In any ERP Application, there are two types of reconciliations that you do. They are
1. Internal Reconciliation
2. External Reconciliation
Internal Reconciliation refers to the reconciliation within the application. At a high level this means that the difference between period opening balance and the period closing balance should be equal to the value of the transactions entered in the period.
As an example, let us say that the Opening AR Balance is 0, during the period you enter an invoice of Rs.1000, and a Credit Note of Rs 600 then your AR Closing Balance for the period should be Rs.400.
This is internal reconciliation
Once you do the internal reconciliation, you have to transfer the transactions to GL. At the end of the period you will reconcile the customer balances with the GL Balances. This reconciliation is known as external reconciliation.
AR Reconciliation Report is a great report to do the Internal Reconciliation for the AR Module. This report does all the tough work for you and will give you, in summary, all the actions that happened in AR.
This report uses the following formula.
Opening Balance
add Transactions
Less Invoice Exceptions
Less Applied Receipts
Less Unapplied Receipts
add / less Adjustments
equals
Closing Balance
For each of the above, there are standard reports in Oracle
For Opening Balance Use Aging- 7 Buckets Report
For Invoice Exceptions Use Invoice Exception Report
For Applied Receipts Use Receipts Register
For Unapplied Receipts Use Unapplied Receipts Register
For Adjustments Use Adjustments Register
For Closing Balance Use Aging- 7 Buckets Report
All these are standard reports and can be easily converted to Excel for reconciliation purposes
One advantage of these reports are that these work correctly even in India Localization Environment
Drawback? These are not in Excel Format (though they can be easily converted)
1. Internal Reconciliation
2. External Reconciliation
Internal Reconciliation refers to the reconciliation within the application. At a high level this means that the difference between period opening balance and the period closing balance should be equal to the value of the transactions entered in the period.
As an example, let us say that the Opening AR Balance is 0, during the period you enter an invoice of Rs.1000, and a Credit Note of Rs 600 then your AR Closing Balance for the period should be Rs.400.
This is internal reconciliation
Once you do the internal reconciliation, you have to transfer the transactions to GL. At the end of the period you will reconcile the customer balances with the GL Balances. This reconciliation is known as external reconciliation.
AR Reconciliation Report is a great report to do the Internal Reconciliation for the AR Module. This report does all the tough work for you and will give you, in summary, all the actions that happened in AR.
This report uses the following formula.
Opening Balance
add Transactions
Less Invoice Exceptions
Less Applied Receipts
Less Unapplied Receipts
add / less Adjustments
equals
Closing Balance
For each of the above, there are standard reports in Oracle
For Opening Balance Use Aging- 7 Buckets Report
For Invoice Exceptions Use Invoice Exception Report
For Applied Receipts Use Receipts Register
For Unapplied Receipts Use Unapplied Receipts Register
For Adjustments Use Adjustments Register
For Closing Balance Use Aging- 7 Buckets Report
All these are standard reports and can be easily converted to Excel for reconciliation purposes
One advantage of these reports are that these work correctly even in India Localization Environment
Drawback? These are not in Excel Format (though they can be easily converted)
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