Certification Foundational EU Balances (TRAIN-573 LUIS)

Certification is all about certifying balances. In this microcourse, we'll just show you the different places where you'll see them.

Overview

Certified Balances

When preparing an account reconciliation, you typically have an expected GL balance in mind—and you'll compare that amount against Certification's imported period-end balance. This ensures the accuracy of the GL.

NOTE: Giving visibility and oversight, a SOX-driven application in the US, Certification helps you ensure the accuracy of the GL at a corporate level.

Detail

Importing balances

Where do the balances come from?

Certification, while not a consolidation tool, can take balances from any number of ERPs to centralize your reconciliation process. While the Balance Import process is entirely automated there are exceptions where you would key in the balance directly to a reconciliation (e.g. a Bank or Subledger account).

Q1

Where do the balances come from?

Certification, while not a consolidation tool, can take balances from any number of ERPs to centralize your reconciliation process. While the Balance Import process is entirely automated there are exceptions where you would key in the balance directly to a reconciliation (e.g. a Bank or Subledger account).

I may be expected to enter  manually for certain accounts. This should be in special cases only since the process is entirely 

Easy to find

Balances can be found in four places. Watch the video to learn where!

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Q2

Rewatch this video if needed, but only if needed!~

Where are balances found?

Match the phrase or word on the left to its description on the right.

  • Rec List
    Where I organize my work!
  • Face of the rec
    Similar to an excel cover sheet.
  • Link in the header of a rec
    To see group member (child account) balances.
  • Reports
    Filterable fields available, including additional reporting buckets for multicurrency reconciliations.

What if my balance changes?

Balance Updates

These occur early in the reconciliation period if an adjustment is made to one of your accounts. The adjusted balance is immediately reflected in the reconciliation. Another instance of a balance update is when reconciling a group account, and your group account has a new child account added to it.

What if I've already certified my reconciliation?

If an adjusted account balance comes into the system, that account's month-end reconciliation will automatically decertify, and an email alert will ask that you re-certify the new balance.

 

Q3

Balance Updates

These occur early in the reconciliation period if an adjustment is made to one of your accounts. The adjusted balance is immediately reflected in the reconciliation. Another instance of a balance update is when reconciling a group account, and your group account has a new child account added to it.

What if I already certified my reconciliation?

If an adjusted account balance comes into the system, that account's month-end reconciliation will automatically decertify, and an email alert will ask that you re-certify the new balance.

  • Balance Updates occur when there is a change or an adjustment to an account balance.
  • Balance Updates occur when a new child account is added to my group.
  • I'll be notified if my reconciliation is decertified due to a Balance Update.
  • Balance Updates can only occur after my account is fully certified/reconciled.

Select all correct statements regarding Balance Updates.

Key Ideas

Key Ideas

Key Usage

Balances are imported automatically but you may be expected to enter balances for certain accounts.

Key Value

Balance decertifications are automatic and will always notify you straight away!

Key Consideration

The application doesn't prevent you from starting a rec without a balance. Just be sure to wait until balances are imported before certifying your rec.

Summary

Stuff to remember

What you know

  • Certifying balances is a part of SOX compliance and ensures an organization's balance sheet is accurate.
  • Balance Imports are fully automated, with only certain accounts requiring you key in the balance
  • Balance Updates are automatic, happen when a change/adjustment occurs to your account balance or if a new child account is added to a group reconciliation.
  • If an account is already certified, it will be decertified and you'll be notified.

What else is there?

We really didn't get into multi-currency in this course, but it's when an account balance is reported in two or three ways (for instance, Globally, Locally, or at the Transactional level). Multi-currency and Foreign Exchange (FX) will be covered elsewhere. One other note about decerts, you'll be notified every 6 hours to get in there and recertify -- just a warning!

Distinctions and final notes

Only accounts authorized by administration can have their balances keyed in manually or edited. By default, this is not enabled.