Definition: The formal record of a financial transaction in a firm’s accounting system. In the reconciliation workflow, journal entries are the final step used to adjust the general ledger once a discrepancy has been researched and the correct financial treatment has been determined.
Example: After reconciling a bank statement, the operations team identifies a small service fee that was not previously recorded in the internal books. They create a journal entry to debit the bank fee expense account and credit the cash account, ensuring the internal ledger matches the bank’s final balance.
Explore the IVP Reconciliation Solution
The IVP Reconciliation Solution streamlines the transition from break resolution to accounting record. It allows users to generate and post journal entries directly from the reconciliation interface, ensuring a seamless data flow into the GL. As part of our integrated service, IVP’s team helps firms automate the mapping of common reconciliation adjustments to the correct account strings, reducing manual entry errors and accelerating the monthly close process.
