Reconcile Subledger vs General ledger

Reconcile Subledger vs General ledger

23/11/2021 © SBM Offshore 2020. All rights reserved 1/14

1. Introduction ..........................................................................................................................................................11.1. Objectives of the Session ............................................................................................................................11.2. End to End (E2E) Process Overview ...........................................................................................................21.3. Detailed Business Process Overview ..........................................................................................................2

1.3.1. Key Roles.............................................................................................................................................21.3.2. Reconcilation of Sub Ledger against General Ledger using reports....................................................2

1.4. Key concepts & business rules ....................................................................................................................22. How to reconcile Subledger with General Ledger................................................................................................3

2.1. Execute the required report .........................................................................................................................32.2. Match the balances......................................................................................................................................6

3. Reporting Lobby & Data Migration.....................................................................................................................133.1. Reporting and Lobby..................................................................................................................................133.2. Data Migration............................................................................................................................................14

1. Introduction

1.1. Objectives of the SessionAt the end of the session you will, understand the processes of sub ledger reconciliation against GL and know how to :

► match GL balance to SL balance,

► resolve errors & finalize reconciliation.



1.2. End to End (E2E) Process Overview

1.3. Detailed Business Process Overview1.3.1.Key Roles1. Accountant :

► Corrects and updates General Ledger before closing.

1.3.2.Reconcilation of Sub Ledger against General Ledger using reportsThis process describes how to print & view different reports in Integra

1.4. Key concepts & business rules► General ledger vs Internal ledger : Each company has General Ledger (GL) and Internal Ledgers (ILs). If a



Company is using an Internal Ledger, then in order to close a period, General Ledger (GL) must be closed for that period first. There are at least 3 ledgers, for GL = IFRS, IL named DIR = directional and IL named STAT = local.

► Subledger vs General ledger : General ledger is the set of the different master accounts in which the transactions are recorded from the related subsidiary ledgers. Sub ledger is an intermediary account set that is linked with the general ledger.

2. How to reconcile Subledger with General LedgerThere are 2 steps to reconcile subledger to GL :

► execute the required report,

► match the subledger and GL balances.

2.1. Execute the required reportNote that in this example, the GL and subledger balances are reconciled using the report : Reconciliation subledger ledger supplier. You can also use the reports for Customer Subledger vs General Ledger/Bank Subledger vs General Ledger in order to reconcile the balances. Navigate to Operational Reporting.

Click on the navigation item Order Report.

Click on the dropdown button of [Select a Report].



Click on the button Line down.

Click on the combo box item Reconciliation Subledger Ledger Supplier.Note that this report is now called : Reconciliation Supplier Subledger vs General Ledger

Click on the field Company GBU Attributes.

Enter Company GBU Attributes.You can enter the attributes as per your requirement.

Click on the field Company.



Enter Company.You can enter the company as per your requirement.

Click on the field Year.

Enter Year.You can enter the year as per your requirment

Click on the field Period.

Enter Period.You can enter the period as per you requirement.



Click on the command button OK.Note that the report will be executed as per the parameters which you enter.

Click on the button Yes.

2.2. Match the balancesThe report will be executed. You will be able to see the balances and amount as per the parameters which you have added. In this example, the total subledger and GL balances are not matched. There is a difference of -1300.21 as shown in the screenshot. If the difference was 0, then it can be concluded that the GL and subledger balances are matched. You can also check for which particular supplier amount is matched/unmatched. For example, Incase of supplier 10001 the difference is 0 i.e matched. For supplier 10, the amount in GL is 0 but in subledger it is 100 which has lead to a difference of 100. Hence, you need to identify the transaction in detail in subledger, and check to which GL account it has been pushed to OR a manual entry for -100 in GL account can be done to nullify the amount. Hence, it is to be noted that if the GL and sub-ledger are unmatched/out of balance, it is necessary to investigate and correct those transactions. Once done, you need to rerun the report until the transactions are reconciled.

