6 Reconciliation Rules

Reconciliation management is the designated level at which the account balances are reconciled in the system. It stores information that specifies the granular level at which account balances are reconciled across one or many entities.

Figure 21: Reconciliation Rules Summary Page

This illustration illustrates the Reconciliation Rules Summary Page, displaying the two ways to process the Configuration types.

Configuration types can be processed in two ways:

· GL Level Recon: In the GL level reconciliation, the difference between the GL system and the Product Processors systems at each reconciliation dimension node level within a GL code, is identified.

· Map Level Recon: In the map level reconciliation, the difference between the GL data and the Product Processor data at each reconciliation dimension node level across all the Product Processors, are identified.

For a detailed explanation on GL Level Recon and Map Level Recon, see the Key Terms and Concepts section.

Topics:

· Navigation within the Summary Page

Navigation within the Summary Page

You can navigate to Reconciliation Definition, and select Reconciliation Rules, to view the summary page which displays all the defined reconciliation types. Select a method and by using search criteria, you can control the set of reconciliations definition that is displayed. When you Add, Edit, or View the reconciliations, the corresponding details page is displayed.

The Reconciliation Definition page consists of five tabs:

· Settings

· GL Parameters

· Target Parameters

· Dimensions

· Allocations

The Summary page of the Reconciliation Rules offers several icons that allow you to perform different functions when a defined reconciliation is selected.

Figure 22: Summary Page Icons

This illustration highlights the Reconciliation Rules Summary Page Icons, using these icons you can Add, Edit, View, Copy, or Delete the reconciliations definition.

· Add: Click Add icon, this begins the process of building new reconciliation rules. The Add is disabled if any row in the grid is selected.

· View: Select a single reconciliation definition, this enables the View icon. Click View icon to view the detailed definition of reconciliation in the read-only mode. This icon is enabled only when a single reconciliation definition is selected.

· Edit: Select a single reconciliation definition, this enables the Edit icon. Click the Edit icon to modify an existing reconciliation definition with some restrictions. The Legal Entity and Consolidation Type field are disabled during an edit. This icon is enabled only when a single reconciliation definition is selected.

· Copy: Select a single reconciliation definition, this enables the Copy icon. Click Copy icon to copy the detailed definition in a new Definition screen. You can change any field and save it as a new definition. The Name and the Description fields are enabled on the new definition screen and you can give a unique name and a description. This icon is enabled only when a single reconciliation definition is selected.

· Delete: Select one reconciliation definition, this enables the Delete icon. Click the Delete icon to delete the selected reconciliations definition.

Topics:

· Search Section

· Definition List

· Reconciliation Definition

· Adjustment Attributes

Search Section

You can search for any reconciliation rule in the search pane.

This illustration displays the search section of the Reconciliation Rules Summary Page, that displays a list of all the definitions that match the search criteria.

Definition List

The Definition List displays a list of all the definitions that match your search criteria in two views.

· Tile Menu

· Pane Menu

This list offers several icons that allow you to perform different functions when a defined reconciliation is selected for both the views.

Figure 23: Definition List-Tile menu

This illustration displays the Definition List of the Reconciliation Rules Summary Page, it displays a list of all the definitions that match your search criteria.

Figure 24: Definition List-Pane menu

This illustration displays pagination option in the pane menu. You can navigate to another page using the pagination option in the pane menu.

You can navigate to another page using the pagination option in the pane menu as shown in figure 24.

The following columns are displayed in this grid:

· Measures: The number of measures defined in the reconciliation rule.

· GL Accounts: The number of GL Codes users have selected in the reconciliation definition.

· Consolidation: The Consolidation Type displays as Solo or Consolidated.

· Adjustment: The status is displayed either Yes or No if the Adjustment Allocation has been applied to the selected reconciliation definition or not.

