Auto-generated balance account documentation

The Reconciliation module in Period & Year has received an upgrade that simplifies the documentation for central balance sheet accounts. This is done by automatically generating documentation attachments based on imported balances and entries from the company’s ERP system (accounting system).

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Auto-generated documentation types

The following groups of balance sheet accounts now have auto-generated documentation attachments:

• Accrued expenses
• Deferred income
• Accrued income
• Prepaid expenses
• Other Intercompany/Clearing

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Actions for documentation

To document the balance of these account groups, you will be able to perform actions related to clearing (matching) and specification of the imported entries:

• Partial Clearing of Entries: Record that a part of an entry has been expensed/recognized as income.
• Complete Clearing of Entries: Record that the entire entry has been fully expensed/recognized as income.
• Specification of Open Items: Detailed description of which entries constitute the remaining balance at the time of reconciliation.

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Clearing of custom and imported entries

After you have specified the opening balance with custom lines (as shown in the example), these lines and all other transactions in the group can now be cleared.

Performing partial/complete clearing

The functions for partial/complete clearing of open items are applied to:

1. The custom lines (which constitute the opening balance).
2. The period’s transactions (net movements imported from the ERP).
3. Any other transactions belonging to this transaction group.

You treat the manually created lines in the same way as the automatically imported entries.

How to select and calculate

When selecting which entries you want to clear or specify:

• Select the entry: Click the “Checkbox” (checkbox) next to the relevant transaction or the custom line.
• Dialogue box appears: A new dialogue box appears to the right of the period’s transactions.
• Calculation: This box calculates and displays the sum of all the entries you have selected.

Partial clearing of entries: Handling residual balance

Partial clearing is used when you select several entries where the sum does not equal zero, resulting in a residual balance on the account.

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Automatic and Manual processing

The module provides you with flexibility in how entries without a difference are handled:

• Automatic Mode Enabled: When automatic mode is on, the system itself will process and clear all entries where the sum equals zero. This is the fastest way to work.
• Automatic Mode Disabled: If you disable automatic mode, you must manually process and clear even those amounts that equal zero.

Performing partial clearing

When you select entries and a residual balance remains (i.e., the sum of selected entries is not 0), the “Partial Clear” option is automatically activated.

1. Select entries: Mark the transactions and/or the custom lines that constitute the partial clearing.
2. Partial Clear: Select the “Partial Clear” function.
3. New group: The selected entries are moved to a separate group labeled “Partially Cleared Entries”.

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History for partially cleared entries

Under the “Partially cleared entries” group, you get a full overview of the history related to these transactions. You can view history extending backward in time, not just in the current period:

• Previous years: History from fiscal years before the current year.
• This year up to period start: History from January 1st of the current year up until the period you are currently working on.
• This period: All transactions recorded in the current period you are reconciling.

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Automatic and manual clearing in the module

This section explains how the system’s automatic functions work and how you take control of the clearing processes.

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Automatic partial clearing

As a default setting, Period & Year will automatically attempt to partially clear entries in the current period, provided there are similar partial clearings from previous periods.

Priority clearing rules for partial clearing

The system follows a specific priority when automatic partial clearing is activated:

Priority	Rule	Description
1	Identical amount and identical offset account	Entries with the same amount and offset account as a partial clearing from the previous period will be attempted to be partially cleared in the current period.
2	Identical amount D/C, identical offset account AND 100% identical description	If more identical amounts with the same offset account are found than the number of months in the period, the system additionally searches for a 100% match in the description from previous partial clearings.

After manual processing

Once you have manually processed a partial clearing, the system will automatically attempt to run the partial clearing automation again to capture any new, matching entries.

Handling imports

• Previous automatic partial clearings are not undone upon new import.
• Only entries that are not partially cleared will be attempted to be partially cleared automatically after a data import.

Icon for automatically performed partial clearing

Automatically performed partial clearings are presented with a specific icon next to the transaction:

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Complete clearing

Complete clearing is used when two or more entries equal exactly zero (e.g., a debit and a credit entry with the same amount).

Manual complete clearing

• When you select entries that equal zero, the “Clear” option is activated.
• When you select this, the entries are moved to the “Cleared Entries” group.

Automatic complete clearing

As a default setting, Period & Year also performs automatic complete clearings.

Priority	Rule	Description
1	Identical amount D/C and offset account (Result)	Entries with identical debit/credit amounts and an offset account that is a profit and loss account will be matched against each other, provided there is an equal number of debit and credit entries.
2	Identical amount D/C	Entries with identical debit/credit amounts will then be matched against each other, provided there is an equal number of debit and credit entries.

Dynamic update of clearings

• Previous automatic complete clearings are not undone upon new import.
• Partial clearing that becomes complete: The system checks for new entries with the same account and amount. If a new entry is linked to a partial clearing such that the total equals zero, its status changes from Partially Cleared to Completely Cleared.
• Clearing of residual balance: The system also checks for entries that match the residual balance of a partial clearing to fully clear it.

Icon for Automatically Performed Complete Clearing

Automatically performed complete clearings are presented with a specific icon next to the transaction:

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Deactivation and correction

Deactivation of automatic mode

Both automatic clearing functions can be deactivated:

1. Use the toggle switch in the work screen.
2. If you undo a partial clearing that the system performed automatically, the function will automatically deactivate. You must then manually reactivate it.

Correction of incorrect clearings

If you have incorrectly cleared or partially cleared entries, you can easily correct this:

• Click the red “X” in the “Undo” column next to the entry to undo the clearing/partial clearing.

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Final specification and reporting

Account specification

When all clearings and partial clearings have been performed, you will be left with the final specification of the account at period end.

This specification consists of:

• All entries that have not been cleared or partially cleared against other entries.
• The remaining balance on partially cleared entries that are not fully cleared.

Summary

The reconciliation summary shows:

• Reconciliation Amount
• Ending Balance
• Reconciliation Difference (This should only occur if the opening balance is not correctly specified with custom lines).

Copying data to the next period

This option controls whether the reconciliation should be carried forward.

• Default Option (“Yes, with updated data”): The system copies forward any open items and grouped partial clearings to the next period. New account movements are also included in the new period.
• Alternative (“No, do not copy”): Select this if you do not want to continue this reconciliation in the next period.

Generating the Report

You can generate a report for the reconciliation under Reports/Documentation - Balance Reconciliation.

The report will show:

• Summary of the reconciliation in the period.
• Any open items.
• Specification of clearings and partial clearings for the current period.