Advanced Reconciliation

Smart reconciliation is auto-triggered reconciliation and results will get bifurcated between Matched/Value Mismatch/Invoice Mismatch/Purchaser Only / Supplier Only.

In this results, there remains some invoices in purchaser only and supplier only categories which are actually comparable but their invoice numbers are not matching. In order to bring these invoices at a comparable level, advanced reconciliation is being introduced.

The user will get an option to run advance reconciliation on comparable invoices which are left in Supplier only and Purchaser only categories.

So “Advance Reconciliation” will be manually triggered by the user.

You will get the option of advance reconciliation under the Reconciliation module:

Open

There are two sets of Advanced Reconciliation rule:

1. Analyze Missing Invoices – These rules will run on invoices which are left in supplier only and purchaser only category.

2. Analyze Mismatched Invoices – These rules will run on invoices which are in Value Mismatch and Invoice Mismatch category.

Brief Summarized Points:

So in brief advance reconciliation is manually triggered and gets applied as per rule selected by the user.

The user will have to select which logic he wants to run in advanced reconciliation.

Process Flow for Advanced Reconciliation

Advance reconciliation is manually triggered. So select GSTIN, financial year and section for which you want to run advance reconciliation. And then select advance reconciliation rules that you want to run. And click on Submit.

Open

Once you submitted your request for running advance reconciliation rules. See the status of the request in Get-History.

Here in history, once your request is completed you can see the status as “Completed” and also details of your rule requests in the details column. And one important thing is that you will also see the Username who raised the advance reconciliation run request.

Now go to Results to see invoices which get moved from the supplier only and purchaser only and get recategorized as Match/Value Mismatch/Invoice Mismatch.

In overall summary, you will get bifurcation between invoices compared as per Normal reconciliation logic and Advanced reconciliation logic.

Also in “Invoice” section, you will come to know about as per which advanced reconciliation rules that particular invoice get recategorized from supplier only / purchaser only to Match/Value mismatch/Invoice mismatch. 

Once you are done with taking actions on reconciled invoices, go to Post Action Summary.

Analyze Missing Invoices.

In this option of advanced reconciliation, the user will get option to search comparable invoices that are left in Supplier only and Purchaser only categories.

Option to run this advance reconciliation on the basis of counterparties is also allowed. On a maximum of 10 counterparties at a time, you can apply this counterparty filter. If you didn’t apply any counterparty filter then on all counterparties, these advance reconciliation rules will get run.

Below are rules based on which advance reconciliation will run:

Across Financial Year

Invoice No. Fuzzy Logic

2.1 Acceptable % for Invoice Number Matching 

Ignore Invoice No. Check Invoice Value, Taxable Value, and Tax Amount exact amount match

Ignore Invoice Value also. Consider only Taxable Value and Tax Amount exact amount match

Ignore Invoice Value and Taxable Value also. Consider only Tax Amount exact amount match

Ignore Invoice No. Check Invoice Value, Taxable Value and Tax Amount within tolerance

Ignore Invoice Value also. Consider only Taxable Value and Tax Amount within above tolerance

Ignore Invoice Value and Taxable Value also. Consider only Tax Amount within above tolerance

Ignore Month.

Ignore Document Financial Year for across financial year reporting

Note the below-mentioned points:

If 1st rule i.e Across Financial Year is selected along with other rules, then all other rules so selected will also run Across Financial Year.

If 1st rule i.e. Across the Financial Year is not selected then other selected rules will run within a financial year only.

As Rule 3 and its sub rules and rule 4 and its sub rules are correlated, if any of these 6 rules (i.e 3,3.1,3.2,4,4.1,4.2) are unticked then all 6 will get unticked. The user will have to reselect the ones he wants to run

Analyze Mismatched Invoices

Once you are done with auto-triggered smart reconciliation and advance reconciliation on invoices in supplier only and purchaser only, now you also have one advanced reconciliation option through which invoices kept under value mismatch and invoice mismatch category, can move those as deemed match invoices.

Option to run this advance reconciliation on the basis of counterparties is also allowed. On maximum of 10 counterparties at a time, you can apply this counterparty filter. If you didn’t apply any counterparty filter then on all counterparties, these advance reconciliation rules will get run.

So here you need to set a tolerance limit.

Move from Value Mismatch within below Tolerance (only if pos, rchrg, and invtyp match)

The first rule is for pure value mismatch. If there are values mismatches and other fields (like pos, RCM and invoice type ) are completing matching then by using this rule and providing tolerance limit you can move these value mismatch invoices to deemed match.

Here you need to provide which action you need to take on invoices like Accept Supplier Only or Accept Purchaser Only.

Also, need to select on which parameter you want to run this tolerance like on Invoice value/Taxable value/Tax amount. E.g. if you select “Apply tolerance on Tax amount” then the difference in invoice value and taxable value get ignored. Tolerance will be calculated by taking base of Purchaser value i.e. Tolerance = Purchaser value – Supplier Value. It means if tolerance entered as positive value, here purchaser value is more than supplier value i.e. more ITC claimed. In apply tolerance on tax amount, you get two options whether you want this tolarence include cess amount or exclude cess amount. So as per you requirement select the option and apply the tolerance.

1. Move from Invoice Mismatch within Tolerance for Invoice Value (only if pos, rchrg, and invtyp match)

This second rule is related to mismatch only in invoice value which also has other fields like pos, RCM and invoice type are matching. And by setting tolerance limit and selecting tolerance on Invoice value you can move these invoice mismatch invoices to deemed match category.

Once you selected rules which you want to run then click on “Submit”. After submission, you can see request status in Get History.