Bank reconciliation

The reconciliation item holds source-identified provider movements for a financial account. Each item has a provider event identifier, occurrence date, amount, state, account and matched instruction. Dated balance snapshots hold provider ledger and available balances. The bank evidence register connects confirmations and settlement notices to the instruction. Together, these records let Treasury Preparer investigate why an account balance changed.

A movement matches only when its amount and occurrence date agree exactly with a confirmed instruction linked to the same account. The provider event identifier remains available to detect repeated input. If the amount differs, the date differs or the instruction uses another account, leave the movement Unmatched or mark it Exception for review. A similar subject or total is not enough to force a match.

• Collect. Bring in provider movements and balance snapshots with their source identifiers and dates.
• Compare. Check the account, amount and confirmed occurrence date against the instruction and evidence.
• Resolve. Keep discrepancies in the exception queue until the underlying provider or instruction evidence explains them.

A matched movement records the instruction link. That link is the explanation for the state, not merely a convenient label. A provider correction may require a new evidence record and another review of the reconciliation item. The earlier provider event and the instruction’s decision history remain part of the trail.

Identify which provider files or connection supply movements and snapshots. Decide who checks that each provider event identifier is unique in the intended scope. Establish the treatment of debit and credit signs and the opening ledger balance for the reconciliation period. The team should agree how to compare the signed confirmed effects with the provider’s closing ledger balance and where any difference is investigated.

Define who owns exceptions and how long an unmatched movement may remain open before escalation. Independent Treasury Approver should be able to inspect the linked instruction and provider evidence without editing the provider source event. Auditor needs the original dates and amounts, including corrections, to reconstruct a period after it closes.

Choose one financial account and a confirmed instruction. Import or enter the provider movement with the same amount and exact confirmed occurrence date. Link it to the instruction and check that the account scope matches. Compare the opening snapshot with signed confirmed movements and the later snapshot. The team should be able to explain the closing balance from those records.

Repeat with a different occurrence date and then a different amount. Those movements stay Unmatched or become Exception, and the owner investigates the discrepancy. Rehearse a repeated provider event identifier as well. The second delivery should not create a second matched effect. Keep the source event visible for review rather than editing a mismatch until it appears to fit.

• Unmatched movements — Provider items still awaiting an exact instruction match or exception decision.
• Reconciliation exceptions — Differences requiring source evidence and owner follow-up.

See bank reconciliation, provider outcome and reports.