22 Reconciling Clearing Accounts

This chapter contains the following topics:

22.1 Understanding the Clearing Account Reconciliation Process (Release 9.2 Update)

Clearing account reconciliation is an automatic process for reconciling the offsetting debit and credit amounts in these accounts:

  • Accounts payable trade

    This account contains entries that are created by the G/L Post program (R09801) during the voucher and payment entry processes.

  • Accounts receivable trade

    This account contains entries that are created by the G/L Post program (R09801) during the invoice and receipt entry processes.

  • Voucher logging

    This account contains entries that are created by the G/L Post program (R09801) during the logged voucher and voucher journal entry redistribution processes.

  • Received not vouchered (RNV)

    This account contains entries that are created by the G/L Post program (R09801) during the process of receiving goods and creating a voucher match for the goods.

  • Performance Liability accounts

    These accounts contains entries that are created by the G/L Post program (R09801) during the process of recognizing revenue.

The clearing account reconciliation process includes these steps:

  1. Run the Refresh Reconciliation File program (R09130) with the Document Type Filter processing option set to include automatic entries (AEs). The R09130 program populates the WF – Account Ledger Reconciliation table (F0911R).

  2. Run the G/L Account Reconciliation program (R09150) to mark transactions as reconciled.

  3. Use the Manual Reconciliation program (P09131) or the Account Ledger Inquiry program (P09200) to manually reconcile any exceptions that were not reconciled by the R09150 program.

22.2 Prerequisites

Before you begin to reconcile clearing accounts, you must:

  • Set up GLRCxx automatic accounting instructions (AAIs) to include the clearing accounts that you want to reconcile.

    See Chapter 6, "Setting Up Account Reconciliation"

  • Set the Intercompany Settlements field on the General Accounting Constants form to either 2 (Detailed Intercompany Settlements) or to 3 (Configured Hub Intercompany Settlements).

    The G.L Account Reconciliation program does not support the Hub method of intercompany settlements because the GL Post automatically creates AE entries using document company zero for the Hub method instead of the actual document company found on the A/P detail records.

    See Setting Up Constants for General Accounting

22.3 Automatically Reconciling Clearing Accounts (Release 9.2 Update)

This section provides an overview of the G/L Account Reconciliation program (R09150) and discusses:

22.3.1 Understanding the G/L Account Reconciliation Program (R09150)

The R09150 program selects records from the F0911R table based on the processing options for the program and the data selection that you enter. You specify whether to reconcile accounts payable trade accounts, accounts receivable trade accounts, voucher logging accounts, RNV accounts, or Performance Liability accounts using the Type of Account to Reconcile processing option.

You then specify accounts within this type in the data selection for the program. The system uses a different algorithm for reconciling each type of account. Therefore, the account type that you specify in the processing options must match the account type of the accounts that you enter in the data selection. The system executes the reconciliation algorithm based on the account type that you enter and reconciles the accounts that you specify in the data selection.

Before reconciling transactions, the R09150 program first reviews the GLOFM (G/L offset method) field for transactions in the Account Ledger table (F0911). This field identifies which offset method is specified in the JD Edwards EnterpriseOne Accounts Payable and Accounts Receivable system constants. If the value in this field is B (one offset for each batch of transactions by account) for either Accounts Receivable or Accounts Payable, the system does not perform account reconciliation for the transactions for that system. You cannot use the R09150 program to reconcile transactions for which the value in the GLOFM field is B. The GLOFM field must contain a Y (offset by document) or S (offset by pay item).

Note:

If you are using offset method B for either Accounts Receivable or Accounts Payable and you want to use the R09150 program for the trade accounts, you can change the offset method constant to either Y or S. The R09150 program then performs reconciliation on any new transactions for which the GLOFM field contains Y or S.

To indicate that transactions are reconciled, the system updates these fields in the F0911R table:

  • Reconciled Code (RCND): the system updates this field with the reconciled code that you specify in the processing options for the R09150 program.

  • Reference 3 (R3): the system updates this field with a reconciled identification (ID) number that contains leading zeros. The system uses the Reconciliation number in the General Accounting next numbers.

