Reconciling Dealer Accounts
Purpose
Dealer Accounts record
transactional activity generated from other Vault modules. These transactions result in balances that
are normally paid out to dealer/broker creditors, or in some rare cases is
recovered from them.
At
the end of the month, if the Dealer
payout processes are run on time, each Dealer Account should have a zero
balance.
Timing
Can
be done daily, but should always be done before the Month End Rollover
Access
- Dealer | Access Dealer Accounts |
the dealer account
|
Process
Offsetting
transactions should be grouped to
ensure all transactions have been correctly processed. If the offsetting transactions result in a
zero balance, then that “event” can be considered reconciled.
Examples:
Settlement
of loan and lease accounts. These will
result in credit transactions being posted to the associated Dealer Account. The net liability resulting from each settled
account will then be offset by the payout transaction raised to pay for the
security or advanced to the borrower.
Brokerage
is posted to Dealer (Broker) Accounts.
These amounts will then be paid out to a broker or head office. In each
case, the reconciliation process is to 
the related entries and 
. In order for the entries to be
grouped, they must total zero.
A Dealer
Account is considered reconciled once all transactions are grouped and the
current ledger balance is zero.
At
month end a Dealer Account may have a balance.
This could be due to a timing difference between a loan/lease being
settled and the payment made to the creditor.
This is acceptable as long as the reason for the balance is known.
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