Overview
The Ignore Discrepancy feature within Intercompany Reconciliation allows users to formally acknowledge and manage unresolved differences identified during the reconciliation process without creating adjustment entries in the underlying accounting system.
This feature is designed for situations where a discrepancy has been reviewed and determined to be acceptable, immaterial, or expected, while still maintaining full visibility, audit traceability, and documented user justification.
Importantly, Ignore Discrepancy does not resolve or remove the variance itself. Instead, it records that the discrepancy has been intentionally reviewed and accepted within the reconciliation workflow.
Fundamental Context
During intercompany reconciliation, differences may arise between counterparties for several reasons, including:
FX-related rounding differences
Timing differences between entities
Minor value discrepancies
Differences caused by exchange rate application
Small immaterial variances identified during review
In some cases, finance teams may decide that posting an adjustment entry in the underlying accounting system is unnecessary.
The Ignore Discrepancy feature allows users to retain visibility of the variance while formally documenting the decision not to post an adjustment.
This supports a controlled workflow that balances operational flexibility with audit transparency.
Example Scenario
A FROM company reports an intercompany balance of GBP 1,500.
The corresponding TO company reports GBP 1,550.
This results in a discrepancy of GBP 50 between the matched transactions.
After review, the user determines that the difference is immaterial and does not require an accounting adjustment in the source system.
The transactions are reconciled operationally, and the remaining variance is then managed within the overview process.
Accessing Intercompany Reconciliation
Navigate to:
Intercompany Reconciliation > Continue Reconciliation
Then:
Open the relevant reconciliation workflow
Select the reporting period associated with the transactions being reviewed
Open the reconciliation pair containing the discrepancy
Reviewing the Discrepancy
Within the reconciliation screen, users can review:
Transactions from both counterparties
Reported balances between entities
Outstanding differences between matched items
Reconciliation status indicators
Remaining variance amounts after matching
The workflow highlights where transactions do not fully balance between entities.
Reconciling Transactions with a Difference
To reconcile transactions:
Select the related transactions from both entities
Click Reconcile
Click Skip Adjustment & Reconcile if a remaining difference exists
Enter a reason for skipping the adjustment and save
The system will complete the reconciliation without posting an adjustment entry to the underlying accounting system.
If a variance remains, it will be carried forward and displayed in the Overview screen.
Using Ignore Discrepancy
Once the reconciliation has been completed:
Navigate to the Overview screen
Locate the reconciliation pair showing the remaining variance
Click Ignore Discrepancy
When Ignore Discrepancy is applied:
The variance is formally marked as intentionally ignored
The discrepancy is visually indicated using a strikethrough indicator
The reconciliation remains fully visible within the platform
The variance remains available for audit and review purposes
No additional adjustment entry is posted to the accounting system
The justification entered during Skip Adjustment & Reconcile is retained as part of the reconciliation history, ensuring full traceability of the decision.
Audit Visibility
The reconciliation history preserves:
Original transaction values
Remaining variance amounts
Reconciliation outcomes
User-provided justification entered during Skip Adjustment & Reconcile
Historical visibility of ignored discrepancies across reporting periods
This ensures all ignored discrepancies remain fully traceable and reviewable for audit and analysis purposes.
Overview Visibility
After a discrepancy has been ignored, the Overview screen continues to display the variance associated with the reconciliation pair.
The ignored discrepancy is clearly identified using a strikethrough indicator, distinguishing it from active unresolved variances.
This provides ongoing clarity that:
A discrepancy existed
It was reviewed during reconciliation
It was intentionally accepted rather than adjusted
Carry Forward Behaviour
The carry-forward behaviour of ignored discrepancies depends on the account type:
Profit & Loss Accounts
Ignored discrepancies generally do not carry forward into future reconciliation periods.
Balance Sheet Accounts
Ignored discrepancies may continue appearing in future periods because closing balances are sourced directly from the underlying accounting system.
This ensures consistency between accounting records and GATHER.nexus reporting outputs.
Variance Analysis
The purpose of the Ignore Discrepancy feature is to:
Allow reconciliation to proceed where variances are considered acceptable
Avoid unnecessary adjustment postings for immaterial differences
Preserve visibility of unresolved variances
Maintain documented user justification
Support transparent reconciliation governance across entities
Summary
The Ignore Discrepancy feature within Intercompany Reconciliation allows users to formally acknowledge and manage minor unresolved variances after completing reconciliation using Skip Adjustment & Reconcile, without posting adjustment entries to the underlying accounting system.
The workflow ensures audit visibility, preserves user justification, and clearly distinguishes ignored discrepancies from fully resolved reconciliations.
This enables flexible reconciliation management while maintaining transparency, traceability, and financial control across intercompany processes.
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