Updating Reconciliations

The status of a reconciliation determines whether you can edit a field. The following table displays the disabled fields for each status:

Table 6-1 Disabled Fields for each Reconciliation Status

Tabs Pending Status - Disabled Fields Open with Preparer Status - Disabled Fields Closed Status - Disabled Fields
Properties
  • Account ID

  • Active

  • Format

  • Normal Balance

  • Account ID

  • Active

  • Format

  • Normal Balance

  • Auto-Reconciliation

  • Maximum Age Limits

  • Account ID

  • Active

  • Format

  • Normal Balance

  • Auto-Reconciliation

  • Maximum Age Limits

Workflow

Preparer Frequency

  • Preparer Frequency

  • Preparer Start Date

  • Preparer Frequency

  • Preparer Start Date

  • Reviewer Levels

Currency  
  • Historical Rate

  • Rate Type

  • Currency Bucket Enabled check boxes

  • Historical Rate

  • Rate Type

  • Currency Bucket Enabled check boxes

To update reconciliations:
  1. From the Home page, click Reconciliations.
  2. Click a reconciliation, and then click the Edit icon.
  3. On the Properties tab, view or update where appropriate:
    • Account ID—The identifier for the profile is a required field. The combination of segment values must be unique across profiles. The number of segments available is defined in system settings.

      When you click Edit button (Edit) a message is displayed, "Changing the Account ID will break the relationship between balance mapping rules and prior reconciliations created for this profile. Are you sure you want to proceed?"

      Click Yes to continue.

    • Name—The name provides a secondary mechanism to help identify the profile. Names are not required to be unique. As a best practice, Oracle suggests using the name associated with the natural account segment and some other descriptor that identifies ownership of or responsibility for the profile.

    • Description—Enter a description of the reconciliation, if required.

    • Summary Profile—If this box is selected, then the Profile is a Summary Profile. The Auto-Reconciliation configuration section is removed and the balances are not editable.

      Included Accounts—This section enables Service Administrators and Power Users to assign profiles to summary profiles. Both regular (non-summary) and summary profiles can be selected for addition to a summary profile.

      Note:

      Included Accounts only displays when you are editing a summary reconciliation.

    • Process—Associates the profile with a specific reconciliation process, for example: the balance sheet reconciliation process or the local GAAP reconciliation process. Processes are defined in system settings.

    • Format—Associates the profile with a format created by an Service Administrator, determining the method of reconciliation and the type of information required to be provided by the preparer.

    • Method—Identifies the reconciliation method associated with the format assigned to the profile.

    • Risk Rating—Associates the profile with a risk rating. Risk ratings are defined in system settings, for example, High, Low, or Medium.

    • Account Type—Associates the profile with an account type. Risk Rating and Account Type are attributes that facilitate reporting – the values are defined by Service Administrators and can be used on dashboards and list views to filter reconciliations.

    • Normal Balance—Identifies whether the profile is expected to contain a debit balance, a credit balance, or a debit or a credit balance. If the balance is different from the normal balance, then a warning is set on the reconciliation.

    • In Auto-Reconciliation Methods, select a method that describes the conditions that must be true for reconciliations configured with the auto-reconciliation method to qualify for auto-reconciliation. If any conditions are false, then auto-reconciliation fails, and the reconciliation status is set to Open so that the Preparer can manually prepare the reconciliation:

      Note:

      If the "Manually Enter Balances" check box for source system or subsystem balances has been checked, the reconciliation is not eligible for auto reconciliation.

      • For Account Analysis:

        • Balance is zero required conditions:

          • If an account analysis format is assigned to the profile, then the profile can be enabled for the "Account has a 0 Balance" auto-reconciliation method.

          • If the balance associated with the reconciliation for a given period is 0, then the reconciliation is prepared and reviewed automatically for that period.

          • If the balance is not 0, then the reconciliation must be manually prepared and reviewed.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • Balance is zero and no activity required conditions:

          • The Source System Balance is zero.

          • Source System Balance is the same as the Prior Reconciliation Source System Balance.

