Understanding Account Reconciliation
PeopleSoft’s Account Reconciliation provides a flexible tool by which to configure and manage the account reconciliation process. It streamlines and accelerates the reconciliation of accounts to be performed for each accounting period so that organizations can provide supporting documentation required by external auditors as well as identify and correct errors in a timely manner in preparation of monthly financial statements, annual audits, external filings and disclosures, and so on.
Use PeopleSoft Account Reconciliation to reconcile accounts between subsystems and General Ledger or use the functionality for transaction verification and compliance, verifying that individual transactions are recorded properly and have adequate supporting documentation. You can perform a full verification or use a sampling approach based on assigned risk.
The PeopleSoft Account Reconciliation functionality enables you to:
Identify specific ChartField value combinations to be reconciled.
Assign reconciliation responsibility to individual or groups of ChartField value combinations.
Allow each user to see the reconciliations for which they are responsible.
Sign-off (and mass sign-off) to indicate that a ChartField value combination has been reconciled.
Review overall status of reconciliation activities.
Capture and retain documentation associated with reconciliation.
Define and use approval workflow in the account reconciliation process.
This diagram shows a high-level process flow of the Account Reconciliation process:
This diagram shows a high-level process flow of the Accounting Reconciliation process:
Steps to perform account reconciliations include:
Configure account reconciliations. Using the Configuration components, define the parameters and criteria to be used in establishing the Reconciliation Rules. Configuration should be done before Reconciliation Rules are set up and before reconciliation processes are performed.
Create or update Reconciliation Rules that define the ChartField values to be reconciled as well as assign default responsibility for performing and approving the reconciliations.
Create the Reconciliation Set where you can group Reconciliation Rules specify the level of ledger balance summarization that is appropriate for each rule.
Run the Create Reconciliations process to create account reconciliations for a specified period, establishing default reconcilers, owners, reviewers, and approvers for each reconciliation.
Review the Reconciliation Assignments page and update the assignments, as necessary.
(Optional) Create ad-hoc reconciliations, as needed, to supplement those created by the Create Reconciliations process.
Use the Reconciliation Workbench to search for reconciliations, document activities, attach supporting documents, and submit and approve reconciliations.
To remove reconciliation transactions that have a Deleted status, use the GL_RECON Archive Template on the Manage Archive Objects page in PeopleTools, Data Archive Manager. See PeopleTools: Data Management, Using PeopleSoft Data Archive Manager.
You must enable Approval Framework to employ full functionality of this feature.
See General Ledger: Understanding Configurable Workflow.
See Enterprise Components: Approval Framework: Understanding the Approval Framework Approval Framework Overview.