Defining Reconciliation Options for Accounts

You specify which reconciliation method to use for each external account and additional reconciliation processing options for the account.

This section discusses how to:

Select the reconciliation method and reconciliation sources for an account.
Define reconciliation tolerances for matching bank and system transactions.

Pages Used to Reconcile Statements Automatically

Page Name	Definition Name	Navigation	Usage
External Accounts - Reconciliation	BANK_PNLRECON	select Banking, then select Bank Accounts, then select External Accounts, then select Reconciliation	Select a method of reconciliation, the reconciliation sources to match against the bank statement, and the sequence of execution.
Reconciliation Options	BANK_RCN_OPT_PNL	Click Options on the External Accounts - Reconciliation page.	Specify reconciliation options for the account.
Reconciliation Tolerances	BNK_LIMITS_SBP	Click Tolerances on the External Accounts - Reconciliation page.	Set reconciliation tolerance ranges on the bank side for matching bank and system transactions.

Prerequisites

Before establishing reconciliation rules for bank accounts, you must set up the bank accounts and you must install all reconciliation rules (the DMS file that is loaded during installation).

External Accounts - Reconciliation Page

Use the External Accounts - Reconciliation page (BANK_PNLRECON) to select a method of reconciliation, the reconciliation sources to match against the bank statement, and the sequence of execution.

Navigation

select Banking, then select Bank Accounts, then select External Accounts, then select Reconciliation

Image: External Accounts - Reconciliation page

This example illustrates the fields and controls on the External Accounts - Reconciliation page. You can find definitions for the fields and controls later on this page.

Recon Method (reconciliation method)

The method to use for reconciling transactions for this account.

Automatic: Matches bank transactions to system transactions automatically. You must receive transaction information from your bank in an electronic format or enter your bank statements online to use this option.

SemiMan: (semi-manual): Use this option to compare system transactions and bank transactions online and match them manually.

Manual: You must use manual reconciliation when you have only printed bank statements. With this option, you view only the system transactions online and match them to those in your printed bank statement.

None: Use this option when reconciliation processing is not necessary. Also, select to clear the fields in the Reconciliation Sources group box.

Notification Method

Select a notification method for bank reconciliation exceptions. The Recon Method must be Automatic to select a notification method. If the Recon Method is Manual, None, or Semi Manual, the notification method is No Workflow.

If the Recon Method is Automatic, you can choose from these options:

Notification Framework - Sends email and worklist notifications using the Events and Notification Framework in Enterprise Components. This method notifies users by email and worklist, and consolidates all exceptions for one bank account statement into each notification. You can view the exceptions for a bank account statement on the Automatic Reconciliation Exceptions page.
Workflow - Sends notifications for each bank reconciliation to users using PeopleSoft Virtual Approver.
No Workflow - Select this option to disable user notifications.

Enforce Bank Statement Edits

Selecting this option affects bank statement entry by:

Displaying a warning message if the bank balance entry is missing an opening or closing balance (codes 010 and 015).
Displaying a warning message if the sum of the bank transactions plus the opening balance does not match the closing balance.

Reconciliation Sources

The source types that you select determine what system data (reconciled against the bank statement) appears on the different reconciliation pages (Automatic Reconciliation, Semi Manual Reconciliation, and Manual Reconciliation).

Source Type

Defines the process type to take place. Select from:

Pre-Process: Assign only to the first row for automatic reconciliation.

Post Process: Assign only to the last row for automatic reconciliation.

Recon Process: Assign to all rows between the first and the last for automatic reconciliation. Assign to all rows for semi-manual and manual reconciliation.

Source Seq (source sequence number)

Specify a number to order the processing of the source types. The first row should contain the lowest number so that it executes first, and the last row should have the highest number.

Order the source types to achieve a greater reconciliation success rate. Although PeopleSoft has configured the delivered order of source types to provide an optimum reconciliation rate, you can change the sample sequence numbers depending on how accurate the given source is likely to reconcile against the bank transactions (for example, transactions for which the bank provides you a reference ID are likely to have a higher reconciliation rate). Place these source types at the top with a lower source sequence number. Conversely, transactions with no reference ID are likely to have duplicates (or lower reconciliation rates), and you should place them at the bottom with a higher source sequence number. Refer to the previous page example for an example of the recommended order.

Recon Rule (reconciliation rule)

Identifies the reconciliation rule to use for reconciling the source type. PeopleSoft delivers seven rules that you use for all three reconciliation methods, or you can use your own rules as appropriate. You can sequence and modify these rules as needed. These rules look at both the system transactions and the bank statement transactions:

PS_BNK_RCN_DISBRSE: For Payables.

PS_BNK_RCN_DEPOSIT: For Receivables.

PS_BNK_RCN_DRAFT: For Receivables.

PS_BNK_RCN_DEBIT: For Receivables.

PS_BNK_RCN_PAYMENT: For Receivables.

PS_BNK_RCN_DEALS: For Treasury products.

PS_BNK_RCN_TRAN: For PeopleSoft Payables, Receivables, Treasury products, and external transactions.

PeopleSoft also delivers two rules that you must use when setting up automatic reconciliation method for an external bank account. You select PS_BANK_STMT_SETUP for the first source type and PS_BANK_STMT_EXCEPTIONS for the last selected source type for an automatic reconciliation. Options and Tolerances are not available for these source types.

Options

Click to select the options to use with the reconciliation rule. This link is available only for the automatic reconciliation method and is a required step.

You must specify options for the source transaction type (meta SQL) so the reconciliation process can use the appropriate reconciliation rule from the library. An option added to a specific reconciliation rule executes during automatic reconciliation.

The library rules have specific meta-SQL pertaining to specific functionality (for example, TRAN TYPES ON / OFF). By selecting an option, you can attach additional meta-SQLto a reconciliation rule.

Tolerances

(Optional) Click to specify day, monetary, or amount tolerances for the reconciliation rule. This link is available only for the automatic reconciliation method.

Reconciliation Tolerances Page

Use the Reconciliation Tolerances page (BNK_LIMITS_SBP) to set reconciliation tolerance ranges on the bank side for matching bank and system transactions.

Navigation

Click Tolerances on the External Accounts - Reconciliation page.

Image: Reconciliation Tolerances page

This example illustrates the fields and controls on the Reconciliation Tolerances page. You can find definitions for the fields and controls later on this page.

The Reconciliation Tolerances page focuses on the bank side as it reviews transactions on the statement side.

Day Tolerance

Between - and and +

Day tolerance range for matching system and bank transactions. When processing reconciliation, the system looks for source transactions a specific number of days before and after the bank date to match with the bank transactions.

The system uses the Bank Date field (RECON_BANK_DT on the BANK_STMT_TBL) and the Date and Value Date fields (PYMNT_DT and VALUE_DT on the PAYMENT_TBL) for matching.

Monetary Tolerance

Monetary Limit

Indicates whether you use a specific dollar amount or a percentage to determine the limit.

Accounting Template ID

Template that defines how the system generates accounting entries.

Percentage Tolerance and Amount Tolerance

The system displays either the Percentage Tolerance or the Amount Tolerance group box depending on your selection for the monetary limit.

Between - and and +

Specify an acceptable amount or percentage range. When processing reconciliation, the system starts with the source transaction amount, factors in the tolerances, and searches for bank transaction amounts that occur within the specified amount or percentage parameters.