Strict Tie-Out Mode is a feature for Reconciliations. When enabled for an entity:
- Reconciliations cannot be signed off if they are not tied out
- If a reconciliation falls out of balance AFTER it has been signed off, the existing sign-offs will become suspended. The assignees will be notified that the reconciliation is out of balance and should be reviewed.
To enable/disable this feature, go to Admin Settings > Entities, and click the Manage button next to the entity you want to update:
Let's say an account was previously tied-out, and the preparer and reviewer signed off. However, an adjustment entry is then made, and the ending balance on the Trial Balance has now been updated. The account no longer ties out.
Previously, FloQast displayed a red banner and alerted the assignee(s) and any Admins and Managers that a previously signed-off account is now unreconciled. The original sign-offs remained in place. No new sign-off was required once the balances were updated to accurately tie-out again.
With Strict Tie-Out Mode enabled, FloQast freezes those original sign-offs and puts the reconciliation in a "redo" state which requires a new sign-off once the Trial Balance or Supporting Document has been updated to tie-out again.
The original sign-offs will not be removed- they will turn orange and still display the person and timestamp of the initial sign-off:
A new sign-off will be required once the balances have been updated to tie-out again. You will sign off just like it was an unprepared item, and only the new sign-off will display in FloQast.
To see the audit trail, including the original sign-off and subsequent "redo" sign-offs, you can export the Reconciliation Report. The detailed Excel file will show the original sign-off, the "out of balance" state, and the new sign-off, complete with the timestamp and the person that signed off.
Q: What if a balance wasn't actually updated, but the Excel file was accidentally deleted? Or the wrong Trial Balance was accidentally uploaded? Will all sign-offs need to be re-done?
A: No, new sign-offs will not be required. The original sign-offs will turn orange and be in that suspended state. But if the source documents are re-uploaded and match the original balances from the original sign-off, then the sign-offs will simply be restored as original. They will not need to be redone.
Q: Is there a way to filter for items that need to be re-done?
A: Yes, there is a new filter labeled "Redo." This filter will show only items that were previously signed-off but are now unreconciled. Please note - you will only see this filter if you have "Strict Tie-Out Mode" turned on in your Manage Entities settings.