Account Reconciliations

Financial Institutions face the daily challenge of reconciling transactional items with the aim of reducing
risks and manage the cash and commodities position profitably. However, this essential business
requirement is often complicated by manual, error prone and time intensive processes; including rekeying
of data and manually initiated import/export and matching activities. These labour intensive methods lead
to potential financial risks by incorrect or untimely reporting information.
e2gen Account Reconciliations (AR) provides automatic reconciliation of cash or commodity items using
matching rules, across an enterprise of all sizes and complexity from a single general ledger and statement
system through to a fully integrated multiple business requirement.
AR significantly reduces the workload of reconciliation departments and achieves automatic matching well
in excess of 90%. It allows users to concentrate on exceptions using the exception processing functionality,
which includes automatic routing of referrals and proposed matching by other business areas. CR ensures
that institutions can readily manage integrated cash and commodities reconciliation processing more
efficiently, at a lower cost with significant reductions in risk and manpower.
Integrated Solution
AR installs on the IBM iSeries (i5) to provide a
high performance, resilient and a fully scalable
processing solution. Standard, end of day and
intra-day ledger extraction is available for popular
back office solutions including:
Equation
Globus
G3
IBIS
ICBS
MIDAS
OLYMPIC Banking System
Standard and configurable extraction routines
allow rapid deployment and return on
investment. Unix and proprietary systems are
also supported.
AR can also be configured to provide intraday
matching of messages and ledger items.
Reconciliation Formatting Flexibility
The solution is typically configured for matching
SWIFT MT940, MT950 or MT970 statements
against the ledger items for cash and MT608
statements for commodities.
Message Type
MT940
MT950
MT970
MT608

Description
Customer statements
Nostro statement
Netting statement
Precious Metals

If required the system can reconcile internal

ledger accounts from one or more back office

systems either directly from ledger extraction or

from statement details created by those systems.
AR can accept data in any structured electronic
format. Typical examples include LCH files, Excel
spreadsheets, CSV and proprietary files.
KEY FEATURES
Exception Processing
AR
provides
an
exception
processing
environment that monitors the following
problems:
Incomplete statement sets that have multiple
pages.
Inconsistencies between statement numbers
Inconsistencies between the opening and
closing balances on
Statements where the sum of the entries isnt
equal to the difference between the opening and
closing balances.
Unidentified statements
Specific users notified immediately of these
issues either via the e2gen user desktop or email.
Matching Rules
Matching rules are configurable by the users and
are automatically applied at either a global or
account level. Maintaining these rules ensures
consistently high levels of automatic matching
that minimises the need for manual matching
activities. The matching rules include:
Search String Matching
Date Range Matching
Date and Amount Matching

 Zero Balance Matching

Group Item Matching
Reversal Matching

All data changes are date and time stamped. All

processing events (system and user) are logged
on the audit trails and attached to each message.
GENERAL FEATURES

Referral Management
The reconciliations users have the ability to
electronically refer an item to a specific individual
or department with optional notes and an
overdue date by which the query should be
answered. Users assigned to answer referrals can
view them electronically, add additional notes,
set the query to answered and optionally refer
items to another department if they are
permitted.
Proposed Matching
This feature reduces the need for using printed
paper copies and phone calls of proposed
matched items for the reconciliations dept.
Proposed matching allows the referral user to
propose a matching scenario with other
outstanding items online to the reconciliations
dept for review and acceptance or if authorised
perform the actual matching themselves.
Automatic Referrals
The system has the ability to automatically refer
unmatched transactions based on detecting scan
strings within the statement or ledger items. This
ensures that all supporting referral users can
action their allocated entries immediately.
Compliance, User Security & Audit
User profile and static data changes are managed
under dual control. Users can be allocated to, or
prevented from handling specific functionalities
and multi-currency processes. Comprehensive
audit logs of all changes are available for the
appropriate staff. Key benefits of this feature are:
Configurable compliance & audit control
User profile management
Static data management
User limits
The matching difference limits
Un-matching
Dual control (4 eyes)
Audit & message change audit
Other benefits include: Referral authority,
External query authority, Query reassignment
authority, User notes authority, Matching
authorities, Account reconciliation authorities,
Proposed match authorities.

User Processing
Users review account positions and manage any
exceptions highlighted by the solution. Items that
could not be automatically matched by the
system are analysed and where applicable used
to augment the matching rules to achieve greater
automatic matching rates.
Some of the functionalities provided for users
are:
Exception management
Overdrawn account notifications
Account status notifications
Work panels & match difference displays
Statement host ledger item detail look up
Host ledger & message search look up
Statement item & message search look up
Advanced search facilities
Grouping of items
Referrals
Proposed match processing
SWIFT query & answer management
User notes
Paper statement input
External Queries
The ability to mark individual statement entries,
select a query template and automatically format
an external query message (via SWIFT MTn95) to
the counterparty that sent the original statement
is provided. Answers received (e.g. MTn96) are
automatically linked to the original query and an
optional notification sent to the appropriate
users.
Comprehensive reporting
AR has a number of reports that can be printed
manually or automatically as part of a normal
daily cycle.
These reports include:
Unmatched Items
Matched Items
Matched Items with Value Date Differences
Referral Report
Unsettled Items Report
Late and Non Receipts Report
Unknown Payments Report
Unsettled Items (excel export)

 Balance Control Report

Nostro Positions Report
Statistics Report
Long Form Report (Luxembourg Statutory
Reporting)
Other general features include:
Multi entity processing
Automatic statement and data file loads
Automatic reconciliation
Statement items to ledger Items reconciliation
Ledger items to statement items reconciliation
Ledger items to ledger items reconciliation
Statement items to statement items
reconciliation
Statement validation & checking
SWIFT compliant
Multiple format support
Export & import
Exception processing & notifications
Reporting & statistics