Reconciliation

Reconciliation is one of the core modules of SCF application wherein any outstanding invoices/finances due from buyer/supplier are reconciled against the payment initiated by the buyer/supplier as per the reconciliation rules configured in the application.

Recon Rule Definition

User should be able to configure recon rules for reconciliation purpose using Recon Rule definition screen. Rule can be categorized into two types, namely Exact and Generic.

Navigation Path: Supply Chain Finance > Maintenance > Reconciliation > Recon Rule Definition > Create/ View

Create Exact Recon Rule

This screen should be used for setting up Recon Rule for ‘Exact’ recon category. Following attributes can be configured using this screen:

Field Name	Description
Rule Id Description	Description of recon rule.
Recon Category	Category of recon for which rule is defined. For example – Invoice Payment recon, Finance Payment Recon.
Recon Category Description	Category of the Recon definition, whether it is exact or generic.
Pattern Matching	This is mandatory if exact recon category is selected. User can select value as Yes and No.
Pattern (LHS)	Pattern for matching LHS to RHS. For example: 2,4 — which indicates that the part of the LHS attribute from 2^nd to 4^th character should be matched with the RHS attribute.
Pattern (RHS)	Pattern for matching LHS to RHS. For example: 2,4 — which indicates that the part of the RHS attribute from 2^nd to 4^th character should be matched with the LHS attribute.
Matching Criteria	This is for comparison between LHS and RHS. This can be =, >, <, etc.
Recon Entity(RHS)	This is the entity which needs to be matched. For example – Invoice.
Recon Entity(LHS)	This is the entity which needs to be matched. For example – Payment.
Recon Entity Attribute(LHS)	This is the list of attributes of the LHS entity. This could be invoice date, invoice due date, invoice amount, invoice ref no, buyer id , supplier id, etc.
Recon Entity Attribute(RHS)	This is the list of attributes of the RHS entity. This could be payment date, payment amount, payment ref no, buyer id , supplier id, etc.

Create Generic Recon Rule

This screen should be used for setting up Recon Rule for ‘Generic’ recon category. Following attributes can be configured using this screen:

Field Name	Description
Base Entity	This is the base entity on which the generic rule needs to be applied.
Generic Criteria	This is the generic rule to be configured. • FIFO – First In First Out • LIFO – Last In First Out • HAFO – Highest Amount First Out • LAFO – Least Amount First Out.
Based on Attribute	This is the attribute on which the rule is based. This attribute would be related to the base entity selected.

Search Recon Rule Definition

User can search existing recon rule definition using above screen. Once user enters the search criteria, Recon Rules maintained will be displayed.

Recon Rule Decisions

Execution of Recon Rule is driven as per priority set in the Recon Rule Decision screen:

Navigation Path: Supply Chain Finance > Maintenance > Reconciliation > Recon Rule Decision > Create/ View

This screen should be used for setting up Recon Rule decisions. Following attributes can be configured using this screen:

Field Name	Description
Filter Criteria	This is the level for which the reconciliation rule is set up. This could be Party based, Program Based and Default. • Default: If default is selected as the filter criteria, then the rules added will be applicable for all payments being processed. • Program: If Program based is selected as the filter criteria, then a program field will appear wherein program code can be entered. The rules added as part of this maintenance would then be applicable for the selected program and for all other programs the default ruleset would be applicable. • Party: If Party based is selected as the filter criteria, then a party id field will appear wherein payment party id can be entered. The rules added as part of this maintenance would then be applicable for the selected party and for all other parties the default ruleset would be applicable.
Priority	The rules would get applied based on the ascending order of priority maintained here.
Recon Category	Category of recon for which rule is defined. For example: Invoice Payment recon, Finance Payment Recon.
Recon Type	User can selected either generic or exact rule.
Rule Id	User can select the rules maintained in the rule definition screen.
Rule Id Description	This is automatically populated based on the rule id selected.
Execute Generic Recon	User can select this if generic recon is to be executed if there are any records pending after applying the exact rule.

Click Add/Edit to save the values.

Search Recon Rule Decision

User can search existing recon rule decision using above screen. Once user enter search criteria, Recon Rule Decision View screen will be displayed.