2. Reconciliation an Overview

2.1 Introduction

The Reconciliation Module of Oracle FLEXCUBE deals with the reconciliation of the entries of an external statement with that of the corresponding entries of an internal account.

The main objective in automating account reconciliation is to:

• Maximize interest revenue from external accounts
• Minimize financial exposure
• Control financial exposure to critical accounts

In Oracle FLEXCUBE, these objectives are realized through the automatic capture of external and internal statements and the automatic matching and reconciliation of these entries.

The reconciliation process involves several steps, which have been diagrammatically represented below.

2.2 Features

Oracle FLEXCUBE provides you with the following features through the reconciliation module:

Flexible Definition of Matching Rules

You can define the parameters based on which external entries can be matched with their corresponding internal entries. The match rules that you define can be based on a variety of criteria like:

• Amount
• Value date exact or with a tolerance that you can define
• Transaction reference number (internal or external)
• Simple amount or bunched amounts

While matching entries, you have the option to change the sequence in which the rules should be applied.

You can define reconciliation classes that consist of several match rules. You can further define the sequence in which the matching rules should be applied to specific accounts.

Automatic Capture of Data

The data that is handled by this module pertains to the information captured through the other modules of Oracle FLEXCUBE, data generated internally by the system, data captured through S.W.I.F.T. and data that you enter manually into the system.

In Oracle FLEXCUBE both internal and external data can be captured electronically. This eliminates manual capturing of entries.

Automatic Reconciliation

Oracle FLEXCUBE has incorporated a unique feature wherein you can automatically match the entries of an external account with those of an internal account. You can generate a report that gives you details of the exceptions that occurred while auto matching you can also view details of the entries that could not be matched automatically.

Another unique feature that has been incorporated is that you can actually match one internal with several external entries and several external entries with one internal entry.

Information Services for Managerial and Statistical Reporting

To assist your bank in the important function of reconciling entries, the module enables you to generate various reports that can be viewed on the screen or printed. The reports that you can generate include:

• The Unmatched Items Report
• Matched Items Report
• The Reconciliation Class Definition Report
• Capture Exception Report
• External Account Definition Report
• Manual Matching Report
• Match Exception Report
• Match Items Report
• Rule Definition Report
• Statement Input Report
• Upload Exception Report