Cash reconciliations are often used to identify discrepancies in the ‘amount field’ on transactions across sources of data. These discrepancies require an amendment, adjustment or new posting/booking to resolve. For example, clients' books of records are amended to reflect the ‘amount’ that was reported from the banking agent.
As such, Duco Cash creates either a “write-off” (w/o) or a “netted transaction” (nt) when matching transactions that do not net to zero. These w/o’s or nt’s can then be used to trigger further investigation and downstream automation (using Duco APIs to extract data).
This article provides further information on how these w/o's and nt's are generated and how their fields are populated.
Write-offs vs netted transactions
When matching items in Duco with an amount difference (assuming the difference is within the manual or rule based tolerances) the following logic determines if we match and create a w/o or a nt.
- Group includes transactions from both sides → Match with w/o
- Group only includes transactions from the same side including positive and negative → Match
- Group includes only transactions from the same side and all are the same direction (all negative or all positive) → Netted
Based on the w/o or nt approach Duco determines how the “difference” is managed and the attributes that are populated on the new difference transaction.
When w/o’s are created they are applied to a “side” of the reconciliation based on the following:
Write-off / netted transactions attribute population
When populating the fields of the w/o or nt the following are “core” attributes. These are populated as per following logic:
Non-core fields that are populated also follow their own logic:
Write-off / netted transactions workflow
W/o’s and nt’s can be generated from either auto-matches or through the auto-matching logic. When triggered by auto-matching, the resulting w/o or nt's go through the automated workflow rule logic at the point they are first generated.
When w/o’s and nt’s are generated from manual activities the original transactions would have already been through either automated or manual workflow activities.
The following table shows how the workflow fields are assigned to w/o’s and nt’s at their point of creation under different scenarios.
Note that once a manual action creates a w/o or nt, a following matching run will trigger those transactions to go through matching and workflow rules.