Cash reconciliation

Cash evidence arrives with a source event, occurrence date and amount. Accounting Reviewer checks that evidence against the intended accounting document before treating the money as applied. Keep the receipt’s verification state visible and retain the account used for the cash movement. A familiar client name is only the beginning of a match.

A receipt can carry a statement, confirmation, settlement or correction classification. The cash application connects the source event to an account and accounting document, with a matching state that keeps unresolved work visible. These records let the reviewer explain why money was applied and where an exception still needs attention.

• Verify the source. Confirm the receipt evidence and preserve its event reference. Repeated delivery of the same confirmation must resolve to the existing source occurrence. Keep an unverified item out of the eligible application path until its evidence has been checked.
• Apply within the remaining amount. Match eligible verified cash to the intended posted document. The application cannot exceed the cash still available or the document amount remaining. Check both sides again when an earlier application has already used part of the amount.
• Reconcile and correct. Compare the cash application with the ledger effect and retained receipt. Keep an exception visible while investigating. A correction uses an explicit compensating application and preserves the original source identity so the history explains both outcomes.

Choose who supplies receipt evidence and how a bank or payment-service connection will identify the same event on retries. Agree the meaning of verification and the evidence needed to support it. Assign Accounting Reviewer to investigate mismatches and decide who follows up with the source provider when an amount cannot be explained.

Bring partial receipts and a correction to the pilot. Reconcile imported amounts with the source before enabling ongoing imports. Decide how to handle cash that cannot be matched immediately and where the team will look for the reason an application failed.

Use a posted client document for USD 900 and verified cash of USD 400. Apply the confirmed amount and check the remaining USD 500 against the recorded effects. Deliver the same source event again and confirm that it does not apply another USD 400. The event reference must remain connected to the original result.

Now attempt to apply USD 600 to the remaining document amount. The reviewer should see why the request cannot proceed, even if enough cash exists elsewhere. Test a separate over-application against the cash balance as well. Both checks matter when a receipt or document has already been partially used.

Finally, rehearse an incorrectly matched receipt. Follow the correction through review and a compensating application. Ask Auditor to reconstruct the original match and its correction from the retained evidence without relying on the preparer’s memory.

• Cash applications to reconcile — Investigate unmatched money and recorded matching exceptions.
• Verified cash receipts — Inspect the source evidence supporting an eligible application.
• Dated account snapshots — Compare the recorded account position after reconciliation.

Follow cash application and reconciliation and corrections and completion. Agree connection responsibilities in the implementation plan.