Understanding Subsystem Reconciliation Reports

Subsystem reconciliation reports compare accounting transactions that have been posted in the subsystem with General Ledger balances. The loader summarizes transactions by General Ledger business unit, fiscal year, accounting period, ledger, selected ChartFields, and system source. Subsystem transactions are categorized as either distributed or not distributed. General Ledger journal transactions are categorized as either posted or not posted. This enables the customer or auditors to check the integrity of the journal entries in General Ledger by verifying that no discrepancies occurred between subsystems and the General Ledger.

A subsystem reconciliation report is run at the end of each period. The auditors should validate the data before running the final closing because discrepancies can occur from:

• Accounting entries posted in subsystems and not distributed in General Ledger.

• Accounting entries posted in subsystems, distributed in General Ledger but not posted because of various statuses such as errors, posting incomplete, not edited, or hold.