In the example below for the same report (Reconciliation Supplier Subledger vs General Ledger) for the Supplier '103293' there is a difference of Amount 10256.95. Hence, this transaction is to be identified in detail in the sub-ledger and remediated so that GL & SL is reconciled.



As you can see, the difference of Amount 10256.95 was identified in the above report was because the voucher was not updated to GL i.e in some cases, the transaction may have been completed for the supplier but the voucher may not be transferred to GL which will lead to a difference.

Hence, once the voucher is updated to GL, the same report is to be executed again to validate reconciliation for GL and SL for the supplier. The differences can also occur if a Manual Voucher is created with a particular GL account. In such cases as well, for that GL account, the subledger/supplier will not be impacted leading to a mismatch.

Matching can also be done using standard report for supplier ledger open items. Follow these steps :Navigate to Financials, Accounts Payable, AP Reports.



Click on the navigation item Supplier Ledger Open Items.This report displays all unpaid invoices and supplier payments on account. It is useful for internal checking against the general ledger. You can display total supplier balances or detailed information about each supplier. You can also select by code string. For example, if your company needs to follow up on the code part used for cost centers, you can specify a code part value and compare the report against the general ledger. When you print the report, you can specify whether it will be sorted by supplier ID, supplier name, or by ledger account.Click on the tab Report Parameters.

Click on the column From Value.

Click on the command button List.

Click on the column Supplier ID with the value 005C1.



Click on the push button OK.

Click on the column To Value.

Click on the command button List.

Click on the column Supplier ID with the value DNY-I.

Click on the push button OK.



Click on the command button OK.You can enter the different parameters for fields as per your requirement.

Click on the command button Preview.You can also click on 'Print' to print the report.

The balances in the report as per the supplier can be seen. In this example we will match the balance for Supplier '2' connected to account '1604010000' shown in the next screenshot.

The Prepayments account can be seen in the report. Follow these steps :

Navigate to Financials, General Ledger, GL Balance Analysis.



Click on the tool strip item Search.You may also press F3.

Click on the field Period.In this field, you will enter the same period which you entered while generating the report. In this example, it was the period 9. Hence, in the period column it should be entered as '0..9' as we want the data to be fetched from the opening balance.

Click on the field Year.Enter the same year which you entered in report.

Click on the field Local COA.Enter the same code part value which you want to match as per the report. In this example it is 1604010000

Click on the command button Search.



Click on the checkbox field Local COA.

Click on the checkbox field Period.

Click on the button OK.

The balances will be displayed.Hence, the Balance amount can be seen and matched

The period is also visibleRight click on the column Period with the value 8.



Click on the menu item Voucher Information....

The Balance field displays the balance amount in accounting currency for the selected voucher rows, i.e. the difference between the Debit Amount and the Credit Amount.

The Supplier along with Invoice ref & voucher no. is visible.

3. Reporting Lobby & Data Migration3.1. Reporting and LobbyNavigate to : Operational Reporting ➔ Order Report ➔ A dialog box will Popup in which you can search for the 'Reconciliation Bank Subledger With General Ledger' Business Report in the 'Name' Field. Once the report is selected, You can add the parameters as per your requirement & generate the report. You can use this report to reconcile Bank subledger with GL balances.

Drill down level 2 for 'Reconciliation Bank Subledger With General Ledger' report



Navigate to : Operational Reporting ➔ Order Report ➔ A dialog box will Popup in which you can search for the 'Reconciliation Customer Subledger vs General Ledger' Business Report in the 'Name' Field. Once the report is selected, You can add the parameters as per your requirement & generate the report. You can use this report to reconcile Customer subledger with GL balances.

Drill down level 2 for 'Reconciliation Customer Subledger vs General Ledger' report.

Following is the summarized table for custom/standard Reports/Lobbies :

3.2. Data MigrationNo specific information on this topic.

Documents

Reconcile Subledger vs General ledger