- Ensure that all JEs (Journal Entries) posting to the GL are correct
- Configure approval workflows based on amount thresholds for different risk levels
- Set up as many approvers as needed
- Ensure double-entry posting back to any ERP
- Ensure controlled and audit-proof JE posting process
A regular reconciliation process often highlights the need for the creation of specific entries to the GL. Most often, these journal entries are legitimate exceptions (versus timing delays that will resolve on their own within a few days) which have not been logged to the GL and thus were not “expected” by the business. It is important that the JE posting process be controlled by accounting and finance teams to ensure that the entries are indeed correct, that the appropriate manager has approved them, and that they are actually posting to the correct account.
Unfortunately, most ERPs and GL systems don’t provide for a documented and comprehensive approval workflow around JE posting. Typically, all that is required from the business is a flat file in a specific format that can be ingested by the system of record. However, there is no guarantee that the entries contained are accurate or have been approved appropriately.
In order to support best practice and driven by customer demand, ReconArt has been enhanced with a fully configurable and audit-proof workflow around Journal Entry postings that result from the reconciliation process. ReconArt allows you to automatically collect these items, push them through an approval flow based on their amount threshold, and prepare them for automatic posting to any ERP, General Ledger or other downstream system. Additionally, we expanded even further on this functionality, adding the ability to generate JEs not just from exception transactions, but also from matched items, or even from items that are not part of the reconciliation process itself.
- Most ERPs don’t provide a JE approval workflow so teams resort to spreadsheets, which don’t allow for approval based on complex business logic
- Potential errors in the posting process (e.g. amounts, destination accounts)
- A lot of manual effort and no streamlined, automated process
- No central ownership and accountability for JEs posted to the GL
- No real control over a process that could impact financials in a serious way