How To Set Up Balance Sheet Reconciliation

Setting up a balance sheet reconciliation is similar to other types, as described in Getting Started. However, there are additional steps and considerations unique to balance sheet reconciliations. The main difference is that these reconciliations require more settings, applied at the line or group-of-lines level. This lets you, for example, automatically link specifications, such as a customer balance report or all non-reviewed transactions in the general ledger for a specific account.

Note

The steps below includes optional and recommended settings to help you get started.

Step 1: Create Reconciliation Codes

  1. Follow the steps in Getting Started to create the reconciliation codes.
  2. Select the Enable Specification checkbox to allow the reconciliation to automatically link relevant specifications, such as customer balance reports or non-reviewed transactions, to the reconciliation.
  3. Select Grouped by in the Sort by field.
  4. Select Ascending in the Sort Order field.

Step 2: Create Reconciliation Table Setup Codes

  1. Choose the search icon, enter Reconciliation Table Setup List, and then choose the related link.
  2. Select the Add Default Settings action to create default table setup codes.
    1. Multiple default table setup codes are created. For a balance sheet reconciliation, you will later use the table setup created for general ledger entries, grouped by G/L account.

Step 3: (Optional) Create Reconciliation Tolerances

Optionally, follow the steps in Getting Started to set up reconciliation tolerances.

Step 4: Create a Workflow Automation

Follow the steps in Getting Started to set up a workflow automation for the balance sheet reconciliation.

Step 5: Create Parameters in the Workflow Automation

Follow the steps in Getting Started to create the necessary parameters in the workflow automation.

Depending on your comparison type and reconciliation needs, you may need to add extra parameters to the workflow automation. Create or update these parameters as required to match your reconciliation. Adjust or add parameters whenever your workflow automation or specifications change.

Step 6: Set up Reconciliations in the Workflow Automation

Follow the steps in Getting Started to set up the reconciliations in the workflow automation.

For a balance sheet reconciliation you can use None or Period as the comparison type depending on your needs.

For balance sheet reconciliations, you can use the table setup code General Ledger Entries per Account created in Step 2: Create Reconciliation Table Setup Codes.

Note

Add a filter to include only balance sheet accounts in the reconciliation.

Step 7: Add Functions and KPIs to the Workflow Automation

Follow the steps in Getting Started to add functions and KPIs to the workflow automation.

For a balance sheet reconciliation, add the reports (as functions) you want to use as specifications for the reconciliation.

Examples of reports you can add as specifications include

Report No. Report Description Specification Usage
Report No. Report Description Specification Usage
---------- ------------------------- ---------------------------------------- --------------------------------------
121 Customer Balance to Date Shows outstanding balances per customer Accounts receivable
321 Vendor - Balance to Date Shows outstanding balances per vendor Accounts payable
1001 Inventory Valuation Shows the value of inventory Inventory
1700 G/L Deferral Summary Shows remaining amounts for deferrals Deferrals posted in general journals
1701 Sales Deferral Summary Shows remaining amounts for deferrals Deferrals posted in sales invoices
1702 Purchase Deferral Summary Shows remaining amounts for deferrals Deferrals posted in purchase invoices
5605 Fixed Asset Book Value 01 Shows the value of fixed assets Fixed assets
Important

To use reports as specifications, first add them as Functions in the workflow. Add all report(s) as a step before the step that creates the reconciliations, in order for the specifications to be automatically linked to the reconciliation lines.

Tip

Instead of adding each report as a separate step, assign the same Group to all reports, then add the Group as a single step.

Step 8: (Optional) Set up the Specification Table Setup

A specification table acts as a snapshot of entries in a specific table. Useful for, for example, chart of accounts with a review policy, which allows you to retrieve all non-reviewed transactions in the general ledger for a specific account as a specification in the reconciliation.

  1. Choose the search icon, enter Specification Table Setup List, and then choose the related link.
  2. Select the Add Default Settings action to create default specification table setup codes.
    1. Multiple default specification table setup codes are created. For a balance sheet reconciliation, you will later assign a the table specification when setting up the reconciliation lines.
  3. Or select the New action to manually create a new table specification setup.
    1. Enter a name and description for the table specification.
    2. Choose the relevant table (for example, G/L Entry).
    3. Define the fields to include in the table specification. For a balance sheet reconciliation, you typically include fields such as:
      • G/L Account No.
      • Document No.
      • Posting Date
      • Amount

Step 9: Set up the Reconciliation Lines

It is possible to set up the reconciliation lines in the workflow automation to automatically link the specifications to the reconciliation.

  1. In the workflow automation, select the Reconciliation Setup action.
  2. For the balance sheet reconciliation code, select the Lines action. It is also possible to set up group of lines for the reconciliation by selecting the Groups action.
    1. Make sure that only balance sheet accounts are included in the reconciliation.
    2. Make sure the Enable Specification field is set to Yes for the reconciliation code.
    3. It is possible to set up group of lines for the reconciliation by selecting the Groups action.
  3. Select the Fill with G/L Accounts action to fill the reconciliation lines with all general ledger accounts within the applied filter.
  4. Select a suitable Specification Type for each line.
  5. For lines linked to a Report specification, assign a report set up as a Function in the workflow.
  6. For lines linked to a Table specification, select a Table Specification Setup created in Step 8: (Optional) Set up the Specification Table Setup. Apply the needed Filter and choose the desired Period for the table specification.
  7. For lines linked to a Reconciliation specification, create or select a reconciliation of the type Supporting.
  8. Hover over each field to view its tooltip and adjust settings as needed.

Now it is possible to start the workflow automation to create a balance sheet reconciliation with the specified settings and linked specifications.

If you have specified reports as specifications, also complete Step 10: (Optional) Configure Report Setup to retrieve the total report value for use in the reconciliation.

Step 10: (Optional) Configure Report Setup

Configuring Report Setup simplifies the process as it allows you to specify which value to retrieve from the report for use in the reconciliation. The configured value is then added as the specified value in the reconciliation line.

The following tables lists some common standard reports you can use as specifications in a balance sheet reconciliation, along with the recommended settings for each report to retrieve the total report value.

121 - Customer Balance to Date

Field Value
Value in Column F
Column A
Type Filter
Filter Total*

321 - Vendor - Balance to Date

Field Value
Value in Column H
Column A
Type Filter
Filter Total*
Note

These settings retrieve the total balance for all customers or vendors when the report is in English or Swedish. Use the same date filter as the reconciliation. This ensures the report matches the reconciliation period. Enable Show Amounts in LCY if invoices are in foreign currency.

Tip

Select Test Settings to verify your report setup. If no value appears, download the report to review your settings. For example, missing values may result from customizations, localizations or layout changes.

See Also

Getting Started