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.