NOTE: This feature is OPTIONAL. If this is not yet enabled on your account and you would like to opt in, please contact your FloQast ASM or firstname.lastname@example.org to inquire about enabling it for your account.
What is a Reconciling Item?
For each Reconciliation in FloQast, the application will display the "Per GL" balance (the balance coming from the Trial Balance) and the "Per Excel" balance (the balance coming from the supporting document). The difference between these two sources is also calculated and displayed. In a perfect world, this difference is $0.00 and the reconciliation can be signed-off. However, exceptions exist. And sometimes these exceptions are known differences, which we will refer to as Reconciling Items.
Without accounting for Reconciling Items in FloQast, the value in the difference column will remain. Assuming this difference exceeds the materiality threshold, the reconciliation cannot be signed off. In order to complete the reconciliation signatures in FloQast, the source balances would need to be updated or the threshold would need to be increased.
However, the source of the discrepancy may be a known issue. Perhaps in the process of preparing the Excel schedule, you discover that a journal entry hasn't been posted to the GL yet. This will be corrected next month, and the Per GL column will be accurate at that time. For this month, Per GL will continue to be wrong, and you are aware of this Reconciling Item. You'd like to proceed with your sign-off this month with this Reconciling Item accounted for within the FloQast application, and you'd like to track those items to ensure they are truly corrected in future periods.
FloQast has a way to track this! When the Reconciling Items feature is enabled, you will now see an additional column in the Reconciliation section. The values displayed for each reconciliation will be:
1. Per TB (same column as before)
2. Reconciled Balance (column previously called "Per Excel")
3. Reconciling Items (additional column)
4. Difference (same column as before, but now calculated as Per TB - Reconciled Balance - Reconciling Items)
In the example above, there is a $10,000 reconciling item. Now that it is accounted for within FloQast, the difference column is $0.00 and you can execute your sign-offs!
How to pull Reconciling Items into FloQast
The "Reconciled Balance" value pulls in from the #fq anchor added to the Excel workbook. But where does the "Reconciling Items" value pull from?
The Reconciling Item feature relies on a very similar anchor concept within Excel. Instead of #fq, the anchor will be #fqri
- #fq-1004 will pull into the Reconciled Balance column
- #fqri-1004 will pull into the Reconciling Items column
What additional info about the Reconciling Item can be captured?
In addition to the Reconciling Item amount, you can also capture specific descriptors of the item, such as date and description. These are optional inclusions (you can include neither), or you can include one or the other, or you can include both.
To add a Date and/or Description, the format will still be the same #fqri-XXXX followed by a space and the fields within parenthesis:
When these additional files are included, they can be reviewed within the FloQast application by clicking on the hyperlinked total in the Reconciling Items column:
Q: Can multiple Reconciling Items be included for a single account?
A: Absolutely. There may be many Reconciling Items for a given GL account, so you can include the #fqri multiple times. The details (optional Date and Description) will be pulled into the application for each, and the total of all #fqri anchors will be summed and displayed in the Reconciling Items column.
Q: Is there any reporting available on Reconciling Items?
A: Yes! In addition to the previously available Reconciliation Exports, there is an Export specifically for Reconciling Items. This will export a list of ALL reconciling items added to accounts within the current filtered view of FloQast.
Q: If I have Reconciling Items that I'd like to start tracking in FloQast, how do I enable this feature?
A: The Reconciling Items feature currently needs to be enabled by a FloQast representative, so please feel free to contact your dedicated ASM or our Product Support team at email@example.com
Q: What about reconciliations in FloQast that don't have a Reconciling Item attached?
A: The additional column for Reconciling Items will still be visible, but a - will appear to indicate that there are no Reconciling Items. No #fqri anchor is necessary- this account can simply be reconciled by comparing TB directly to Excel.