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Reconciliation Guide

Create daily cash reports and efficiently review that your daily bank data ties out at an account level

David Taylor avatar
Written by David Taylor
Updated this week

Table of Contents

101: Introduction to Reconciliation

Daily View

Periods View

101: Introduction to Reconciliation

Reconciliation provides users with a way to ensure that their daily balance and transaction data is feeding into Trovata without exception. There are two main views (Daily View & Periods View) that will be explained below.

Reconciliation Check: Compares the change in balance (Opening Balance - Closing Balance) to the net transaction activity (Credits + Debits). An account will pass the reconciliation check if the total change in balance equals the total net transaction activity on a daily, weekly, monthly, or quarterly basis.

Items Reconciled Menu: Users can see the day’s activity on a single page in the reported currency at the Account, Entity, Region, Division, or Bank level. We recommend using the "Accounts" view as a default.

Users may click to see the underlying account and transaction details, which will open a pop-up window that displays the information requested. Once configured, reconciliation reports can be saved for future use.

Daily View

The module allows for a clear calculation of the difference between the opening ledger balance and the closing ledger balance (or the last balance received for the day). Alongside the change in balance, there is a summary of the day's transaction activity which will sum all of the debits and credits, count the total number of transactions, and calculate the total activity.

Users can quickly see whether an account reconciles using a green ✓ or red X, based on configurable thresholds. If an account does not reconcile, users should verify activity in the bank portal and, if data is missing in Trovata, submit a support ticket so Trovata can backfill the data.

Reconciled:

Unreconciled:

Periods View

Users may create as many Reconciliation reports as needed to fulfill global reporting.

  1. Identify an Account, Entity, Region, or Division whose activity you wish to review

  2. Change the Items Reconciled option to one of the 4 groups mentioned above (Accounts view is recommended).

  3. Using the Tag Breakdown, include your primary tags that reflect the broad buckets of your cash flow activity, such as:

    1. Accounts Receivable (AR)

    2. Accounts Payable (AP)

    3. Payroll

    4. Benefits

    5. Credit Obligations

    6. Intercompany Transfers

    7. Capital Markets Activity

  4. Review the total breakdowns for each cash flow bucket.

  5. Compare your Trovata screen to a historical Daily Cash Report for accuracy.

Example:

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