The following instructions provide best practice guidance for individuals responsible for reconciling Balance Sheet account balances on a quarterly basis. Reconciliations can be completed manually using Excel spreadsheets or by using BlackLine accounting software. Financial Management Services (FMS) provides guidance as to which reconciliation method (manual or BlackLine) should be used. Learn about BlackLine.

  1. Refer to Sample Excel Reconciliation Template.
  2. Document the following items on the Reconciliation Spreadsheet:
    • Account number
    • Purpose of the General Ledger account
    • Purpose of the reconciliation, including the source of the supporting documentation
    • Reconciliation procedure or the location of the reconciliation procedure
    • Financial period covered by the reconciliation
    • Reconciliation preparer name and date of reconciliation

Examples of supporting documentation include:

  • Bank statements
  • Executed legal documents
  • Journal entries
  • Subledger system reports
  • Approval emails
     
  1. Document the reasons for any variances between the supporting documentation and the Balance Sheet account balance
    These variances are called reconciling items. Reconciling items can occur for a variety of reasons, including timing differences, General Ledger activity errors or system errors (in Oracle or a non-Oracle subledger system).
  2. Attach adequate documentation to support the reconciling items
  3. Enter the expected resolution date for each reconciling item
     
  1. Resolve current period reconciling items
    Reconciling items can be resolved by recording or correcting transactions in a subledger system, Oracle or a bank account. The resolution depends on the reason for the variance. Communication and collaboration between departments may also be necessary to resolve the reconciling items.
  2. Update the status of prior period reconciling items
  3. Follow up on aged, unresolved reconciling items as needed
     
  1. Communicate Balance Sheet account activity errors to the department responsible for recording the account activity
    An example of a Balance Sheet account error would be an expenditure (5xxxx object code) that was miscoded to a Statement of Financial Position object code beginning with 1xxxx or 2xxxx. 
  2. Coordinate the correction of Balance Sheet account activity errors with the department responsible for the account activity. Balance sheet account activity errors can be corrected using the iJournal module of Oracle Financials. Learn about iJournals.
  1. Verify that the Reconciliation Spreadsheet is complete (refer to Step 1)
  2. Verify that all supporting documentation for ending balance and reconciliation items are attached (refer to Step 2 and Step 3)
  3. Sign and date the reconciliation as the preparer
  4. Route the reconciliation to the approver
     
What Happens Next?