How To Reconcile Account Receivables to General Ledger in Oracle cloud

Account Receivables to General Ledger Reconciliation

The reconciliation of Accounts Receivable (AR) to the General Ledger (GL) is a crucial financial process that ensures the accuracy and integrity of financial reporting. This process involves matching the detailed records of accounts receivable with the corresponding entries in the general ledger to identify and resolve discrepancies.

Now let us see how we reconcile accounts receivables to the general ledger in Oracle Cloud

Below are the high-level steps for accounts receivables to general ledger reconciliation in Oracle Cloud

1. Prepare Receivables to General Ledger Reconciliation Process

Obtain the AR sub-ledger, which includes all outstanding invoices, credit memos, and payments.

Ensure the sub-ledger is up-to-date with all transactions recorded for the period being reconciled.

Log into Oracle Fusion Applications

Home page>Tools-->Schedule Process

Submit 'Prepare Receivables to General Ledger Reconciliation'

This program extracts and prepares transaction and accounting information needed to reconcile Receivables with General Ledger.

Ensure to run this process before starting the Receivables to General Ledger Reconciliation. Verify that the process and sub-processes complete with a status of ‘Succeeded’.

Enter the job parameters and submit it 

2:  Run the  Receivables to Ledger Reconciliation Report from receivables work area

Home screen-> Receivables  > Account Receivables

Click the Task Pane: Accounting > Receivables to Ledger Reconciliation

you will be able to see the receivables to general ledger reconciliation report which will show all the balances along with the differences.

3. Match Balances:

Compare the total balance of the AR sub-ledger with the corresponding AR account(s) in the GL.

Investigate any discrepancies between the two balances by clicking on the difference amount.

4. Identify Discrepancies:

• Analyze common causes of discrepancies, such as:
• Timing differences (e.g., transactions recorded in different periods)
• Errors in data entry or posting
• Unrecorded transactions or adjustments
• Duplicate or omitted entries

5. Resolve Discrepancies:

• Review detailed transaction reports from both the AR sub-ledger and the GL.
• Correct errors in either the sub-ledger or the GL.
• Record any necessary adjusting journal entries to align the balances.

How To Reconcile Account Receivables to General Ledger in Oracle Cloud
Account Receivables to General Ledger Reconciliation in Oracle