Record to report / R2R – Reconciliations

Multiple systems

We saw situations where companies end up using multiple systems, primarily four in number.

What really makes these reconciliations really challenging is that some legacy systems had limited data capture capabilities. Due to this, the supportings cannot be captured in the system. They have to be maintained separately. But again, due to business criticality, this system will take its own time to get into the main ERP modules.

I remember in one of my jobs for the captive of an insurance major, the front end sales team had been doing the transaction capture in a legacy system. They used to place the scanned supportings in a shared drive, and often missed to do so. The new ERP system was started about three years back, but the key business logic was not yet built into it. We had transactions that were over three years old lying unreconciled. Even the upload system from legacy moved only limited fields, due to which the ERP classified these as incomplete entries, and put them on hold.

Honestly, someone had not thought through all aspects of the data mapping, and was bought into buying the ERP based on the sales pitch. But what had really happened that the failure of mapping had led to increased work and all the benefit that the new ERP could have given was lost.

You can imagine, how challenging the reconciliations must have been for my team.


Have you been following our accounting blog?


Subscription and Guest Post:

You may subscribe to the blog from the subscription box on the opening page of the blog. We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at We will review your post and release it within 48 hours of your posting. Please note, any irrelevant posts shall be deleted without information.