Bank Reconciliation

Reconciliation ensures your accounting records match reality. AI-native ERP handles two distinct reconciliation domains: bank statement reconciliation (matching bank lines to GL transactions) and transaction reconciliation (matching payments to invoices). Both processes work together to keep your books accurate and your aging reports reliable.

Bank Statement Reconciliation#

Bank statement reconciliation verifies that every cash movement at the bank has a corresponding entry in your accounting system. When you import a bank statement, each line needs to be matched to a GL transaction -- an AP payment, AR collection, bank fee, or other recorded entry.

You can match lines manually through conversation, or let the autonomous reconciliation agent handle the matching automatically. The agent processes lines in multiple passes, starting with exact matches (same amount, same date) and progressively loosening criteria for fuzzy matches. Lines that cannot be matched are flagged for human review.

For each matched pair, you can verify the match and advance the line to reconciled status. If a match is incorrect, you can unmatch it and try again. Lines that represent bank activity with no GL impact (such as memo postings or informational entries) can be excluded from reconciliation.

Transaction Reconciliation#

Transaction reconciliation matches payments to their corresponding invoices. This is critical for accurate aging reports -- until a payment is matched to an invoice, both the payment and invoice show as outstanding, inflating your AP and AR balances.

The reconciliation agent uses a 6-pass matching algorithm that starts with deterministic matches (exact amount, reference number) and progresses through increasingly fuzzy criteria. Each match gets a confidence score. High-confidence matches are confirmed automatically, while lower-confidence matches are presented for human review.

Foreign Exchange Handling#

When reconciling transactions in foreign currencies, the system automatically calculates and posts exchange rate differences. If you recorded an AP invoice at one rate and the bank payment cleared at a different rate, the variance is posted as a foreign exchange gain or loss. Same-currency variances require manual investigation and resolution.

Reconciliation Reporting#

You can generate reconciliation status reports at any time to see the state of your cash accounts. These reports show the total number of statement lines, how many are matched, unmatched, excluded, and fully reconciled. You can drill down into any category to see the individual lines and take action.

The reconciliation process creates a clear audit trail linking bank activity to GL entries to source documents. Auditors can trace any cash balance from the bank statement through the reconciliation to the underlying invoice or payment, with full confidence in the integrity of the matching process.