Understanding Reconciliation Workflow

Account Reconciliation follows a three-stage approval workflow with clear role separation and accountability.

The reconciliation process moves through three distinct stages:

Preparation Stage

• Stage indicator:

  • Not Started (grey) - before any work begins

  • In Progress (blue)

• Assigned preparer uploads bank statements or sets support balances.

  • For bank accounts: AI automatically matches transactions.

  • For manual accounts: Preparer manually enters support balance and documents variances.

• Preparer reviews matched items and resolves unmatched items.

For more information, see Transaction Matching.

Review Stage

• Stage indicator: In Review (yellow)

• Assigned reviewer examines the completed reconciliation.

• Verifies accuracy of matched transactions and explanations.

• Either approves for final sign-off or rejects back to preparation.

For more information, see Review Reconciliations.

Approval Stage

• Stage indicator:

  • When Pending: Pending Approval (orange)

  • When approved: Approved (green)

• Assigned approver provides final sign-off.

• Reviews all documentation and variance explanations.

• Either completes the reconciliation or rejects back to preparation

For more information, see Approve Reconciliations.

Reset Reconciliation

The Reset Reconciliation enables users to restart the reconciliation process when GL Balance changes occur. Reset can occur automatically when the system detects GL balance changes,.

During the reconciliation period, GL balances may change due to:

• Late journal entries posted in the ERP system

• Corrections or adjustments to existing entries

• Additional transactions processed after initial data sync

When the system detects that the GL balance for an account has changed after a reconciliation has been submitted or approved:

• The workflow automatically reverts the reconciliation back to the Preparation stage (In Progress status)

• If the GL balance change affects previous periods, the system re-opens all periods up to and including the period where the change occurred

Once the account reconciliation is closed in the impacted period, subsequent periods must re-enter and progress through the workflow manually.

Reconciliation Workflow Rules

The following rules govern the reconciliation workflow:

• Role Assignment:

  • Preparer and Reviewer can be the same person.

  • Reviewer and Approver cannot be the same person (system enforces separation of duties)

  • Any role can be assigned to "Anyone," allowing any user to perform that function.

• Comment Requirements:

  • Comments are optional when submitting for review or approval.

  • Comments are mandatory when rejecting a reconciliation.

  • Only the latest comment displays (historical comments not shown in beta)

• Revert Approval:

  • Only the user who approved a reconciliation can revert the approval.

  • Reverting returns the reconciliation to In Progress stage.

The following table outlines available actions at each workflow stage:

Reconciliation Workflow Restrictions

To protect data integrity and maintain proper audit trails, editing actions are automatically disabled once a reconciliation moves beyond the Preparation stage.

Actions are also blocked if the reconciliation for the same account in a prior period is still open. The system displays a message indicating that you cannot perform any action on this reconciliation until the prior period reconciliation is closed.

Bank Account Reconciliations

Once a bank reconciliation is submitted for review, the following actions are locked:

• Match transactions

• Unmatch transactions

• Upload files

• Edit transaction details

• Delete transactions

• Reset reconciliation

• Set Balance

Manual Reconciliations

Once a manual reconciliation is submitted for review, the following actions are locked:

• Set balance

• Add unmatched line items

• Edit unmatched lines

• Delete unmatched lines

• Upload files

Early Start for Next-Period Reconciliations [v26.1] 

Preparers can start the next period's reconciliation once the current period moves beyond the Preparation stage.

Rules:

• The next period reconciliation is available to start as soon as the current period is submitted for review.

• The next period reconciliation cannot be submitted for review until the previous period's reconciliation is completed (approved).

If the previous period is rejected or re-opened: The system automatically resets automatic matches in the next period (manual matches are preserved) and restricts specific actions until the previous period returns to review.

Note: The rejection message in the previous period includes a warning: "This will reset auto matches in the future reconciliation."