Setting Up Reconciliation Profiles

Reconciliation Profiles Setup (RCP) is used to identify a reconciliation or matching requirement for the Reconciliation Manager (RCM). For example, if you wish to use Reconciliation Manager to reconcile your bank statements and also to match debtor receipts to invoices, you need to define separate reconciliation profiles for each.

A reconciliation profile determines the transaction selection criteria and matching criteria for the reconciliation process.

Note: Once you have defined a reconciliation profile, you should define the reconciliation accounts for the profile. To do so, click Accounts to display the Reconciliation Accounts form.

Reconciliation Profiles Setup contains fields:

  • Header Information
  • General
  • Selection
  • Matching
  • Source Acct Analysis Override
  • Gain/Loss Acc Analysis O-ride.
  1. Specify this information for Header Information:
    Profile Code
    The code that uniquely identifies a reconciliation profile.
    Status
    Each static data record contains a status code that determines the current processing status of the record. A status is assigned to each static reference record, for example to every account, asset, customer and supplier. It determines the current processing status of the record.
    • Open - this status is set automatically when you add a new record, for example, if you create a new account. Open items are available for input, inquiry, processing and reporting.
    • Hidden - a record with a hidden status does not appear on any inquiries but is available for input, processing and reporting.
    • Suspended/Held - a suspended record.
    • Closed/Completed - a closed record cannot be used for input or processing. For example, you cannot post transactions to a closed account or analysis code.

    You can alter the status of a record at any time. You must use the options on the Action menu to change the status.

  2. Specify this information for General:
    Description
    The full name or description of the data item or record. This is used to identify it on reports and inquiries.
    Generate Difference
    This determines whether or not exchange gain or loss differences are calculated and posted to the exchange gain and loss accounts. The exchange gain or loss accounts are identified in the Reconciliation Account details.
    Note: Any gain or loss when reconciling by Third Amount is calculated in terms of Base Amount only and differences in Transaction Amount currencies are ignored.
    Allocation Indicator
    The allocation indicator to assign to the reconciled transactions. You can assign any one of the following allocation markers to the reconciled transactions: Allocated, Correction, Withheld, Forced, Reconciled, Not Allocated, or any of the numeric markers 0 to 9.

    For example, if the profile matches payment transactions against invoices on a debtor account, you would assign the Allocated allocation marker. Whereas, if the profile matches bank account transactions to the bank statement details, you would assign the Reconciled allocation marker.

    Transactions marked as Allocated, Reconciled or Correction must balance before the details are posted.
    Note: The Allocated and Correction markers can only be assigned if you are reconciling transactions on the same account, with opposite signs.
    Journal Type
    The journal type to be assigned to any journal transactions generated when manually reconciling transactions using this reconciliation profile. Journal types are defined using Journal Types (JNT).
    Same Sign Matching
    This determines how the sign of the transactions is used to determine whether or not transactions reconcile.

    Set this option to Yes to match transactions with the same sign. For example, if you use the reconciliation profile to match bank account transactions to the bank statement transactions, you would use same sign matching to match each bank account posting to its corresponding bank statement items.

    Note: This is on the assumption that the sign of the bank statement transactions was reversed when the transactions were loaded into SunSystems.

    Set this option to No to match transactions with opposite signs. For example, to match payment and invoice transactions on a debtor or creditor account.

    Alternatively, set this option to Not Applicable if the sign of the transaction amount is irrelevant to the matching process. For example, if the transaction amount is not one of the matching criteria.

    Note:  This can also be used to determine the sign of any transactions you generate with Reconciliation Manager.
    Match Percentage
    The percentage tolerance allowed between matching transaction values. Transactions are matched if the difference in the transaction amounts is within this percentage. If a percentage is entered, an amount field must be selected as one of the matching criteria.
    Note: If you enter both a match percentage and match amount, the difference in the two transaction values is compared to the smaller of the Match Percentage or Match Amount values.
    Match Amount
    The tolerance amount allowed between matching transaction values. Transactions are matched if the difference in the transaction amounts is equal to, or less than, this amount. If an amount is entered here, an amount field must be selected as one of the Matching Criteria.
    Note: The Match Percentage and Match Amount are ignored if the Consolidate Amounts options is set.
    Data Access Group Code
    Amount To Be Used
    This determines the currency in which the reconciliation totals are displayed at the top of the Reconciliation Manager form. This is also the currency in which the reconciled values must balance before they can be posted. Entries in this field update the match criteria, as detailed in the Matching section below.

    Reconciliation Manager can use any one of Values 1, 2, 3 or 4 as a basis for matching. Whichever Currency Value is used for determining the match, Value 1 amounts are always balanced. Value 3 and Value 4 amounts are balanced according to the Cur Amount Balancing settings on the Value 3 and Value 4 tabs of the Business Unit Setup. Resulting currency differences are generated according to the settings on the Reconciliation Account records. Currency differences are never generated into Value 2, because it is the transaction currency, and each transaction can hold a different currency in Value 2.

    Note: The generation of balancing entries is only applicable to Allocations (transactions marked as Allocated or Correction), and not to Reconciliations (marked as Reconciled).
    Consolidate Amounts
    This determines whether the Auto Reconcile feature consolidates the values of the matching transactions, for example, to match several smaller value transactions against a single large value transaction. The amount field is selected as one of the matching criteria automatically.
    Note: If a Match Percentage or Match Amount is entered, or the Consolidate Amounts option is set, the Auto Reconcile process may split a transaction in order to balance the matching transaction values. This split processing is carried out regardless of the Allow Split flag setting on the reconciliation accounts.
    Exchange Difference per Match
    This determines whether or not exchange differences are calculated by Reconciliation Manager for each match found within the matching criteria. If this option is set, the system calculates the exchange differences for each set of matching transactions and copies the analysis from the transaction with the lowest base value in the matched pair of transactions. Where duplicate transactions are found, they are omitted from the matching process.

