Configuring Reconciliation Cases

A reconciliation case is used to select the matching method and control the display of data in the reconciliation reports.

The reconciliation case has a one-to-one mapping relationship with matching method. It consists of one or more display groups, which are used to filter and display the data in the reconciliation overview and balance detail reports. The reconciliation case is intended to provide aggregated views of the data set defined by the matching method.

Reconciliation Case Fields:

• Stored As: This controls whether the object is transported or not.
• Balance Carryforward: Select With Balance Carryforward if all the involved organizational units carry forward balances to the next fiscal year (period 000). The balances from the period 000 are therefore taken for YTD amount calculation. It is not recommended to select this option when using data sources like SC_JOURNAL_ENTRIES_01.
• Hierarchies: These are used as a grouping mechanism in the reconciliation reports. A Superordinate Leading Unit Hierarchy would be used when performing matrix reconciliation.
  Note

  To perform matrix reconciliation, add a Leading and Partner Unit Superordinate Field to the data source definition such as profit center and partner profit center.
• Display Options: This controls the columns in the reconciliation balance app.

A display group is comprised of two sides, typically the leading unit side and partner unit side. Each side sums up the amounts of each slide. The display group can be used to display different aggregated views. For example, you can define a display group that has two sides: Accounts payable (AP) of the leading unit and accounts receivable (AR) of the partner unit. You can also define the opposite display group with AR of the leading unit and AP of the partner unit.

To sort out the differences more easily, you can define subgroups. For example, you can use subgroups to subdivide AR items by product or service account. However, one display group should be defined as the leading display group, which is used to calculate the overall balance status in the Reconciliation Status Overview app.

The Display Group has three purposes:

1. Define thresholds
2. Define filters that are used to display data in the Reconciliation Status Overview and the Reconciliation Balances apps.
3. Select Hierarchies: These are used as a grouping mechanism in the reconciliation reports. A Superordinate Leading Unit Hierarchy would be used when performing matrix reconciliation.
4. Display Options: This controls the columns in the Reconciliation Balances app.

If you create multiple display groups, consider the following:

• One display group must be set as the leading group, which will be used as a basis for calculating the reconciliation status in the overview report.
• You can pair up two display groups so that an intercompany netting view can be established later in the reconciliation balance report. The paired display groups must contain exactly the opposite sides to each other. For example, if display group 1 has filter A for leading unit defined and filter B for partner unit, the paired display group 2 must have filter B for the leading unit and filter A for the partner unit.

Display groups are used to define tolerances for color coding and approval workflows. Additional measures can be added if needed.

Specify a tolerance amount or percentage for each amount type. Later in the reconciliation reports, the differences between company and trading partner postings are compared with the tolerance to determine statuses.

Within each display group, one amount field must be set as the leading amount, such as the Amount in Transaction Currency. The selected amount field calculates the reconciliation status in the overview report. Additionally, the leading amount is also used as a default value for manual matching assignments and for the reconciliation balance report display.

In the following example, the TSL_CLOSING_RATE converted measure is used to calculate transaction currency values with the period-end closing rate. The C2 conversion profile is defined in the data source with the following parameters:

• Conversion Type: Currency Conversion
• Exchange Rate Type: CLO
• Reference Date: $PeriodEnd$
• Target Currency: EUR

Both sides may have the same data source or two different data sources, depending on the assigned matching method definition.

For each side, you can define additional filters for subtotals. For example, you can define a display group that has two sides: Accounts payable (AP) of the leading unit and accounts receivable (AR) of the partner unit.

The leading amount is used to calculate balances in reconciliation status report. It is also used for elimination difference calculation.

In the following example, the filters are set to:

• Display accounts receivable 121100 and payable 211100 values.
• Include data records for which the partner unit is not empty.

Create two display groups in the reconciliation case:

• Accounts Payable / Accounts Receivable
• Accounts Receivable / Accounts Payable

The impact of the Reconciliation Case is can be displayed in the Reconciliation Balances app:

1. Various measures can be selected based on the Display Group in the Reconciliation Case.
2. Differences appear in different colors based on the tolerances defined in the Display Group.
3. The Leading Unit Amount and Partner Unit Amount values are displayed based on the Sides defined in the Display Group.