All articles with 'reconcile' Tag
Here is a tricky problem often faced by accountants and finance professionals: Let’s say you have 5 customers. Each of them need to pay you some money. Instead of paying the total amount in one go, they paid you in 30 small transactions. The total amount of these transactions matches how much they need to pay you. But you don’t know which customer paid which amounts. How would you reconcile the books?
If you match the transactions manually, it can take an eternity – after all there are more than 931 zillion combinations (5^30).
This is where solver can be handy. Solver can find optimal solution for problems like this before you finish your first cup of coffee.Continue »
Last week, we learned how to use formulas to reconcile (match) transactions in Excel. Today, lets take a look at even faster and simpler way to do this:
Using Pivot Tables
Here is a short video explaining the technique and why it works. See it belowContinue »
Imagine you are the head of Accounts Receivable department at a large company. Drab, I know, But humor me and imagine.
Now, every month you get a transaction report.
And you want to know which numbers are matching up.
i.e, if your company gave Vendor-0002 $872.34 on 1st of April, 2014 and your received below payments from them subsequently,
- $427.77 on 1st April
- $152.88 on 2nd April
- $291.69 on 2nd April
Then you consider the account matched since the total received is same as total payable.(427.77 + 152.88 + 291.69 = 872.34).Continue »