Inter Finance Book Reconciliation – An overview

Introduction

Transactions can affect finance books within and across the companies. Because of the voluminous transactions that take place between finance books, it is likely for some entries to get missed out or wrongly passed in the finance books. The purpose of reconciliation is to identify such discrepant entries and pass the corresponding rectification entries. Reconciliation is thus the process of keeping track, reconciling and settling discrepancies of the transactions that are posted into multiple finance books (within a company or across companies).

The Inter FB transactions in the document refer to the Intra Company transaction that occurs between the Finance Books of the same Company. The financial period or year cannot be closed until the inter FB and inter company transactions are reconciled. This component covers only reconciliation of Finance Book transactions across business unit and across companies. It is assumed that once Finance Book transactions are reconciled and these transactions are posted in the Tax book, there will be no need for reconciliation of Tax book. For reconciliation, only the authorized and posted transactions should exist in the inter FB and inter Company accounts.

Feature Highlights

• Reconciling transactions within the finance book thereby nullifying their effect both for Inter FB and inter company transactions.

• Transactions between a pair of business units can be auto reconciled both for automated inter FB and inter company transactions. User intervention is not required in selecting transactions to be auto reconciled.

• Provision to view the reconciliation for all other finance books from an organization unit (OU) where Main Finance Book is deployed, both for Inter FB and Inter Company transactions.

• Support for creating documents for passing the rectification entries for the discrepant, inter FB transactions (Journal voucher) from reconciliation component itself, both for inter FB and inter company transactions.

• Support to maintain reference for the transactions that are reconciled, for tracking by generating the reference number

• The component facilitates auto reconcile, whereby the system identifies transactions that are generated automatically in the interacting finance book during transaction and reconciles the opposite entries. Such transactions are reconciled on a one-to-one basis by the system.

List of Activities