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GL Account Reconciliation


william3
Freshman I

One of the key financial differences between Acumatica, Netsuite and Intacct is that the latter of the two have account reconciliation modules. Of course, everybody has bank reconciliation which is one type of GL account that has to be reconciled, but many companies are required by banks or auditors to explain many other balance sheet accounts and this can be a real headache to members of the financial team. To help win over the finance department to Acumatica, we need to offer a competent reconciliation module to stay competitive.

The essence of an account reconciliation module is that transactions that make up a balance sheet account at the end of a period are traceable to specific documents on the company side, and most importantly reconcile these against a statement or other documents from a third party. This could work in conjunction with the AP automation in that a PDF can be brought in and items on that PDF can be tied to the account balance. Some likely accounts are loans and notes receivable and payable, WIP, accruals and deferrals, loans to shareholders and equity, 

Besides a centralized set of tools for analysis, adjustments and approval, this is something that is best done by Acumatica as it works best by enforcing best practices when recording transactions such as storing document images with transaction records and insuring that transactions are recorded with sufficient comments and descriptions. Other modules such as projects and time and expense should be leveraged in this regard as well. One problem to overcome is that document storage eats up space at a horrifying rate and that can increase the cost of Acumatica rapidly - that must be addressed.

I would love to hear if anyone else thinks that this would be impactful to our customers and beneficial to the Acumatica community or would it be a misallocation of scarce resources.

Best answer by ChandraM

Hi @william3 For reconciliation of the Balancesheet Accounts like Receivable Account and the Payables Account, the tool that is very useful is the “Account Details”. Please see the screenshot below:

The “Modules” filter used to find out odd entries.

For example journal entries for Receivable Account being the reason why it is not matching with the subledger (AR). 

 

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5 replies

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  • Semi-Pro I
  • 714 replies
  • October 13, 2023

Hi @william3 Depending on your client’s file sizes and few similar factors, you can decide on other Storage options that can be configured.
 

 


Forum|alt.badge.img+9
  • Semi-Pro I
  • 714 replies
  • Answer
  • October 13, 2023

Hi @william3 For reconciliation of the Balancesheet Accounts like Receivable Account and the Payables Account, the tool that is very useful is the “Account Details”. Please see the screenshot below:

The “Modules” filter used to find out odd entries.

For example journal entries for Receivable Account being the reason why it is not matching with the subledger (AR). 

 


william3
Freshman I
  • Author
  • Freshman I
  • 3 replies
  • October 20, 2023

Hi @ChandraM. Thank you for your comment. Cash, trade payable and receivables all have subledgers with good audit paths, inquiries and reports which should balance to the GL. Sometimes entries are made to the control account that the subledger is ignorant of and that requires a separate reconciliation. The challenge that I am primarily concerned with is the reconciliation of GL accounts without subledger support. This includes loans to and from the business, and basically all material asset, liability and equity accounts. Using either a documentation or analytical approach, an reconciliation process embedded within the ERP system is a valuable competitive factor that will only increase in importance as time goes by. Netsuite already has this capability which, from what I’ve heard, was migrated from Oracle financials.


dfrancis7
Freshman I
  • Freshman I
  • 6 replies
  • April 19, 2024

As I understand it, SAP has a functionality where you can mark items in a balance sheet account as “cleared” similar to how you would do with a bank reconciliation. Then you can run a report on a balance sheet report that just shows the uncleared/open items. I think that Acumatica should provide a similar function.

Additionally, if it could be possible to assign items to categories that are user defined, then you could make the uncleared/open items report even more useful if you can group items by category.


  • Freshman I
  • 1 reply
  • October 24, 2024

I did some research and IFS seems to have such a feature too, which is described as “The Account Matching process is used to automatically match transactions in the general ledger. The purpose is to match one or more debit transactions from one specified account with one or more credit transactions from the same account.” Our biggest client recently asked us if there is something similar offered so that they could run a report or an inquiry such as Account Details to list only those transactions that are not matched.

Is there any plan that Acumatica will offer this feature in the future?


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