About Auto Reconciliation Methods

Account Analysis and Account Analysis with Transaction Matching

This section describes the conditions required for Account Analysis and Account Analysis with Transaction Matching auto reconciliation methods and what is done when the conditions are met.

Table 7-1 Required Conditions for Auto Reconciliation of Account Analysis and Account Analysis with Transaction Matching

Auto Reconciliation Method Required Conditions If Auto Reconciliation Succeeds
Balance is zero

  • The Source System Balance is zero.

  • 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.

 The reconciliation status is set to Closed.
Balance is zero and no activity

  • 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.

  • 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.
 The reconciliation status is set to Closed.
No activity

  • 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:

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

      • 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.

  • 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

  • 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).

  • 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

  • The reconciliation status is set to Closed

  • Comments and Attachments that exist at the Reconciliation level are copied
Balance is within range and no activity

  • 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.

  • 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 Comparison or Balance Comparison with Transaction Matching

This section describes the conditions required for Balance Comparison or Balance Comparison with Transaction Matching auto reconciliation methods and what is done when the conditions are met.

Table 7-2 Required Conditions for Auto Reconciliation of Balance Comparison or Balance Comparison with Transaction Matching

Auto Reconciliation Method Required Conditions If Auto Reconciliation Succeeds
Balance is zero

  • 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 source system balance associated with the reconciliation for a given period is 0, then the reconciliation is prepared and reviewed automatically for that period. The subsystem balance is not considered.

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

Note: For Balance Comparison "Balance is zero" the Sub-system balance is not considered. If you would like it considered, you can use a custom rule to evaluate both source and subsystem balances. Alternatively, you can also consider using the "Balance match" condition since that will compare source and subsystem balances to ensure they are equal, or within your desired threshold.

The reconciliation status is set to Closed
Balance is zero and no activity

For Balance Comparison format with No Activity, you can use a custom rule to obtain the correct results. For example, add a custom rule for Auto Submit Reconciliation with filter criteria: Difference (Reporting) equals 0 USD and Period Activity (Reporting) equals 0 USD.

  
No activity

For Balance Comparison format with No Activity, you can use a custom rule to obtain the correct results. For example, add a custom rule for Auto Submit Reconciliation with filter criteria.

  
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.

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.

The reconciliation status is set to Closed