About Working with Group Reconciliations

Most companies find it useful to track general ledger and subledger balances at a lower level then the level at which the reconciliation is performed. Using sub-segments in group reconciliations in Reconciliation Compliance gives preparers an improved capacity to reconcile at one level but understand the detail at a lower level. This helps them analyze data more thoroughly and identify areas that need attention.

Examples include:

For Account Analysis, preparers can perform a single group reconciliation for many General Ledger (GL) balances but also access which Balance Explained transactions do not add up to which detail balances.

For Balance Comparison, preparers can perform a single group reconciliation for many General Ledger (GL) balances and Subledger balances, and easily see which detail balances do not match.

Balance Inquiry - Gives preparers, reviewers, or auditors of reconciliations a way to determine which group reconciliation a particular detail balance is a part of.

Balance Verification - Gives administrators the ability to check that all balances intended to be loaded have loaded and are valid in the system.

A common example of using sub-segments in group reconciliations might be a three segment configuration for Entity, Account, and Cost Center. You can create Group reconciliations across any combinations of those segments if you designate them as potential sub-segments. For example, Group Reconciliation #1 could be at the Entity - Account level, grouping across all Cost Centers which makes the Cost Center a sub-segment. You could also create Group Reconciliation #2 would be at the Account level, grouping across all entities and cost centers, which makes Entity & Cost Center sub-segments. Essentially, for any segment that you may group across, you would designate it as a sub-segment so when you’re configuring the reconciliation you have the flexibility to group as needed.

Understanding Data Loading for Group Reconciliations

Data loading to the sub-segment level must be done within Data Management. You are not able to manually edit balances, nor load pre-mapped data to the sub-segment level using Account Reconciliation. Pre-mapped balances import will always be done at the profile segments level.