Account Reconciliation Manager Part 4 – Performing Reconciliations

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April 24th, 2012


This blog post is part of an Oracle Hyperion 11.1.2.2 series covering application highlights as well as a deeper look into different aspects of the new release. 

Brief Review 

In this Part 4 of my blog series on the Account Reconciliation Manager, “ARM” I will continue my review with the actual process of performing reconciliations. In my previous blogs, we learned that ARM is used to reconcile accounts back to their respective source systems. This is accomplished through the use of data maps, these are then organized by formats and then by end user profiles. As was discussed in the previous blogs, there are two primary reconciliations:

  1. The balance comparison
  2. Account analysis reconciliation

Account Reconciliations are done from the Reconciliation Dialog, which consists of several tabs.

Summary Tab

The Summary Tab contains details about a specific reconciliation. It has the following:

  • Account ID – This defines the account number
  • Name – The account name
  • Status – This identifies the status, such as Pending, Open, and open with whom, such as Preparer, Reviewer 1 or 2, and or Closed
  • Period Name – The particular period of the reconciliation
  • Start Date – This is the start date that the preparer can start working on the reconciliation
  • End Date – The final end date of the reconciliation
  • Account Description – The account description as per the profile definition

There is within the Summary Tab a Warning Section with the following:

  • Aging Violation – Balance Explanation, this only applies to account analysis type reconciliations and it identifies the number of aging violations.
  • Aging Violation – Adjustments to Source System and this applies to all the reconciliations and additionally contain aging violations
  • Aging Violations – Adjustments to Subsystem, again these are sub-system transactions that have aging violations

ARM gives plenty of detail to all the violations to keep a great audit trail to manage these.

Transaction Tab

The Transaction Tab contains a list of transactions and a transaction detail section. Within the Transactions list, it contains the active transactions that preparers can add remove or edit the transactions. This list can also be exported for custom reporting or analysis. The Transaction detail list displays the detail of the transaction.

Prior Reconciliations Tab

This contains the prior reconciliations for the same account but it cannot be edited.

History Tab

The History tab displays the history of key changes to the account and when it was reviewed, approved, and or rejected.

As one can see, there is a wealth of information on the accounts, and their attributes. These are some of the many features that provide a terrific audit trail and for reference by the users.

Reconciliation Methods

ARM as we discussed earlier, has two primary methods of reconciliation:

  1. Balance Comparison Method
  2. Account Analysis Method

I’ll review some of the features of each in more detail. Depending on which method is assigned to the account, after the data is loaded, and the start date has passed, the user would then go into ARM and review the accounts.

Balance Comparison Method

Using the Balance Comparison Method, it includes the following features:

  • Source System Balance – This is the balance imported from the source system
  • Subsystem Balance – The balance from the sub-system if imported or input by the user
  • Difference – The difference from the above two systems
  • Adjustments to the Subsystem – These are the respective adjustments to the sub-system
  • Adjustments to the Source system – Adjustments to the source system
  • Adjusted Balance of the Source system – The respective balance after adjustments
  • Adjusted Balance of the Subsystem – The respective balance after adjustments
  • Unexplained Differences – Any unexplained differences

As one can see, here again, ARM has significant detail and buckets for detail, again to provide a good audit trail of beginning balances, adjustments, and ending balances.

Account Analysis Method

This method is more of a manual review, hence the term analysis. It starts with the Source system balance, and the there is the Explained Balance, and again, the difference. There is also, Adjustments and Unexplained Differences. This is very similar to the Balance Comparison Method.

Summary

As we look at the features of ARM, one sees the power it provides in featuring numerous buckets for all the data necessary. This amount of detail helps provide a solid audit trail and facilitates the users having a home for all the respective adjustments. The users then can follow the trail of data in a much more visible manner. Along with the ability to add attachments, and the use of workflow, reconciling accounts has now become and much more automated and controlled process. In my next blog, I’ll review some of the system setup and reporting features of ARM.

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