            Note:

            This last condition also means that a previous reconciliation source system balance must exist.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • No activity required conditions:

          • If a previous reconciliation exists, the following conditions must be met:

            • The prior reconciliation status must be Complete.

            • The prior reconciliation Source System balance must be the same as the current reconciliation Source System balance.

            • The prior reconciliation format must be the same as the current reconciliation format

              Specifically:

              1. The Format ID used to create both the current and prior format instances must be the same.

              2. The current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • If a previous reconciliation does not exist, then the prior reconciliation Source System balance is presumed to be zero:

            • If the current period’s Source System Balance is also zero, then the reconciliation will be auto-reconciled.

            • If the current period’s Source System balance is not zero, then the reconciliation will not auto reconcile.

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed.

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied.

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into)

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age.

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation.

          • Comments and Attachments that exist at the Reconciliation level are copied

        • Balance is within range required conditions:

          • A prior reconciliation must exist and the status of this reconciliation must be Complete.

          • The prior reconciliation format must be the same as the current reconciliation format. Specifically, the format ID used to create both the current and prior format instances must be the same, and the current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • The Source System Balance is more than or equal to the Balance Range (Low).

          • The Source System Balance is less than or equal to the Balance Range (High).

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed.

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied.

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into).

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age.

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation.

          • Comments and Attachments that exist at the Reconciliation level are copied.

        • Balance is within range and no activity required conditions:

          • A prior reconciliation must exist and the status of this reconciliation must be Complete.

          • The prior reconciliation format must be the same as the current reconciliation format. Specifically, the format ID used to create both the current and prior format instances must be the same, and the current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • Source System Balance is greater than or equal to the Balance Range (Low).

          • The Source System Balance is less than or equal to Balance Range (High).

          • Source System Balance – Prior Reconciliation Source System Balance = 0; The range can be a negative number.

            Note:

            This last condition also means that a prior reconciliation source system balance must exist.

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed.

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied.

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into).

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation.

          • Comments and Attachments that exist at the Reconciliation level are copied.

      • For Balance Comparison:

        • Balance is zero required conditions:

          • If a balance comparison format is assigned to the profile, then the profile can be enabled for the "Account has a 0 Balance" auto-reconciliation method.

          • If the balance associated with the reconciliation for a given period is 0, then the reconciliation is prepared and reviewed automatically for that period.

          • If the balance is not 0, then the reconciliation must be manually prepared and reviewed.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • Balance is zero and no activity required conditions:

          • The Source System Balance is zero.

          • Source System Balance is the same as the Prior Reconciliation Source System Balance.

            Note:

            This last condition also means that a previous reconciliation source system balance must exist.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • No activity required conditions:

          • If a previous reconciliation exists, the following conditions must be met:

            • The prior reconciliation status must be Complete.

            • The prior reconciliation Source System balance must be the same as the current reconciliation Source System balance.

            • The prior reconciliation format must be the same as the current reconciliation format.

              Specifically:

              1. The Format ID used to create both the current and prior format instances must be the same.

              2. The current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • If a previous reconciliation does not exist, then the prior reconciliation Source System balance is presumed to be zero:

            • If the current period’s Source System Balance is also zero, then the reconciliation will be auto-reconciled.

            • If the current period’s Source System balance is not zero, then the reconciliation will not auto reconcile.

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed.

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied.

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into).

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age.

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation.

          • Comments and Attachments that exist at the Reconciliation level are copied.

        • Balance match (% Tolerance): If a balance comparison format is assigned to the profile, then the profile can be enabled for the Balance Comparison where the Balances Match (% Tolerance) auto-reconciliation method.

          If this method is enabled, then a threshold value can be applied. The threshold percentage is multiplied against the source system balance to calculate a threshold value.

          • If the difference between the source system balance and the subsystem balance is less than the threshold value in a period, then the reconciliation is prepared and reviewed automatically for that period.

          • If the difference is greater than the threshold value, then the reconciliation must be manually prepared and reviewed.

