Reconciliation rules are predefined guidelines within accounting systems that automate the process of matching financial records, such as bank statements and general ledger accounts. These rules help identify discrepancies and resolve conflicts, ensuring the accuracy and integrity of financial data.
Implementing reconciliation rules offers several benefits, including increased efficiency and time savings by reducing manual effort, minimizing human errors for more consistent and reliable reconciliation, providing real-time insights into potential issues for faster decision-making, and ensuring compliance with accounting standards and regulations.
In NetSuite, for Reconciliation Rules to run successfully, the following hierarchy must be followed:
- The reconciliation rules must be active and exist.
- Followed by Account Transaction.
- Then last is the Imported Bank Data (either manually or automatically).
If the import of bank transactions occurs before creating or establishing NetSuite transactions and reconciliation rules, the rules may not be applied as expected. This behavior is an inherent part of NetSuite’s standard functionality. Therefore, it is essential to prioritize the creation of relevant transactions and rules within the system before importing external bank data to maintain accurate and consistent financial reconciliations. It is also important to note that reconciliation rules will only apply to latest bank import.
By following the prescribed hierarchy, businesses can optimize the efficiency and effectiveness of their reconciliation processes in NetSuite.
For more insights into issues related to reconciliation rules, you can refer to the articles NSC | Reconciliation Rules > Did not Execute and NSC | Match Bank Data Page > Custom Reconciliation Rules Not Working for Other Bank Accounts.
Related SuiteAnswers you may visit:
- 7565 | Intelligent Transaction Matching for Bank Data
- 95135 | Generating Auto-Create Rules
- 96560 | System Reconciliation Rules
- 95132 | Manually Running Reconciliation Rules