How to use the Daily Reconciliation v2

How to Complete Your Daily Reconciliation

Overview

Daily reconciliation confirms your organisation's financial position at the end of each business day. You verify that Kooltra's records match your actual bank account balances, account for any outstanding items through adjustments, and produce a summary report for management.

Run this process each morning for the previous business day, after the end-of-day (EOD) process has completed.

Before You Start

• The EOD process must have run for the date you are reconciling. Check with your Kooltra administrator if a date is missing from the list.
• You need back-office access to Finance > Daily Reconciliation.
• Have your bank account statements available for the date you are reconciling.

Step 1: Open the Day's Reconciliation

1. In the Kooltra navigation, go to Finance > Daily Reconciliation.
2. The Daily Reconciliation Overview lists all available dates. Use the Date From and Date To filters to locate the date you need.
3. Check the Reconciliation Status column. Dates showing Open have not been completed.
4. If the Alerts column shows a red icon for a date, that date has unresolved alerts — you will address these in Step 2.
5. Click the date you want to reconcile.

The reconciliation opens to the Alerts tab by default.

Step 2: Review Alerts

The Alerts tab shows items that Kooltra has flagged for your attention — back-valued cashflows, adjustments posted without a subtype, or other data quality issues. Review and action every alert before proceeding. You do not need to resolve every alert, but you must make a deliberate decision on each one.

1. Review the list of alerts. Each row shows the Cashflow ID, Type, Subtype, Alert Date, Currency, Amount, Reason, and a suggested Remediation action.
2. Click a Cashflow ID link to open the cashflow record in a new window and review it.
3. For each alert, follow the remediation action (for example, corrected a cashflow or created an offsetting adjustment) and then take one of the following actions:
   • Click Resolve if the issue has been addressed. 
   • Click Ignore if the alert does not require action today and can be deliberately dismissed. Both actions are recorded in the audit trail.
4. Use the Status filter to toggle between Unresolved and all alerts.
5. Continue once every alert has been either resolved or ignored.

If you have no alerts, this tab will be empty. Proceed to Step 3.

Step 3: Reconcile Nostro Accounts

The Nostros tab compares Kooltra's end-of-day snapshot balances against your actual bank account balances. The goal is to bring the Difference column to zero for each account.

The Opening Balance is the closing balance carried forward from the previous day's reconciliation. The Snapshot EOD Balance is Kooltra's calculated position as of last night's EOD run.

1. Click the Nostros tab.
2. Review the list of nostro accounts. Each row shows the Snapshot EOD Balance (Kooltra's record), Opening Balance, Reconciled DR, Reconciled CR, Reconciled EOD Balance, Difference, Current EOD Balance, and Status.
3. For each account, compare the Snapshot EOD Balance against your bank statement.
4. If the balances match, the Difference will be 0.00 and the Status will show Reconciled — no action needed.
5. If the balances do not match, check the Alerts tab for any back-valued cashflows or timing items affecting that account. Back-valued cashflows (transactions posted for a past date) and same-day settlement timing are common causes of nostro differences. Reconciling the debits and credits from the prior day should be performed if you are unable to identify the issue from the alerts. If you cannot identify the cause, note the account and amount and raise it with your Kooltra administrator before completing the reconciliation.
6. Use the Hide Inactive toggle to filter out accounts with no activity, reducing visual noise.
7. Click Refresh to reload the nostro data if you have made changes elsewhere in Kooltra and want to see them reflected here.
8. Once you are satisfied that all nostro accounts are reviewed, click Complete Nostro Reconciliation.
9. A confirmation modal will appear: "Please confirm you would like to complete the Nostro Reconciliation." Click Complete Reconciliation to confirm.

You can complete the nostro step even if not all accounts show Reconciled status. Note any outstanding accounts so you can follow up.

Step 4: Check the Cash Reconciliation

The Cash Reconciliation tab shows your net cash position by currency. The objective is for the Reconcile row to equal 0.00 for every currency.

1. Click the Cash Reconciliation tab.
2. Review the top section — it shows Nostro Accounts, Vostro Accounts, Internal Accounts, Net Cash, Previous Net Cash, and Cash Change for each active currency.
3. Review the Line Items section below — this breaks down P&L components (maturing trades, client spread, internal trades) that explain the change in cash position.
4. Check the Reconcile row at the bottom. This is the unexplained difference between the cash change and the sum of line items.
   • If Reconcile = 0.00: the day reconciles cleanly. Proceed to Step 6.
   • If Reconcile ≠ 0.00: you may need to post an adjustment to account for the difference or missed an alert. Proceed to Step 5.
5. Use the Hide Inactive toggle to filter out currencies with no activity.

Step 5: Post Reconciliation Adjustments (if needed)

Use this step only if the Reconcile row on the Cash Reconciliation tab is non-zero.