Reconciliation Definition

To add the reconciliation definitions, follow these steps:

1. From the menu bar, click Add icon, the Reconciliation Definition window with the following tabs is displayed:

§ Settings

§ GL Parameters (Source Ledger Parameters)

§ Target Parameters

§ Dimensions

§ Allocation

Settings

To create the Reconciliation definition enter and select the displayed details in the Settings tab.

Figure 25: Reconciliation Definition - Settings tab

Enter and select the following details in the Settings tab:

· Rule Name: Enter the Rule Name to add the Reconciliation definition.

· Rule Description: Enter the Rule Description for the defined rule.

· Reconciliation Type: The Reconciliation Type can be selected as General Ledger to Product Processor, Ledger to Ledger, or Management Ledger to Product Processor.

· Reconciliation Definition Type: The Reconciliation Definition Type is by default selected as Manual for General Ledger to Product Processor and Management Ledger to Product Processor reconciliation type, but is disabled for Ledger to Ledger reconciliation type.

· Legal Entity: Click Hierarchy to select the Legal Entity from the drop-down list.

· Consolidation Type: Select the Consolidation Type from the drop-down list as Solo or Consolidated. If Consolidated is selected, then only one Parent Legal Entity must be part of the definition.

· Inherit to Child: Select the Inherit to Child toggle button, consolidation type is disabled if you select this option. If you select this option and value defaults to Solo. For more information on Inherit to Child, see the Key Terms and Concepts section.

· Balance Type: If the Reconciliation Type is selected as Ledger to Ledger or Management Ledger to Product Processor, then only the End of Period Balance is available as balance types.

For General Ledger to Product Processor reconciliation type, the available Balance Types are:

§ End of Period Balance

§ Monthly Average

§ Yearly Average

§ Month-to-date

§ Quarter-to-date

§ Year-to-date

· Reconciliation Definition: Select the level at which the balances must be reconciled, that is, the GL Level Recon or the Map Level Recon.

· Adjustment Allocation Required: Select Yes in this field if you want the application to pass an automated adjustment entry for any reconciliation difference found, else select No. If the value is No, then the reconciliation differences are calculated but adjustment entry will not be passed.

For more information on the details in the Settings pane, see the Dashboard: Home section.

Click the Next icon, the next tab GL Parameter is displayed.

GL Parameters (Source Ledger Parameters)

Select the displayed details in the GL Parameters tab.

Figure 26: Reconciliation Definition- GL Parameters tab

This illustration displays the GL Parameters page of the Reconciliation Definition. You can click the GL Hierarchy icon to open the GL Hierarchy window, to add the various values. You can also add filers from the dropdown list in the Add Filters section.

In the GL Parameter tab, update the following:

· GL Hierarchy: Click Hierarchy Click Hierarchy icon to launch the GL Hierarchy window. You can select the values for GL Hierarchy pane from the available list of values. icon, to launch the GL Hierarchy window as shown in Figure 27. You can select the values for GL Hierarchy pane from the available list of values.

· Add Filters: You can Add Filters (for example, product, business unit, and so on) defined in the Settings tab. A comparison between the GL system and PPs is based on the filters set on these dimensions.

Figure 27: Reconciliation Definition GL Hierarchy window

This illustration displays the GL Hierarchy window where you can move the Available Values using the Move, Move All, Remove, Remove All buttons.

You can move the Available Values using the Move, Move All, Remove, Remove All, Move to Top, Move Up, Move Down, and Move to Bottom buttons as shown in Figure 28.

Click OK.

Click Next icon, the next tab Target Parameter is displayed.

Target Parameters

This is a configuration page required to configure the target side entities and measures.

Topics:

· GL Level Reconciliation (If GL Level is selected in the Settings tab)

· Map Level Reconciliation (If Map Level is selected in the Settings tab)

GL Level Reconciliation (If GL Level is selected in the Settings tab)

This section explains the GL Level Reconciliation in Target Parameters tab if the GL Level is selected in the Settings tab.

