The Reconciliation Process in Financial Closing

Key roles and responsibilities in the reconciliation process

• Staff Accountant / Junior Accountant
• Perform day-to-day reconciliations (e.g., bank, accounts payable/receivable, intercompany).
• Investigate discrepancies and prepare adjusting journal entries.
• Maintain supporting documentation and ensure audit trails.
• Senior Accountant
• Review reconciliations prepared by junior staff.
• Handle more complex reconciliations (e.g., fixed assets, revenue recognition).
• Ensure compliance with accounting standards and internal policies.
• Accounting Manager / Finance Manager
• Oversee the reconciliation process and ensure timely completion.
• Approve reconciliations and journal entries.
• Coordinate with other departments (e.g., operations, treasury) to resolve issues.
• Ensure reconciliations align with the monthly/quarterly close schedule.
• Controller
• Set policies and procedures for reconciliation and financial close.
• Review high-risk or material account reconciliations.
• Ensure internal controls are in place and functioning.
• Liaise with auditors and ensure readiness for financial reporting.
• Senior Financial Systems Analyst / ERP Specialist
• Support automation of reconciliation processes through ERP or reconciliation tools (e.g., BlackLine, Trintech).
• Ensure data integrity between sub-ledgers and the general ledger.
• Troubleshoot system-related reconciliation issues.
• Internal Auditor / Compliance Officer
• Periodically review reconciliation processes for compliance and control effectiveness.
• Identify gaps or risks in the reconciliation workflow.
• Recommend improvements to strengthen financial integrity.

Key responsibilities in SAP S/4HANA

• Staff Accountant / Junior Accountant - SAP role: FI (Financial Accounting) user
• Use Fiori apps like Manage Journal Entries, Bank Reconciliation, and Account Reconciliation to perform daily reconciliations.
• Match transactions using automatic clearing features in modules like Accounts Payable (AP) and Accounts Receivable (AR).
• Investigate discrepancies using line item reports and document flow tracking.
• Post adjustments using Post General Journal Entries app.
• Senior Accountant - SAP role: FI Power User / Local Process Expert
• Review reconciliations using workflow-enabled approvals.
• Handle complex reconciliations involving intercompany transactions, foreign currency, or asset accounting.
• Use SAP Analytics Cloud (SAC) or embedded analytics to monitor reconciliation KPIs.
• Guide junior staff on using reconciliation tools and templates.
• Accounting Manager - SAP role: Finance Business Partner / Manager
• Oversee the reconciliation calendar using SAP Financial Closing Cockpit.
• Approve reconciliations and journal entries via workflow tasks.
• Coordinate with other departments using collaborative Fiori apps and notifications.
• Ensure compliance with internal controls using audit trails and change logs.
• Controller - SAP role: Controlling (CO) Lead / Financial Controller
• Define reconciliation policies and monitor compliance using SAP Group Reporting and Universal Journal (ACDOCA).
• Review high-risk accounts and ensure real-time reconciliation between sub-ledgers and the general ledger.
• Use Group Data Analysis and Intercompany Reconciliation (ICR) tools to validate consolidated data.
• Interface with auditors using audit-ready reports and compliance dashboards.
• Financial Systems Analyst / ERP Specialist - SAP role: SAP FI/CO Functional Consultant / Basis / Security Admin
• Configure automatic clearing rules, reconciliation accounts, and workflow approvals.
• Support integration with banking systems, external reconciliation tools, or BlackLine.
• Ensure data integrity across modules (FI, CO, MM, SD) using cross-module validation.
• Troubleshoot reconciliation errors due to master data or configuration issues.
• Internal Auditor / Compliance Officer - SAP role: GRC (Governance, Risk, Compliance) Analyst
• Monitor reconciliation compliance using SAP GRC or Audit Management.
• Review logs of reconciliation activities and journal entries.
• Identify control gaps and recommend improvements.
• Ensure segregation of duties (SoD) and audit readiness.

Non-Finance roles in the reconciliation process

Non-finance roles such as business unit managers, operations leads, and department heads often play a supporting but essential role in the reconciliation process, especially in organizations using SAP S/4HANA or similar ERP systems. Why Their Involvement Matters:

• Reconciliation is not just a finance task - it's a cross-functional effort.
• Timely input from business units helps accelerate the close, reduce errors, and improve transparency.

 

• Business Unit Managers
• Provide context for unusual or unmatched transactions (e.g., large purchases, intercompany transfers).
• Approve or validate entries related to their cost centers or internal orders.
• Collaborate with finance to resolve discrepancies in expense allocations, accruals, or revenue recognition.
• In SAP S/4HANA
• Use Fiori apps like My Inbox for workflow approvals of journal entries or reconciliations.
• Access cost center reports or profit center statements to validate financial data.
• Participate in workflow escalations when reconciliation issues require business input.