  • Check Date (DKJ): the system updates this field with the most recent G/L date of the group of entries.

The following subtopics describe how the system determines whether transactions are reconciled.

22.3.1.1 Accounts Payable Trade Accounts

Depending on whether the payment fully pays the voucher, and whether the offset method is S or Y, the system reconciles entries differently. The system reconciles entries when:

  • • The offset method is S and a pay item for a voucher is paid in full by one or more payments.

  • • The offset method is Y and a voucher is paid in full by one or more payments where the total amount matches the voucher exactly.

    If a voucher is paid by multiple payments and the offset method is Y, the system reconciles the entries when a payment amount exactly matches the entire remaining amount of the voucher

This table provides examples of how the R09150 reconciles AE entries in the accounts payable trade accounts:

Vouchers Payments Offset Method S (offset per pay item) Offset Method Y (offset per document)
1 voucher with 1 pay item (10,000.00 USD) 1 payment that pays voucher in full (10,000.00 USD) All items reconciled. All items reconciled.
1 voucher with 3 pay items:
  • • 1: 25,000.00 USD

  • • 2: 25,000.00 USD

  • • 3: 25,000.00 USD

1 payment that pays voucher in full (75,000.0 USD) All items reconciled. All items reconciled.
1 voucher with 3 pay items:
  • • 1: 350.00 USD

  • • 2: 450.00 USD

  • • 3: 550.00 USD

1 payment that pays pay item 1 in full (350.00 USD)

1 payment that pays pay item 2 in full (450.00 USD)

Pay items 1 and 2 reconciled.

Pay item 3 not reconciled.

No items reconciled.
2 vouchers with 1 pay item each:
  • • 1: 18,000.00 USD

  • • 2: 22,000.00 USD

1 payment for 29,000.00 USD that pays voucher 1 in full and partially pays voucher 2 (18,000.00 USD applied to voucher 1 and 11,000.00 USD to voucher 2). Voucher 1 reconciled.

Voucher 2 not reconciled.

No items reconciled.

29,000.00 USD doesn't match either voucher amount or the total of voucher 1 and 2.

1 voucher with one pay item for 1,000.00 USD 3 separate payments:
  • • 1: 400.00 USD

  • • 2: 400.00 USD

  • • 3: 200.00 USD

All items reconciled. All items reconciled.
1 voucher with one pay item for 1,000.00 USD 3 separate payments:
  • • 1: 400.00 USD

  • • 2: 400.00 USD

  • • 3: 400.00 USD

All items reconciled. No items reconciled because the total amount of 1,200.00 USD for all payments does not match the voucher total of 1,000.00 USD.

22.3.1.2 Accounts Receivable Trade Accounts

Depending on whether the receipt fully pays the invoice, and whether the offset method is S or Y, the system reconciles entries differently. The system reconciles entries when:

  • • The offset method is S and a pay item for an invoice is paid in full by one or more receipts.

  • • The offset method is Y and an invoice is paid in full by one or more receipts where the total amount matches the invoice exactly.

    If an invoice is paid by multiple receipts and the offset method is Y, the system reconciles the entries when a receipt amount exactly matches the entire remaining amount of the invoice.

This table provides examples of how the R09150 reconciles AE entries in the accounts receivable trade accounts:

Invoices Receipts Offset Method S (offset per pay item) Offset Method Y (offset per document)
1 invoice with 1 pay item (10,000.00 USD) 1 total receipt that pays invoice in full (10,000.00 USD) All items reconciled. All items reconciled.
1 invoice with 1 pay item (45,000.00 USD) 3 total receipts that pay invoice in full:
  • • 15,000.00 USD

  • • 15,000.00 USD

  • • 15,000.00 USD

All items reconciled. All items reconciled.
1 invoice with 2 pay items
  • • 1: 2,400.00 USD

  • • 2: 7,000.00 USD

4 total receipts that paid both pay items in full:
  • • 1: 1,200.00 USD

  • • 2: 1,200.00 USD

  • • 3: 3,500.00 USD

  • • 4: 3,500.00 USD

All items reconciled. All items reconciled.
1 invoice with 3 pay items:
  • • 1: 350.00 USD

  • • 2: 450.00 USD

  • • 3: 550.00 USD

2 total receipts that paid first 2 pay items with exact receipt amounts in full for each pay item:
  • • 1: 350.00 USD

  • • 2: 450.00 USD

Pay item 3 not paid.

