6 Setting Up Account Reconciliation

This chapter contains the following topics:

6.1 Understanding Account Reconciliation

As part of your period-end processes, you might need to reconcile certain types of accounts in your system. For example, you might need to reconcile the balances in your bank accounts with your bank statement. Or you might want to reconcile debits to credits within a trade or suspense account.

The JD Edwards EnterpriseOne General Accounting system provides four methods of account reconciliation:

  • Bank Account Reconciliation

    Use this method to manually reconcile your bank accounts.

  • Debit/Credit Match

    Use this method to manually reconcile debits and credits for accounts such as clearing or suspense accounts.

  • Bank Tape Reconciliation

    Use this method if you want the system to automatically reconcile your bank account. You can use this method only if your bank provides magnetic media with transaction information.

  • Bank Statement Processing

    Use this method to enter transaction information from your bank statement directly into EnterpriseOne software. Countries whose banking processes rely heavily on magnetic media processing, electronic funds transfers, and direct bank involvement in settling outstanding debts typically use this method.

6.2 Setting Up AAIs for Account Reconciliation

Before you begin the account reconciliation process, you must set up AAI item GLRCxx. These AAIs define the range of accounts that you want to reconcile and are required for all four methods of account reconciliation. If the account that you want to reconcile is not included in any of your GLRCxx AAI ranges, the Refresh Reconciliation File program (R09130) does not build the WF - Account Ledger Reconciliation worktable (F0911R) for the account and you cannot reconcile the account.

You must define complete ranges, consisting of a beginning and an ending AAI item. The first range must begin with GLRC01. We recommend that you end the first range with GLRC02, the next consecutive number. Define the next range, if needed, to start with GLRC03 and end with GLRC04, and so on.

This example shows how you might set up your GLRCxx AAIs:

Item Number Description Line 1 Description Line 2 Company Business Unit Object Account Subsidiary
GLRC01 Reconcilable Range Begin Range 1 00000   1110  
GLRC02 Reconcilable Range End Range 1 00000   1110 99999999
GLRC03 Reconcilable Range Begin Range 2 00000   4110  
GLRC04 Reconcilable Range End Range 2 00000   4110 99999999

6.3 Setting Up Reconciliation Codes

As part of the setup for the Bank Account Reconciliation and the Debit/Credit Match methods of account reconciliation, you can change the reconciliation code that the system uses to indicate the reconciliation status of a transaction. The system updates the transactions in the WF - Account Ledger Reconciliation worktable (F0911R) and the Account Ledger table (F0911) with this reconciliation code when you reconcile transactions within your accounts. The Refresh Reconciliation File program (R09130) uses the reconciliation code to determine which transactions have already been reconciled when refreshing the F0911R worktable. The default reconciliation code is R. However, if your organization has a different term for reconciliation and would like to make the code more applicable, you can add a new reconciliation code.

If you want to add a new reconciliation code, you must define the new code in UDC table 09/RC. You can enter any alphanumeric value. The field length is 1. However, if you are using bank statement processing, you cannot use values A or D because they are used by the Bank Statement programs.

Note:

The Auto Reconcile Void Payment (R09551) and Auto Reconcile Void Receipt (R09552) programs use the default reconciliation code of R. You cannot change the reconciliation code for these programs.