You prepare reconciliations by reconciling differences between source system and subsystem balances, by explaining account balances, and by monitoring period-to-period variances in account balances.
The way you prepare reconciliations depends on the reconciliation method. There are three methods supported and an administrator sets up the reconciliation using one of these methods:
- Balance Comparison
- Account Analysis
- Variance Analysis
For example, if the reconciliation has a Subledger balance to compare against a General Ledger balance, you can use a Balance Comparison method.
If there's no Subledger balance, then you can use an Account Analysis method which allows a preparer to explain the GL balance.
Another method is the Variance Analysis method which can be used to compare a current month end balance to a prior period end balance. For example, the previous month, quarter, or year end and the preparer explains the variances as required.
For any of the methods, an administrator can run scheduled auto reconciliation rules to automatically reconcile reconciliations that meet specified criteria such as zero balance accounts and accounts with no activity.
There are three ways to add transactions and adjustments to reconciliations. You can either:
- Copy transactions from a prior reconciliation. See Copying Transactions from Prior Reconciliation
- Manually enter transactions and adjustments. See Adding Transactions
- Import them from a file. See Importing Pre-mapped Transactions for Reconciliation Compliance
Accessing the Reconciliations
Users can log on to access assigned reconciliations from:
- Worklist card - allows you to view your open reconciliations. By default, the Worklist shows all open reconciliations for which you are a preparer or a reviewer, or for which a team that you belong to is a preparer or reviewer.
- Dashboards card (Overview or Compliance tabs) - You can identify the accounts for reconciliation in the Overview dashboard. You can see visual indicators for the reconciliation status for the period. There are also options where you can select how to view or sort the reconciliations. You can select components on the dashboard to present the underlying data. When you click on a pie chart, the underlying data is presented.
- Reconciliations card