Record to report / R2R – Reconciliations

Bank

We talked about reconciliations between multiple systems in the last two posts.

http://faoblog.com/processes-record-report-r2r-reconciliations-multiple-systems/

http://faoblog.com/processes-record-report-r2r-reconciliations-multiple-systems-2/

To add to the last post, in case of multiple system reconciliations, a brief technological understanding of the system and the fields captured in each system really helps.

As mentioned earlier, the process steps remain almost the same, and only the entity will change. Resolutions will not really need approvals as there will be no waiver / write-offs, except in some exceptional cases where details cannot be identified and the differences need to be written off.

Coming to the next category Bank Reconciliations. This is the most talked about reconciliation and the most traditional one too.

So here you are comparing the records of a bank account, as maintained by your bankers and your client’s / principal’s ERP system. Often there are components which need to be included in the client’s accounting books in form of charges and interest which will get reported only when the bank statements are received by the business.

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Have you been following our accounting blog?

http://faoblog.com/category/accounting-core/

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