Pay Items 1 and 2 reconciled.

Pay item 3 not reconciled.

No items reconciled.
2 invoices with 1 pay item each:
  • • 1: 18,000.00 USD

  • • 2: 22,000.00 USD

1 total receipt for 29,000.00 USD that pays invoice 1 in full and partially pays invoice 2 (18,000.00 applied to invoice 1 and 11,000.00 to invoice 2). Invoice 1 reconciled.

Invoice 2 not reconciled.

No items reconciled. 29,000.00 USD doesn't match either invoice amount or the total of invoice 1 and 2.
1 invoice with one pay item for 1,000.00 USD 3 separate receipts:
  • • 1: 400.00 USD

  • • 2: 400.00 USD

  • • 3: 200.00 USD

All items reconciled. All items reconciled.
1 invoice with one pay item for 1,000.00 USD 3 separate receipts:
  • • 1: 400.00 USD

  • • 2: 400.00 USD

  • • 3: 400.00 USD

All items reconciled. No items reconciled because the total amount of 1,200.00 USD for all receipts does not match the invoice total of 1,000.00 USD.

22.3.1.3 Voucher Logging Accounts

If you have entered a logged voucher and then redistributed it to an expense account, the logged voucher suspense account contains two offsetting entries with the same document number. The system reconciles the two entries if they contain offsetting amounts and if the document information matches.

22.3.1.4 RNV Accounts

For AE entries in the RNV accounts, the system reconciles the entries if the receipt has been fully matched to the voucher. The system does not reconcile the entries if an open amount remains to be matched on the voucher.

If you have reversed the voucher, the system does not reconcile the entries.

22.3.1.5 Performance Liability Accounts (Release 9.2 Update)

For each transaction, i.e. for each document number and document type with a blank reconciliation code for a specific company combination in the F0911R table, the system accumulates amounts in the following accounts; PLA (performance liability account), PLA adjustment, PLA COGS, PLA COGS adjustment. The G/L date may be different between the original transaction and the clearing entry that the system creates when the revenue is recognized.

If the accumulated amount is 0, the system updates the Reconciled Code and Reference 3 fields in the F0911R table for PLA, PLA adjustment, PLA COGS, PLA COGS adjustment accounts for the selected document number, GL date, and document type.

See "Understanding Performance Liability Accounting" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.

See "Setting Up AAIs for Revenue Recognition" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.

22.3.2 Prerequisite

Before you run the G/L Account Reconciliation program, run the Refresh Reconciliation File program (R09310) with the processing option set to include AE entries and with data selection set to include the accounts that you want to reconcile.

22.3.3 Setting Processing Options for the G/L Account Reconciliation Program (R09150) (Release 9.2 Update)

Processing options specify default processing information.

22.3.3.1 Process

1. Type of Account to Reconcile

Specify the type of account to process. Values are:

1: A/R Trade

2: A/P Trade

3: Voucher Logging Account

4: RNV Account (Received Not Vouchered)

5: Performance Liability

You must also enter data selection for the accounts that correspond to the account type that you select. Entering data selection for the corresponding accounts ensures that the system processes unreconciled records from the Account Reconciliation table (F0911R) for only the selected accounts related to this account type.

22.3.3.2 Options

1. Report Output

Specify the report output. Values are:

1: No Reconciliation Detail

The system prints a list of accounts that were reconciled.

2: Summarized Report

The system prints a list of the reconciled identification numbers (R3 field) with the corresponding reconciled dates (DKC field) for each processed account.

3: Detailed Report

The system prints additional detail from the Account Ledger table (F0911) on each reconciled record for a processed account.

22.3.4 Running the G/L Account Reconciliation Program

Select Automated Reconciliation (G09205), Automated Account Reconciliation.