---
id: reconciliations
title: "Bank & Subledger Reconciliations"
description: "Import bank statements, match bank feed lines against ledger payments, and verify continuous subledger parity."
category: "Finance"
order: 26
resource: "finance"
action: "read"
routes:
  - "/reconciliations"
  - "/reconciliations/new"
  - "/reconciliations/profiles"
  - "/reconciliations/rules"
tags: ["reconciliations", "bank", "statements", "matching", "finance", "rules", "subledger", "parity"]
fields:
  statement_date:
    title: "Statement Date"
    summary: "Closing date of the bank statement period."
  gl_account_id:
    title: "Bank Account"
    summary: "General Ledger bank asset account being reconciled."
  statement_balance:
    title: "Statement Ending Balance"
    summary: "Official closing balance shown on the bank statement."
  ledger_balance:
    title: "GL Ledger Balance"
    summary: "Calculated balance from all posted General Ledger transactions."
  difference:
    title: "Variance / Difference"
    summary: "Unreconciled difference (must equal 0.00 to complete reconciliation)."
related:
  - "payments"
  - "general-ledger"
  - "fiscal-periods"
  - "balances"
---

# Bank & Subledger Reconciliations

The **Reconciliations** module verifies that General Ledger account balances accurately reflect cash reality in bank accounts and continuously audits mathematical parity across operational subledgers.

---

## The 5 Continuous Subledger Parity Proofs

HeroBM runs 5 real-time parity checks across the financial subledgers to guarantee that operational documents (orders, shipments, receipts, bills) reconcile with the General Ledger:

```mermaid
flowchart TD
    GL[General Ledger Core] --> P1[1. Trial Balance Zero-Sum]
    GL --> P2[2. Accounts Receivable Parity]
    GL --> P3[3. Accounts Payable Parity]
    GL --> P4[4. GRNI Accrual Clearing Parity]
    GL --> P5[5. Perpetual Inventory Asset Parity]
```

### 1. Trial Balance Zero-Sum Proof
Ensures all posted journal lines are mathematically balanced:
```
Drift = abs(Sum(Debits) - Sum(Credits)) <= 0.005
```

### 2. Accounts Receivable (AR) Subledger Parity
Verifies the AR Control Account matches the sum of individual customer open balances:
```
Drift = abs(GL_AR_Control_Balance - Sum(Customer Open Invoices - Customer Unallocated Credits)) <= 0.005
```

### 3. Accounts Payable (AP) Subledger Parity
Verifies the AP Control Account matches the sum of individual supplier open liabilities:
```
Drift = abs(GL_AP_Control_Balance - Sum(Supplier Open Bills - Supplier Unallocated Debits)) <= 0.005
```

### 4. GRNI Clearing Accrual Parity
Audits the temporary clearing account for received items awaiting supplier invoices:
```
Drift = abs(GL_GRNI_Clearing_Balance - Sum(Received Unbilled PO Line Quantities * Receipt Unit Cost)) <= 0.005
```

### 5. Perpetual Inventory Valuation Parity
Ensures capitalized inventory assets match live warehouse bin quantities multiplied by unit moving WAC:
```
Drift = abs(GL_Inventory_Asset_Balance - Sum(Product Bin On-Hand * Product WAC Cost)) <= 0.005
```

---

## Bank Reconciliation Matching Engine

```mermaid
flowchart TD
    A[Import Bank Statement CSV / OFX] --> B[Matching Rules Engine]
    B -- Exact Match --> C[Auto-Reconcile Payment]
    B -- Rule Pattern Match --> D[Auto-Generate Bank Fee / Interest Entry]
    B -- Unmatched --> E[Manual Match / Split Allocation]
    C & D & E --> F{Difference == 0.00?}
    F -- Yes --> G[Sign Off & Lock Statement]
    F -- No --> H[Review Unmatched Transactions]
```

### 1. Automated Matching Rules
Configurable rule profiles (`/reconciliations/rules`) evaluate incoming feed lines:
* **Reference & Amount Match**: Automatically matches transactions where the bank reference contains the invoice number and amounts match exactly within date tolerance.
* **Recurring Bank Fees & Interest**: Automatically creates journal entries to designated expense accounts for banking charges without manual intervention.

### 2. Sign-Off & Audit Locking
When the statement ending balance matches the ledger balance (`Difference = 0.00`), clicking **Sign Off** permanently locks the reconciliation record and timestamps all matched ledger lines.

---

## Step-by-Step Workflows

### 1. Reconciling a Bank Statement
1. Go to **Finance** → **Bank Rec'n** → **Statements** (`/reconciliations`).
2. Click **Import Statement** (`/reconciliations/new`) and upload the bank CSV or OFX statement.
3. Review the side-by-side matching grid:
   - Left side: Imported bank statement feed lines.
   - Right side: Open GL payments, deposits, and receipts.
4. Click **Auto-Match** to process exact matches.
5. For remaining items, manually select matching ledger records or click **Create Entry** for ad-hoc charges.
6. Verify that the **Difference is 0.00**.
7. Click **Sign Off Reconciliation**.

---

## Field Reference

| Field | Description |
| :--- | :--- |
| **Bank Account** | Reconciled General Ledger bank account. |
| **Statement Ending Balance** | Closing balance from official bank statement. |
| **GL Ledger Balance** | Sum of all posted cash transactions in HeroBM. |
| **Variance / Difference** | Unreconciled gap (must reach `0.00` for sign-off). |