# Fa Gl Recon > Reconcile a fund general-ledger account to its supporting subledger or source — investments, cash, income, expense, or capital — prove the bridge, and clear differences before the NAV is struck. - Skill: `matrixx0070/fa-gl-recon` (Agent Skill) - Install (CLI): `npx skillmds add matrixx0070/fa-gl-recon` - Raw SKILL.md: https://api.skillmd.com/api/skills/matrixx0070/fa-gl-recon/raw - Safety review: pending (external: skill-scanner PASS, skillspector PASS) - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: Matrixx0070 (https://skillmd.com/u/matrixx0070) - Updated: 2026-08-19 - Page: https://skillmd.com/skills/matrixx0070/fa-gl-recon --- # GL Reconciliation ## When to use Use this to reconcile a fund GL account to its supporting record — investment subledger (lots), cash to custodian/bank, income to the earnings schedule, expense to the accrual schedule, or capital to the investor register — as part of striking or reviewing a NAV. This proves that the trial balance the NAV is built on actually agrees to the underlying detail. **Not for:** drilling a single stubborn difference to the offending transaction (use fa-break-trace) or tying the finished NAV package together across all accounts (fa-nav-tieout). This proves *one GL account agrees to its source*. ## Method 1. **Define the reconciliation.** Name the GL account and number, the supporting source, the as-of valuation date, and both balances (GL and source). 2. **Confirm the comparison basis.** Trade date vs settlement date, base vs local currency, market value vs cost — both sides must be on the same footing before you subtract. 3. **Compute the raw difference.** GL − source. Decision point: if zero and both are complete, note it and sign off — no items needed. 4. **Identify reconciling items** by category: timing (unsettled trades, in-transit cash), accruals not yet posted, corporate actions, FX, valuation/pricing, and errors or omissions. 5. **Quantify and categorize each item** — amount, side it adjusts, category, root cause. For anything you can't name in one line, hand it to fa-break-trace. 6. **Prove the bridge.** Adjusted GL (± its items) must equal adjusted source (± its items). Decision point: if it doesn't tie, you are missing an item — never sign off on an unnamed residual. 7. **Resolve and sign off.** Propose the correcting entry per item, flag aged items, and state reconciled / not reconciled with any residual. Preparer and reviewer must differ. ## Example Investments at market, account 1200, 6/30. GL $250.0M; investment subledger (sum of lots at market) $250.4M; raw diff −$0.4M. Items: (a) a buy of $0.5M traded 6/30 but not yet in the subledger feed (+0.5M to source pending, or −0.5M timing on GL depending on which lags) → confirmed the subledger missed a same-day trade; (b) an unapplied stock dividend +$0.1M on the book. Bridge: adjusted GL 250.0 + 0.5 = 250.5; adjusted subledger 250.4 + 0.1 = 250.5 — ties at $250.5M. Correcting: load the trade into the subledger, apply the dividend on the book. Reconciled, $0 residual. ## Pitfalls - **Signing off on an unexplained residual.** "Reconciled except $40k" is not reconciled — an unnamed gap is a potential error, mispricing, or fraud. - **Reconciling to an incomplete source.** A custodian feed that dropped the last trades of the day understates the source; confirm the feed is complete and current before you rely on it. - **Basis mismatch masquerading as a break.** A difference equal to unsettled trades (TD vs SD) or accrued interest (clean vs dirty) is a convention issue — normalize, don't book. - **Reconciling only the point balance.** For roll-forward accounts (capital, accruals, FA) tie the *movement*, not just the ending balance — an offsetting error in additions and reductions leaves the endpoint right and the account wrong. - **Letting the same item age every month.** A reconciling item that reappears is a process defect, not timing; fix the source, don't re-explain it. ## Output format ``` Account: | Source: | As-of: Basis check: TD/SD | ccy | MV/cost Balances: GL <$> | source <$> | raw diff <$> Reconciling items: | item | amount | side (GL/source ±) | category | root cause | action | Bridge: adjusted GL <$> = adjusted source <$> [pass/fail] Correcting entries proposed: <...> Aged / unexplained flags: <...> Conclusion: reconciled / not | residual: <$> | preparer / reviewer: ``` ## Reference ### The fund trial balance and what backs each account The NAV is built on a trial balance; every material account must tie to an independent source: | GL account | Supporting source | Typical reconciling items | |---|---|---| | Investments (cost & market) | Investment subledger (lot records) | Unsettled trades, corporate actions, pricing | | Cash | Custodian / bank statement | Outstanding wires, fees, FX, in-transit | | Interest / dividend income | Income accrual schedule | Accrual timing, ex-date, withholding tax | | Accrued expenses | Accrual schedules | Unposted accrual, true-up, invoice timing | | Unrealized/realized gain | Investment subledger | Pricing, FX, cost-basis method | | Capital / partners' capital | Investor register / TA | Pending subs/reds, equalization, carry | | Receivables/payables (unsettled) | Trade blotter | TD/SD timing | ### The two-column bridge Adjust each side for what the *other* side already reflects, then both must equal the true balance: `Adjusted GL = GL ± GL-side items` and `Adjusted source = source ± source-side items`; the two must be identical. Only items that represent a genuine book error or omission generate a journal entry — timing items self-clear and are monitored, not booked. ### Diagnostic shortcuts - Difference divisible by **9** → transposition (e.g., 5,400 vs 4,500 = 900). - Difference exactly **2×** a known item → sign flip (added what should be subtracted). - Round, whole-position difference → missing or duplicated transaction. - Difference that scales with a currency's holdings → FX rate or FX date. - Difference equal to a security's accrued interest → clean-vs-dirty convention. ### Roll-forward reconciliations For balance-sheet accounts that move (capital, accruals, prepaids, FA, allowance): `beginning + additions − reductions ± adjustments = ending`, and ending must equal the GL. Auditors test the *movement*; a point-balance tie can hide compensating errors in the flows. ### Rigor by account risk and sign-off standard Match effort to risk: high-value/high-volume accounts (investments, cash, capital) get line-level recs with independent review each period; stable low-risk accounts can use analytic (reasonableness) review at lower frequency. "Reconciled" means residual = $0 **or** every residual dollar is a named, categorized, aged item with an owner and a clear date. Segregation of duties is mandatory: the preparer and the approver must be different people, and the review must be evidenced (who, when) for audit.