1. WHAT IS RECONCILATION?

Reconciliation Is The Process Of Reconciling The Balance Of Two Set Of Book Or Compare Two
Set Of Records Is Called Reconciliation.

 PURPOSE OF RECONCILIATION
The Purpose Of Reconciliation Is To Ensure The Accuracy, Integrity, Reliability, And Control &
Validity Of Financial Information.

 WHY RECONCILE AN ACCOUNT IS IMPORTANT?

Reconciling Account Is Important Because It Helps Detect Any Mistakes, Discrepancies Or Fraud
In Accounting Book That Could Impact Financial Health Of The Company.

 GENERAL LEDGER RECONCILIATION.

General Ledger Reconciliation Is an Activity Performed by Accountant to Verify the Integrity of
Account Balance on the Company’s General Ledger.

 HOW TO PREPARE GENERAL LEDGER RECONCILIATION?

General Ledger Reconciliation Process Takes Place After The End Of A Financial Reporting
Period.
• Obtain Necessary Details Of The General Ledger Account.
• Reconcile Ending Account Balance To Supporting Documentation.
• Investigate Discrepancies.
• Prepare Adjusting Journal Entry.

 WHAT ARE
• RECONCILED ITEM
• OPEN ITEM
• RECORDED ITEM
• AGED OPEN ITEM
• UN-RECONCILED ITEM
 RECONCILED ITEM – Variance Has Been Itemized And Root Cause Has Been Established.
 OPEN ITEM – Open Item Is An Item Of Variance Which Requires An Action To Remove The
Balance From Account.
 RECORDED ITEM – An Item Of Variance Which Does Not Require An Action To Remove The
Balance From The Account Is Called As Recorded Item.
 AGED OPEN ITEM – If An Open Item Not Resolve Or Action Not Taken Within A Required Time
Frame It Is Termed An Aged Open Item.
 UN-RECONCILED ITEM – It Is An Item Of Variance For Which The Reason Is Not Yet Identified
Or Is Yet To Be Reconciled.

FSION – This Report Is Used To View The Totals Of P/L Account Or A Range Of P/L Account It
Displays Month Wise Summary Of Debit & Credit Balance.