1. Click the Reconciliation Adjustments tab.
2. Click Add Adjustment.
3. Complete the adjustment form:
   • Currency — select the currency with the unreconciled balance
   • Amount — enter the amount needed to bring Reconcile to zero. If the Reconcile row shows a positive number, enter a negative amount. If it shows a negative number, enter a positive amount.
   • Subtype — select the subtype that best describes the nature of the adjustment. Subtypes are configured for your organisation per cashflow type — the options available will depend on your entity settings. For example, a Vostro Debit adjustment might offer subtypes such as "Bank Fee", "Interest Payment", or "Return of Funds". If the correct subtype is not available, contact your Kooltra administrator to have it added.
   • Comment — describe the reason for the adjustment (required for audit purposes; be specific)
4. Save the adjustment.
5. Return to the Cash Reconciliation tab and confirm the Reconcile row has moved to 0.00 for the affected currency.
6. Repeat for any other currencies with non-zero Reconcile balances.

Each adjustment is recorded with a Reference Cashflow ID, amount, accounting rate, base currency amount, subtype, and comment. These appear in the AllAdjustments.csv and AllAdjustmentsV2.csv files on the Files tab.

Step 6: Review Translation G&L

The Translation G&L tab converts your individual currency positions into your entity's base currency using accounting rates. Applying updated rates locks in the translation gain or loss for the period since the last rate update.

Rates are applied using the Global Finance Settings page in Kooltra for those permissioned. How often you update rates depends on your organisation's practice:

• Daily: Update and apply rates each day to realise translation G&L on a daily basis.
• Weekly or periodic: Update rates at your chosen frequency. The Translation G&L accumulates in Additional Translation G&L until you apply it.

Follow your organisation's standard for rate update frequency. If you are unsure, check with your manager before applying rates.

1. Click the Translation G&L tab.
2. The table shows each currency with its Current Rate, Equity in that currency, Current Equity in base currency, Updated Rate, Adjusted Equity, and Translation G&L.
3. Review the Translation G&L Summary panel on the right:
   • Old Equity — base currency equity before any rate changes
   • Translation G&L — gain or loss locked in from the last rate update
   • Additional Translation G&L — unrealised gain or loss from rate movements since the last update
   • New Equity — resulting equity if you apply today's rates
4. If you are updating rates today, enter the new rate for each currency in the Updated Rate column. The system recalculates Adjusted Equity and Translation G&L immediately as you type.
5. Click Apply Translation G&L to lock in the rates and realise the translation gain or loss.

If your organisation is not updating rates today, no action is needed. The Additional Translation G&L figure will continue to accumulate until the next rate update.

Step 7: Review and Send the Results Report

The Results tab shows your complete equity position in base currency, broken down for management reporting. Send this report to your finance and management team as part of your daily close process.

1. Click the Results tab.
2. Review the Cash vs. Line Items section on the left:
   • Confirms Nostros, Vostros, and Internal Accounts balances in base currency
   • Shows Today's Equity, Yesterday's Equity, and the Change
3. Review the Equity section on the right:
   • Assets broken down by nostro group (Bank Accounts, Liquidity Providers, and any other configured groups)
   • Liabilities broken down by counterparty account group
   • Internal accounts shown separately
   • Cash Equity total
   • Unrealized P&L broken down by group
4. Cross-check the figures against what you reviewed in the previous tabs:
   • The Nostros total in the Equity section should match the sum of your nostro account balances from the Nostros tab.
   • Today's Equity in the Cash vs. Line Items section should equal Cash Equity in the Equity section.
   • If either figure is inconsistent, do not send the report — return to the relevant tab to investigate before proceeding.
5. To distribute the report: a. Click the dropdown arrow next to Send Report. b. Select the recipients from the predefined list. Recipients are configured by your Kooltra administrator — if someone is missing from the list, contact your administrator to have them added. c. Click Send Report.

Step 8: Complete the Reconciliation

Once all tabs have been reviewed and you are satisfied the day is balanced, mark the reconciliation as complete.

Note: Once a reconciliation is complete, cashflows valued for that reconciliation's date and prior can no longer be posted into Kooltra.

1. Click Complete Reconciliation in the top right corner.

2. A confirmation modal will appear with the following notice:

   "Please confirm you would like to complete the daily reconciliation. Once complete, this reconciliation and any preceding "Open" reconciliations will be marked as complete.

   In addition, any open nostro reconciliations will be manually completed and you will no longer be able to make retroactive adjustments or update historical rates."

3. Review the notice carefully — completing this reconciliation will also mark all earlier open reconciliations as complete. If you have open reconciliations from previous days that still need review, complete those first.

4. Click Complete to confirm.

5. The reconciliation status changes from Open to Completed.

6. The Completed By and Completed Time fields are populated on the Daily Reconciliation Overview.

If Late Transactions Arrive After EOD

If a transaction is entered or modified for a date whose reconciliation is still Open, use Re-sync Reconciliation to regenerate the record before completing it.

1. Open the reconciliation for the affected date (it must still show Open status).
2. Click Re-sync Reconciliation in the top right corner.
3. Kooltra regenerates that reconciliation and all subsequent open reconciliations to incorporate the late transaction.
4. Review the updated figures and complete the reconciliation as normal.

Re-sync is only available on Open reconciliations. Once a reconciliation has been marked Completed, it cannot be re-synced — no retroactive adjustments or historical rate updates can be made.

Downloading Reconciliation Files

The Files tab contains all data files generated at EOD. Download these for audit tie-outs, external reporting, or investigation.

1. Click the Files tab.
2. Click any file name to download it.

Related Articles

• How to Post Manual Adjustments
• Understanding Nostros and Vostros
• Understanding Daily Reconciliation Files