New Enhancement to ARCS Transaction Matching module

Below are the new enhancements on Transaction Matching module of ARCS -

1. Ability to Select Unmatched Transactions from Both Sides to Create a Single Support ID

You can support unmatched transactions from both sides – i.e. debits side and credits side for single source match processes; source system and subsystem for two source match processes - with a single Support ID.

In the Unmatched Transactions tab of the Matching dialog, you simultaneously select the required transactions from both sides, and then select Support.

The Supporting Details dialog also displays transactions from both sides under the same support group.

Business Benefit:

The feature enhances the user experience by enabling users to easily view combined support information, for unmatched transactions from both sides, with a single Support ID. Grouping all related transactions under a single support ID makes tracking, review, and auditing more seamless.

2. Additional Validations for Adjustment and Support Attributes in Transaction Matching

Service Administrators can now configure additional validations when creating adjustment and support details in Transaction Matching. This ensures that the resulting adjustment data is valid and complete for downstream systems (such as a General Ledger or journal import).


In the Adjustment and Support Details tab, the new settings are as follows:

• Length – specifies the maximum length allowed for text attribute
• Allow Edit – indicates that the adjustment attribute value can be edited
• Required – indicates that it is a required adjustment attribute

When creating adjustment or support details, if the entered data does not match with the configured adjustment and support attribute validations, a message is displayed indicating the issue.

Business Benefit:

This feature enhances usability by displaying informational messages that clearly indicates the issue with the adjustment or support attributes being saved. Implementing stronger validations ensures improved data quality and compliance with target system constraints.

Thank you!

User Interface Changes in a Match Procces in ARCS Transaction Matching module

From release 25.05, in Transaction Matching module, there are some GUI related changes has been introduced. 

In TM module, below are some User Interface changes in the Match Process tab -

• Default support values for a match process is now moved to the new Support Details tab in the Match Process tab.

• The Rules tab has been renamed to Match Rules.
• When configuring manual match rules, in the Adjustment Details tab, the drop-down that contains the values Adjustment and Support is removed.

Old interface screenshot -  

    

New Interface screenshot -

Applies to:

• Account Reconciliation

Business Benefit:

This feature provides a simpler and more intuitive way to configure default values for support attributes.

Created by Mohit Jain and Megha Gupta

Match Rules for Creating Matches with Partial Text in ARCS Transaction Matching: new option of Matches with Contains Operator

From 25.05 monthly release, ARCS TM allows Match Rules for Creating Matches with Partial Text.

For text attributes, business users can now create match rules that match an attribute value with part of another attribute value. You can either match a source system attribute with part of a subsystem attribute or a subsystem attribute with part of a source system attribute.

When configuring match rules for text attributes, a new option Matches with Contains Operator is added to Match Tolerance. After selecting this option, it can be specified that which attribute value must be contained within another attribute value. 

For example, if a rule matches the POS Memo attribute from the POS source with the Memo1 attribute from the Bank source, it can be specified that the Memo1 value must contain the POS Memo value.

Applies to

• Account Reconciliation

Business Benefit: 

This feature enhances the Transaction Matching functionality by enabling users to match structured text in a source system attribute with unstructured text in a subsystem attribute or vice versa.

Created by Mohit Jain and Megha Gupta.

Introduction of new report for Cosmetic changes in Transaction Matching in ARCS

For Transaction Matching profiles that are integrated with Reconciliation Compliance, the Cosmetic Changes Report displays all cosmetic changes for a reconciliation during a specified Period. Cosmetic changes are operational changes made after a reconciliation is submitted and they do not result in the reconciliation being reopened.

What is Cosmetic and Non-Cosmetic Changes

Loading transactions into Transaction Matching may cause period-end reconciliations to be reopened. This happens automatically, without a warning message, since the importing of transactions is, typically, a scheduled job performed after business hours.

The system handles transactions differently based on how they affect the period-end reconciliation. Changes to transactions can be classified into non-cosmetic changes and Cosmetic changes.

