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<ManualTopic ID="/baanerp/tf/integrations/400034" xml:lang="en">
   <Header>
      <Title>The reconciliation process</Title>
      <Keyword type="header" order="d1e1622363">
         <Level1>Reconciliation</Level1>
         <Level2>process</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <List>
         <ListIntro>Two financial analysis and reconciliation processes can be
		  distinguished:</ListIntro>
         <ListItem>The general financial analysis of all reconciliation areas.</ListItem>
         <ListItem>The reconciliation and financial analysis of the Goods
		  Received not Invoiced (GRNI), which is represented by the reconciliation area
		  Invoice Accrual 3. Refer to <Link href="/baanerp/tf/integrations/400036" role="manual">The GRNI reconciliation process</Link>.</ListItem>
      </List>
      <ProcedureList>
         <ListIntro>You can perform financial analysis and reconciliation by
		  reconciliation group. The Financial analysis and reconciliation process
		  consists of the following steps:</ListIntro>
         <ListItem>Close the financial period so that no new transactions can be
		  entered.</ListItem>
         <ListItem>Calculate and post currency differences and rounding
		  differences.</ListItem>
         <ListItem>Print the trial balance.</ListItem>
         <ListItem>If required, create an opening balance for
		  reconciliation</ListItem>
         <ListItem>Print the reconciliation data.</ListItem>
         <ListItem>Compare the reports.</ListItem>
         <ListItem>Rebuild the ledger account history as necessary and regenerate
		  the reports.</ListItem>
         <ListItem>Accept the reconciliation transactions that can be balanced.</ListItem>
         <ListItem>Analyze the data.</ListItem>
         <ListItem>Display the transaction details</ListItem>
         <ListItem>Create the required correction transactions.</ListItem>
         <ListItem>Post the correction transactions.</ListItem>
         <ListItem>Accept the reconciliation data.</ListItem>
      </ProcedureList>
      <Paragraph>Detailed instructions for these steps are given below.</Paragraph>
      <ProcedureSection>
         <SectionTitle>The reconciliation process</SectionTitle>
         <Steps>
            <StepsIntro>The reconciliation process consists of these steps. Repeat
			 the steps for each <Link href="/baanerp/tf/glossary/glossary#000458" role="glossary">reconciliation group</Link>.</StepsIntro>
            <Step>
               <StepTitle>Close periods</StepTitle>
               <Paragraph>Usually, reconciliation is performed over a specific
				fiscal period. Before you start the reconciliation process, use the <GUIRef href="/baanerp/tf/gld/tfgld1206m000" role="session">Close Periods (tfgld1206m000)</GUIRef> session to close the Integration period so that no new
				transactions can be entered.</Paragraph>
               <Paragraph>However, if you generate and print the reconciliation
				reports, LN does not
				check the period status. You can print the reports whenever you wish,
				independent of the period status.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Post currency differences</StepTitle>
               <List>
                  <ListIntro>To calculate the currency differences caused by rounding
				  errors and by fluctuations of the currency rates and to post them to the
				  appropriate ledger accounts before you perform the reconciliation process, you
				  can run the following sessions:</ListIntro>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld4295m400" role="session">Calculate Currency Differences for Integration Accounts (tfgld4295m400)</GUIRef>
                  </ListItem>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld4295m500" role="session">Calculate Rounding Currency Differences for Integration Accounts (tfgld4295m500)</GUIRef>
                  </ListItem>
               </List>
               <Paragraph>Finalize the batches for the currency differences
				transactions. For details, refer to <Link href="/baanerp/tf/integrations/400035" role="manual">Currency differences accounts</Link>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Print the trial balance</StepTitle>
               <Paragraph>Use the <GUIRef href="/baanerp/tf/gld/tfgld3402m000" role="session">Print Trial Balance (tfgld3402m000)</GUIRef> session to print the trial balance for the integration
				ledger accounts that you want to analyse.</Paragraph>
            </Step>
            <Step>
               <StepTitle>If required, create an opening balance for
				reconciliation</StepTitle>
               <Paragraph>If you have archived transactions that still contribute to
				the reconciliation group, for example, Inventory transactions, you can create
				opening balances to clear the differences in the reconciliation data. Use the <GUIRef href="/baanerp/tf/gld/tfgld4195m000" role="session">Opening Balances for Reconciliation (tfgld4195m000)</GUIRef> session.</Paragraph>
               <Paragraph>To create opening balances for specific business objects
				and reconciliation elements, you can select a transaction in the <GUIRef href="/baanerp/tf/gld/tfgld4595m000" role="session">Operations Management - Financial Reconciliation (tfgld4595m000)</GUIRef> session and on
				the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, click <GUIRef href="/baanerp/tf/gld/tfgld4595m000#create.open.balance" role="command">Create Reconciliation Opening Balance</GUIRef>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Print the reconciliation data</StepTitle>
