Reconciliation is an accounting procedure that properly compares two different types of records to determine whether they are accurate and consistent. To find any discrepancies between them, reconciliation is the best way. This technique is useful for demonstrating the consistency, accuracy, and completeness of the accounts in the general ledger.
It will be helpful to explain the variance between two financial records or account balances in the context of account reconciliation. In other words, the method enables you to guarantee that the amount deducted from an account equals the amount actually spent. The balances at the end of each accounting period can be easily verified using this suitable procedure. The timing of payments and deposits may legitimately contribute to minor types of variations. The unauthorized differences will, nevertheless, be successfully found. Your records can be reconciled on a daily, monthly, or annual basis.
You may view both Payment Matching and Bank Reconciliation on the Odoo17 platform. Entry matching and reconciliation are accomplished using these two techniques. Let's go over each of them below.
Payment Matching
The strategy used in the Payment Matching method is to compare the invoice or bill that was created with customer or vendor payments. Let's use the creation and registration of a customer invoice as an example. Automatic payment matching will take place when the customer payment is included, it should be done through register payment from the invoice, however, payments match the invoice.
Bank Reconciliation
The bank reconciliation process is highly helpful in assisting the user in comparing the information from a person's or an organization's cash account to bank facts. A company can determine whether there are any discrepancies in the account using the bank reconciliation and the comparing approach. An organization will be able to quickly take corrective action if any variations are discovered, thanks to these sophisticated advantages.
The purpose of bank reconciliation is to compare the bank statement with the system payment entries recorded in Odoo. The customer invoice and the customer payment are matched, just like in the example above. The following step is to compare the bank statements. The invoice will have a corresponding entry in the bank statement. Bank reconciliation is the phrase used now for comparing financial records to bank statements.