Quick Answer: What Is A GL Reconciliation?

What is the difference between general ledger and subledger?

The total of the transactions in the subledger roll up into the general ledger.

For example, a subledger may contain all accounts receivable, or accounts payable, or fixed asset transactions.

In an accounting software package, a subledger is a database, rather than a manually-maintained book..

What is 3 way reconciliation?

Three Balances, All Equal You compare the latest bank statement (the “bank balance”) to your check register (the “book balance”), correcting for checks or deposits that have not cleared yet. If you and the bank show the same balance, then you are fine.

What are the 4 closing entries?

Recording closing entries: There are four closing entries; closing revenues to income summary, closing expenses to income summary, closing income summary to retained earnings, and close dividends to retained earnings.

What is GL experience?

Function. General ledger experience involves using bank documents, payroll reports, sales receipts and invoices to update the general ledger.

Why do you perform subledger to GL reconciliation?

The general ledger also includes all journal entries posted to accounts. … The general ledger would not contain detail for each individual transaction. As there is always room for a human error, it is important to reconcile the general ledger balances to the sub-ledger balances on a periodic basis to spot such errors.

Why do we do reconciliation?

Reconciliation is an accounting process that ensures that the actual amount of money spent matches the amount shown leaving an account at the end of a fiscal period. Individuals and businesses perform reconciliation at regular intervals to check for errors or fraudulent activity.

How many types of reconciliation are there?

fiveThere are five main types of account reconciliation: bank reconciliation, customer reconciliation, vendor reconciliation, inter-company reconciliation and business-specific reconciliation. Let’s explore each one of them in detail.

What is GL accounting process?

What Is a General Ledger? A general ledger represents the record-keeping system for a company’s financial data with debit and credit account records validated by a trial balance. The general ledger provides a record of each financial transaction that takes place during the life of an operating company.

What are the three golden rules of accounting?

Take a look at the three main rules of accounting: Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit expenses and losses, credit income and gains.

How do you perform a reconciliation?

Bank Reconciliation: A Step-by-Step GuideCOMPARE THE DEPOSITS. Match the deposits in the business records with those in the bank statement. … ADJUST THE BANK STATEMENTS. Adjust the balance on the bank statements to the corrected balance. … ADJUST THE CASH ACCOUNT. … COMPARE THE BALANCES.

What are the 4 steps of reconciliation?

The 4 Stages of ReconciliationRealization – An awareness that there is a grievance. An acknowledgment that there is a problem.Identification – Empathizing and understanding the aggrieved.Preparation – What are you prepared to do to reconcile? … Activation – The action(s) that are necessary for change.

How do you prepare GL reconciliation?

The reconciliation process at the account level typically comprises the following steps:Beginning balance investigation. Match the beginning balance in the account to the ending reconciliation detail from the prior period. … Current period investigation. … Adjustments review. … Reversals review. … Ending balance review.

What comes first forgiveness or reconciliation?

That being said, it’s important to understand that, in my view, even once you’ve decided to explore it, forgiveness is a process and takes time. … Reconciliation is the final step in the forgiveness process, but it is the “cherry on top”—an extra bonus when and if it occurs.

What is GL period?

Learn about GL periods. There are fifteen periods available in a fiscal or calendar year. The first GL period is Period 00/YY. It stores the beginning balances generated by the system in the OBACT journal and budget entries. … The Accounts Payable and General Ledger closing period is Period 13/YY (optional).