               <Paragraph>Use the <GUIRef href="/baanerp/tf/gld/tfgld4495m000" role="session">Print Reconciliation Data (tfgld4495m000)</GUIRef> or the <GUIRef href="/baanerp/tf/gld/tfgld4495m300" role="session">Print Reconciliation Data PCS Work In Process (tfgld4495m300)</GUIRef> session to
				print a reconciliation report. You must select a reconciliation group.</Paragraph>
               <List>
                  <ListIntro>At this stage in the process, you can print a standard
				  report. Print the subtotals on a high level, for example, by reconciliation
				  element, and select the following check boxes:</ListIntro>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld4495m000#full" role="manual">Print Full Specification</GUIRef>
                  </ListItem>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld4495m000#supr.zero" role="manual">Suppress Zero Balances</GUIRef>
                  </ListItem>
               </List>
               <Paragraph>To print the subtotals on reconciliation element level,
				select the <GUIRef href="/baanerp/tf/gld/tfgld4495m000#group.recon.el" role="manual">Group by Reconciliation Element</GUIRef> or the <GUIRef href="/baanerp/tf/gld/tfgld4495m000#group.rec.el.comb" role="manual">Group by Recon. Element Combination</GUIRef> check box.</Paragraph>
               <Paragraph>For more details about how to print the reconciliation
				reports, refer to <Link href="/baanerp/tf/integrations/400046" role="manual">To print the reconciliation reports</Link>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Compare the trial balance and the balances on the
				reconciliation data report</StepTitle>
               <Paragraph>For the ledger accounts on which the amounts match, you
				can accept the reconciliation data. Continue at <GUIRef href="" role="manual">Step 8 Accept the reconciliation data</GUIRef>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Rebuild the History</StepTitle>
               <Paragraph>If the amounts on the reconciliation report do not
				correspond with the amounts on the trial balance, you can first rebuild the
				History of the ledger accounts that you are analyzing.</Paragraph>
               <List>
                  <ListIntro>Use the <GUIRef href="/baanerp/tf/gld/tfgld3203m000" role="session">Rebuild Opening Balance/History from Transactions (tfgld3203m000)</GUIRef> session and select
				  all three check boxes:</ListIntro>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld3203m000#rebu.opb" role="manual">Opening Balance</GUIRef>
                  </ListItem>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld3203m000#rebu.l" role="manual">Rebuild Parent Account History</GUIRef>
                  </ListItem>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld3203m000#rebu.d" role="manual">Rebuild Parent Dimension History</GUIRef>
                  </ListItem>
               </List>
               <Paragraph>Go back to <GUIRef href="" role="manual">Step 4 Print the trial balance</GUIRef>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Accept the reconciliation data</StepTitle>
               <Paragraph>Accept the reconciliation data for the ledger accounts for
				which there are no problems. In the <GUIRef href="/baanerp/tf/gld/tfgld4295m000" role="session">Accept Reconciliation Data (tfgld4295m000)</GUIRef> session, select the reconciliation
				group. Then select the range of ledger accounts for which you want to accept
				the reconciliation data.</Paragraph>
               <Paragraph>
                  <Emphasis>Note</Emphasis> Inventory accounts and end
				accounts must first be analyzed before you can accept the reconciliation data.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Analyze the balances on the reconciliation data
				report</StepTitle>
               <Paragraph>If the amounts on the reconciliation report do not
				correspond with the amounts on the trial balance, you can take various actions,
				depending on the type of problem and your auditing requirements.</Paragraph>
               <Paragraph>Use the <GUIRef href="/baanerp/tf/gld/tfgld4495m000" role="session">Print Reconciliation Data (tfgld4495m000)</GUIRef> session to print a report of the
				transactions that could not be reconciled. At this stage, you can clear the <GUIRef href="/baanerp/tf/gld/tfgld4495m000#full" role="manual">Print Full Specification</GUIRef> check box because the relation between the
				reconciliation data and the trial balance has already been examined.</Paragraph>
               <Paragraph>If you wish, and for accounts other than Inventory
				accounts and end accounts, you can select the <GUIRef href="/baanerp/tf/gld/tfgld4495m000#non.accept" role="manual">Print Only Non-accepted</GUIRef> check box. Start by printing a report with not much
				detail. For more details about how to print the reconciliation reports, refer
				to <Link href="/baanerp/tf/integrations/400046" role="manual">To print the reconciliation reports</Link>.</Paragraph>
               <List>
                  <ListIntro>If the differences cannot be easily explained, in the <GUIRef href="/baanerp/tf/gld/tfgld4495m000" role="session">Print Reconciliation Data (tfgld4495m000)</GUIRef> session you can select the
				  following check boxes to print a more detailed report:</ListIntro>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld4495m000#log.det" role="manual">Logistic Details</GUIRef>
                  </ListItem>
                  <ListItem>
