Reconciliation of internal balances is complicated because so many factors have to be processed. The complexity increases with the number of companies, currencies and accounts involved, and reporting is often a challenge. Information on what the actual difference consists of is hard to come by. Currency differences or company transactions that have not been registered by both parties also confuse matters.

Adra ACCOUNTS gives you:

  • One reconciliation process for all companies
  • A report with balances and differences between companies
  • The difference between the companies reported in individual unmatched transactions
  • Ability to send open transactions from the system to the debtor company
  • Completed reports for the monthly account
  • An indication of what the claim or debt should be written up or down by, when currencies are involved

You can register internal balances in different ways within the accounting system. The use of parties and counterpart numbers is the most common. Ledger entries with invoice numbers for transactions are sometimes used, and in these cases the transactions are reconciled at invoice level.

This complexity creates various difficulties which can result in the failure to reconcile balances between the different companies at the end of the month. A lot of people are often involved, making the process diffuse, and the creation of uniform practices is a real challenge.

Manual work involves

  • Lots of people
  • A challenge to maintain to control at transaction level
  • Complex reporting
  • Differences discovered at balance level only
  • Many different approaches.

A monthly reconciliation should show account balances and account-level differences between the parties. If currencies are involved, it will also indicate how much receivables or debt should be written up or down by, and which individual transactions make up the difference..