Reconciliation is a process whereby you compare two sets of records to check that they are the same. This is usually done to check that an account is in balance. In Excel, you can set up a reconciliation format for a party ledger by following a few simple steps. In this article, I will show you how to create a party ledger reconciliation format in Excel with some easy steps. So, without having any further discussion, let’s dive straight into it.
What Is Party Ledger Reconciliation?
In accounting, Party Ledger Reconciliation is the process of comparing the balances in an organization’s ledgers with the balances in the corresponding ledgers of its counterparties. The reconciliation is done to ensure that the two sets of ledgers are in agreement.
The reconciliation process begins with each party sending a statement of its ledger balances to the other party. The parties then compare their statements and identify any differences. These differences are then reconciled.
There are several reasons why Party Ledger Reconciliation is important.
- First, it helps to ensure the accuracy of the ledgers.
- Second, it helps to prevent fraud and errors.
- Third, it helps to identify discrepancies between the two sets of ledgers.
- Finally, it helps to improve communication between the parties.
Party Ledger Reconciliation is an important part of the accounting process. It helps to ensure the accuracy of the ledgers and to prevent fraud and errors.
How to Create a Party Ledger Reconciliation Format in Excel: Easy Steps
I have six vendor ledgers like the picture attached below. I will use those ledgers to create a Party Ledger Reconciliation format in Excel. If you don’t know how to create a vendor ledger in Excel, click here to read how to create a vendor ledger in Excel.
Step-1: Create a Party Ledger Blank Table
The first step to creating a Party Ledger Reconciliation format in Excel is to create a blank table of party ledgers.
The party ledger is nothing but the hyperlink of all the customer ledgers. In a party ledger, you will have some basic information about the customers and their complete vendor ledger links.
In this particular case, I created a blank table of party ledgers with 5 relevant columns.
Those columns are,
- Customer Name
- Email ID
- Go To Account
You can add more columns to your party ledger based on your requirement.
Step-2: Insert Customer Information into Party Ledger
After creating the blank table for a party ledger, you need to insert the customer information into the party ledger.
I’ve inserted the customer information from the 6 vendor ledgers into the party ledger.
You will insert as much information regarding customers as needed.
Step-3: Add Seed Links to Party Ledger
When the customer information insertion is completed, it’s time to add the seed ledger links to the party ledger.
- To create a hyperlink, I’ve created a column called Go To Account.
- Then I inserted the anchor text “Click Here” for each of the customer names. You can use any anchor text here.
- Now select the first anchor text in cell F5.
- Then go to the Insert tab.
- In the Links group, click on the Link command.
After hitting the Link command, the Insert Hyperlink dialog box will appear.
- Select the ‘Place in This Document’ option from the left-most column of the Insert Hyperlink dialog box.
- Then choose the corresponding sheet name against the customer name.
For this instance, the customer’s name is Ramonda Oldknowe. So, I’ve selected the corresponding sheet name called Ramonda Oldknowe.
- After that, hit the OK button.
So, the first hyperlink will be created with the anchor text “Click Here”.
If you click on this link, Excel will take you to the sheet called Ramonda Oldknowe. There you will find a vendor ledger in the name of the customer Ramonda Oldknowe.
Anyways, follow the same steps above to add the hyperlinks for the rest of the customers.
After adding all the hyperlinks, your party ledger will look like the following picture.
So, this is how you can create a Party Ledger Reconciliation format in Excel.
Now you can use this party ledger to easily traverse the accounts with a couple of clicks and compare the account between various customer ledgers.
You will get an Excel sheet like the following screenshot, at the end of the provided Excel file where you can practice all the topics discussed in this article.
Download Practice Workbook
You can download the Excel file from the following link and practice along with it.
To sum up, we have discussed steps to create a Party Ledger Reconciliation format in Excel. Please don’t hesitate to ask any questions in the comment section below. We will try to respond to all the relevant queries asap. And please visit our website Exceldemy to explore more.