Reconciliation process is the primary method used to verify the accuracy of an account's balance. Some of the methods that can be used to reconcile accounts are.
- Reconcile beginning to ending balance
- Account details
Many accounts are reconciled using multiple methods, each meets a different reconciliation requirement.
Reconciling beginning to ending balance
To perform this reconciliation, it is necessary to identify all transactions affecting an account. These transactions are then applied to the beginning balance to reach the ending balance.
This report can be created using X-Author for Excel to pull the appropriate fields.
The following table shows an example of this type of report.
| A/R Reconciliation for June 2015 |
|---|
| Balance as of 6/1/xx |
|
|
|
| $1,000.00 |
| Add: |
|
|
|
|
|
| Invoice 000110 | 100.00 |
|
|
|
| Invoice 000111 | 175.00 |
|
|
|
| Invoice 000112 | 65.00 |
|
|
|
| Invoice 000113 | 335.00 |
|
|
| Total Additions |
|
| $675.00 |
|
| Sub-Total |
|
|
|
| $1,675.00 |
| Less: |
|
|
|
|
|
| Payment 000078 | (500.00) |
|
|
|
| Payment 000079 | (100.00) |
|
|
|
| Payment 000080 | (125.00) |
|
|
|
| Payment 000081 | (50.00) |
|
|
|
| Payment 000082 | (65.00) |
|
|
| Total Subtractions |
|
| $(840.00) |
|
| Ending Balance as of 6/30/xx |
|
|
|
| $835.00 |
Account Details
This approach provides the breakdown of individual accounts that are contained within a summary account. This style report is most commonly used for breaking down Accounts Receivable into specific customer accounts but could also be used to provide a revenue breakdown by product line, region, etc. These types of reports can be useful to management and auditors in identifying exception accounts for further investigation.
These reports can be created by using standard Salesforce reporting functionality.
The following table shows an example of this type of report.
Revenue Breakdown by Product Line For Period 6/1/xx to Present (in thousands) |
|---|
| Revenue |
|
|
| Consulting | 1,700.00 |
| Implementation | 4,150.00 |
| Hosting and Web Services | 725.00 |
| Licensing | 50.00 |
| Total Revenue |
| 6,625.00 |