When considering an automated matching tool, companies should think about more than just their bank-to-book reconciliations. The right matching tool, like Adra® Matcher, is extremely flexible and can tackle many challenges accounting teams face daily — like operational reconciliations.
Operational reconciliation tracks the amount that should be in inventory (based on both inbound and outbound transactions since the previous reconciliation) and compares it to the actual amount in the inventory. Matching can be much more than financial reconciliations. In using a tool like Adra Matcher for a variety of matching activities, you can mitigate financial risk, increase efficiency, and significantly reduce any possibility for procedural errors.
Adra Matcher offers operational reconciliations to speed up your operational transaction matching. Though most automated transaction matching software is used for bank to book reconciliations, why not take full control of your transaction matching process? This is step one of unlocking new limits for your business to grow.
To help illustrate this potential, let’s dive into some real and creative examples:
How to Effectively Use Adra Matcher for Operational Reconciliations
Example #1: Passport Applications
To be able to track the status of passport application from start to end, the first step is to verify that the person who applied for a passport made a payment. The first reconciliation group would be the data warehouse that has the application reference number. That number needs to be compared to the reference number from the bank transactions (the second reconciliation group).
The next step is to take the reconciled transactions and compare it to a database list of transactions listing passports that have been sent out. To process this full flow, unique IDs would move through both reconciliation groups — automated, of course.
Example #2: Intercompany Matching
Intercompany matching processes are often tricky, and if not orchestrated properly, can pose significant financial risk to the business.
In a reconciliation group that is not connected to Adra Balancer, all intercompany transactions from 40+ different legal entities were imported from two different ERPs. These were matched to verify that every transaction has a corresponding transaction in a sister company. Using Adra to confirm the completion and accuracy of intercompany reconciliations is a best practice process for financial risk management.
Example #3: Bus Tickets
Oftentimes, bus tickets are purchased in a mobile app and paid for by another mobile app or debit/credit cards. Set up a reconciliation group with one source for tickets and three sources for the payments. Match all tickets against payments at roughly 50,000+ transactions per week.
These are just few examples to demonstrate the value Adra Matcher can deliver to your finance teams beyond just bank to book reconciliations. With our exclusive automated Matching engine and automated multi-way matching, you can deliver value beyond your finance team’s current limits; in addition, you are able to reduce financial risk, increase efficiency, and remove any possibility of procedural errors.
Written by: Jae Kim