Internal balances

Reconciliation of internal balances is complicated because so many factors have to be processed. The complexity increases with the number of companies, currencies and accounts involved.  Reporting is often the challenge. The reconciliation process is complicated by the fact that information on what the actual difference consists of is hard to come by. Currency differences or company transactions that have not been registered by both parties also complicate matters.

Adra Match gives you:

• A report with balances and differences between companies
• The difference between the companies reported in individual unmatched transactions
• A reconciliation process for all companies
• Ability to send open transactions from the system to the debtor company
• Completed reports for the monthly account
• Indication of what the claim or debt should be written up or down by, when currencies are involved

You can register internal balances in different ways in the accounting system. The use of parties and counterpart numbers is the most common. Sometimes, ledger entries with an invoice number on the transactions only are used. In such cases, the transactions are reconciled at invoice level.

This complexity gives rise to many different types of difficulties, which result in balances between the different companies not being reconciled at the end of the month. A large number of people are often involved, making the process diffuse, and making it more difficult to create uniform practices.

Manual work involves

• Many people involved
• Difficult to control at transaction level
• Complex reporting
• Differences found at balance level only
• Many different approaches.

A monthly reconciliation should show account balances and account-level differences between the parties. If currencies are involved, it will also indicate how much receivables or debt should be written up or down, and which individual transactions the difference consists of.