Reconciliation accounts

Introduction

Once all the IC declarations have been inserted, it is possible that the intercompany declarations between two entities might not be balanced. To justify these imbalances, entries called reconciliation accounts are used.

An entity has declared a foreign-currency sale of $125 to a counterparty (around €96 at the current FX rate). The counterparty, however, has declared a purchase of €100. The difference of € 4 can be justified by inserting a reconciliation account identified as “FX rate difference”.

The reconciliation accounts can only be inserted on scenarios/periods that are not stored offline and are visible to the user.

Reconciliation account management

These accounts are inserted directly onto the process from the cockpit. If the process is not a single submission process, you must also specify the scenario/period.

Only reconciliation accounts inserted on contributor amounts and contributor entity journals can be managed from the contributor cockpit whereas from the consolidator cockpit, you can also manage reconciliation accounts inserted on consolidator amounts and consolidator entity journals.