Figure 28: GL Level Reconciliation Definition- Target Parameters tab

This illustration displays the Target Parameter page for GL Level Reconciliation, which displays two sections Target Entity and Target Parameters. It also displays a few icons to perform operations like Settings, Filter, and Delete for the Reconciliation Definition.

Select the following details:

· Target Entity

§ Target Entity Name: Select the name of the entity that contains the Ledger data from the drop-down list.

§ GL Reconciliation Column: Select the reconciliation column from the drop-down list.

§ Threshold Amount Currency: Select the Threshold Amount of currency from the drop-down list.

Click the Settings icon, the Target Parameters pane is displayed, as shown in Figure 29.

Figure 29: GL Level Reconciliation Definition- Target Parameters Pane

This illustration displays the Target Parameter page for GL Level Reconciliation, which displays the Settings option, that further displys the Target Parameters section.

Select the following details:

· Target Parameters

§ Threshold specification: Specify the threshold from this drop-down list. If the value is specified in terms of percentage, then the Threshold Amount Currency field is disabled.

Specify the threshold from the drop-down list. The threshold value can be in both absolute terms and percentage terms at a PP level. If the selection in all the PPs is a percentage, then the threshold amount currency field is disabled.

§ Positive Threshold: Specify the Positive Threshold value. These values are used to identify the breach types, categorized as:

— Negative Percentage Threshold (NPT)

— Positive Percentage Threshold (PPT)

— Negative Absolute Threshold (NAT)

— Positive Absolute Threshold (PAT) and

— Not Breached (NB)

The Breach Type is identified at runtime during the reconciliation process and Audit Trail entries are posted with this information. For GL Level reconciliation, values can be updated at different PP levels. For Map Level reconciliation, you have to manually enter only one value for all the PPs.

§ Negative Threshold: Specify the Negative Threshold value. These values are used to identify the breach types, categorized as

— Negative Percentage Threshold (NPT)

— Positive Percentage Threshold (PPT)

— Negative Absolute Threshold (NAT)

— Positive Absolute Threshold (PAT) and

— Not Breached (NB)

§ Adjustment Entry Floor: Specify the value required to pass an adjustment entry. If the (GL-PP) difference is less than the Adjustment entry floor specified in the definition, then the calculated difference is not eligible for the adjustment and the entry is not logged in Adjustment Entry table.

Figure 30: GL Level Reconciliation Definition- Target Entity Filters

This illustration highlights the Target Parameter Filters option. You can add filters to the optional dimensions (product, business unit, and so on) defined in the Setting window. A comparison between the GL source system and PPs is based on the filters set on these dimensions.

· Filter: Select the currency to specify the Threshold Amount. Additionally, click the Filter pane to add more details to the additional dimensions selected.

You can also add filters to the optional dimensions (product, business unit, and so on) defined in the Settings tab. A comparison between the GL source system and PPs is based on the filters set on these dimensions. See the following steps to add filters:

a. Click the Filters from the drop-down list as highlighted in Figure 30.

b. Select the relevant dimension from the Filters pane.

c. Click the selected dimension, which enables a second drop-down list to select the relevant members for the dimension under consideration.

Click the Next icon, the next tab Dimensions are displayed.

Map Level Reconciliation (If Map Level is selected in the Settings tab)

This section explains the Map Level Reconciliation in Target Parameters tab if the Map Level is selected in the Settings tab.

Figure 31: Map Level Reconciliation page for Target Parameter

This illustration displays the Target Parameter page for Map Level Reconciliation, which displays two sections Target Entity and Target Parameters. GL Reconciliation Column field is disabled when the Map Level Reconciliation is selected. It also displays a few icons to perform operations like Settings, Filter, and Delete for the Reconciliation Definition.

In this window, the GL Reconciliation Column is disabled when the Map Level Reconciliation is selected, click Add to update the PP entity or Target entity details.

For more information to update the Target entity details, see the GL Level Reconciliation (If GL Level is selected in the Settings tab) section.

Dimensions

In this tab, the Mandatory Dimensions are displayed. Click the Reconciliation Dimensions drop-down list to add the dimension to the map definition. Click Save to save the changes made, else click Cancel.

