Generating Transactions in Reconciliation Manager

Reconciliation Manager allows you to enter and post journal transactions as part of the reconciliation processing. It provides two very similar commands for this: Generate and Generate Balance. In each case, the Reconciliation - Generate form is displayed where you can enter the details of the offset transaction to balance the generated transaction. For example, you can specify the account to which the offset transaction is posted.

Use Generate to enter a new transaction based on the details of an existing transaction. For example, in a supplier account, you may need to generate a transaction to register the postage and packaging amount not originally included in an invoice transaction. The offset account for the generated transaction could be the postage and packaging expense account.

The generated transaction can be the same sign as the source transaction, or it can be the opposite sign, depending on the reconciliation profile you use. To determine the sign of the generated transaction, you must configure the Same Sign Matching flag in Reconciliation Profiles (RCP), as follows:

• If set to Yes, when you select Generate for a transaction in the source window, the system creates a transaction in the other window with the same sign as the source transaction.
• If set to No or Not Applicable and you select Generate, a transaction is generated with the opposite sign.

Use Generate Balance to post a transaction for the amount required to balance the reconciliation. For example, if a payment amount in base currency does not balance exactly with the corresponding invoice due to exchange rate differences, Generate Balance automatically sets the journal amount required to balance the reconciliation in the base currency. The offset account for the generated balance in this example could be the exchange gains and losses account.