• What is Account Reconciliation?
• Matching subsidiary reports to the General Ledger
• Confirming the transactions posted and the account balances.
• Significance of Reconciliation
• Identifying errors & correcting
• Accuracy of financial statements
• Being prepared for an audit
• Strategic business decisions
• I only need to reconcile once a year
• I don’t need to check since we’re not doing anything wrong in
• It’s not off that much; so, I’m not worried about it
• I own the company. As long as I have money in the bank, I’m
• We have really good outside accountants that we give reports
• I’ll do it myself (When I get chance)
Step 1: Collecting the documents
The following end-of-month reports are needed:-
• Compare the balance on the report with the figures on
the GL trial balance
• Move forward with the reconciliation only when these two
are not the same
Step 2: Finding the difference
• Common Factors:-
• Journals were not consolidated & posted
• Wrong journal sources due to incorrect mappings
• Timing differences
• Transactional errors
• Manual journal entries
Step 3: Finding the reasons for the
• Meaning:- Timing difference is caused when there is a gap
when transactions are taking place and the general ledger
period to which the transaction belongs.
• For example:-
• Inventory was depleted by a sales order with a transaction
date that posts to the following GL period
• Purchase Orders are received in one period and a PO
Quantity or PO Cost adjustment is done in a subsequent
Finding the Timing Difference
• Timing Difference for Inventory:-
• Look for transactions where entry dates and transaction dates
are different. For example, transactions with entry date in
2014-04 vs. transaction date in period 2014-03 or vice-versa.
• Find the difference by running the transaction detail report by
entry date and by transaction date.
Timing Difference- Inventory
• Timing Difference for Receiving Clearing:-
• Look for the cost and quantity adjustments done for the received
purchase order in a period other than in which it was received.
• To find these kind of transactions, run the purchase detail
journal report by the fiscal period or run the transaction detail
report for adjustments by the entry date and group it by
Timing Difference-Receiving Clearing
• Compare credits on Bank Statement to ERP
• Clear Outstanding Checks in ERP (AP => Check Menu)
• Print Outstanding Check Register
• Check for manual journal entries
• Compare deposits on Bank Statement to ERP
• Print AR Detail Journal Report by AR batch & GL Account
• Check for manual journal entries
• Enhanced functionality being developed in 2014
• Steps after the reasons for variances are identified
• Make correct journal entries in timely fashion.
• Run the subsidiary reports and trial balance to make sure
that the period is reconciled and there are no pending
Step 4:- Reviewing the Reconciliation
AFS provides a reconciliation package for ERP & .NET Financial customers.
• Experienced Team at AFS.
• Regular Year-End and Month-End Process – Ensures accurate, up-to-date books.
• Time Management - This service frees up your time so that you can focus on
making decisions & set priorities based on reviewing your monthly financial
• One Stop for your Questions - All your questions & concerns regarding your
reconciliation and period-closing process will be handled by the representative
assigned to your account.
AFS Technologies (AFS) is the leading provider of software solutions purpose-built
for consumer goods companies. We are committed to generating improved
outcomes at the point of purchase coupled with generating efficiencies in trade
spend, retail execution and supply chain. With experience developed over its 30
year history, AFS serves more than 1,300 customers of all sizes in over 50 countries
around the world. The AFS products are innovative, configurable solutions that are
proven to optimize your potential with automated processes, improved
productivity and rapid time to value.
To learn more about AFS, visit www.afsi.com.
About AFS Technologies
Name: Bob Letourneau
Title: Director of ERP Support