How Tolerances Work with Manual Clearing Accounts Reconciliation

When you define reconciliation types for clearing accounts reconciliation, you can specify an amount tolerance, a percentage tolerance, or both. These tolerances apply only to the manual reconciliation process.

The percentage tolerance is calculated on the higher of the grouped journal lines total debit or credit amounts. The amount tolerance is based on the absolute amount in the ledger currency. If you specify both an amount tolerance and a percentage tolerance, the stricter of the two is applied.

How Tolerances Are Applied

As an example, a reconciliation type has the following definition:

• Chart of accounts level

• Account Matching Rule: By Account Combination

• Account Filter: 01-000-22100

• Tolerance percentage: 1

• Tolerance amount: 5

This table shows the journal lines eligible for reconciliation that were retrieved on the Manual Reconciliation page.

Journal Line	Account Combination	Accounted Amount (Debit)	Accounted Amount (Credit)
1	01-000-22100	100.00
2	01-000-22100		98.00

Total debits are 100.00 and total credits are 98.00. The higher of the two is 100.00. The percentage tolerance of 1 is applied against 100.00. One percent of 100.00 is 1. The amount tolerance is 5. The stricter of the two is applied, so in this example, the tolerance of 1 is applied. The difference between total debits of 100.00 and total credits of 98.00 is 2. This difference is higher than the applicable tolerance of 1, so the two journal lines remain unreconciled.