1. End to endAP invoice processing
Purchase AccountDr xxxxxxx
Expenses AccountDr xxxxxxx
Services Dr xxxxxxx
Taxes Dr xxxxxxx
CreditNotes Dr xxxxxxx
Vendora/c Cr xxxxxxx
Complete P2P
Whenthe material readyfordispatchfromvendorplace
IR Dr xxxxxx
VendorA/c xxxxxx
Whengoods reached the Stores
GR Dr xxxxxx
IR xxxxxxx
PaymenttoVendor
Vendor xxxxxx
Bank xxxxxx
Complete O2C
When Order has been received
Inventory Dr
WIP Cr
WhenMaterialsready to ship
COGS Dr
Inventory Cr
WhenGoodsreached/ acceptedby the customer
Customer/ Receivables Dr
Sales Cr
Taxes Cr
Other Charges Cr
COGS Cr
Whencustomerpays the money
1. Bank Dr
Cash clearing Cr
2. Cash Clearing Dr
Customer/ Receivables Cr

2. R2R Domain
Introduction :
Reconciliation means in ordinary meaning Understanding, Resolving, Reunion,
Comparing and / or equalizing the two set of data or two sets of reports. Identifying
the areas causing imbalance & substantiating the Variance causing the difference.
Exploring the ideas & ways to resolve the variance with a proper document support
for such variance to substantiate.
R2R is a skill of presenting or reporting the Reconciliations in a systematic way
which will contribute to the management decision making in the simplified and skillful
artistic manner. It may be redesigning the or reformatting the reporting structure or
upgrading to simplify the data presentation skills or any other skills contributing the
ease of managerial decision making.
Process Check in Point
The Reconciliation activity starts only after the transaction posting activity ceases.
The books of accounts closes for a particular period on/or after ending of the
transactions being posted in to books of Accounts. So that the end balances will be
uploaded to the reconciliation platform database. (it’s an Website)
The activity of closing posting the accounting entries is called as Period Closure in
accounting terminology.
The process indicators / Legends
The person performs or analyses the recon activity is called as Reconciliation
Analyst.
The base data to perform the reconciliation is called as Ledger Balances/ Account
Balance / GL Balances.
The transactions which are found active on the GL account and subject to be
reconciled are called as Open Items.
This GL balances being reconciled with the supportable balances.
Supportable balances means the sum of transactions for the particular period for
which the proper supporting docs available to substantiate / ratify / defend/ support
the transactions recorded on the books with adequate documentation with proper
approval levels and those are complied with Accounting policies & procedures and
Accounting practices are within the ambit / in accordance with the accounting
principles as whole.
The Reconciliation statement is being executed on MS-Excel Spread sheet and
subject to be uploaded on the GL Recon platform website with required comments
and explanations.
Reclassification means passing the necessary corrections on the books in terms of

3. principles and doc proof available and ensure that those are at par with the
document proof of such transaction recorded.
The variances means the disputed balances comprising the transactions which are
out of the scope of Accounting policies & procedures and out of the accounting
practices or these transactions does not / may not comply with the the accounting
proper accounting principles
Process in detail
The Balance sheet Accounts (GL Accounts) are subject to be reconciled.
.the end balances (period end balances) are reflected on the BS sheet GL Accounts
which will be carried forward for the next financial period. (Assets & Liabilities).
1. The end balances being reflected on the GL Reconciliation platform website.
2. The Reconciliation Analyst will ascertain & categorizes the end balances
according to the nature & feature of the GL account, such as AP GL accounts
/ AR GL Accounts / Assets GL Account / Liabilities GL Account The Asset &
Liabilities is meant in broader sense comprising all types of Asset & Liabilities
Account including for prepaid expenses, Outstanding Expenses and revenue
recognition accounts including payroll related accrual accounts.
3. Download YTD statement of GL Account from SAP at the transaction level by
enlisting all the document numbers on the particular GL account from
beginning till the end of the particular accounting period.
4. Check the each transaction recorded by cross verifying those with the copy of
the invoice / debit /credit notes / payment advice / copy of the receipt or any
other document proof upon which the particular transaction has been
recorded.
5. Verify the authenticity of each transaction in terms of approval / validity of the
transactions upon its compliance with the company’s policies & accounting
procedures & guidelines.
6. Validate the accounting principles as to the nature & features of the GL
Account on which the particular transaction has been recorded.
7. In case of need as per the accepted guidelines advice the necessary
rectification entries from the operational executive concerned.
8. Identify whether the features & nature of GL account complies with the nature
& feature transactions recorded in it. Or vice versa including the accounting
principles as well. Check whether the debits & credits recorded are
appropriate.

4. 9. In case the transactions deviating the any of points explained above. List
them out separately. Such transactions become variants & need to show them
as variances.
10.Perform the account clear for the completed transactions means where the
debit transaction is available for a credit or vice versa. Ensure that these
transactions also comply with all the above check points.
11. Once the supportable balance ascertainment task is completed. Cross verify
the end balances listed on the recon platform website, with the GL Account
closing balances available on SAP. Ensure that the month end balances and
GL balances at the period end as per SAP agrees with a zero output.
12.In case any of the GL account balances found variance explore the reason for
such variance explain them with proper reasons
13. Age the variances as per the aging buckets 30 / 60 / 90/ 180 / 360 / above
and show the action plans as per the company’s GL account recon guidelines
provided by the Finance controller or the Corporate Accounting Head (CFO).
14.The explanation need to be provided for each variances at the GL account
level on the recon platform website.
15.In case the supportable documents not available for any of the transactions of
a particular GL Account, need to show that as Un-Reconciled
16. Perform the thorugh check on each GL account level as to GL of the
reconciliation activity has been completed in all respect for each of the GL
Account. Ensure that the required parameters have been complied the
supportable balance availability, showing the variances, clearing the
variances if any. Explaining the variances, Aging action plan and the other
information if any and as per the case may be.
17.At the end forward each of the recons to the supervisor / TL / Manager / next
level of approver at each GL Account level after all the recon statements have
been uploaded on the website including comments & remarks for each of the
GL account found on the Recon platform.
Post Reconciliation activity
Follow-up with the required operational executory point s or the escalation points as
per recon guidelines provided by the client or clients corporate Accounting team or

5. by any the officer deligated to do act upon as authrised by the client head. (CFO /
Head of )Corporate Accounting Team.
Organise the meetings and set up the telephone calls to resolve the variance in
stipulated time as per open item aging.
Escalate to the higher level as per the guidelines on the escalation matrix.
Endeavor & take ownership
Undertake all types of genuine actions and try a max to clear the open items and
keep the each account in tact in all respects within ambit of client’s corporate
accounting & reconciliation policy. Watch the ammendments to the corporate
accounting policies guidelines, notifications or circulars which will be amended on
frequent intervals.
The End
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