Finance

GL reconciliation

Proving that the incentive subledger — accruals, claims, settlements and adjustments — agrees with the general ledger.

The requirement is not just that the totals match but that any general-ledger balance can be drilled back to the transaction lines that produced it. That drill-back is what makes an audit routine instead of an investigation.

It is also what makes restatement survivable: if the accrual knows which lines created it, a correction to those lines flows through automatically rather than requiring a manual unwind.

Related terms

Accrual

The liability or receivable recognised as a rebate is being earned, before it is actually settled.

Period close

The point at which an accounting period is locked and no further postings may change it.

Gross-to-net

The full reconciliation from gross revenue to net revenue, accounting for every rebate, chargeback, allowance and credit.

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