 

• Operations / Supply Chain Managers
• Help reconcile inventory balances, goods receipts/invoice receipts (GR/IR), and work-in-progress (WIP) accounts.
• Clarify timing differences between physical movements and financial postings.
• In SAP S/4HANA
• Use MM (Materials Management) and PP (Production Planning) modules to provide data on stock movements and production orders.
• Collaborate with finance on GR/IR clearing and inventory valuation.

 

• IT / Systems Support
• Ensure data integrity between integrated systems (e.g., CRM, procurement platforms).
• Support interface monitoring and error resolution for automated postings.
• In SAP S/4HANA
• Monitor IDocs, batch jobs, and integration logs to ensure successful data flow.
• Assist in troubleshooting reconciliation issues caused by system errors or delays.

 

• Compliance / Risk Management
• Ensure reconciliations meet regulatory and internal control standards.
• Participate in SOX compliance or internal audits related to reconciliations.
• In SAP S/4HANA
• Use SAP GRC or Audit Management to monitor reconciliation controls and approvals.

 

SAP Analytics Cloud and the reconciliation process

SAP Analytics Cloud (SAC) can play a valuable role in the reconciliation process within an SAP S/4HANA deployment-beyond just reporting.

• Integration with S/4HANA
• SAC integrates natively with S/4HANA via live data connections, allowing real-time access to financial data.
• This enables dynamic dashboards and reports that reflect the latest reconciliation status across entities and accounts.

Use Cases - reconciliation in SAP Analytics Cloud

• Reconciliation Dashboards
• Visualize reconciliation status across business units, accounts, or periods.
• Highlight unreconciled items, aging balances, or high-risk accounts.
• Enable drill-down into transactional details for investigation.
• Exception Reporting
• Automatically flag discrepancies or threshold breaches (e.g., unmatched intercompany balances).
• Use predictive analytics to identify patterns or recurring reconciliation issues.
• KPI Monitoring
• Track close cycle metrics like "Days to Close," "Reconciliation Completion Rate," or "Open Items by Age."
• Compare performance across periods or entities to identify bottlenecks.
• Collaboration & Workflow
• Use SAC's commenting and collaboration features to facilitate communication between accountants, controllers, and auditors.
• Assign tasks or follow-ups directly within dashboards.
• Audit & Compliance Support
• Provide auditors with real-time access to reconciliation summaries and supporting data.
• Maintain version history and commentary for transparency.

 

APOS Publisher for Cloud in the reconciliation process

APOS Publisher for Cloud can play a valuable supporting role in the reconciliation process within a financial close cycle-especially in organizations using SAP Analytics Cloud (SAC) and SAP S/4HANA.

• Automating Distribution of Reconciliation Reports
• Use Case: Automatically distribute reconciliation dashboards or exception reports from SAC to accountants, controllers, and business unit managers.
• Benefit: Ensures timely delivery of personalized, filtered reports to the right stakeholders-without requiring them to log in to SAC.
• Personalized Bursting of Reconciliation Data
• Use Case: Burst SAC stories with different filters (e.g., by business unit, cost center, or region) to individual recipients.
• Benefit: Each stakeholder receives only the data relevant to their area of responsibility, supporting faster issue resolution and accountability.
• Supporting Cross-Functional Collaboration
• Use Case: Share reconciliation summaries with non-finance roles (e.g., operations, procurement) who need to validate or explain discrepancies.
• Benefit: Reduces back-and-forth by delivering actionable insights directly to decision-makers in their preferred format (PDF, Excel, etc.).
• Enhancing Audit Readiness
• Use Case: Schedule and archive delivery of reconciliation reports for audit and compliance purposes.
• Benefit: Creates a consistent, traceable record of what was shared, when, and with whom-supporting internal controls and audit trails.
• Reducing IT Burden
• Use Case: Finance teams can manage report scheduling and distribution without relying on IT.
• Benefit: Frees up IT resources and empowers finance to respond quickly to reconciliation needs.

APOS Publisher for Cloud strategic value in reconciliation process

Reconciliation Phase	P4C Contribution
Data Review	Distribute filtered SAC reports to reviewers
Exception Investigation	Send targeted reports to business units for clarification
Adjustment Validation	Share updated reports post-journal entries
Final Review & Approval	Automate delivery of final reconciliations to approvers
Audit Preparation	Archive and document report distribution for compliance

 

Workflow Overview

• Report Generation in SAC
  Reconciliation reports and dashboards are created in SAP Analytics Cloud.
• Personalized Bursting
  APOS Publisher for Cloud filters and customizes reports for each stakeholder (e.g., by business unit or cost center).
• Distribution to Stakeholders
  Reports are automatically delivered via email or shared folders in preferred formats (PDF, Excel, etc.).
• Collaboration and Feedback
  Stakeholders review, comment, and provide input on discrepancies or approvals.
• Audit Archiving and Compliance
  All distributed reports and interactions are archived for audit readiness and compliance tracking.

