Clearing Accounts Reconciliation Example

  1. In Reconciliation Administrator or Reconciliation Manager, navigate to Reconciliation Account > Reconciliation Details.
  2. On the Reconciliation Accounts panel in the upper left, use the search option and locate the prepaid account(s).
  3. On the Amortization Records panel in the bottom right, you can create and maintain the amortization schedules. Click the Create button to open the Create Amortization form. Fill in the required Reference Number and Description fields. You can optionally fill in the vendor and invoice number from the back office.
  4. Specify the Detail Amount (the amount to be amortized), the transaction date, and the Start Period. Fill in either the Period Term or the End Period; the other field is calculated by the system.
  5. Specify a Catch Up Period if the amortization started prior to the period being reconciled. A Catch Up Period is where the accumulated amount for the prior periods is posted to in the general ledger.
  6. On the Amortization Expense Account tab, specify either the GL account information or an allocation code. Specify a Distribution Description that is the default value for all of the distribution journal entries created from this amortization.
  7. Click Actions > Build Amortization Schedule to create the period amortization records.
  8. When a Clearing Account Reconciliation is scheduled for a period, the ledger amount from the back office is displayed in the top right corner. The Amortization Details tab displays all previously defined amortization records from the Amortization Schedule for this account.
  9. When you have determined that all details are accurate, click Actions > Create Amortization Distributions. The Amortization Distributions tab displays the distributions generated from the Create Amortization Distributions action from the previous tab.
  10. Click Actions > Release Distributions to release the distributions to post to General Ledger.
  11. In the Period Details tab, specify any other pertinent details and the related amounts along with any attachments. The total of these plus the Remaining Balance from the Amortization Details tab displays in the top right in the Detail Amount field. Detail amounts can be carried forward to future periods or can be created for a period range.
  12. On the Reconciling Amounts tab, create any reconciling items for the period. The Ledger Transactions tab displays the general ledger transactions that are posted for that period. If needed, adjusting journal entries can be created on the Period End Distributions tab. For example, a write off of an item and amount.