Inborder Quiz hour: Reconciliation

Create an image depicting a professional financial setting with people engaged in teamwork, analyzing documents, and discussing reconciliation processes with charts and financial reports in the background.

Inborder Reconciliation Mastery Quiz

Test your knowledge and skills in the realm of Inborder reconciliation concepts with our comprehensive quiz. Designed for professionals looking to solidify their understanding, this quiz covers various aspects essential for effective financial reporting and compliance.

23 engaging questions
Multiple-choice and text input formats
Immediate feedback on your answers

23 Questions6 MinutesCreated by ResolvingAccounts42

What is the purpose of reconciliation?

To identify and support the ending ledger balance and validate the expected account balance of accounts for financial reporting purposes.

To help management to reasonably ensure balances, as reported, are free of material misstatement, in compliance with IBM Accounting Practices,

To meet IBM General Accounting requirements for Sarbanes-Oxley (SOX) testing.

Which of following ones are correct?

Closing ledger balance always equals expected legder balance

Closing ledger balance equals expected ledger balance + variance

Closing ledger balance equals content ledger balance + variance

Which of following transactions should be reconciled within separated special Groups of Accounts in BL (not common AR/AP groups)?

CIAS invoice waiting for payment

Transfer between entities considered as one legal entity

AP invoice in TREK pending for payment to mainline

AR invoice in Mainline pending for payment from TREK entity

AR for direct taxes paied for other entities within one Tax Group

Transfer between mainline and acquisition entity in liquidation process

Transfer between mainline and acquisition entity not yet in liquidation process

Transactions with dormant (sleeping) entity

Which of the following ones would you consider as content items?

Invoice not paid for more than 180 days

Overpayment to be corrected following month

Cash accrual on cash clearing account

Item to be billed recorded on incorrect SMIN

Settlement to be corrected to correct MIN

Which of the following ones would you consider as variance items?

Difference between invoice and payment, when payment was sent in incorrect lower amount

Tax item pending on accounts over the confirmed tax cycle period if there is no CHQ Tax confirmation that items cannot be settled.

Hyperion entry correcting feeder entry booked incorrectly to our accounts

Item creating float (not transaction between one legal entities)

Entries booked twice to our account (both entries as variance)

Which of the errors in reconciliation have to be documented?

Only errors with significant financial impact

Only errors that are identified by manager or SME

All errors identified within reconciliation withouth any exception

What way errors in reconcilation should be documented?

In Error tracking file and in Memo to File in all cases when error is identified

Always in Error tracking file and Memo to File needs to be prepared in cases specified by Accounting Controls instructions

In Error tracking file and Memo to File in cases specified by Accounting Controls instructions

Case: Transfer pending for billing booked to incorrect MIN- In March 2018 there was a JV 000001 posted to the ledger into incorrect account 018 0100. In April 2018 the entry was reclassified with another JV 000002 to correct account 018 0200. How to report this item in April 2018 reconcilation?

In the April reconciliation of account 018 0200, you should have JV entry date 03/2018 (original one), the JV number 000001 (original one) and in the comment mentioned that the entry was reclassified from account 018 0100 in April 2018 with JV 000002.

In the April reconciliation of account 018 0200, you should have JV entry date 04/2018, the JV number 000002 and in the comment mentioned that the entry is reclassification from account 018 0100 of March 2018 JV 000001.

In the April reconciliation of account 018 0200, you should have JV entry date 04/2018, the JV number 000002 with no other information needed in comments (action plan).

How to count feeder entries trasnferring cost in reconciliation?

As per number of lines booked in the ledger

On voucher number level

All enries booked by one feeder within one month as one entry

What is the general rule for reporting of invoice related entries (billing feeders, manual invoices, invoices accruals, reclassification of invoices from external AR/AP)?

To report entries on invoice level (at minimun with number of invoices for respective month)

To report entries with original voucher nbr. date

In case entries are not reported the way as they were booked in the ledger, it always needs to be stated, based on which entry is reported

Is statement correct? "Repeating invoice accrual on AP side for more months if invoice is already issued and recorded on AR side, however not yet on AP side, should be always reported with original voucher number date.

In case invoice was paid on 31st of March, however in receiving entity money was received just in 1st of April, so on AP side invoice is closed however on AR it is still open and creates float. What action should be taken.

We should process reclassification from external AP to clear the float regardless invoice is paid or not.

We should process cash intransit accrual on receiving side.

We should contact treasury team to process cash intransit accrual on receivng side

What are balancing entries?

Manual entries to correct feeder entries pending on miscode accounts 128 9998 to 018 0100/0200 accounts by Balance Sheet Accounting team.

Feeder entries on our accounts to balance float on our accounts

You have open item on your reconciliation with ITYP "W" and FID number "995". How to report such entry?

As posted to the ledger: W/995

To change the FID number to original feeder number (orig_fid field) and leave ITYP W

To change the FID number to original feeder number (orig_fid field) and change ITYP to F

Inborder Quiz hour: Reconciliation

Inborder Reconciliation Mastery Quiz

More Quizzes