ATM Reconciliation in Financial Institutions
Reconciliation & Settlement
Wildan Zulmaniar · Sep 5, 2024

ATM Reconciliation in Financial Institutions

Reconciliation is the process of checking financial records on various sides of the multi-record transaction recorder, the minimum records being compared are two transactions. Reconciliation is also carried out to check that the general ledger is consistent with the number of transactions carried out. One example we will give is ATM reconciliation.

Stages of Reconciliation.

Reconciliation is usually carried out in two stages, namely transaction-to-transaction reconciliation and general ledger reconciliation. Transaction-to-transaction reconciliation will prove that every transaction recorded in the system is consistently recorded at the same time, amount and account reference. Meanwhile, general ledger reconciliation will see that the number of transactions that are stated to be suitable and consistent in transaction-to-transaction has the same amount as the recording that occurred in the general ledger. 

ATM reconciliation (Case example).

We will use ATM reconciliation as an example of reconciliation in the banking sector. In ATM reconciliation, transaction-to-transaction reconciliation is a comparison of transactions that occurred and were recorded on the machine as well as in core banking. Meanwhile, general ledger reconciliation is recording the amount of money that leaves consumer banking accounts and enters ATM holding accounts. 

What are the Benefits of Reconciliation?

Account Reconciliation  is particularly useful for detecting differences between two financial accounts or total account balances. Differences may occur due to differences in payment or deposit times. However, apart from there being no difference in payment times, there is a possibility that this difference occurs due to fraudulent activity. 

Who Needs to Perform ATM Reconciliation?

The most common parties who carry out reconciliations are financial institutions, which need to prove whether money goes out or comes in from and into the company.

Have All Financial Institutions Reconciled?

Despite the importance of reconciliation, unfortunately there are still financial institutions that have not carried out reconciliation. However, this will change in the future due to regulations that will be issued by the OJK (Financial Services Authority)

How Can We Help?

We are a technology consultant who also provides account reconciliation, the basis for creating our solutions does not only focus on the technology side. But also from the human and process side. 

Source:

Investopedia

Wikipedia

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