How APOS Publisher for Cloud can accelerate reconciliation and closing

• Automated Report Distribution
• Before: Finance teams manually export and email reconciliation reports or dashboards to stakeholders.
• With Publisher: Reports from SAP Analytics Cloud (SAC) are automatically scheduled, filtered, and delivered to the right people-saving hours or even days.
• Personalized Bursting
• Before: Stakeholders receive generic reports and must filter data themselves.
• With Publisher: Each stakeholder receives a tailored report (e.g., by cost center, business unit), reducing back-and-forth and enabling faster review and sign-off.
• Improved Stakeholder Engagement
• Before: Delays occur when non-finance roles are unaware of pending reconciliation tasks.
• With Publisher: Timely, targeted delivery of reports ensures business unit managers and department heads can act quickly on discrepancies.
• Reduced Bottlenecks in Review & Approval
• Before: Manual follow-ups slow down the approval of reconciliations and adjustments.
• With Publisher: Automated delivery ensures that approvers receive the right information at the right time, accelerating decision-making.
• Audit-Ready Documentation
• Before: Gathering evidence of report distribution and approvals is time-consuming.
• With Publisher: Every report delivery is logged and archived, supporting faster audit preparation and reducing compliance risk.

APOS Publisher for Cloud strategic impact on financial close

Area of Close Process	Impact of P4C
Reconciliation	Faster stakeholder input and issue resolution
Review & Approval	Streamlined communication and reduced delays
Reporting	Automated, consistent delivery of financial summaries
Audit Preparation	Archived, traceable report distribution

How APOS Publisher for Cloud saves time

• Before Publisher for Cloud, Finance teams often:
• Manually export reports from SAP Analytics Cloud (SAC) or other systems.
• Apply filters manually (e.g., by business unit, region, or cost center).
• Format and save each version separately (PDF, Excel, etc.).
• Email each report to the appropriate stakeholder.
• Track who received what, and follow up for feedback or approvals.
• This process is:
• Time-consuming: Each report might take 10-30 minutes to prepare and send.
• Error-prone: Manual filtering can lead to incorrect data being shared.
• Difficult to scale: For 20+ stakeholders, this could take several hours or even days.
• With Publisher for Cloud
• Reports are automatically scheduled to run at specific times (e.g., daily, weekly, month-end).
• Dynamic filters are applied per recipient (e.g., Region = "East" for one manager, "West" for another).
• Reports are burst into personalized versions and delivered via email or shared folders.
• Delivery is logged and auditable, reducing compliance risk.

Reconciliation use case

Company: A multinational manufacturing firm using SAP S/4HANA and SAC

Challenge: During month-end close, the finance team needed to send regional reconciliation reports to over 40 business unit managers across North America, Europe, and Asia.

Before Publisher:

• A team of 3 analysts spent 2 full days exporting, filtering, formatting, and emailing reports.
• Errors occurred when filters were applied incorrectly.
• Managers received reports late, delaying their review and feedback.

After Implementing Publisher for Cloud:

• A single SAC story was scheduled to run on the last day of the month.
• Publisher automatically:
• Applied region-specific filters.
• Generated PDF and Excel versions.
• Emailed each manager their personalized report.
• The entire process took under 30 minutes, with zero manual effort.
• Finance had a delivery log for audit purposes.

Result:

• Saved over 16 hours of manual work per month.
• Accelerated the close process by 1-2 days.
• Improved accuracy and stakeholder satisfaction.

P4C Time savings in group reporting

The time savings from APOS Publisher for Cloud are not only relevant in group reporting scenarios, they are often even more impactful due to the scale, complexity, and urgency of group-level financial reporting.

• Higher Volume of Reports
• Group reporting often involves dozens or hundreds of entities, each requiring tailored reports.
• Publisher automates the bursting and delivery of these reports, eliminating the need for manual filtering and formatting.
• Tighter Deadlines
• Group close cycles are typically compressed, especially for public companies or those with external reporting obligations.
• Automating report distribution can shave days off the timeline, helping meet regulatory or board deadlines.
• More Stakeholders
• Group reporting involves regional controllers, CFOs, consolidation teams, and sometimes external auditors.
• Publisher ensures each stakeholder receives only the data they need, reducing confusion and follow-up.
• Audit and Compliance Requirements
• Group-level reports are often subject to external audit.
• Publisher's delivery logs and archiving support audit readiness and traceability.

Group Reporting Use Case

Company: Global consumer goods company with 60 legal entities

Challenge: During quarterly close, the group finance team must distribute entity-level P&L and balance sheet reports to each regional controller for review and sign-off.

• Without Publisher:>
• 2-3 team members spend 3-4 days exporting, filtering, and emailing reports.
• Errors in filtering lead to misrouted data and rework.
• Controllers receive reports late, delaying consolidation.
• With Publisher for Cloud:
• Reports are automatically generated and burst by entity.
• Each controller receives their report within minutes of SAC refresh.
• Group finance gains 2-3 days for analysis and consolidation.

Impact of P4C on reconciliation and group reporting processes

Factor	Individual Reconciliation	Group Reporting
Number of Reports	Moderate	High
Stakeholders Involved	Few	Many
Time Sensitivity	High	Very High
Audit/Compliance Pressure	Moderate	High
Publisher Impact	Significant	Transformative