> ## Documentation Index
> Fetch the complete documentation index at: https://guide.recital.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Reconciliation

> Recital automates the end-to-end reconciliation process, ensuring finance teams can close books faster and with fewer errors.

### Why It Matters

* Manual reconciliation is slow, error-prone, and difficult to audit.
* Mismatched records (e.g., between Banks, PSPs, ERPs) create operational risk and compliance issues.
* Finance teams need automation to free time for strategic tasks.

### How It Works

<Steps>
  <Step title="Ingest">
    Recital ingests financial data through APIs, direct database connections, SFTP, flat files (CSV, Excel, XML), custom integrations with core banking systems or pre-built connectors to Banks, PSPs, Switches,ERPs to pull in financial data.
  </Step>

  <Step title="Transform">
    Recital enables data to be converted, cleaned, enriched, and restructured so that it becomes usable, consistent, standardized and reliable for applying matching, grouping, reporting and compliance. Common transformations include filtering irrelevant fields or rows, concatenating transaction/unique IDs, trimming spaces, left/right functions, and applying business rules. Transformation action can be saved as rules  for later re-use by the user or system.
  </Step>

  <Step title="Match">
    Recital empowers users to define logic for handling reconciliation between two or more data sources (e.g., Bank statements, GL, Switch, Settlement Reports) using on one or more fields, e.g., transaction amount, RRN, STAN, account number, reference number, narration, dates, or custom identifiers". This matching logic can be saved as rules for later re-use by the user or system.
  </Step>

  <Step title="Exception Handling">
    Differences outside tolerances are flagged and routed to officers for resolution.
  </Step>

  <Step title="Report">
    A clear outcome report is generated, showing reconciled, partially matched, and unmatched records.
  </Step>
</Steps>

### Example Output

| Status           | Records | Description                                            |
| :--------------- | :------ | :----------------------------------------------------- |
| **Reconciled**   | 98%     | Records matched within tolerance.                      |
| **Partial**      | 1%      | Records matched but with differences requiring review. |
| **Unreconciled** | 1%      | Exceptions flagged for investigation.                  |

<Info>
  Outcome: Faster closes, fewer exceptions, and a defensible audit trail for regulators.
</Info>