Understanding Auto Reconciliation Parameters in Flexcube: A Comprehensive Guide

Flexcube, a comprehensive financial software platform, utilizes auto reconciliation to ensure that transactions are accurately recorded and matched with the corresponding account statements. This process involves a series of parameters that are meticulously analyzed to ensure the integrity of records. In this guide, we will explore the key parameters used in this automated reconciliation process.

The Sum of External and Internal Entries

The first parameter in the auto reconciliation process is the sum of external and internal entries. These entries are vital in verifying the accuracy of the transactions posted. External entries refer to transactions that are received from external entities, such as payments from customers or payments to vendors. Internal entries are transactions that are internal to the organization, such as salary payments or fund transfers within the company.

The sum of these entries is compared with the total amount received or paid out in the account statement. If the sums match, it indicates that the transaction has been accurately recorded and reconciled. This parameter is essential in ensuring that the financial records are accurate and up-to-date, which is critical for maintaining the financial health of any organization.

Value Date of the Transaction

Another crucial parameter in the auto reconciliation process is the value date of the transaction. The value date is the date on which a transaction is considered to have been officially posted. In the context of Flexcube, this is the date the transaction is recorded in the system.

The value date is an important factor in determining the timing and sequence of transactions. If the value date does not match the date on the account statement, it suggests a discrepancy that needs to be investigated. Misalignment can occur due to delays in recording the transaction in the system or issues with the transmission of the transaction details.

Internal Reference Numbers and External Reference Numbers

The final set of parameters used in auto reconciliation are the internal and external reference numbers. These numbers are unique identifiers that are assigned to each transaction during the posting process.

Internal Reference Numbers

Internal reference numbers are generated within the Flexcube system when a transaction is posted. These numbers are crucial in tracking the transaction within the organization. For example, an internal reference number might be assigned to a salary payment made to an employee. These numbers are used to cross-reference the transaction within the system, ensuring that no transaction is missed or duplicated.

External Reference Numbers

External reference numbers, on the other hand, are the numbers provided by the correspondent bank or other external entities. These numbers are typically included in the account statements received from banks or other financial institutions. For example, if a customer sends a payment to the organization, the bank may provide a reference number that is included in the account statement.

Matching these internal and external reference numbers ensures that the transaction is correctly recorded and reflects the actual payment received. This process minimizes the risk of errors and provides a clear audit trail, which is particularly important in financial transactions.

Conclusion

Auto reconciliation in Flexcube is a critical process that ensures the accuracy and integrity of financial records. By analyzing the sum of external and internal entries, the value date of the transaction, and the internal and external reference numbers, the system can efficiently verify the correctness of posted transactions against account statements.

Understanding these parameters and their significance in the auto reconciliation process is essential for financial professionals and administrators. Proper utilization of these parameters can help maintain the reliability of financial data and streamline the overall accounting process.

Keywords: auto reconciliation, Flexcube, transaction parameters