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Daily Reconciliation

Overview​

Daily reconciliation is a critical process that ensures the accuracy and consistency of financial transactions between Membership Organizations (MOs) and the Moneta Network. This document outlines the reconciliation process, implementation details, and best practices.

Reconciliation Process​

Process Flow​

Data Sources​

1. MO Transaction Data​

interface MOTransactionData {
  date: Date;
  transactions: {
    id: string;
    type: TransactionType;
    amount: number;
    currency: string;
    status: string;
    timestamp: Date;
    reference: string;
  }[];
  totals: {
    credit: number;
    debit: number;
    fees: number;
  };
}

2. Network Data​

interface NetworkTransactionData {
  periodStart: Date;
  periodEnd: Date;
  transactions: {
    networkId: string;
    moTransactionId: string;
    amount: number;
    type: string;
    status: string;
    timestamp: Date;
  }[];
  summary: {
    totalTransactions: number;
    totalAmount: number;
    successCount: number;
    failureCount: number;
  };
}

3. Bank Statement Data​

interface BankStatementEntry {
  date: Date;
  reference: string;
  debit: number;
  credit: number;
  balance: number;
  description: string;
}

Reconciliation Rules​

1. Transaction Matching​

interface MatchingRules {
  // Match by unique reference
  referenceMatch: boolean;
  
  // Match by amount and timestamp
  amountMatch: boolean;
  timestampTolerance: number; // seconds
  
  // Match by transaction type
  typeMatch: boolean;
}

function matchTransactions(
  moTx: MOTransaction,
  networkTx: NetworkTransaction,
  rules: MatchingRules
): boolean {
  if (rules.referenceMatch && moTx.reference !== networkTx.moTransactionId) {
    return false;
  }
  
  if (rules.amountMatch && moTx.amount !== networkTx.amount) {
    return false;
  }
  
  if (rules.timestampMatch) {
    const timeDiff = Math.abs(moTx.timestamp - networkTx.timestamp);
    if (timeDiff > rules.timestampTolerance) {
      return false;
    }
  }
  
  return true;
}

Discrepancy Handling​

1. Types of Discrepancies​

enum DiscrepancyType {
  AMOUNT_MISMATCH = 'AMOUNT_MISMATCH',
  MISSING_TRANSACTION = 'MISSING_TRANSACTION',
  DUPLICATE_TRANSACTION = 'DUPLICATE_TRANSACTION',
  STATUS_MISMATCH = 'STATUS_MISMATCH',
  TIMING_MISMATCH = 'TIMING_MISMATCH'
}

interface Discrepancy {
  type: DiscrepancyType;
  moTransaction?: MOTransaction;
  networkTransaction?: NetworkTransaction;
  bankEntry?: BankStatementEntry;
  difference?: number;
  description: string;
}

2. Resolution Process​

async function handleDiscrepancy(discrepancy: Discrepancy): Promise<void> {
  // 1. Log discrepancy
  await logDiscrepancy(discrepancy);
  
  // 2. Determine resolution action
  const action = await determineResolutionAction(discrepancy);
  
  // 3. Execute resolution
  switch (action.type) {
    case 'AUTO_ADJUST':
      await createAdjustmentEntry(action.details);
      break;
    
    case 'MANUAL_REVIEW':
      await createManualReviewTask(discrepancy);
      break;
    
    case 'DISPUTE':
      await initiateDispute(discrepancy);
      break;
  }
  
  // 4. Notify relevant parties
  await notifyParties(discrepancy, action);
}

Reporting​

1. Daily Reconciliation Report​

interface ReconciliationReport {
  date: Date;
  status: 'MATCHED' | 'DISCREPANCY' | 'ERROR';
  summary: {
    totalTransactions: number;
    matchedTransactions: number;
    unmatchedTransactions: number;
    totalDiscrepancies: number;
  };
  discrepancies: Discrepancy[];
  resolutionStatus: {
    autoResolved: number;
    pendingManual: number;
    escalated: number;
  };
}

2. Audit Trail​

interface ReconciliationAudit {
  reconciliationId: string;
  timestamp: Date;
  action: string;
  user?: string;
  systemAction?: string;
  details: any;
  status: string;
}

Best Practices​

1. Timing​

  • Run reconciliation after daily cutoff
  • Process in smaller batches for large volumes
  • Maintain consistent timezone handling

2. Data Integrity​

  • Validate data before comparison
  • Maintain audit trails
  • Archive reconciliation records

3. Error Handling​

  • Implement retry mechanisms
  • Log all discrepancies
  • Escalate unresolved issues

Monitoring and Alerts​

1. Key Metrics​

interface ReconciliationMetrics {
  processStartTime: Date;
  processEndTime: Date;
  processingDuration: number;
  transactionCount: number;
  matchRate: number;
  discrepancyRate: number;
  resolutionRate: number;
}

2. Alert Conditions​

const alertConditions = {
  highDiscrepancyRate: 0.05, // 5%
  processingDelay: 3600, // 1 hour
  matchRateThreshold: 0.98, // 98%
  consecutiveFailures: 3
};