          Enter the Match Balance Threshold (Percent) as a whole number between 1 and 100.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • Balances match (# tolerance): The difference between the Source System Balance and the Subsystem Balance is less than or equal to a tolerance value; the tolerance value is specified on the profile. Enter the Match Balance Threshold (Number) tolerance amount.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

    • Maximum Age Limits—Enter the number of Day(s) for the maximum age of reconciliation transactions:

      • Reconciliation Adjustments (applies to Account Analysis and Balance Comparison methods)

      • Balance Explanations (applies to Account Analysis method)

      Note:

      Aging Violation: If a value is provided and the reconciliation contains transactions where the age of the items (calculated as Period End Date minus Transaction Open Date) is greater than the value provided, then the transactions are flagged as aging violations and an aging violation warning is set on the reconciliation.

    • Manually Enter Balances—Determine whether the source system or subsystem balances can be entered manually by the preparer on the reconciliation. These boxes are only checked if balances are not being imported for the profile. Select one or both:

      • Enter source system balances manually (applies to both reconciliation methods)

      • Enter subsystem balances manually (applies to Balance Comparison method)

      Note:

      If the "Manually Enter Balances" check box for source system or subsystem balances has been checked, the reconciliation is not eligible for auto reconciliation.

  4. To monitor which roles have been automatically completed via Format or Profile Rules, perform the following steps:
    1. From the Reconciliations screen, click Actions, and then Select Columns.
    2. Select Auto Submitted to indicate that a Rule was automatically run, and the reconciliation was submitted.
    3. Select Auto Approved (Level 1) to indicate that a Rule was used to automatically complete that role.

    For example, if you have configured a Rule for the Reviewer 1 role to automatically approve when Unexplained Difference is 0.00, the column called Auto Approved (Level 1) will indicate that a Rule was used to automatically complete that role. On a related note, reconciliations that have been automatically reconciled using an Auto Reconciliation method will still remain as separate columns indicating if the reconciliation was Auto Reconciled and which Auto Reconciliation Method was used.

  5. Select the Instructions tab.

    The Instruction tab inherits instructions configured on the format assigned to the profile, eliminating the need to provide specific instructions for each and every profile. Some profiles, however, do require extra instruction. Add the instructions as paragraphs of text, attached files, URLs, or links to files in document repositories.

  6. Select the Workflow tab.

    The Workflow tab contains the preparer and reviewer assignments. Only users authorized for preparer and reviewer roles can be assigned these functions on a profile. The system prevents the same user from being assigned preparer and reviewer roles on the same profile, or the same user being assigned multiple reviewer roles.

    • Enter this information for the preparer:

      • User Name—The user names available for selection as preparer are only those users authorized with the preparer role. To select to assign a Preparer to a named user or team, click icon_backupuser. (Select a Backup User).

      • Backup User—If you assigned a user for the primary preparer, you can assign a backup user authorized as a preparer:

        Note:

        A backup preparer can only prepare the reconciliation when the primary has setup his status as unavailable.

        1. Click icon_backupuser. (Select a Backup User).

        2. Enter the First Name and Last Name or click Search to select a backup user.

      • Frequency—If a profile contains a frequency that matches one of the frequencies associated with a period, then the reconciliation is copied to the period when the Service Administrator uses the Copy to Period function. Frequency example: Annually, Quarterly, Quartery-US, Quarterly-Europe, or Monthly.

      • Start Day Offset—Determines the start date of the reconciliation. It can be a negative or positive number and determines the number of days before (if configured as a negative number) or after (if configured as a positive number) the period close date the reconciliation is authorized to begin.

      • Schedule From—Determines what day (for example, the close day or end day) the Start Day Offset relates to.

      • Duration—Added to the start date to calculate the preparer due date.

    • When assigning reviewers, start with the reviewer with the highest frequency. Enter the reviewers information:

      • Level—Supports unlimited levels of review.

      • User Name—The user names available for selection as reviewers are only those users authorized with the reviewer role.

        To assign a backup reviewer or team:

        1. Click icon_backupuser. (Select a Reviewer).

        2. If you selected a user for the primary reviewer, you can select a backup reviewer: in the Backup User column, click icon_backup user (Select a Backup User) and select a backup user.

