8. Matching Internal and External Statements

8.1 Introduction

Nostro reconciliation involves the matching of the entries of an external statement with the corresponding entries of an internal statement. In Oracle FLEXCUBE entries of an external statement can be matched with corresponding internal entries manually.

8.2 Manual Matching of Entries

While manually matching Nostro entries, you will have to select the external entries that should be matched and also indicate the corresponding internal entries, to which they should be matched.

The debit and credit legs of the entries that you select will be displayed in their respective fields of the screen. The sum of the amounts of the internal and external entries that you select for matching should be the same. This depends on whether the reconciliation class to be used in matching the entries requires the replication or the mirroring of entries.

You can invoke the ‘Reconciliation Manual Matching Input’ screen by typing ‘REDMANMC’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

To manually match the entries of an external statement with the corresponding entries of an internal statement; you should specify the following:

• The reconciliation class to be used in the matching
• The external entity and account to which the statement belongs
• The currency of the internal account

Oracle FLEXCUBE automatically assigns a unique reference number to the entries that you match. After you indicate the above details, click ‘Fetch’ button. All the external and internal statements that are yet to be matched will be displayed under their respective sections marked External and Internal. The following details of the external and internal statement will be displayed:

• The entry sequence number
• Value date
• The debit or credit indicator
• The amount that the transaction entails
• The reference number that you assigned to the transaction (internal reference number). For transactions that involve managers checks, the MCK number used in the transaction
• The reference number assigned to the transaction by the other bank (external reference number)

Thereafter, you should manually indicate the internal entry and the corresponding external entry which should be matched. To indicate the entries that should be matched, tick against the internal entry and the corresponding external entry to which it should be matched.

Indicating Match Status

This indicates the match status which can be Open, Closed or Suggested

• The suggested entries will not be allowed for modification
• The Suggested record will be allowed for Confirmation. The confirmation of suggested entries can be done using ‘confirm button’. On confirmation the system will mark the match status as ‘Open’ and the accounting entries (difference between the amount of internal and external) will be passed
• The suggested entries record can be rejected. The rejection can be done using ‘Reverse action’ of manual matching screen. On rejection the matched status will be ‘CLOSED’ and the match indicator will be ‘NO’
• For manual matching (suggested entries)
• Confirm and reverse buttons will be enabled. For manual matching (other entries), confirm and reverse buttons will be disabled

Note

You can choose to match one internal entry to several external entries and vice versa.

The debit and credit indicators under the internal and external sections will display the sum of the entries that you have selected. Oracle FLEXCUBE checks that before the entries are matched, the totals of the amounts involved in the transactions that you want to match are the same. This however depends on whether the reconciliation class to be used to match the entries requires mirroring or replication of entries.

If the reconciliation class to be used in the matching of the entries requires replication of entries, then, the internal debit entry should be equal to the external debit entry. Similarly, the internal credit entries should be equal to the external credit entries.

For replication -- Dr = Dr and Cr = Cr

If the reconciliation class to be used in the matching of the entries requires a mirroring of entries, then, the internal debit entry should be equal to the external credit entry. Similarly, the internal credit entry should be equal to the external debit entry.

For mirroring -- Dr = Cr and Cr = Dr

You can also match an external or external entry to other internal or external entry respectively. This is possible provided the sum of the debit and credit entries of the internal transaction is equal to the sum of the debit and credit entries of the external transaction. For example, you can match an internal; transaction to another internal transaction in case you have reversed the entry. Such an entry may or may not have a corresponding external entry.