Formance Reconciliation continuously checks that your financial state matches the controls you define. It can compare Ledger balances with external cash, verify relationships inside a ledger, and watch account groups for unexpected balances.
When a control fails, Reconciliation preserves the numbers behind the failure, opens a stable alert, and records how your team handled it. This turns reconciliation from a one-off balance check into an operating process:
What you can control#
- External backing: confirm that cash held by a payment provider matches the corresponding Ledger position.
- Ledger integrity: prove that two or more groups of Ledger accounts remain in balance.
- Balance thresholds: detect when a treasury, suspense, reserve, or operational account group moves outside an expected range.
- Source parity: compare any two supported balance sources, including ledger-to-ledger, ledger-to-pool, and pool-to-pool checks.
Controls run on demand or on a cron schedule. Each run produces a persisted evaluation with a PASS, FAIL, or ERROR result. Failures open one alert per affected asset, so different currencies can be investigated and closed independently.
From detection to closure#
An alert remains a single operational case within its reconciliation period. Your team can acknowledge it, temporarily snooze notifications, mark it fixed after corrective bookings, or formally accept the discrepancy with an author and required note. A later passing evaluation closes it automatically.
Every evaluation and manual transition is retained in the alert timeline. This lets finance and compliance teams answer not only whether a control failed, but also when it began, what values were observed, who handled it, and why it was closed.
Reconciliation checks aggregate financial state. It does not match individual Ledger postings to individual bank or PSP statement lines.