GL Reconciliation: Streamlined Process Guide
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.
Select the GL Reconciliation type to perform. For this example, focus on Input Tax GL versus Purchase Register reconciliation, which compares the Input Tax Credit (ITC) claimed against the purchase register versus the ITC GLs.
Review the displayed results. These results are generated after running the reconciliation for a specific period using the provided company code, date, and GL code.
Ensure the GL recon configuration is completed before running any reconciliation. This configuration is critical for accurate results and is accessible only to your Customer Success Managers (CSMs).
Guide your CSMs to configure the GL codes correctly. For instance, when working with Purchase ITC GLs for CGST, SGST, and IGST, ensure they're configured under the appropriate tax bucket.
Enter the GL code exactly as it appears in the product, especially on the trial balance. If the GL code includes leading zeros, input it with zeros, enclosed in double quotes and separated by commas.
On the left, view the configured ITC GLs listed under the purchase column.
Check the second column for sales-related configurations. Here, find the configured output tax GLs for CGST, SGST, and IGST.
By following these steps, you'll set up your GL reconciliations correctly, ensuring accurate and efficient tax and revenue management.
Verify the configuration of TDS GL. Ensure it includes all ledgers associated with tax deducted at source.
The GST Reversal reclaim account is a specific GL configuration or sub-bucket designed to help you manage and track GL codes effectively during reconciliation. This setup is crucial for maintaining accurate financial records.
Start a new reconciliation by clicking Run recon.
Apply the necessary filters for reconciliation. The company code is mandatory. Optionally, specify document types separated by commas to focus on specific documents.
If required, refine the filters further by business place or business area.
On the purchase side, set the PAN filters as needed. For instance, in this example, the filter is set for GL pharma.
Confirm the return period. Ensure the voucher date is automatically populated based on prior inputs.
Adjust the date to your preference, such as August 1. Selecting this date triggers an alert about the different ranges used.
Revert to your original date selection.
Decide whether to import the general ledger. If the data is already in the data browser, skip the import. Otherwise, use the provided template to import the data by clicking Import, which opens a new modal.
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Step 17: Determine if the purchase register needs importing. If the data is already available, move to the next step. Otherwise, import the purchase register directly from this interface.
Step 18: Begin the reconciliation process by clicking Run Recon. A notification will confirm the reconciliation is in progress and display the start time. Once complete, another notification will appear.
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 tutorial will guide you through the process of analyzing voucher details, reconciling tax data, and ensuring accurate reporting. By the end, you'll be able to review vouchers, identify mismatches, and download detailed reports for further analysis.
Step 1: Click Voucher Number GL or Voucher Number PR to open a modal displaying detailed entries for the selected voucher.
Step 2: Review individual voucher details, focusing on entries like freight expense, output RCM, and creditor information.
Step 3: Open the corresponding purchase document from the voucher details to view additional transaction specifics.
Step 4: Download the detailed information in Excel format for offline analysis or record-keeping.
Step 5: Investigate data mismatches, such as tax type discrepancies across report sections. For instance, check cases where the purchase report (PR) shows IGST, but the general ledger (GL) reflects CGST and SGST.
Step 6: This tool supports various tax reconciliations, including ITC GL versus PR and Output Tax GL versus SR. Run these reconciliations monthly before filing returns. Additionally, perform Revenue GL versus SR checks monthly and at year-end on a Year-To-Date basis to ensure accurate annual reporting.
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