Reconcile Payroll Payments

Payroll integrates with Cash Management, which facilitates the reconciliation of bank statements with payment transactions. Reconcile payments after you receive the bank statement and reconciliation file.

This table shows you the sequence of steps to cost and reconcile your payments, including the rollup payments from the Run Third-Party Payment Rollup, process using a duty role with the appropriate security privileges for each application, such as the payroll manger or cash management manager.

Sequence	Task	Location	Comments
1	Submit tasks to generate payments for employees and third-party payees, such as Generate Check Payments.	Submit a Flow task in Payroll	Payment information you can reconcile includes payments generated for checks/cheques, electronic funds transfer, and external payments.
2	Submit the Calculate Costing of Payments task for new payments.	Submit a Flow task in Payroll	Creates cost results that debit the payroll liability accounts and credit the cash clearing accounts. Costs any uncosted payment it identifies that falls within the submission dates, including unreconciled, reconciled, void, canceled, and external payments.
3	Submit the Transfer Payments Information to Cash Management task.	Submit a Flow task in Payroll	Typically, you submit the process after sending the payment files to the banks.
4	Load a bank statement.	Cash Management	Load a bank statement that includes the payments for the payroll period you want to reconcile.
5	Reconcile payments automatically or manually.	Cash Management	Refer to Managing Discrepancies in this topic.
6	Monitor the reconciliation status	Cash Management	Refer to Monitoring the Status in this topic.
7	Submit the Calculate Costing of Payments task for reconciled payments.	Submit a Flow task in Payroll	After the payment clears, submit the process to debit the cash clearing account and credit the cash account. Enterprises typically submit the process toward the end of the accounting period.

This figure shows you the division of tasks between Payroll and Cash Management.

Manage Discrepancies

The reconciliation process captures discrepancies between the amount reported in the bank statement and the payment information transferred to Cash Management. If there is a discrepancy, the amount determines the actions you might take, as shown in this table.

Discrepancy	Action
Difference falls within the allowable tolerance permitted for discrepancies	Payment is marked reconciled and the difference is allocated to a reconciliation differences account in General Ledger. The journal entries for the differences are transferred from Cash Management to General Ledger, and not through payroll.
Difference falls outside the allowed tolerance	Payroll manager and cash managers must resolve the discrepancy.

Monitoring the Status

When you monitor the reconciliation process, you review statuses to determine whether the bank cleared or rejected a payment. This table gives you the pages to monitor the status.

Page	Action to Monitor Status
Person Process Results or Person Results page	View the payment amounts distributed from the payroll liability, the cash clearing, and the cash accounts.
Person Process Results or Person Results page	View the cash clearing account status: Cleared applies to payments that aren't reconciled or that typically don't require reconciliation such as cash and EFT Not Cleared applies to payments awaiting reconciliation or payments that failed the reconciliation process
Overview and Manage Bank Statement pages in Cash management	View the status of bank statement lines.