10. Financial Transactions
Captures business activities from Settlement and manages the interface with the general ledger, ensuring proper financial recording and compliance with accounting requirements.
10. Financial Transactions Productboard component link
10.01. Business Activity Collection
Captures and organizes all business activities from Settlement that have financial implications requiring general ledger recording.
10.01.01. Transaction data collection from Settlement — Receives all calculated transaction data from the Settlement function.
10.01.02. Business rule application — Applies appropriate business rules to determine which activities require GL entries and how they should be classified and coded.
10.01.03. Audit trail maintenance — Maintains audit trails linking business activities to their resulting financial transactions and GL entries.
10.02. GL Entry Creation and Transmission
Creates properly formatted general ledger entries based on business activities and transmits them to the accounting system with appropriate controls.
10.02.01. Balanced GL entry creation — Creates properly balanced general ledger entries for each accounting event and transaction.
10.02.02. Account coding application — Applies proper GL account coding based on transaction types, attributes, and business rules to ensure accurate financial reporting.
10.02.03. Foreign currency GL handling — Handles foreign currency aspects of GL entries according to accounting standards, working with GL system currency processing capabilities.
10.02.04. Accounting period management — Manages proper accounting period assignments for transactions, ensuring entries are recorded in appropriate periods with proper period-end controls.
10.02.05. Batch processing implementation — Implements controlled batch processing for transmission of GL entries.
10.02.06. Transaction identifier maintenance — Maintains transaction identifiers that enable complete traceability between GL entries and their source transactions in Client Processing.
10.03. Analysis and Reconciliation
Provides tools and processes for analyzing financial data and ensuring consistency between Client Processing records and general ledger balances.
10.03.01. Systematic reconciliation implementation — Implements regular, systematic reconciliation processes between Client Processing sub-ledgers and general ledger balances.
10.03.02. Reconciliation reporting — Provides reconciliation reporting with exception highlighting for items requiring attention and resolution.
10.03.03. Drill-down support — Supports drill-down capabilities from GL entries back to source transactions in Client Processing for investigation and analysis.
10.03.04. Automated transaction matching — Enables automated matching of transactions between systems where possible while supporting manual reconciliation for complex items.
10.03.05. Reconciliation history maintenance — Maintains history of reconciliation activities, findings, and resolutions for trend analysis and audit purposes.
10.04. Corrections and Adjustments
Manages the process for identifying, approving, and processing corrections to financial transactions when errors are discovered.
10.04.01. Error correction through reversing entries — Supports correction of transaction errors through proper reversing entries rather than direct modifications, maintaining audit trail integrity.
10.04.02. Adjustment approval workflows — Implements approval workflows for financial adjustments based on materiality, impact, and business rules.
10.04.03. Comprehensive audit trails — Maintains audit trails of all correction activities, approvals, and justifications for compliance and review purposes.
10.04.04. Period handling — Ensures proper accounting period handling for adjustments, corrections, and period-end processing requirements.
10.04.05. Correction analysis and reporting — Enables analysis and reporting of correction patterns to identify systematic issues and process improvement opportunities.
10.04.06. Documentation of correction reasons and approvals — Provides clear documentation of correction reasons, approvals, and supporting information for all financial adjustments.