Reconciliation corrections

If the amounts on the reconciliation report do not correspond with the amounts on the trial balance, the action to be taken mainly depends on:

  • The type of transactions; is it one of the key areas of your business?
  • The type of difference; do unexpected big differences occur?
  • The type of actions you wish to take to solve the differences, also in connection with auditing and legal requirements.

Two types of differences can occur:

  • Differences within Financials, between the trial balance and the reconciliation report.
  • Differences between the data in Financials and in Operations Management.
Note

In a multicompany structure, the data of intercompany and intergroup transactions is logged in different financial companies. As a result, the related reconciliation transactions appear in different financial companies. For details, refer to Reconciliation - multicompany aspects

Differences within Financials

In some situations, for example, if part of the reconciliation data has already been deleted, you can solve the problem by creating an opening balance. You can select a transaction in the Operations Management - Financial Reconciliation (tfgld4595m000) session and on the appropriate menu, click Create Reconciliation Opening Balance.

Differences can also be caused by changes in the parent-child relations of the ledger accounts. To solve these, you can use the Rebuild Opening Balance/History from Transactions (tfgld3203m000) session to rebuild the ledger account history from the transactions.

Differences due to other causes must be sorted out by an expert.

For small errors of which you are satisfied about the cause and that you do not wish to repair in the General Ledger, you can create correction transactions. For example, in this way you can solve small errors in the GRNI reconciliation.

In the Operations Management - Financial Reconciliation (tfgld4595m000) session, you can create the following types of corrections:

  • Reconciliation correction
    Correction transactions for any type of differences. You can correct the transaction amount in the transaction currency and in each of the home currencies.
  • Reconciliation rounding correction
    Not all types of rounding differences can be corrected automatically. Therefore, you can manually create correction transactions for rounding differences. If you create a rounding correction you can only correct the amounts in the home currencies. The transaction amount in the transaction currency does not change.

The correction transaction is posted to the ledger account and dimensions of the transaction selected in the Operations Management - Financial Reconciliation (tfgld4595m000) session. The other side of the correction transaction is posted to the contra account that you specify when you post the corrections with the Post Reconciliation Corrections (tfgld4295m300) session.

The contra account must be of the Journal Vouchers category. Later, you can move the corrections from the contra accounts to the appropriate end accounts.

After creating correction transactions, you can print a report to check the effect of the corrections on the balances before you post the correction transactions. In the Print Reconciliation data (tfgld4495m000) session, select the Print Not Final Reconciliation Corrections check box.

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