Asset reconciliation

Asset reconciliation is used to reconcile one or more asset accounts. Asset additions, adjustments, transfers, and disposals are used to calculate an ending balance, which can be compared to the ledger amount. The report group is used to group the asset and accumulated depreciation accounts for analysis.
Note: Asset reconciliations can optionally integrate Asset Register balances and generate a system-created attachment containing the asset register details used for reconciliation. This automation removes the need for manual data extraction or document attachment and ensures consistent, audit-ready reconciliation records.

This list shows the tabs that are available:

  • Period Reconciliations: Use to open a period record. An asset reconciliation that is scheduled for a period shows the amount in the Ledger Amount field.
  • Reconciling Items: Use to create reconciling items for the period.
  • Asset Amounts: Shows the asset additions, adjustments, transfers, disposals, and depreciation for the reconciliation period. Depreciation amounts posted from Asset Management are included in the calculated ending balance.
    Note: For accumulated depreciation accounts, the current-period depreciation posted from Asset Management is displayed on the Asset Amounts tab and included in the ending balance. This prevents out-of-balance conditions caused by deprecation activity.
  • Ledger Transactions: Shows the general ledger transactions that are posted for that period. You can also create reconciling items and distributions from this tab.
  • Non Asset Journal Transactions: Shows any posting to the GL account that did not originate from Asset Accounting.
  • Distributions: Use to adjust journal entries, for example, a write-off of an item and amount.
  • Comments: Optionally, provide comments.

Monthly depreciation journalized in Asset Management and posted to the General Ledger is displayed as a separate depreciation amount on the Asset Amounts tab. This depreciation amount is included in the period's calculated ending balance for Accumulated Depreciation accounts.

There are two methods for Asset type reconciliations to create reconciliation details based on asset balances. Reconciliation Details can be created from the Asset Details tab within the reconciliation or it can be generated by running the Asset Register – Old report in the Asset subsystem. This option is controlled by the Create Asset Reconciliation Details field on the Reconciliation Management Group. This setting applies to all asset accounts associated with the group.