Creating Formats

Creating a New Format for Reconciliation Compliance

To create a new customized format:

  1. From Home, click Application, then Configuration, and then Formats.
  2. Click New (+) .
  3. In the Properties tab, enter:
    • Name

    • Description
    • Method

      • Account AnalysisSource System Beginning Balance and Net Activity enable you to measure the change in an account from the last reconciliation performed for the account.

        The balance in the general ledger is substantiated through a listing of transactions that should comprise the ending balance. This list of transactions is called the Explained Balance, and it is compared to the General Ledger Balance. If there is a Difference, the preparer uses the Explained Balance and Adjustments tabs to record adjustments to get the unexplained difference down to zero. Examples of accounts include prepaids, accruals, reserves, and intangibles. The key to a high-quality account analysis is to ensure that the list of explained balance transactions includes sufficient detail to justify all items.

        In the Label column, assign descriptive names. The label names are displayed in the Balance Summary section of reconciliations.

      • Balance Comparison—The balance in the general ledger can be substantiated by comparing it to a balance from another source. That source might be a subledger, a bank statement, a system report, or a spreadsheet containing a complex calculation.

        When a preparer reconciles an account using this format, the Source System Balance, the Subsystem Balance, and the Difference between the two are displayed. If there is a difference, the preparer must record an adjustment on the System Adjustments or Subsystem Adjustments tabs.

        The system then calculates Adjustments to Source System and Adjusted Source System Balance, and subtracts those two to calculate the Unexplained Difference.

        In the Label column, assign descriptive names.

        Select Hide to exclude rows from the reconciliation. For example, if the Subsystem Balance can never be wrong, on the Properties tab, hide Adjustments to Subsystem and Adjusted Subsystem Balance to prevent users from adding these types of transactions.

      • Variance Analysis—For a given period, the Balance Summary is compared to an earlier time period's balance and the difference between the two requires an explanation. The Unexplained Difference is calculated

        For variance analysis, unexplained difference = current period balance - variance period balance - variance explanations

        When a preparer reconciles an account using this format, the Current Period Balance, the Variance Period Balance, and the Difference between the two are displayed. If there is a difference, the preparer must provide an explanation.

    • Select the Display Account ID As option:
      • Concatenated String
      • Individual Segments
    • Require 0 unexplained difference

      Depending on the chosen method of reconciliation, the reconciliation calculates the Unexplained Difference as:

      • For Account Analysis Formats: The Source System Balance, less the Explained Balance, and less the Adjustments.

      • For Balance Comparison Formats: The Source System Balance, less the Subsystem Balance, less the Adjustments to Source system, and less the Adjustments to Subsystem.

      • For Variance Analysis Formats: The Current Period Balance, less the Variance Period Balance and less the Adjustments.

      Administrators can specify whether the format requires a 0 unexplained difference. If it does, the preparer can't submit the reconciliation for review until adjustments are created for the full difference between the source system balance and the explained/subsystem balance.

    • An administrator can use the Enable Amortization/Accretion checkbox to control whether users are allowed to amortize adjustments in the Adjustments tab. This means that users will instead post to the GL correctly and amortize only on the Balance Explanations tab the following month.

      The checkbox is available for the Account Analysis method on the Balance Explanations and Adjustments tabs and is available for the Balance Comparison method on the System Adjustments and Subsystem Adjustments tabs.

Creating a New Format for Transaction Matching

To create a new customized format:

  1. From Home, click Application, then Configuration, and then Formats.
  2. Click New (+) .
  3. In the Properties tab, enter:
    • Name

    • Description
    • Method

      • Account Analysis With Transaction Matching

      • Balance Comparison With Transaction Matching

      • Transaction Matching Only —Use this method if you are not using period end reconciliations.

    • Select the Display Account ID As option:
      • Concatenated String
      • Individual Segments
    • Select a Match Type from the drop down list. Formats must be linked to a match type. The drop down list contains match types based on the format method:
      • Account Analysis With Transaction Matching formats will list Match Types that have only Source System sources.
      • Balance Comparison With Transaction Matching formats will list Match Types that have both Source System and Sub System sources.
      • Transaction Matching Only formats will list Match Types.
    • Require 0 unexplained difference

      Depending on the chosen method of reconciliation, the reconciliation calculates the Unexplained Difference as:

      • For Account Analysis With Transaction Matching Formats: The Source System Balance, less the Explained Balance, and less the Adjustments.

      • For Balance Comparison With Transaction Matching Formats: The Source System Balance, less the Subsystem Balance, less the Adjustments to Source system, and less the Adjustments to Subsystem.

      Administrators can specify whether the format requires a 0 unexplained difference. If it does, the preparer can't submit the reconciliation for review until adjustments are created for the full difference between the source system balance and the explained/subsystem balance.

      Note:

      The Require 0 unexplained difference is not available for Transaction Matching Only formats.
    • Under Balance Summary, you can use the Label column to assign descriptive names. Select Hide to exclude rows from the reconciliation. For example, if the Subsystem Balance can never be wrong, on the Properties tab, hide Adjustments to Subsystem and Adjusted Subsystem Balance to prevent users from adding these types of transactions.

      Note:

      The Balance Summary is not displayed for Transaction Matching Only formats.