Understanding Reconciliation Compliance and Transaction Matching Key Differences

This topic includes frequently asked questions that help you understand the integration points between Reconciliation Compliance and Transaction Matching and the key differences and how processing is affected:

How are Periods Handled Differently in Reconciliation Compliance and Transaction Matching?

One of the key differences between Reconciliation Compliance and Transaction Matching is in the handling of periods. Reconciliation Compliance uses Periods as a basic building block for reconciliations and there's a process to open, close and lock periods. In Reconciliation Compliance, when you lock a period, you can’t take action for that period.

Closing a period prevents new reconciliations from being created but allows reconciliations that are in progress to be completed and actions can be taken on reconciliations including data load.

In Reconciliation Compliance, locking a period prevents changes to reconciliations for the period. Notifications continue to run when a period is closed but not if it is locked.

However, for Transaction Matching, when a period is locked, unmatched transactions are still available for matching during subsequent periods. The reason is that often you may get matching transactions coming in the next month for the other side of the match from the prior month.

What is the "Locked Through Date" in Transaction Matching?

If you are using either the Account Analysis with Transaction Matching or the Balance Comparison with Transaction Matching formats, the matching activities for the profiles will be restricted for locked periods and have a "Locked Through Date".

The period end date for the latest locked period is the "Locked Through Date". Periods can be locked or unlocked in any order and there can be unlocked periods between locked periods. Therefore, the locked through date will be based on the latest locked period.

Note:

Transaction Matching Only profiles will not have a locked through date.

Here's an example of a Locked Through Date of 31-Mar-2018:

Period Start Date End Date Lock Status
Jan 18 01-Jan-2018 31-Jan-2018 Locked
Feb 18 01-Feb-2018 28-Feb-2018 Locked
Mar 18 01-Feb-2018 31-Mar-2018 Unlocked

In the above example, if the user locks the March period, the "Locked through date" will be 31-Mar-2018.

If the user unlocks February, the "Locked through date" will continue to be 31-Mar-2018.

Now that you understand the "Locked Through Date" and its relation to periods, here is an explanation of why you may receive an error message for the Administrator to unlock the period before continuing. If you try to perform any of the following actions and the Accounting Date for Transaction Matching transactions is before the "Locked Through Date", you will receive an error message that the Administrator needs to unlock the period(s):

  • Import Transaction Matching transactions
  • Delete Transaction Matching transactions
  • Unmatch a matched set that has an adjustment
  • Delete Support details from transactions
  • Edit a Transaction's Accounting Date or Balancing Amount

How Does Transaction Matching Use the "Locked Through Date" and How Does It Affect Reopening of Reconciliations?

Performing any of the following actions on closed transactions while the Accounting Date of Transaction Matching transactions is between the "Locked Through Date" and the "Closed Through Date" (accounting date of a transaction that falls within a period of a closed reconciliation) results in Account Reconciliation displaying a warning message and prompting you to confirm if you want to reopen the reconciliation:

  • Delete Transaction Matching transactions
  • Unmatch a matched set that has an adjustment
  • Delete support details from a transaction
  • Edit a transaction's Accounting Date or Balancing Amount

Why Do Reconciliations Get Reopened When You Load Data in Transaction Matching?

Reconciliations can also be reopened when importing transactions. This happens automatically, without a warning message, since the importing of transactions is, typically, a scheduled job performed after business hours.

To know why reconciliations might reopen, you have to understand how the system handles transactions differently based on whether they will or will not affect the Unexplained Difference or the Reconciliation Balancing Report. So the loading of transactions with timing differences can be thought of as either routine tasks that occur in the normal course of doing business versus non-routine substantive changes that occur if those transactions are loaded.

  • Routine Normal Course of Business Transactions with Timing Differences - When transactions are loaded that apply to a Submitted and Closed reconciliation when dealing with Transaction Matching transactions and these type of timing differences occur often and are routine. A transaction may match a transaction from another month but processing this transaction does not require the opening of the reconciliation if it's already closed.

    Let's say a reconciliation is submitted and closed and it's September 29th. The system can still match August transactions that are loaded without reopening a reconciliation. This is the normal course of business since transactions often come in later.

  • Non-Routine Transactions with Timing Differences - These transactions when loaded affect the Unexplained Difference and Balancing Report and therefore are substantive. Let's say a reconciliation is submitted and closed and it's September 29th. If you now load transactions with accounting dates belonging to August or before and they affect the unexplained difference, then the reconciliation is reopened.

How Does Creating Reconciliations Work in Reconciliation Compliance Versus Transaction Matching

Another key difference is that in Reconciliation Compliance, you begin the reconciliation process for each period by creating reconciliations. You can create reconciliations from Periods or Profiles. You can create reconciliations for all account profiles, or for a filtered list of profiles. The profile frequency, such as monthly or quarterly, must match the period frequency. When you create reconciliations, the status of all reconciliations is Pending until you change the Period status from Pending to Open.

Transaction Matching differs from Reconciliation Compliance in that users of Transaction Matching can access the Matching functionality of Transaction Matching immediately upon linking the Profile to one of the three Transaction Matching Formats since it shows up under the Matching card at that point.

If you are a Transaction Matching only environment, you can work on the Matching side from the matching card, with no Reconciliation Compliance integration.

However, if you are a Transaction Matching user that's linked to the Transaction Matching Account Analysis or Balance Comparison formats, then there is an integration to Reconciliation Compliance and you need to perform the step to create reconciliations, as described in Creating Reconciliations in Administering Oracle Account Reconciliation.