11 Overview to Reconciliations
This chapter contains these topics:
11.1 Objectives
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To process throughput reconciliations
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To record closing meter readings in order to calculate throughput
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To print the Throughput Reconciliations report
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To print the Gain/Loss Analysis Report
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To review gains and losses
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To process operational reconciliations
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To record tank dip readings in order to calculate tank volume
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To print the Operational Reconciliation reports
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To review operational reconciliation history
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To review or change a reconciliation status
11.2 About Reconciliations
As part of the management of bulk stock, you must reconcile confirmed sales figures for a given period. To do so, you compare the transactions and inventory levels recorded in the system to the actual inventory levels in the depot. During the reconciliation process, the system identifies any discrepancies. A gain might be due to transactions not being entered (lost invoices). A loss might be due to theft, leakage, and/or faulty meters.
The system enables you to process two types of reconciliations:
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Throughput
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Operational
A processing option allows reconciliation of the document types for load-confirmed sales, non-metered outgoings, and other metered outgoings.
Complete the following tasks to perform reconciliations:
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Process throughput reconciliations (optional)
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Process operational reconciliations
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Work with reconciliations information
11.2.1 What Are Throughput Reconciliations?
Throughput reconciliation compares confirmed sales figures and other metered outgoing transactions for a given period with the metered throughput at the point of reconciliation. The comparison identifies discrepancies due to transactions not being entered, theft, leakage, and/or faulty meters.
Throughput reconciliation is optional. However, if you perform throughput reconciliation up through the time period you begin operational reconciliation, the operational reconciliation process will be more accurate.
Throughput reconciliation compares the transactions entered in the system to the throughput meter readings. Throughput reconciliation does not update inventory and the general ledger. Upon your review and approval, the program updates the reconciliation status and the Gain/Loss Transactions table (F42512).
11.2.2 What Are Operational Reconciliations?
Operational reconciliation performs the actual reconciliation process to update inventory and the general ledger. Using all inbound and outbound transactions since the previous reconciliation, the system calculates the amount that should be in physical inventory and compares it to the actual amount in the tanks (from the final physical tank dip). In other words, it measures and compares the physical inventory levels with the book inventory levels, so differences can be reconciled and operational gains or losses recorded. It then updates inventory to reflect the current physical stock levels. Most companies perform operational reconciliations daily. Some perform them monthly.
During operational reconciliation, the system includes throughput gains and losses with operational gains and losses to update the general ledger.
Operational reconciliation updates the following tables:
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Gain/Loss Transactions (F42512)
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Account Ledger (F0911)
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Item Location (F41021)
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Item Ledger (F4111)
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Bulk Product Transactions (F41511)
The following illustrates operational reconciliation.
Figure 11-2 Operational Reconciliation Process
Description of "Figure 11-2 Operational Reconciliation Process"
11.2.3 How are reconciliations calculated?
The following illustrates the reconciliation process for bulk products. In the example, quantities (in liters) are shown to help you understand the process.
Figure 11-3 Reconciliation for Bulk Products
Description of "Figure 11-3 Reconciliation for Bulk Products"