Scribd
Upload
37 views2 pages

General Ledger Account Reconciliation Guide

Reconciliation is the process of comparing two sets of records and resolving any differences. It is important because it helps detect mistakes, discrepancies, or fraud. General ledger reconciliation verifies the integrity of account balances by obtaining ledger details, reconciling ending balances to documentation, investigating discrepancies, and making adjusting entries if needed. Key terms include reconciled items where the variance is explained, open items requiring action to clear, and un-reconciled items where the reason is unknown.

Uploaded by

arifansari2299
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
37 views2 pages

General Ledger Account Reconciliation Guide

Reconciliation is the process of comparing two sets of records and resolving any differences. It is important because it helps detect mistakes, discrepancies, or fraud. General ledger reconciliation verifies the integrity of account balances by obtaining ledger details, reconciling ending balances to documentation, investigating discrepancies, and making adjusting entries if needed. Key terms include reconciled items where the variance is explained, open items requiring action to clear, and un-reconciled items where the reason is unknown.

Uploaded by

arifansari2299
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1. WHAT IS RECONCILATION?

Reconciliation Is The Process Of Reconciling The Balance Of Two Set Of Book Or Compare Two
Set Of Records Is Called Reconciliation.

 PURPOSE OF RECONCILIATION
The Purpose Of Reconciliation Is To Ensure The Accuracy, Integrity, Reliability, And Control &
Validity Of Financial Information.

 WHY RECONCILE AN ACCOUNT IS IMPORTANT?


Reconciling Account Is Important Because It Helps Detect Any Mistakes, Discrepancies Or Fraud
In Accounting Book That Could Impact Financial Health Of The Company.

 GENERAL LEDGER RECONCILIATION.


General Ledger Reconciliation Is an Activity Performed by Accountant to Verify the Integrity of
Account Balance on the Company’s General Ledger.

 HOW TO PREPARE GENERAL LEDGER RECONCILIATION?


General Ledger Reconciliation Process Takes Place After The End Of A Financial Reporting
Period.
• Obtain Necessary Details Of The General Ledger Account.
• Reconcile Ending Account Balance To Supporting Documentation.
• Investigate Discrepancies.
• Prepare Adjusting Journal Entry.

 WHAT ARE
• RECONCILED ITEM
• OPEN ITEM
• RECORDED ITEM
• AGED OPEN ITEM
• UN-RECONCILED ITEM
 RECONCILED ITEM – Variance Has Been Itemized And Root Cause Has Been Established.
 OPEN ITEM – Open Item Is An Item Of Variance Which Requires An Action To Remove The
Balance From Account.
 RECORDED ITEM – An Item Of Variance Which Does Not Require An Action To Remove The
Balance From The Account Is Called As Recorded Item.
 AGED OPEN ITEM – If An Open Item Not Resolve Or Action Not Taken Within A Required Time
Frame It Is Termed An Aged Open Item.
 UN-RECONCILED ITEM – It Is An Item Of Variance For Which The Reason Is Not Yet Identified
Or Is Yet To Be Reconciled.

FSION – This Report Is Used To View The Totals Of P/L Account Or A Range Of P/L Account It
Displays Month Wise Summary Of Debit & Credit Balance.

You might also like