The reconciliation process

Usually, reconciliation is performed over a specific fiscal period. Before you start the reconciliation process, use the Close Periods (tfgld1206m000) session to close the Integration period so that no new transactions can be entered.

However, if you generate and print the reconciliation reports, LN does not check the period status. You can print the reports whenever you wish, independent of the period status.

Finalize the batches for the currency differences transactions. For more information, refer to Currency differences accounts.

Use the Print Trial Balance (tfgld3402m000) session to print the trial balance for the integration ledger accounts that you want to analyse.

If you have archived transactions that still contribute to the reconciliation group, for example, Inventory transactions, you can create opening balances to clear the differences in the reconciliation data. Use the Opening Balances for Reconciliation (tfgld4195m000) session.

To create opening balances for specific business objects and reconciliation elements, you can select a transaction in the Operations Management - Financial Reconciliation (tfgld4595m000) session and from the appropriate menu, select Create Reconciliation Opening Balance.

Use the Print Reconciliation data (tfgld4495m000) or the Print Reconciliation Data PCS Work In Process (tfgld4495m300) session to print a reconciliation report.

For more information, refer to To print the reconciliation reports.

For the ledger accounts on which the amounts match, you can accept the reconciliation data. Continue at Step 8 Accept the reconciliation data.

If the amounts on the reconciliation report do not correspond with the amounts on the trial balance, you can first rebuild the history of the ledger accounts that you are analyzing.

Go back to Step 4 Print the trial balance.

Accept the reconciliation data for the ledger accounts for which there are no problems. In the Accept Reconciliation Data (tfgld4295m000) session, select the reconciliation group. Then select the range of ledger accounts for which you want to accept the reconciliation data.

Note Inventory accounts and end accounts must first be analyzed before you can accept the reconciliation data.

If the amounts on the reconciliation report do not correspond with the amounts on the trial balance, you can take various actions, depending on the type of problem and your auditing requirements.

Use the Print Reconciliation data (tfgld4495m000) session to print a report of the transactions that could not be reconciled. At this stage, you can clear the Compare Reconciliation with Finalized General Ledger check box because the relation between the reconciliation data and the trial balance has already been examined.

If you wish, and for accounts other than Inventory accounts and end accounts, you can select the Print Only Non Accepted Transactions check box. Start by printing a report with not much detail. For more information, refer to To print the reconciliation reports.

In the Operations Management - Financial Reconciliation (tfgld4595m000) session, use the various options to display the transaction details.

For reference, you can also print the corresponding reports of the logistic data in Operations Management.

If you are satisfied that the financial data is correct, continue at Step 13 Accept the reconciliation data.

You can manually create the corrective transactions for postings that are incorrect. For more information, refer to To create a correction transaction. This type of corrections solves the discrepancies in Financials. They do not solve the differences between the trial balance and the reconciliation report. Such differences must be sorted out by an expert.

Next, repeat the reconciliation process, starting at Step 9: Analyze the balances on the reconciliation data report. You can print a reconciliation report that includes the non-posted corrections.

Use the Post Reconciliation Corrections (tfgld4295m300) session to post the correction transactions to the General Ledger accounts.

Next, go back to Step 3, Print the trial balance.

If no more corrections are required for the reconciliation group, in the Accept Reconciliation Data (tfgld4295m000) session, select the reconciliation group. Then select the range of ledger accounts for which you want to accept the reconciliation data.

If you wish, you can select the Select Specific Business Object check box to accept the reconciliation data for a specific business object or range of business objects.

You can select the Only Debit and Credit Balanced check box to accept most of the transactions. You must enter the tolerance amounts in each of the home currencies.

When you click Process, LN checks a number of conditions and sets the status of the transactions that meet the conditions to Accepted. In the Operations Management - Financial Reconciliation (tfgld4595m000) session, you can view the transaction status and you can clear the Accepted check box if required.