Auto-Reconciliation Methods

AD.

The two auto-reconciliation methods are A) Balance Match (%tolerance) and D) Balance is zero and no activity.

1. Balance Match (%tolerance): This auto-reconciliation method involves matching the balances in the source system and target system with a defined percentage tolerance. The reconciliation engine will automatically match transactions with the same amount and date in both systems. If the difference in the balances is within the specified percentage tolerance, the transactions will be considered reconciled.

For example, if the percentage tolerance is set to 5%, and the difference in balances between the source system and target system is less than 5%, then the transactions will be automatically reconciled.

2. Balance is zero and no activity: This auto-reconciliation method involves automatically reconciling accounts when the balance is zero and there has been no activity during the reconciliation period. If the balance of an account is zero, and there are no transactions during the reconciliation period, then the account will be automatically reconciled.

For example, if an account has a balance of zero at the beginning of the reconciliation period and no transactions occur during the period, the account will be automatically reconciled.

Option B) No Data is not an auto-reconciliation method, but rather indicates that there is no data available for reconciliation. Option C) Balance has not changed is not an auto-reconciliation method, but rather indicates that the balance in the source system and target system has remained the same during the reconciliation period.