GL Reconciliations with Clear AI

In this guide, you'll learn to configure and use GL reconciliations in our system. We'll cover types like Input Tax GL versus Purchase Register, Output Tax versus Sales Register, Revenue GL versus Sales, and TDS Payable GL versus TDS Deduction. By the end, you'll manage tax and revenue reconciliations effectively.

Step 1: Access the GL reconciliations feature by clicking on the GL Stream button on the LP0 card.

The GL Stream acts as your entry point into all reconciliation activities. You'll typically find this button on your dashboard's main navigation or financial module section. It's central to managing the general ledger and ensures you're starting from the correct workflow. If you don't see the button, check your permissions or consult your system administrator.

Step 2: Explore the different features under the Data Browser and the various reconciliation options. The Data Browser serves as your control center—you can filter, search, and organize transaction records here.

"Core reconciliations" include essential comparisons like bank vs. book, accounts receivable, accounts payable, and inventory. For example, use filter options to view exceptions for a specific account or time range, or search for reconciliations by GL code or type.

Step 3: Understand that these reconciliations run based on configurations that are set automatically. The platform uses GL data and descriptions to decide which reconciliation type applies to each ledger code. When you see a banner prompting, "Set up glrecon configurations for accurate reconciliations," it's a reminder that proper configuration is vital for correct results. If you haven't completed this step, results may be unreliable.

'"Set up GL recon configurations for accurate reconciliations."'

Step 4: Click the banner to reach the reconciliation configuration screen. Here you can check if any GL data exists in the system. If not, import your data first. Ensure your uploads use supported formats like CSV or XLSX, and filenames are clear and descriptive. If your file upload fails, confirm column headers match system requirements and that there are no merged cells or missing critical fields.

Step 5: Once you've successfully imported data, the Clear Intelligence AI auto-creates reconciliation configurations. Each GL code is mapped to a reconciliation type. For large corporations with many GL codes, this step can save hours of manual setup. Review the AI's assignments for accuracy, and if something seems misclassified, you can adjust in subsequent steps.

Step 6: Observe as Clear AI Intelligence configures the details—each GL type and code is mapped correctly to reconciliation rules. If the automatic process seems slow, ensure your data is complete and try refreshing the page. If codes are missing, double-check file contents and formatting.

Step 7: Download your configuration as an Excel file. Use this file for in-depth review, easy updates, or sharing for audit purposes. Stick to the original file structure and use clear filenames. Avoid adding extra columns or changing cell formats.

Step 8: To edit a GL code, update the downloaded Excel configuration and upload it back using the same import function. Always validate changes for errors before uploading. After upload, confirm the UI reflects your edits. If an upload fails, check for unsupported characters or formatting inconsistencies.

Step 9: Confirm that any changes made in the Excel file are reflected in the system. Revisit the configuration page to double-check code assignments, and if you see discrepancies, reload the file or correct as needed. If updates don't appear, it may be a caching issue—try logging out and back in or hard-refreshing your browser.

Step 10: When all configurations look correct, run the reconciliations. This step processes data using your settings, identifying mismatches and exceptions. Make sure all relevant GL data and register data for the selected period are imported and up to date before running.

Step 11: Go to input GL versus PR and trigger a reconciliation. Select the exact date range required—typically matching your reporting or audit cycle—and hit the Run reconciliation button. Check that the selected range covers all necessary data, as gaps can lead to false exceptions.

Step 12: Click on the Run reconciliation button and supply any required details. Watch for prompts where the UI asks for additional settings, such as specific GL codes or register sources. If you see error banners, read the full message for hints ('Data missing', 'Configuration incomplete', etc.).

Step 13: Enter the required details, which are typically divided into Part A (the GL side) and Part B (the register or sub-ledger side). Ensure all fields are complete and accurate; missing information can cause reconciliations to fail or produce incomplete results. If there are optional fields, fill them whenever possible for more granular reconciliation.

Step 14: Input the voucher date range precisely. Double-check the start and end dates match your reporting window. Accidental overlap or gaps in date selection may cause discrepancies or missed entries during reconciliation.

Step 15: Go to the purchase register site, select the relevant return period, and hit Next. If the register data isn't available for the expected period, verify your data import history or check if another team is responsible for uploading the required register data.

Step 16: Import the general ledger if it's not already present; skip importing the purchase register if it’s already in the system. If the system prompts duplicate data warnings, ensure you’re not importing overlapping periods or previously ingested files.

Step 17: Run the reconciliation. Once complete, view the results immediately or navigate to the history tab for older runs. Exceptions and matches are typically color-coded for clarity.

Step 18: Review the reconciliation results thoroughly. Pay close attention to flagged exceptions—hover over them for tooltips or click for detailed breakdowns. Unresolved exceptions may indicate missing data, timing differences, or genuine discrepancies. For persistent issues, export the report and consult with your accounting team.

Step 19: For a detailed understanding of matching types in reconciliation, consult the guide available by clicking on click here. It explains the different reconciliation buckets and status definitions.

Step 20: Understand "Exact Match" and "Mismatch" in reconciliation. An "Exact Match" occurs when the General Ledger (GL) and Purchase Register (PR) documents have identical claim amounts. A "Mismatch" arises when there's a discrepancy in amounts between the GL and PR documents, even though both are present.

Step 21: Learn about missing document categorization. Documents present in the general ledger but absent in the purchase register are categorized as "Missing in PR" and further divided into subcategories.

To understand why a document might be missing from the purchase register, review ITC utilization entries. These entries offset input tax against output tax. They're legitimate documents that don't usually appear in the purchase register because they're accounting entries used for book management.

Step 22: Classify these entries into different sub-buckets.

Step 23: Refer to the definition sheet to understand terms like business place missing, adjustment or rectification entry, and inter-tax type transfer.

Step 24: Explore the "Missing in ITC GL" section. This includes documents like zero ITC claims in PR and ITC claims in PR, which are in the purchase register but lack corresponding entries in the ITC GL.

Step 25: Download the summary for a detailed document-level drill down. Access documents directly by clicking document or explore sub-buckets by clicking view.

Step 26: To identify tax type differences in the mismatch category, click the designated button.

Step 27: Review the list view showing all documents under the mismatch category with a sub-status of tax type difference. This summary includes the total number of vouchers, GL vouchers, and total tax at GL and PR levels.

Step 28: Examine the detailed table in the quick summary. It provides a document-level view with columns for voucher number for GL PR, document number used for filing returns, date, total tax difference, header text from your ERP, document type used in accounting, and document type in the purchase register.

This tutorial walks you through the features of a financial report interface, focusing on tax reconciliation and document details. You'll learn to use tools like sorting, filtering, and document deep-dives to streamline your financial review process.

Step 29: Review the report's structure, which includes fiscal year, seller, buyer, GST details, business place, place of supply, document numbers, and matching logic (voucher or document number). Check if the company code is included.

Step 30: Use functionalities like Show Hide, Reorder Column, and Sort to customize your data view.

Step 31: Apply filters similar to those in the Data Browser to refine the displayed data.

This is how GL recon functions on our product. Major benefit of running this automated is that - One, you can run for a large volume of data at a PAN level. Two, you can run multiple times across longer duration of data and identify any changes done to back dated documents as well

Ideally, these should be run on a monthly basis before filing your returns. The Revenue GL versus SR can be run monthly and at year-end at a YTD level. This will assist you in reconciling and clearly presenting it in your annual returns.

Thank you !