Pricing Product Documentation