1. Using General Ledger
  2. How Clearing Accounts Are Reconciled Automatically

How Clearing Accounts Are Reconciled Automatically

Once you have posted all the clearing account journals in GL, you can automatically reconcile the journal lines. Select the Reconcile Clearing Accounts Automatically task from the Journals work area to submit the automatic reconciliation process.

Settings That Affect Automatic Reconciliation

Enable the following settings:

  • Enable reconciliation option on the Specify Ledger Options page.

  • Reconcile attribute on the Manage Values page for each of the natural account segment values used in the specific clearing account journals.

For successful automatic reconciliation, the applicable reconciliation types must be active. The reconciliation start dates must be equal to or earlier than the accounting date of the eligible clearing account journal lines. In addition, each eligible clearing account journal line must have a reconciliation reference, and journals must be posted.

When you submit the process, specify the:

  • Data access set

  • Ledger

  • Reconciliation type

    Note: If blank, the process evaluates all reconciliation types, starting with ledger-specific types followed by chart of account level definitions.

  • To Accounting Period: Period up until which the reconcilable clearing account journal lines are retrieved for automatic reconciliation. The process compares the accounting date and period for the related clearing account journal lines with this value. The default value is the latest open accounting period. If none is available, then the default value is the latest closed accounting period. You can change the period to any earlier accounting period.

How Clearing Account Journal Lines Are Reconciled

The automatic reconciliation process groups together and reconciles related clearing account journal lines. Both the reviewed and the unreconciled lines can be reconciled using automatic reconciliation. Related clearing account lines share the same ledger, reconciliation type, reconciliation reference, and clearing account combinations, as determined by the account matching rule and filter. In addition, the net difference of the total accounted debits and credits is zero.

Note: Tolerances apply only to manual reconciliations.

Once successfully reconciled, each of the underlying journal lines within each distinct set of journal lines are automatically marked with:

  • A reconciliation status of Reconciled

  • A reconciliation date

  • A unique identifier called a reconciliation group

Example

A chart of accounts has the following segments and child values:

  • Company: Primary balancing segment values of 01, 02, 03

  • Cost Centers: 000, 100, 200

  • Natural Accounts: Range of 00000 - 99999

  • Products: 100, 200

The chart of accounts is used by the Vision Services (USA) ledger, which has been enabled for reconciliation. The reconciliation type has the following attributes:

  • Name: Approved Claims

  • Account Matching Rule: By Primary Balancing Segment, Natural Account

  • Account Filter:

    • Cost Center: 100 to 200

    • Natural Accounts: 22100 to 22101

This table shows how the process groups the journal lines together for matching and reconciliation, for the Vision Services (USA) ledger and the Approved Claims reconciliation type.

Set 1

Set 2

Set 3

Set 4

Set 5

Set 6

01-100-22100-100

01-100-22101-100

02-100-22100-100

02-100-22101-100

03-100-22100-100

03-100-22101-100

01-100-22100-200

01-100-22101-200

02-100-22100-200

02-100-22101-200

03-100-22100-200

03-100-22101-200

01-200-22100-100

01-200-22101-100

02-200-22100-100

02-200-22101-100

03-200-22100-100

03-200-22101-100

01-200-22100-200

01-200-22101-200

02-200-22100-200

02-200-22101-200

03-200-22100-200

03-200-22101-200

In this example, the journal lines are grouped together into six sets. Because the account matching rule is By Primary Balancing Segment, Natural Account, each primary balancing segment value (01, 02, 03) is combined with each natural account segment value that's in the account filter (22100, 22101), into its own set.

Since the product segment isn't part of the account matching rule or account filter, each set includes all of the product segment values (100, 200).

Lastly, the segment for the cost center isn't part of the account matching rule, but it's included in the account filter. The cost center values are 000, 100, and 200, but the account filter specifies only 100 and 200. This means that the journal lines eligible for reconciliation are limited to account combinations with cost centers 100 and 200. And, since the cost center isn't part of the account matching rule, each set includes journal lines containing both cost centers 100 and 200.

In summary, even though the following account combinations include primary balancing segment values 01, 02, and 03, and natural account segment values 22100 and 22101, they're excluded from the reconciliation because the cost center is 000.

  • 01-000-22100-100

  • 01-000-22100-200

  • 01-000-22101-100

  • 01-000-22101-200

  • 02-000-22100-100

  • 02-000-22100-200

  • 02-000-22101-100

  • 02-000-22101-200

  • 03-000-22100-100

  • 03-000-22100-200

  • 03-000-22101-100

  • 03-000-22101-200

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