Introduction to Matching Reversal

In China banking practice, matching reversal is a special functionality done to track the outstanding balances of the designated accounts. This also helps a bank to keep track of the transactions made using these accounts. Matching reversal is the concept where a debit or credit made to a designated account is matched with its respective contra entry at a later date. For example, a tour advance given to an employee is matched with the travel expenses when bills are produced after the travel. Usually, there is a reference number generated when the initial entry is passed. This number is used to match the entries when a contra entry is made.

This module allows users to define the parameter for matching reversal accounts and also keep all the information for further enquiry. As part of this solution, the Mr Indicator field has been introduced to the CATEGORY application where the user can configure the direction of the matching reversal account at the category level. Any category configured with the Mr Indicator, and then all the internal accounts opened under this category will be considered as matching reversal accounts.

Similarly, the Mr Indicator field has been introduced in the ACCOUNT application where the user can configure the direction of the matching reversal account at the account level.

During the creation of an internal account, the system will validate whether the matching reversal indicator is defined at the category level. If not, the user will be able to define it at the account level.

• The CNREVR.ENQ.MANUAL.REVERSE enquiry allows users to view the unreconciled or no matching reversal entries for the original transaction.
• The CNREVR.MATCH.REV.LIV.REVERSED enquiry has been created to allow users to view the transaction details with the transaction reconciled as YES.
• The CNREVR.MATCH.REV.LIV.UNREV enquiry allows users to view the transaction detail with the transaction reconciled as blank.

Click here to understand the terms and abbreviations used in this module.