Figure 32: Reconciliation Definition- Dimensions tab

This illustration displays the Dimensions page, the Mandatory Dimensions are displayed. You can click the Reconciliation Dimensions drop-down list to add the dimension to the map definition. Click Save to save the changes made, else click Cancel.

The Legal Entity, Currency, and GAAP Code are the mandatory dimensions. These dimensions which are defined in the Settings window appear in the Dimensions window as well, which indicates that comparison between the GL system and the PP system and any reconciliation difference is populated based on these Dimensions. The Reconciliation Dimensions are optional dimensions which are also populated in this window as defined in the Type Configuration page.

Click the Next icon, the next tab Allocation is displayed.

Allocation

In the Allocation tab, select the following fields:

· Adjustment Allocation: Select the Automatic option if you want the application to pass automated adjustment entries or select Manual.

· Adjustment Posted to: Select the Target table where the adjustments are to be posted that is, select the Product Processor option if the adjustment entry must be posted to the Product Processor selected in the Product Processor Parameter window, or select Other.

Figure 33: Reconciliation Definition Allocation tab

This illustration displays the Allocation page, where you select the fields like Adjustment Allocation, Adjustment Posted to, Target Entity Details, Allocation Amount column, Adjustment Rule, Allocation Ratio, and Adjustment Attributes. It also displays a few icons to perform operations like Settings, Filter, and Delete for the Reconciliation Definition.

· Target Entity: As per the selections made in the preceding two fields, the fields in the Target Entity is disabled or enabled accordingly.

· Allocation Amount column: Balance Attribute.

· Adjustment Rule: Select the Adjustment Rule from the drop-down list.

· Allocation Ratio: If adjustment entry is to be passed to more than one PP entity, then the ratio at which these the entry is to be passed is updated in the Allocation Ratio field.

· Adjustment Attributes: You can use this field to split the adjustments further based on non-dimension columns of the target table. The Reconciliation definition differences that arise from the definition execution can be adjusted back to the target table, based on the values of non-dimension columns. This can be done apart from the dimension columns.

Figure 34: Adjustment Attribute pane

This illustration displays the Adjustment Attribute pane. You can use this field to split the adjustments further based on non-dimension columns of the target table.

For post adjustments with more granularity, perform the following steps:

a. Click on the Selector under Adjustment Attributes. A right pane is displayed.

b. Select the Attributes from the Attribute List and click the Done icon.

c. Click Save icon to save the selected attributes.

The following types of Attributes should not be selected in the field list of Adjustment Attributes:

a. Reconciliation dimensions

b. Number data type columns

c. Date data type columns

NOTE:

Reconciliation differences are created based on reconciliation dimensions alone but not on Adjustment Attributes selected.

Adjustment attributes play their role when creating adjustments with the differences that are observed. The applications read the values in the selected adjustment attributes of the participating columns of aggregation and based on the unique combination of values in these attribute columns, the number of adjustments is created and the same values default in the respective adjustments. The reconciliation definition differences are split among the adjustments based on the weighted average ratio of the participating target balance values.

For more information about Adjustment Attributes and Defaulting Account Level with an example, see Adjustment Attributes and Defaulting Account Level.

Topics:

· Map Level Reconciliation (if Map Level Reconciliation is selected in the Settings tab)

· GL Level Reconciliation (if GL Level Reconciliation is selected in the Settings tab)

GL Level Reconciliation (if GL Level Reconciliation is selected in the Settings window)

This section explains the GL Level Reconciliation in the Allocation tab if the GL Level is selected in the Settings tab.

Figure 36: GL Level Reconciliation page for Allocation

This illustration displays the Allocation page for GL Level Reconciliation, where the Adjustment Allocation is by default considered as Automatic.

In the Allocation pane, the following fields must be selected:

· Adjustment Allocation: If the GL Level Reconciliation is selected, then the Adjustment Allocation is by default considered as Automatic.

