3.8 Balance Reconciliation

The Profitability and Balance Sheet Management Cloud Service's Balance Reconciliation module helps you to Reconcile the selected processing/instrument/account balances against the Management Ledger. If any differences are found, you will have the flexibility to choose significant differences and create plug entries for those in the Ledger_Instruments table.

Note:

All General Ledger Accounts must mandatorily have a Reconciliation product mapped to them.

You can define the dummy attributes for the Product-Currency combinations, whichever General Ledger Account is used for Reconciliation. Default dummy attributes are auto populated based on the linked product ID and currency selected in Reconciliation dimensions.

Reconciliation is a three-step process.

• Reconciliation Definition and Default Attributes setup
• Reconciliation Report verification
• Plug entry creation and writing the Reconciliation differences back to Ledger Instruments table

To access the Balance Reconciliation module, from the LHS Menu, navigate to Data Management Tools, and select Balance Reconciliation.

The Balance Reconciliation landing screen displays the following two cards:

• Reconciliation Definition
• Default Attributes

Note:

1. Ledger Balances with Balance Type CD as only 0, will be considered for reconciliation.
2. Balance Sheet category will be derived based on Common COA linked as attribute with selected GL account, which subsequently has Account Type defined as attribute of the concerned Common COA.
3. Reconciliation Product must be defined as attribute of GL accounts which participate in reconciliation, so system can pick account attributes for the plug entry creation.

• Reconciliation Definition
  The Reconciliation Definition summary screen allows you to search for any definitions from the displayed list.
• Default Attributes
  Define multiple sets of instrument attributes for plug entries in Default Attributes. Include Payment Terms, Original Term, Repricing Frequency, Accrual Basis, Compounding Basis, and other applicable instrument attributes.
• Reconciliation using Batch Process
  You can perform Reconciliation using the Scheduler Services. The steps below use the GL RECON component, which does not require a Service URL selection.
• Calculate weighted average rates for plug entries