8 Reconciliation

Reconciliation is the process where payments are reconciled or matched with invoices/cash flows.

Invoice records or cash flow records are generally created in advance. However, the actual payment occurs at a later point of time. Using the Reconciliation feature, you can match the payments with invoices and cash flow records.

Reconciliation can either be automated or performed manually. Reconciliation rules are created for the automation. Rules are essentially conditions that are defined; invoice / cash flow records and payments that meet the specified conditions are matched together.

In case a reconciled record must be unmatched, you can use the De-reconciliation option.

Allocation is the process where payments are allocated to virtual accounts. This process can also be automated through rules, or can be performed manually.

This topic contains following sub-topics:

• Overview
  
• Create Reconciliation Rule
  This topic provides systematic instructions to create reconciliation rules from the portal using the 'Create Reconciliation Rule' transaction.
• Create Allocation Rule
  This topic provides systematic instructions to create rules for automatic allocation of payments to specific virtual accounts.
• View/Edit Reconciliation/Allocation Rule
  Using this screen, you can view the reconciliation rules and the allocation rules that have been created. You can also edit these rules, if required.
• Manual Reconciliation
  Payments and credit notes can be manually reconciled with invoices, debit notes, and cash-flows.
• Manual Allocation
  Using this screen, the corporate user can manually allocate payments to the required virtual accounts.
• De-Reconciliation
  Payments that have been reconciled against invoices or cash flows can be de-reconciled. One or more records can be de-reconciled in a single transaction.