· Adjustment Posted to Select the Target table where the adjustments are to be posted that is if the adjustment entry is to be posted to PP selected in the Product Processor Parameter window then select Product Processor or else select Others.

· Target Entity Details: As per the selections made in the preceding two fields, the fields in the Target Entity is disabled or enabled accordingly. See the following cases for more details:

Case 1: If the Target table is the Product Processor

The Default Values is the only column that is updated. This is the mandatory column to be updated for populating the Target Entity results.

Case 2: If the Target table is Other

The Target Entity, the Default Values, the Allocation GL Column, and the Allocation Ratio are updated. If the adjustment entry is to be passed to more than one Product Processor entity, then the ratio at which the entry is passed is updated in the Allocation Ratio field.

Map Level Reconciliation (if Map Level Reconciliation is selected in the Setting pane)

This section explains the Map Level Reconciliation in the Allocation tab if the Map Level is selected in the Settings tab.

Figure 35: Map Level Reconciliation page for Allocation

This illustration displays the Allocation page for Map Level Reconciliation, where you can select the fields like Adjustment Allocation, Adjustment Posted to, and Target Entity Details, Allocation Amount column, Adjustment Rule, Allocation Ratio, and Adjustment Attributes.

In the Allocation pane, the following fields must be selected:

· Adjustment Allocation: If you want the application to pass automated adjustment entries, then select Automatic, or select Manual.

· Adjustment Posted to: Select the Target table where the adjustments are to be posted that is, if the adjustment entry is to be posted to PP selected in the Product Processor Parameter window, then select Product Processor or select Other.

· Target Entity: As per the selections made in the preceding two fields, the fields in the Target Entity is disabled or enabled accordingly. See the following cases for more details:

§ Case 1: If the Adjustment Allocation is Automatic and the Target table is the Product Processor

The Default Values is the only column that is updated. This is the mandatory column to be updated for populating the Target Entity results.

§ Case 2: If the Adjustment Allocation is Manual and the Target table is the Product Processor

The Default Values and the Allocation Ratio are the only two columns to be updated. If the adjustment entry is to be passed to more than one Product Processor entity, then the ratio at which the entry is to be passed is updated in the Allocation Ratio field.

§ Case 3: If the Adjustment Allocation is Automatic and the Target Table is Other

If the Other option is selected as the Target table, then the corresponding Target Entity, Default Values have to be updated.

§ Case 4: If the Adjustment Allocation is Manual and the Target table is Other

The Target Entity, the Default Values, and the Allocation Ratio columns must be updated.

Adjustment Attributes

The following is an example that briefly explains the ADJUSTMENT ATTRIBUTES functionality.

Sample data has dimensions lv code, ccy code, and gaap code. The ownership type attribute is used as an adjustment attribute.

Table 10: STG_CASA
v_account_number	v_lv_code	v_ccy_code	v_gaap_code	n_eop_bal	v_ownership_type	v_default_1
Acc01	LE1	USD	USGAAP	4000	IND	A
Acc02	LE1	USD	USGAAP	2000	JOINT	B
Acc03	LE1	USD	USGAAP	3000	JOINT	C

Assuming source balance is 9300, the following are the differences that are created.

Table 11: DIFFERENCE TABLE
Source Balance	Target Balance	Difference
9300	9000	300

The following are the adjustments that are posted considering the ownership type column into the granularity.

Two unique values, IND and JOINT are used to split the differences and create adjustments.

Adjustment 1 has the value IND for ownership type and the balance is (4000/9000)*300.

Adjustment 2 has the value JOINT for ownership type and the balance will be ((2000+3000)/9000)*300.

Table 12: ADJUSTMENTS
v_account_number	v_lv_code	v_ccy_code	_gaap_code	n_eop_bal (diff)	v_ownership_type	v_default_1
GL_01	LE1	USD	USGAAP	133.33	IND	A
GL_02	LE1	USD	USGAAP	166.66	JOINT	A