                     <GUIRef href="/baanerp/tf/gld/tfgld4495m000#fin.det" role="manual">Financial Details</GUIRef>
                  </ListItem>
               </List>
            </Step>
            <Step>
               <StepTitle>Display the transaction details</StepTitle>
               <Paragraph>In the <GUIRef href="/baanerp/tf/gld/tfgld4595m000" role="session">Operations Management - Financial Reconciliation (tfgld4595m000)</GUIRef> session, use the
				various options to display the transaction details.</Paragraph>
               <Paragraph>For example, if you select a line, on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu you can
				click <GUIRef href="/baanerp/tf/gld/tfgld4595m000#zoom.to.log.trans" role="command">Transaction Origin</GUIRef> to display the original
				transaction in Operations Management, and you can click <GUIRef href="/baanerp/tf/gld/tfgld4595m000#show.integration.trans" role="command">Integration Transaction</GUIRef> to display the mapping
				details and posting details of the transaction.</Paragraph>
               <Paragraph>For reference, you can also print the corresponding
				reports of the logistic data in Operations Management.</Paragraph>
               <Paragraph>If you are satisfied that the financial data is correct,
				continue at <GUIRef href="" role="manual">Step 13 Accept the Reconciliation Data</GUIRef>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Make corrections</StepTitle>
               <Paragraph>You can manually create the corrective transactions for
				postings that are incorrect. For details, refer to <Link href="/baanerp/tf/integrations/400040" role="manual">To create a correction transaction</Link>. This
				type of corrections solves the discrepancies in <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef>. They do not
				solve the differences between the trial balance and the reconciliation report.
				Such differences must be sorted out by an expert.</Paragraph>
               <Paragraph>Next, repeat the reconciliation process, starting at <GUIRef href="" role="manual">Step 9: Analyze the balances on the reconciliation data report</GUIRef>. You can print a reconciliation report that includes the
				non-posted corrections.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Post Reconciliation Corrections</StepTitle>
               <Paragraph>Use the <GUIRef href="/baanerp/tf/gld/tfgld4295m300" role="session">Post Reconciliation Corrections (tfgld4295m300)</GUIRef> session to post the correction
				transactions to the general ledger accounts.</Paragraph>
               <Paragraph>Next, go back to <GUIRef href="" role="manual">Step 3, Print the trial balance</GUIRef>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>Accept the reconciliation data</StepTitle>
               <Paragraph>If no more corrections are required for the reconciliation
				group, in the <GUIRef href="/baanerp/tf/gld/tfgld4295m000" role="session">Accept Reconciliation Data (tfgld4295m000)</GUIRef> session,
				select the reconciliation group. Then select the range of ledger accounts for
				which you want to accept the reconciliation data.</Paragraph>
               <Paragraph>If you wish, you can select the <GUIRef href="/baanerp/tf/gld/tfgld4295m000#tfgld4495.09" role="groupbox">Select Specific Business Object</GUIRef> check box to accept
				the reconciliation data for a specific business object or range of business
				objects.</Paragraph>
               <Paragraph>You can select the <GUIRef href="/baanerp/tf/gld/tfgld4295m000#gld.db.cr.bal" role="groupbox">Only Debit and Credit Balanced</GUIRef> check box to accept most of the
				transactions. You must enter the tolerance amounts in each of the home
				currencies.</Paragraph>
               <Paragraph>When you click <GUIRef href="/baanerp/tf/gld/tfgld4295m000#exec.cont.process" role="command">Process</GUIRef>, LN checks a number of conditions and sets the
				status of the transactions that meet the conditions to <GUIRef href="" role="manual">Accepted</GUIRef>. In the <GUIRef href="/baanerp/tf/gld/tfgld4595m000" role="session">Operations Management - Financial Reconciliation (tfgld4595m000)</GUIRef> session, you can
				view the transaction status and you can clear the <GUIRef href="/baanerp/tf/gld/tfgld4595m000#tfgld495.acce" role="manual">Accepted</GUIRef> check box if required.</Paragraph>
            </Step>
         </Steps>
      </ProcedureSection>
      <Paragraph>If you have performed the reconciliation process for a number of
		reconciliation groups, you can finalize the process and prepare the
		reconciliation data for deletion. For details, refer to <Link href="/baanerp/tf/integrations/400037" role="manual">To complete the reconciliation process</Link>
      </Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/integrations/400046" role="manual">To print the reconciliation reports</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/integrations/400030" role="manual">Reconciliation - overview</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/integrations/400041" role="manual">Reconciliation corrections</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/integrations/400040" role="manual">To create a correction transaction</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/integrations/400036" role="manual">The GRNI reconciliation process</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/integrations/400037" role="manual">To complete the reconciliation process</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>