Basic Concepts of Oracle Account Reconciliation Cloud Services I Cloud Applications I Reconciliation Compliance I Transaction Matching

What is a Reconciliation?

Validation that the balance in an account is “accurate”. Different types of accounts are validated or reconciled differently

Cash – Compare the GL balance to the bank balance

AP – Compare GL to sub-ledger

AR – Compare GL to sub-ledger and analyze the aging of receivables

Fixed Assets – Compare GL to sub-ledger and perform a roll-forward

Pre-paids (e.g. Insurance) – Document the composition of the balance and justify

Accruals (e.g. Bonuses) – Document the composition of the balance and justify

Provisions and Reserves – Document the composition of the balance and justify 

Challenges in the Account Reconciliation Process

1 non-data-related delay in the close process 

Honest questions ̶ What percentage of the close time are you spending on account recs?

Is it even happening?

hat tools are you using? 

Excel? 

Emails back and forth?

Is every account truly being reconciled?

Are we reconciling at the correct level(s)? 

Are recs updated as balances change during close? 

The result ̶ Limited visibility into completion status ̶ Limited reporting across recs ̶ Lost reconciliations ̶ Inefficient processes and lost time ̶ High risk and non-compliance

ARC Addresses these Pain Points and Challenges