Understanding Bank Reconciliation Configuration

Bank account reconciliation involves comparing and matching your recorded business transactions with your bank's corresponding transactions.

PeopleSoft provides you with different ways to reconcile balances, from a fully automated approach to one where you compare transactions manually. The method that you use depends on how you receive transaction information from your bank and on which PeopleSoft applications you use.

Bank reconciliation in PeopleSoft supports these sources:

  • External Transactions

  • Payables

  • Receivables Deposits

  • Receivables Direct Debits

  • Receivables Drafts

  • Receivables Payments

  • Treasury

Before you can initiate bank reconciliation processing, you must do the following:

  • Define reconciliation record source types.

  • Define reconciliation field aliases.

  • Define reconciliation status codes.

  • Define reconciliation rules.

  • Create reconciliation SQL.

  • Create reconciliation tolerances.

PeopleSoft delivers predefined data in the reconciliation setup tables. You should review this information to determine whether you need to set up your own information to meet your organization's needs.

When you initiate reconciliation processing, the Application Engine validates rules and tolerances set for the respective source, bank, and bank account and reconciles the transactions using the bank ID, bank account, and statement ID submitted on the run control page.

The parent BNK_RECON Application Engine process evaluates the source. Based on an individual source, the respective Application Engine is invoked.

Reconciliation Application Engine

PeopleSoft Application Transaction Source

BNK_RECON_AP

Payables

BNK_RECON_DB

Receivables Direct Debits

BNK_RECON_DP

Receivables Deposits

BNK_RECON_DR

Receivables Drafts

BNK_RECON_PY

Receivables Payments

BNK_RECON_TR

Treasury

BNK_RECON_XT

External Transactions

If you use Cash Management, you can establish bank statement accounting for your reconciliation processing. You establish rules the system uses to match exceptions, or NTFs (No Transactions Found). When the system encounters an exception that matches a rule, it automatically creates a system-side accounting entry for the exception, and marks the exception as reconciled. This process reduces the number of exceptions that you must resolve. Use the TR_RECON_EXC program and TR_UNRECON_TRANS component interface to load reconciliation exceptions.

PeopleSoft delivers two Application Data Set (ADS) definitions to support bank reconciliation rules and reconciliation rules for bank accounts. Because bank reconciliation relies heavily on bank statement data that can vary from bank to bank, PeopleSoft recommends configuring reconciliation rules in a test database, validating the rules, and using ADS definitions to migrate the rules to a production environment.

For introductory information about the Data Migration Workbench and using ADS, see this documentation:

The following table lists the ADS definitions delivered in Data Set Designer that support the migration of PeopleSoft Bank Reconciliation data:

ADS Definition

ADS Usage

Records in the Data Set

TR_BANK_ACCT_RCN_RULE

This data set is used to migrate or move reconciliation rules associated with a bank account from one environment to another environment. This data set is built on the component BANK_ACCT_RCN_RULE.

Note: Before migrating reconciliation rules associated with a bank account, ensure that the bank account is defined in target environment

This data set includes the records used for bank account reconciliation rules:

  • BANK_ACCT_RCN_SC

  • BNK_ACCT_RCN_RL

TR_BANK_RECON_RULE

This data set is used to migrate or move bank reconciliation rules from one environment to another environment. This data set is built on the component BANK_RECON_RULE.

This data set includes the records used for bank reconciliation rules:

  • BANK_RECON_RULE

  • BANK_RECON_AGG

  • BANK_RECON_FLTR

  • BANK_RECON_MAT

  • BANK_RECON_MSQL

  • BANK_RECON_FSQL

You can find complete information about setting up and using ADS definitions for data migration in the documentation for PeopleTools: Lifecycle Management Guide. The PeopleTools documentation covers the following topics:

  • Using the Data Set Designer.

  • Copying and comparing projects.

  • Validating data sets.

  • Implementing data set security.