1. User Guide
  2. Key Terms and FAQs

11 Key Terms and FAQs

  • Adjustment Entry

    An entry passed in the Product Processor (PP) to reconcile it with the associated GL for the amount equivalent to the difference and an entry in the Contra GL Account with the opposite sign for the same amount.

  • Adjustment Entry Floor

    If the difference between Source and Target is less than the Adjustment Entry Floor specified in the definition, the calculated difference is not eligible for adjustment, and the entry will not be logged in the Adjustment Entry Table.

  • Attributed Dimension

    A dimension whose members can have other properties or qualifiers known as Dimension Attributes.

  • Dataset

    A dimension used for segregating data into different sets according to its use or its source. For example, to separate actuals data, budget data, and encumbrances data. Other uses include separating test data from production data and creating separate data sets for What-if Analysis.

  • Dimension

    A structure that can be used to categorize business data. A dimension contains members; it can be hierarchical (you can organize the members into one or more hierarchies), or non- hierarchical.

  • Dimension Attributes

    A property or qualifier that further describes a dimension member. An attribute can be a date, a number, or a character string. For example, the Geography dimension can have an attribute - Population, that designates how many people live in that area. Each member of the Geography dimension, therefore, has an associated Population.

  • Hierarchy

    A structure of dimension members organized by parent-child relationships.

  • GlobalThreshold

    Global Threshold is applied at an execution level where all the reconciliation differences for execution are added and checked across the absolute sum of source balance.

  • Inherit toChild

    This feature is used to find child legal entities under the hierarchy node of a Legal Entity that is selected at the definition level. If used while defining the GL Reconciliation rule, all child nodes will participate in the reconciliation process.

  • Reconciliation

    Reconciliation is the process of comparing information from one data source to another. An Account Reconciliation is for a specific period. Reconciliations consist of account balances (obtained from the Source System for the period) and account properties.

  • ReconciliationDifference

    Reconciliation difference is the difference in the balance between the Source and the Target.

  • Threshold

    A tolerance level you must set in terms of either the maximum difference allowed in any single Product Processor and its corresponding GL or the maximum number of Product Processors having differences in the GL Reconciliation.

  • Positive Threshold

    These values are used to identify the breach types categorized as: Negative Percentage Threshold (NPT), Positive Percentage Threshold (PPT), Negative Absolute Threshold (NAT), Positive Absolute Threshold (PAT), and Not Breached (NB). The Breach Type is identified at run time during the reconciliation process, and Audit Trail entries are posted with this information.

  • Negative Threshold

    These values are used to identify the breach types categorized as: Negative Percentage Threshold (NPT), Positive Percentage Threshold (PPT), Negative Absolute Threshold (NAT), Positive Absolute Threshold (PAT), and Not Breached (NB). The Breach Type is identified at runtime during the reconciliation process, and Audit Trail entries are posted with this information.

  • Threshold Breached Type

    The different types of threshold breaches are listed here.

    • PAT - Positive AbsoluteThreshold
    • NAT - Negative AbsoluteThreshold
    • PPT - Positive Percentage Threshold
    • NPT - Negative PercentageThreshold
    • G - Global
    • NB - Notbreached
  • General Ledger to ProductProcessor

    General Ledger to Product Processor Reconciliation identifies the difference between GL system and Product Processor data. It nullifies the difference by posting the adjustment entries up to the amount of difference.

  • General Ledger to Product ManagementLedger

    In General Ledger to Management Ledger (GL to ML) reconciliation, the difference between two sources of the Ledger for the same Legal Entity and the Consolidation Type is identified. This difference is identified at the granularity of the GL code for the selected hierarchy, the mandatory dimensions, and the selected optional dimensions. Adjustments are not passed in General Ledger to Management Ledger reconciliation.

  • ConsolidationType

    Two consolidation types aresupported:

    • Solo

      When a legal entity is selected with consolidation type as Solo, all the exposures of that particular legal entity are selected for processing. Manual reconciliation definition can process solo legal entity data.

    • Consolidated

      When a parent legal entity is selected as Consolidated, all the exposures of that legal entity and exposure of each level (or levels) of descendant child legal entities (without intra-group exposures) are selected for processing. In intra-group exposures, the counterparty is a child descendant of any level. For an intra-group scenario (where the GL Structure has specific intra-group GL Code in addition to regular GL Codes), intra GL Codes are considered only from the GL side for processing. Non-Intra is a scenario where no GL Codes are present for reconciliation definition.

    • Inherit toChild

      This feature is used to find child legal entities under the hierarchy node of a Legal Entity that is selected at the definition level. If used when defining the GL Reconciliation rule, all child nodes will participate in the Reconciliation Process.

    • Manual ReconciliationDefinition

      In manual reconciliation definition, user input is sought on the GL side and PP side to determine the course of reconciliation. This is applicable to both GL level and map level reconciliation. In GL level reconciliation, unique GL codes are identified from the GL code mapping. At the map level, GL codes do not form a part of the reconciliation definition. A manual reconciliation definition can be used for a solo or consolidated legal entity. The reconciliation definition for a consolidated GL, having an intra-group GL structure, is computed from GL Data and not from PP Data. Therefore, any account present in the PP but unavailable in GL is not captured in the reconciliation definition.

    • GL LevelReconciliation

      In GL level reconciliation, the difference between GL system and Product Processors Systems at each reconciliation dimension node level within a GL Code is identified. For manual reconciliation definition, unique GL codes are identified from the GL side. If it is at the solo level, exposures originating in the legal entity are selected. If it is at the consolidated level, exposures originating in the selected legal entity and its Child Entities (with or without intra- group exposures depending on GL Structure) are selected.

      The adjustment entry allocation depends on the reconciliation type selected. In GL level reconciliation, after a definition is executed, the differences that emerge as a part of the reconciliation definition (GL–PP level reconciliation) are reported in the Adjustment Entry Table. This table shows all the entries of an executed map that requires adjustment. The difference in amount can either be posted to Product Processors or an external table. For more information on the external table, see the Data Requirement section.

    • Map LevelReconciliation

      In map level reconciliation, the difference between GL Data and PP Data at each reconciliation dimension node level across all PPs is identified. Unlike GL level reconciliation, map level reconciliation is computed at an aggregate level of the reconciliation definition; by ignoring the GL code and by considering reconciliation dimensions. Map level reconciliation is applied at the legal entity level - either solo or consolidated. If it is at the solo level, then exposures originating in a particular legal entity are selected. If it is at the consolidated level, then exposures originating in the selected legal entity and its child entities (excluding intra-group exposure depending on GL structure) are selected.

      The adjustment entry allocation depends on the reconciliation type selected. In map level reconciliation, after a definition has been executed the differences that emerge as a part of the reconciliation (General Ledger–Product Processor Level Reconciliation) are reported in the Adjustment Entry Table. This table shows all the entries of an executed map that requires adjustment. The difference in amount can either be posted to Product Processors or an external table. The adjustment allocation can be either automatic or manual.