Non-Cosmetic Cosmetic Changes to Transactions in Transaction Matching

Non-cosmetic changes automatically reopen period-end reconciliations. If the period is locked, non-cosmetic changes are not allowed.

Following is a list of non-cosmetic changes:

• Import one or more transactions whose Accounting Date is less than or equal to the Closed Through Date

• Delete one or more transactions whose Accounting Date is less than or equal to the Closed Through Date

  The deletion can be done from the Unmatched Transactions tab or by searching using the Job Id.

• Unmatch a match with an adjustment, if the Accounting Date of the adjustment is less than or equal to the Closed Through Date and the Extract Status of the adjustment is Open
• Match with Adjustment where Accounting Date of the adjustment is less than or equal to the Closed Through Date

• Delete Support from one or more transactions with Accounting Date is less than or equal to the Closed Through Date. 

  Note: Adding Support is a cosmetic change.
• Edit transaction Accounting Date or Balancing Amount when Accounting Date is less than or equal to the Closed Through Date

The Closed Through Date is defined as the period-end date for the last Preparer completed reconciliation. For example if the Preparer is working on April 2022, and the most recent previous reconciliation completed is March 2022, then the Closed Through Date is 31-March-2022 (assuming that’s the End Date of the March period).

Cosmetic Changes to Transactions in Transaction Matching

Cosmetic changes automatically update the subtotals on the period-end reconciliation. Because the reconciliation balancing (unexplained difference) is not affected, the reconciliation is not reopened.

Following is a list of cosmetic changes:

• Match Set created and all transactions have an Accounting Date that is less than or equal to the Closed Through Date

  The cosmetic effect is that the Total Unmatched and/or Unmatched Supported is reduced equally.

• Match Set is Unmatched and all transactions have an Accounting Date that is less than or equal to the Closed Through Date

  The cosmetic effect is that the Total Unmatched and/or Unmatched Supported is increased equally.

• Match Set created and some transactions have an Accounting Date that is less than or equal to the Closed Through Date, others have Accounting Date greater than the Closed Through Date

  The cosmetic effect is that, for the affected sources, the total Unmatched and/or Unmatched Supported is reduced, and Matched In-Transit is increased, equally.

• Adjustment Match Set is Unmatched and Accounting Date of Adjustment is greater than the Closed Through Date

  The cosmetic effect is that, for the affected sources, the total Matched In-Transit is reduced, and the Total Unmatched is increased equally.

• Unmatch a match with an adjustment, if the Accounting Date of the adjustment is less than or equal to the Closed Through Date and the Extract Status of the adjustment is Closed

• Support is added to Unmatched Transactions having an Accounting Date that is less than or equal to the Closed Through Date

  The cosmetic effect is that the Total Unmatched is reduced, and Total Unmatched Supported is increased equally.

 To generate the cosmetic changes report:

1. From the Home page, click Matching, and then select the reconciliation for which you want to generate the cosmetic changes report.
2. In the Balancing panel of the Overview tab, select the period for which the report must be generated.
3. Click Actions and select Cosmetic Changes Report.





4. The Information dialog is displayed containing the Job ID of this report generation job.

                                

5. Click the link in the Information dialog to display the Jobs page.

6. For Job ID, click the Succeeded link to view the generated report.

        

The file name of the generated report is in the format Cosmetic_Changes_Report_ACCOUNT_ID_<JOBID>_<YYYYMMDD_HHMMSS> <SERVICETIMEZONE>.csv.

Business Benefit: This feature enhances usability by providing a single report containing all cosmetic changes made to a particular reconciliation. Auditors can also easily view and track changes made to a reconciliation from the time it was submitted until date.

Thank you!

Transaction Matching module of ARCS: How and When can it help?

Problem Statement

What is Transaction matching, why is it required and How ARCS can help?

