Key Concepts: Account Reconciliation Cloud – Application Design – Reconciliation Method

Published November 22 2019 by Nick Boronski
Back to insights

Green Unlock Formats

Core Components – Reconciliation Method

First and foremost, the Format controls the reconciliation method of the Profile, or Method on the Properties tab. Different accounts are reconciled in a variety of ways; the manner in which the account is reconciled is determined by the Method selected. Some accounts require a comparison of automatically loaded balances from different systems, like I discussed in Automation in Account Reconciliation Cloud. These reconciliations will have the appropriately named Balance Comparison Method selected in their format. Other accounts require that the Preparer justify each detailed line of the total balance, which are called Account Analysis reconciliations, which require that the same name Method be selected. This is typically done if there is not a clear subsystem or subledger to compare against the general ledger, or if these automated data integrations are intended for a later phase in the project, like I discussed in Modifications in Account Reconciliation Cloud. Still other accounts only require an explanation for the change of the balance over time, usually month-over-month, quarter-over-quarter, or year-over-year changes. These types of reconciliations have formats with the Variance Analysis Method selected. Each of these Methods satisfies a fundamentally different reconciliation compliance requirement and, therefore, creates a different end-user experience for the Preparer reconciling the account(s).


Method selection is the most critical of all four of the core Format components, and even the simplest Cloud applications are setup with at least one unique format for each reconciliation Method required.
Oracle continues to increase the importance of Formats in application design by stuffing more responsibility for the overall Profile framework into this artifact’s setup. As I discussed in the patch 1812 and 1811 review, a format’s Method now identifies which accounts require transactional level reconciliation in the Transaction Matching feature set in addition to how an account balance is reconciled in Reconciliation Compliance. It is fair to expect that future functionality related to the essence of how an account is reconciled – the question that the reconciliation is answering - will be rolled out through Formats.

Nick Boronski - ARC - Reconciliation Method Image 1[Screenshot 2: The Method drop-down list displays all possible reconciliation method for a new format which, in turn, populates what options are available.]

Continue the conversation in the comments down below or join our lively Cloud Customer Connect community forums and Idea Lab.

For comments, questions, or suggestions for future topics, please reach out to us at infosolutions@alithya.com.  Subscribe to receive notifications about new posts, Cloud updates, and other Oracle Cloud Services such as Planning and Budgeting, Financial Consolidation, Account Reconciliation, and Enterprise Data Management.  Follow Alithya on social media for the latest information about EPM, ERP, and Analytics solutions to meet your business needs.

Product Manager - Financial Close & Consolidations Follow the Product Team on Twitter @RanzalProduct or my personal handle @PocketAce_NB.

Contact us