reconciliation

The best way to reconcile general ledger balances is to compare GL control accounts against subledger detail reports and bank statements to identify timing, interface, and posting discrepancies. This methodology requires period-end GL balances, subledger reports, bank statements, and aging analyses to document reconciling items and propose adjusting journal entries.

To perform a bank reconciliation, compare standard bank-to-GL balances to identify outstanding checks, deposits in transit, and bank charges. Using period-end bank statements and GL data, the process documents required adjusting journal entries to align the bank statement with the general ledger cash account.

Reconciling intercompany payables and receivables involves comparing intercompany records to identify discrepancies and performing an aging analysis. The process assigns categories like timing, adjustments, or investigation to reconciling items and applies escalation thresholds for aged balances to ensure proper resolution.

You need GL-to-subledger matching during period-end close when reconciling accounts receivable, accounts payable, cash, fixed assets, inventory, and prepaid expenses. It detects discrepancies between control accounts and detailed subledger balances, allowing staff accountants to investigate timing differences and propose adjusting journal entries before closing.

To reconcile balance sheet accounts, you need period-end GL balances, subledger detail reports, bank statements, aging analyses, and documented categorization and escalation procedures. These inputs enable the comparison of control accounts to detailed records and the production of reconciled aging reports with proposed adjustments.

GL-to-subledger discrepancies occur due to timing differences, interface errors, and posting variations between the general ledger and subledgers. They are resolved by comparing control accounts to detailed subledger balances, investigating the differences, and proposing adjusting journal entries to correct the balances before closing.