Monthly Account Reconciliation

Reconciliation of the monthly Revenue and Expense Detail Report is a critical control for fiscal management to ensure that revenue and expenditure transactions are correct, allowable, and applied to the appropriate accounts.

The monthly review includes a reconciliation of expenditures and commitments comparing the source documents to the report entries. Prompt reconciliation of both expenditures and commitments can reveal problems such as duplicate payment of invoices or non-payment of invoices and can be immediately corrected to keep budgets balanced and accurate.

This review also includes the verification of salaries and revenue. In addition to the monthly Revenue and Expense Detail Report, which are emailed to the “responsible person” or to the principal investigator by the Office of Financial Quality Control in the Controller’s Office, departments can also review revenue and expenditures through the Business Warehouse Report Center in SAP. Errors found during this reconciliation are corrected by different transactions that are located in ECC (formerly known as R3) within SAP.

The transactions available to correct errors are:

  • Journal Request (technical name: ZSGM_COST_TRANSFER). This transaction is for non-payroll transfers only.
  • E-Form (technical name: ZHPA-EFORM). This transaction is for payroll transfers only.

Fiscal management officially rests with the department chairs, organization managers, or principal investigators. Account management, however, is most often the responsibility of specific administrative staff, who report monthly to the chair or principal investigator, on the status of the departmental sponsored and non-sponsored accounts.

Resources to Assist in Monthly Reconciliation

There are many resources to assist the financial administrator in the reconciliation of departmental accounts. SAP is a complex system, and learning how to find information to answer questions requires building a library of resources and contacts. To assist the administrator in this endeavor, links are provided below.