Transaction Matching is the latest addition to Oracle’s comprehensive Account Reconciliation Cloud Service and the perfect complement to the existing Reconciliation Compliance feature set.
With Transaction Matching, companies can automate performance of high volume / labor intensive reconciliations, and seamlessly integrate those results into the tracking features within Reconciliation Compliance.
With the addition of this powerful new module, companies will save additional time on performance of reconciliations, while improving quality and reducing risk.
One of the keys to a fast and efficient implementation is effective training. Transaction Matching includes a full library of on demand training, from creating & managing reconciliations, to running the auto match process, confirming suggested matches, creating manual matches, and running balancing reports.
Reconciliation Types are created by Administrators. They determine how the transaction matching process will work for the accounts using that Reconciliation Type. They determine the structure of the data to be matched, as well as the rules used for matching.
Companies could have many different Reconciliation Types. For example, Intercompany Accounts, Bank Accounts, Accounts Receivable, Accounts Payable, and various Clearing Accounts would likely all benefit from transaction matching. Since the data structure and matching rules are likely to be different for each of these types of accounts, companies would create a Reconciliation Type for each.
The first step when creating a Reconciliation Type is to define basic properties, such as the name, instructions for using this Reconciliation Type to match transactions, and the calendar that determines how frequently balancing can occur for the reconciliations using this Type. Most accounting reconciliations balance monthly. However, there are many examples of operational reconciliations that require daily balancing, and the Oracle Transaction Matching feature can support both requirements.
Then, we need to define the data sources. Most reconciliations will contain two data sources: transactions from Source A will be matched with transactions from Source B. However, certain types of reconciliations (such as Clearing accounts, Suspense accounts, or high volume accruals) require debit/credit matching within a single data source. This is also supported. We will also support use cases requiring three-way matching.
When defining a data source, you define the “attributes” in the source, which are the columns of data that will be imported. This is also where we enrich and normalize the data to get it ready for matching.
The next step is to define the rules used for matching. We support one to one, one to many, many to one, and many to many matching, as well as rules that create adjustment or support transactions based on defined conditions.
When defining a rule, you start by selecting the Rule Type. This determines the number of transactions selected on each side of the match. In our example, one transaction will be selected from our Intercompany Accounts Payable and matched to one transaction from our Intercompany Accounts Receivable.
Then, you specify the conditions that must be met in order for the rule to be satisfied. For this rule, we require an exact match on Invoice, and an exact match on Amount. The matches produced by this rule will have a status of “Confirmed”, which means no user action is required once the match has been made.