      • Reviewer Frequency—Determines how often the reconciliation is reviewed. It is possible for reconciliations to be prepared monthly and reviewed quarterly.

      • Reviewer Duration—Determines the reviewer due date. The due date is calculated as preparer start date + preparer duration + reviewer duration. There is no start day offset for reviewers. This is because the reviewer start date is determined by when the preparer releases the reconciliation for review. As soon as this occurs, the reviewer may commence review.

  7. Select the Currency tab.

    If your system is configured using one currency configuration, the currency tab is hidden. Summary reconciliations are always prepared in a single currency. Changes are required to the Currency tab to enable configuration for a single currency bucket. For summary reconciliations, select the Rate Type, and them select the single currency bucket. The functional currency bucket is the default.

    Determines the number of currency buckets enabled for the reconciliation and the behavior of foreign exchange translation. Enter this information:

    • Historical Rate—Select Historical Rate for profiles that contain accounts not subject to revaluation in the source system:

      • If Historical Rate is selected, the preparer must specify the value in all currency buckets enabled on the reconciliation when entering transactions into the reconciliation (for example, balance explanations or adjustments).

      • If Historical Rate is cleared, the preparer is required to enter a value into the lowest level currency bucket (for example, the entered currency bucket), and the systemcalculates the equivalent value in the other currency buckets using the maintained exchange rates.

    • Rate Type

      The rate type selection applies only if the historical rate is cleared. When Foreign Currency Rates (FX rates) are loaded, they are associated with a rate type. The rate type setting on the profile determines which series of FX rates are used to perform currency conversion calculations for transactions of reconciliations pertaining to the profile.

    • For each bucket label (for example, Entered, Functional, or Reporting), enable it and select the default currency.

    • The currency bucket table determines which currency buckets are enabled for the profile. Currency buckets are configured in system settings, and only those buckets enabled at a system level can be enabled for individual profiles. If a currency bucket is enabled, then a default currency can be assigned to the profile, by accepting the system-level default for that bucket, or by assigning a profile-specific default value.

  8. Select the Access tab.

    Determines which users are authorized as commentators or viewers of reconciliations related to the profile. Commentators are allowed to view the reconciliations and add comments to the reconciliation or to transactions of the reconciliation. Viewers have read-only access.

    To select a user or team as Commentators or Viewers:

    1. Click Add.
    2. On the Select Viewers or Select Commentators dialog boxes, click backup user (Search Users).
    3. Select Users or Teams and then enter the name or click Search.
    4. Under Search Results, select the Commentator or Viewer Users or Teams and add them to the Available column.
    5. Click OK.
  9. Select the Attributes tab.

    Enables Service Administrators to assign attributes to profiles and provide values for the attributes. The attributes are presented in read-only format on the reconciliation in the Additional Properties section. Attributes must exist before they can be assigned to a profile.

  10. Select the Rules tab.

    Enables you to monitor which roles have been automatically completed using Format or Profile Rules.

    The following Reconciliation Rules are available:

    • Auto Submit Reconciliation indicates that reconciliations have been automatically reconciled using an Auto Reconciliation method. You can create a filter, or use a saved filter to set conditions.

      Reconciliations that use an Auto Reconciliation method are indicated under the column Auto Submitted on the Reconciliation List if the reconciliation was Auto Reconciled and which Auto Reconciliation Method was used.

    • Auto Approve Reconciliation indicates that a Rule was used to automatically complete that role. You need to select a Reviewer Level. You can create a filter, or use a saved filter to set conditions.

      For example, if you configured a Rule for Reviewer 1 to automatically approve when an unexplained Difference is 0.00, the column Auto Reviewed (Level x) on the Reconciliation List will indicate that a Rule was used to automatically complete that role.

  11. Review the History tab.

    Captures an audit trail of changes to the Profile, including changes in workflow assignments, changes in format configuration, risk rating, or profile attributes.

  12. Click Save and Close.
    To watch a video about Editing Reconciliations, click this link: Editing Reconciliations Video