Reconciliation ledger

Reconciliation journals hold the entity, period, entry date, source and posting state for accounting work related to intercompany balances. Each journal has debit and credit lines tied to ledger accounts. The journal shows line totals and an out-of-balance result, so Senior Accountant can identify an entry that needs correction before a period review. Period records hold the fiscal year, period number, start and end dates, close notes and state.

A settlement of a shared service charge may lead to a journal for the resulting account movement. The accountant checks the debit and credit lines against the entity and period, then compares the journal with the payable, receivable and settlement evidence. A Draft journal remains in the review queue. A Posted or Reversed journal remains traceable in the register, giving Controller a view of how the accounting changed through the period.

• Account taxonomy. Admin maintains ledger account codes and normal balance so line mapping stays consistent.
• Journal review. Senior Accountant checks the entry source, debit and credit totals, line count and out-of-balance result.
• Period review. Controller compares open-period journals with outstanding charges, settlements and decisions.

Choose the ledger of record and the source for account codes. Agree how journal entries are imported or prepared, who can post and how reversals are represented. The journal source list includes manual, treasury and reclassification work, but each organization must map those categories to its own finance procedures. Decide which period owns a late entry and what happens when a period is Closed or Locked. A posted entry should have a clear correction path rather than a silent edit.

Set review tolerances for the out-of-balance result and confirm the decimal precision used for amounts. Define the evidence required before period review: charge references, settlement bank reference, approval decision and journal line detail. Agree the owner of close notes, and keep a dated record of the review decision for each cycle.

Select a payable approved in the current period, its paired receivable and a released settlement. Senior Accountant opens the draft journal and checks the entity, period and account mapping on each line. Compare line debit and credit totals and inspect the out-of-balance result. If an account is wrong, correct the draft before the posting decision. If a later reversal is needed, retain the original and the reversed entry in the review trail.

Controller then reviews the open period with the charge and settlement evidence. The reviewer should be able to identify any Draft journal and distinguish it from Posted entries. The period’s start and end dates should match the charges being reviewed. Use an example with a journal dated at the period boundary so the team agrees its ownership before the first live close.

• GL Entry Review — Journal source, totals, balance result and posting state.
• Reconciliation Journals Unposted — Draft entries needing accounting review.

See journal to period review and charge to approval.