Specifying Format Properties

From Home, click Application, then Configuration, and then Formats.

In Name, enter a name for the format. The name must be unique within the application.

In Description, enter an optional description for the format.

In Method, select a method depending on whether you want to create a Reconciliation Compliance format or a Transaction Matching format. The available options are:

Reconciliation Compliance formats: Account Analysis, Balance Comparison, Variance Analysis. See About Reconciliation Compliance Formats.
- Account Analysis—Source 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.
- 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.
  
  For a summary reconciliation, the Variance Period Balance comprises the balances of the summary reconciliation in the variance period. Therefore, if the summary reconciliation does not exist in the variance period, no Variance Period Balance is displayed.
Transaction Matching formats: Account Analysis with Transaction Matching, Balance Comparison with Transaction Matching, Transaction Matching Only.
Use the Transaction Matching Only method if you are not using period end reconciliations.

See About Transaction Matching Formats.

In Display Account ID as, select one of the following:

Concatenated String
Individual Segments

Select Require 0 unexplained difference to indicate that there must be no unexplained difference in reconciliations that use this format.

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.
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. Also, the setting is only applicable when reconciliations are manually submitted by the Preparer. It does not apply for auto-reconcile or auto submit and auto approve rules.

Select Group Reconciliation to specify that this format must be used with group reconciliations.

Select Prevent File Upload to prevent users from uploading files to reconciliations that are associated with this format. This includes uploading files as attachments or comments to reconciliations, transactions, and action plans. Note that attaching a file as a link is allowed. See About Using Formats to Prevent File Uploads.

For Transaction Matching formats: In Match Type, select the match type for which this format is used.

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.

Formats must be linked to a match type.

(Optional) Configure Reconciliation Compliance transactions, as described in Configuring Reconciliation Compliance Transactions.

Click Save to save the settings specified. You can continue to specify other settings for the format using the other tabs in the New Format dialog.

Note:

For formats based on Transaction Matching methods, the System Adjustments and Subsystem Adjustments tabs are hidden by default. If your business requires you to configure these attributes, unselect Hide for the Adjustments to Source System (Tab) and Adjustments to Subsystem (Tab) columns in the Balance Summary tab.