ARCS Functionality

Oracle ARCS is a robust and secure solution for managing and automating account reconciliation period end processes and performing large scale transaction matching; improving efficiency and accuracy of financial processes and statements. With ARCS key capabilities, you can perform tasks such as automate high volume transaction matching and directly integrate with period end reconciliations.

It is a purpose-built solution on the cloud for managing the global reconciliation process.

ARCS offers two modules- 

What is Transaction Matching

In layman terms Transaction Matching itself indicates matching of transactions between different systems.

It allows organizations to automate the preparation of high volume, labor- intensive and complex reconciliations. These reconciliations can then be integrated with the tracking features within Reconciliation Compliance.

The goal of Transaction Matching is to load transactions from one or more data sources, match the transactions using predefined rules in ARCS, identify exceptions and explain the exceptions. Typically, the frequency of preparing reconciliations in Reconciliation Compliance is lesser than or equal to the frequency at which transactions are loaded.

For example, if balances are compared and reconciliations prepared every month, then transactions can be loaded daily, weekly, or monthly.

You can also use Transaction Matching for non-balance sheet reconciliations across disparate sources, also referred to as operational reconciliations.

Examples include system to system reconciliations, inventory/stock or share settlements, expense reimbursements and so on.

Note

Transaction Matching functionality is provided with Oracle Enterprise Performance Management Enterprise Cloud Service (EPM Enterprise Cloud Service) only.

Why you need Transaction Matching in day-to-day business

When you study your total number of reconciliations, you will find that a small number of reconciliations are the reason for most of the reconciliation work in your organization. This is why Transaction Matching functionality of ARCS is a perfect complement to Reconciliation Compliance.

ARCS has the tools to make those complex reconciliations simpler and then integrate the period-end results into the Reconciliation Compliance period-end process.

Benefits of Transaction Matching

The benefits of using Transaction Matching include the following:

• Saves the additional time and labor spent on manual preparation of complex reconciliations
• Reduces risks and improves the quality of the reconciliation process
• Removes inefficiencies in the process of preparing reconciliations
• Reduces human errors and speeds up the reconciliation process
• Reduces time taken for financial close
• Improves trust and reliability while providing accurate numbers
• There is no need to make any changes in ERP system for source data extraction as it adapts existing environments
• Millions of transactions can be matched in minutes
• It offers competitive advantage as organizations can deploy resources to high value activities such as analytics

Scenarios for Which Transaction Matching is Beneficial

• Balance sheet-related reconciliations
• Suspense and Clearing Accounts
• Intercompany
• Cash
• Credit card receivables
• Detailed Subledger reconciliation
• Operational, off-balance sheet, reconciliations
• System to System reconciliations (which typically involve two third-parties whose accounts must be in sync with each other)
• Stock or share settlements
• Expense reimbursements

Transaction Matching Workflow

The workflow for using Transaction Matching includes multiple steps that must be performed for each account reconciled. The steps must be repeated each time new data becomes available.

Transactions can be imported from any source. The import process can be run on demand or scheduled to run automatically.

The Auto Match process matches transactions according to predefined rules and users need to focus only on the exceptions. Auto Match creates:

•      Confirmed Matches, where no further action is required
•      Suggested Matches, where the user can either confirm or discard the match.

Period-end reconciliation is performed at a frequency that depends on your business requirement.

Reconciliation Methods for Transaction Matching

Transaction Matching formats are based on one of the following reconciliation methods:

 Balance comparison with Transaction Matching

 This method is used to compare balances and match transactions between two distinct sources, such as source systems and subsystems.

        For example-

• Match point of sale system vs a merchant transaction system, or
• Match the transactions between accounts payable and journal entries within the general ledger.

 Account analysis with Transaction Matching

This method is used to match transactions within a single data source.

For example-

Debit and credit matching. The most common use case is if you are netting off transactions within a single data source to determine the net balance for an account, such as a clearing account.

Transaction matching only

This method is used primarily to match transactions between two systems, without a period-end reconciliation.

Thank you!