5.4.1.1 General Ledger to Product Processor

General Ledger (GL) to Product Processor Reconciliation is used to identify the difference between GL system and Product Processor data. It nullifies the difference by posting the adjustment entries up to the amount of difference.

• If the reconciliation difference is greater than the threshold value, the difference is flagged and reported.
• Thresholds are defined at the Product Processor level and can be set either as a percentage or as an absolute amount:
  • Percentage Threshold: Represents the allowable difference as a percentage of the GL-side amount.
  • Absolute Threshold: A fixed amount that must be interpreted in relation to its specified currency.
• If the threshold is specified as an amount, it must be read in connection with a currency of the threshold amount. The reconciliation difference is reported in the base currency. If the threshold currency differs from the reconciliation dimension currency, the system converts the difference using the exchange rate on the execution date—or the most recent rate from the past five days.

  Differences between the General Ledger and Product Processor can occur in two scenarios:

  • When the General Ledger amount is greater than the Product Processor amount
  • When the General Ledger amount is less than the Product Processor amount

  As a result, two separate threshold values are defined to handle each condition. For more details, refer to the Target Parameters section.