What is General Ledger Reconciliation?
General ledger reconciliation is the process of verifying that balances in the general ledger are accurate, complete, and supported by underlying data or documentation. It involves comparing GL account balances to supporting records such as subledgers, bank statements, or schedules and identifying and resolving any differences.
This process is typically performed as part of the month-end close to ensure financial statements are reliable and compliant. Each account is reviewed, reconciling items are investigated, and the final balance is approved and documented.
For SAP finance teams, general ledger reconciliation is more effective when it is managed within the system rather than through spreadsheets or offline processes. Keeping reconciliations, approvals, and supporting evidence in one place improves visibility, strengthens controls, and creates a clear audit trail. Solutions that operate directly inside SAP can help standardise the process, track progress, and ensure reconciliations are consistently completed and properly reviewed.
General ledger reconciliation helps organisations maintain accurate financial records, reduce risk, and support audit and compliance requirements.