reconciliation

# Reconciliation

**Important**: This skill assists with reconciliation workflows but does not provide financial advice. All reconciliations should be reviewed by qualified financial professionals before sign-off.

Methodology and best practices for account reconciliation, including GL-to-subledger, bank reconciliations, and intercompany. Covers reconciling item categorization, aging analysis, and escalation.

## Reconciliation Types

### GL to Subledger Reconciliation

Compare the general ledger control account balance to the detailed subledger balance.

**Common accounts:**
- Accounts receivable (GL control vs AR subledger aging)
- Accounts payable (GL control vs AP subledger aging)
- Fixed assets (GL control vs fixed asset register)
- Inventory (GL control vs inventory valuation report)
- Prepaid expenses (GL control vs prepaid amortization schedule)
- Accrued liabilities (GL control vs accrual detail schedules)

**Process:**
1. Pull GL balance for the control account as of period end
2. Pull subledger trial balance or detail report as of the same date
3. Compare totals — they should match if posting is real-time
4. Investigate any differences (timing of posting, manual entries not reflected, interface errors)

**Common causes of differences:**
- Manual journal entries posted to the control account but not reflected in the subledger
- Subledger transactions not yet interfaced to the GL
- Timing differences in batch posting
- Reclassification entries in the GL without subledger adjustment
- System interface errors or failed postings

### Bank Reconciliation

Compare the GL cash balance to the bank statement balance.

**Process:**
1. Obtain the bank statement balance as of period end
2. Pull the GL cash account balance as of the same date
3. Identify outstanding checks (issued but not cleared at the bank)
4. Identify deposits in transit (recorded in GL but not yet credited by bank)
5. Identify bank charges, interest, or adjustments not yet recorded in GL
6. Reconci