reconciliation

To reconcile ledger balances, compare the period-end general ledger control account to its subsidiary ledger, list all reconciling items, classify timing differences, and book suggested adjusting journal entries to resolve discrepancies.

Bank reconciliation during month-end close involves identifying outstanding checks, in-transit deposits, and bank fees, then matching these timing differences to reconcile the statement to an adjusted cash balance.

Perform aging analysis on unreconciled intercompany items by matching balances between entities, categorizing unmatched items by age duration, and setting escalation thresholds to prioritize resolution of long-outstanding differences.

Adjusting journal entries for reconciling items are needed when comparing general ledger control accounts to subledgers or bank statements reveals discrepancies that cannot be explained by timing differences and require permanent correction.

Yes, the reconciliation workflow applies to period-end accounting tasks where accounts receivable and accounts payable control accounts must be matched to supporting subledgers before financial sign-off.

A subledger may not match a general ledger control account due to timing differences in posting, unrecorded bank fees, outstanding checks, or missing intercompany entries that require classification and adjusting journal entries.