    If this option is not set, the system consolidates all gains and losses and posts the balance to the gain/loss and source accounts.

    It is only possible to use this option if Generate Difference is also selected, and it can only be used when matching credit transactions against debit (or vice versa) within the same account of the same business unit. Therefore, to use Exchange Difference per Match, the Same Sign Matching option must not be set, and the two Reconciliation Accounts must be configured for the same account code; one for credit, the other for debit. Additionally, when this option is selected, exchange differences are only generated when the Auto-Reconcile action is selected in Reconciliation Manager.
    Leave Form Open
    Set this option to leave the Reconciliation Manager form open when the reconciliation process has been completed for this profile.
    Report Options
    The Report Option allows you to select whether a report is generated, and if so, what transactional details are included in the report.
    • No Report - Select this option if no report is to be generated
    • Report Only Changed Transactions - Select this option to only include details of transactions that have changed
    • Report All Transactions - Select this option to include all transactions.
  3. Specify this information for Selection:
    Selection Criteria 1-10
    You can choose up to ten selection criteria which transactions must meet before they are considered for reconciliation.

    A data item to be used as part of the selection criteria is selected from the Data Dictionary Lookup dialog. This dialog lists the data items available and allows you to choose those you require.

  4. The Matching tab is used to identify the data items that must match on the selected transactions for them to be reconciled by the automatic reconciliation process, Auto-Reconcile. For example, you may wish to match transactions on transaction reference, amount and ledger transaction analysis code 1. When you choose to automatically reconcile, the system searches through the transactions extracted for each reconciliation account, and identifies transactions that contain the same data in the matching criteria fields. These transactions are matched and then reconciled.
    Note: If you are matching by currency, then the currency code must have already been created in the business unit in which Reconciliation Manager (RCM) is being run. This may be a different business unit from those identified on the Reconciliation Accounts for which the reconciliation is being run.
  5. The reconciliation profile matching option compares the contents of the same fields on each set of transactions. If you need to match on different fields, or apply conditional or more complex matching, then you should leave the matching criteria on Reconciliation Profiles Setup blank and define the matching rules in a Rule Set.

    For example, you may want to compare the transaction reference field value in one group of transactions with the transaction description on the other set of transactions.

    To define a matching rule set you must:

    • set up an event profile that initiates the rule if Reconciliation Manager is being used with the appropriate Reconciliation Profile. For example, the event profile may contain the following conditions where BankUSD is the Reconciliation Profile:

      If Function Code = Reconciliation Manager

      If Reconciliation Profile = BankUSD

    • define a rule set that contains the matching conditions and uses the special command of Match to match the transactions if the conditions are met.

    If the matching criteria in a rule set needs to be applied to multiple Reconciliation Profiles, you can reference each Reconciliation Profile in the same event profile. For example the event profile might contain the following conditions where Bank and BankUSD are the required reconciliation profiles:

    If Function Code = Reconciliation Manager

    IF Reconciliation Profile = Bank

    OR Reconciliation Profile = BankUSD

    Note: If the matching criteria are defined using a Rule Set, you cannot identify data items on the Matching tab.
  6. Source Acct Analysis Override only applies when the Exchange Difference per Match option is selected, and only applies to Auto-Reconcile processing.

    This tab is used to override the default transaction analysis codes that apply if exchange difference transactions (per match) are generated for the Reconciliation Profile. The analysis code overrides defined here apply to the exchange difference transactions that post to the source account.

    The default analysis codes for the exchange difference source transaction are taken from the transaction in the matched set that contains the lowest base currency value.

    Note: The analysis codes that apply to the exchange difference transaction that posts to the gain/loss account are defined on the Gain/Loss Acc Analysis O-ride tab.
    Ledger Analysis 1-10
    Select an analysis code, for an analysis dimension, to be used if a default analysis code is not provided on the source transaction.

    Alternatively, leave the analysis code blank to use the default code. The default code is taken from the transaction in the matched set that contains the lowest currency value.

    Enter '-' hyphen to remove any default code and leave the analysis code blank on the exchange difference transactions.

    Use if existing anl is blank
    Check this option if the analysis code is only to be used when the analysis dimension is blank on the source transaction.
  7. Gain/Loss Acc Analysis Override only applies when the Exchange Difference per Match option is selected, and only applies to the Auto-Reconcile processing.

    This tab is used to override the default transaction analysis codes that apply if exchange difference transactions (per match) are generated for the Reconciliation Profile. The analysis code overrides defined here apply to the exchange difference transactions that post to the gain or loss account.

    The default analysis codes for the exchange difference gain/loss transaction are taken from the transaction in the matched set that contains the lowest base currency value.

    Ledger Analysis 1-10
    Select an analysis code, for an analysis dimension, to be used if a default analysis code is not provided on the source transaction.

    Alternatively, leave the analysis code blank to use the default code. The default code is taken from the transaction in the matched set that contains the lowest currency value.

    Enter '-' hyphen to remove any default code and leave the analysis code blank on the exchange difference transactions.
    Use if existing anl is blank
    Check this option if the analysis code is only to be used when the analysis dimension is blank on the source transaction.
  8. Save your changes.