Overview

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Welcome to HWM Technologies CC RecIT! which is designed specifically for use within the
Sage ACCPAC version 5.5/ 6 accounting system.
Why RecIT!
One of the most important tasks in the modem accounting process is the preparation of periodic
financial statements. These financial statements are subject to audits and review by management as
well as compulsory statutory audits for certain entity types, which both require an explanation of any
out of balance conditions for any accounts between the General Ledger and the relevant associated
sub-ledger/s (Accounts Payable (Creditors/ Vendors), Accounts Receivable (Debtors) and (Inventory
Control (Stock)) and the specific entries that caused the out of balance conditions to occur.
In order to reconcile or explain the reasons for the two ledgers been out of balance the specific entries
that were not balanced firstly needs to be identified. The determination of the specific entries that are
causing the out of balance situations to prevail in Sage ACCPAC currently requires manual processes
to be undertaken. Specifically, the users of the Sage ACCPAC accounting system have to manually go
through each entry and determine whether it is in agreement with a corresponding entry between the
two ledgers concerned. This arduous, time-consuming process and extremely expensive exercise
(downtime and / or added resources) does not provide any further information as to the reasons why
the relevant ledger entries are not balanced, but only identifies the entries that are not balanced if done
so effectively and successfully. At most times when ACCPAC users are unable to successfully
accomplish such a process, the task is then outsourced to an ACCPAC “specialist” who would then
commence with the very same procedure as the ACCPAC user has done. This manual process is the
only method of reconciliation, verification and validation currently available.
RecIT! albeit an automated product specific (Sage ACCPAC ERP) and process specific Financial
Management tool, can be used extensively for accounting and database verification processes
concerning anomalies found therein. These accounting anomalies, in particular, which give rise to a
need for an analytical reconciliation process to be undertaken, are inter alia:
1. Amounts between 2 reports areas (e.g. ,Account Receivable control account in the General
Ledger and the associated Debtors list emanating from the Accounts Receivable ledger) Other
situations would be Inventory, Accounts Payable and as Inventory Control accounts that gives
the visual appearance of balancing to each other, yet only upon intensive investigation,
manual interference to these values are exposed. These manual interferences are situations
such as direct posting to ledger accounts, and so forth, to give the appearance of balancing
from one source to another, i.e. force balancing.
2. The intentional / unintentional and / or deletion / modification of data critical to validation
processes.
3. The interruption of the automated flow of data between the Sage ACCPAC modules. This
interruption raises its “ugly head” normally during power failures and so forth leading to data
corruption or inconsistencies by means of incomplete data processes.
4. Transactional timing differences leading to incorrect values between various subledgers.
5. Changes within the current setup process that causes unintentional financial anomalies to
occur.
If these anomalies are not exposed by means of a thorough database interrogation process, it could
eventually lead to the release and publication of incorrect financial information which in turn could
have a negative impact on both the concerned entity as well as the Auditing firm verifying that these
results and information therein as being true and correct.

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Therefore, as these above mentioned needs are currently not been met by any ACCPAC 3rd Party
developer, there exists a dire need for an efficiently accurate automation of the ACCPAC account
reconciliation process, the determination as to which entries between the General Ledger and
associated sub ledger/s transactions and net movement are not in congruity, and for facilitating the
explanation of the entries that are not balancing.
This need has now been met with RecIT! We therefore would like to look upon RecIT! as a pre-audit
BI tool adhering somewhat to certain Sarbanes Oxley recommendations. This is so because prior to
the release and verification of financial information, RecIT! would assist in the validation of the data
to be released as being as near as possible true and correct. So, what is RecIT! ?
In a nutshell, RecIT! is an accounting application which assists Sage ACCPAC user with inter module
reconciliations. The modules are as follows;
 Accounts Receivable to the General Ledger as well as the Accounts Receivable module to
the Order Entry module (optional and only available if the Order Entry module is installed
and operational). The choice of reconciliations is confined to the Accounts Sets setup within
the Accounts Receivable module and is multicurrency enabled but will only report in your
home / functional currency.
 Accounts Payable to the General Ledger as well as the Accounts Payable module to the
Purchases Order module (optional and only available if the Purchases Order module is
installed and operational). The choice of reconciliations is confined to the Accounts Sets
setup within the Accounts Payable module and is multicurrency enabled but will only report
in your home / functional currency.
 Inventory Control module to the General Ledger as well as all the Sage ACCPAC core
modules that allow Inventory Control transaction to take place therein. These modules would
be Order Entry, Purchases Order, Accounts Payable and Accounts Receivable (version 5.4
and prior data transactions residing in a version 5.5 onwards database). The choice of
reconciliations can either be done b.m.o Locations (if a valid Location override exists) or
Account Sets. All reports will be in your home / functional currency.
 Shipment Clearing account/s found in the Inventory Control Account Sets setup.
 Payables Clearing account/s found in the Inventory Control Account Sets setup.
RecIT! is therefore an application which can also be used to check for data / accounting congruity
within your Sage ACCPAC system outside the ambit of reconciliations. What we mean here is that at
times, it may appear that the control accounts in the GL are in agreement to the totals found in the
respective sub-ledgers but these may have been “forced” balanced, i.e. a journal passed in the GL to
the control account to make it balance to you Creditors Aged Payables, for instance. With RecIT! you
can run these checks to seek such situations and take corrective measures thereon.

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Benefits of ownership!
1. The drastic reduction of time and costs involved in the reconciliation, transaction verification
and validation processes.
2. Thus dispensing the need to hire contract workers to assist in the processes needed for
validation and reconciliation thereby alleviating time delays, costs and pertinent learning
curve embracement relevant to ACCPAC processes.
3. One major cost that would be substantially reduced is those associated to accounting and
auditing fees that are incurred before and during year end procedures.
4. Must shorter month end procedures would be taking place.
5. Ability to accurately reconcile accounts as often as you please.
6. The enhanced confidence gained from knowing that your processes and its findings are not
going to result in negative repercussions such as those which normally make front-page news
as we witness quite often. So here “prevention is better than cure” certainly would hold true.
7. Eradication of reliance been placed on the many various user specific manual processes which
needs to be revisited if such a user no longer is employed by the entity concerned.
8. The ability to reconcile accounts within a desired fiscal period and not the entire database as
the case normally is which once again further reduces time associated delays.
9. The automated storage of the results of these findings.
10. Not only does RecIT! reconcile specifically chosen control accounts in Sage ACCPAC ERP
but also gives a detailed report that key accounting processes are adhered to, i.e., Credit
Inventory, Debit Cost of Sales, etc.
11. The above would then lead to awareness been raised in respect of patterns inconsistent to
transactions outside the ambits of standard procedures and the user attributed thereto.
12. The ability to “explain” why the inconsistencies / anomalies have occurred as outlined in
above mentioned reasons for these occurrences.
13. Enhanced verification of the data flow from the source entry right into the General ledger.
How does it work?
The user processes to be followed within RecIT! are straightforward. All that is required is your
choice of Account Set/s (or Locations in the case of an IC reconciliation run), fiscal year and period
range in any of the 3 prime modules. The steps to be undertaken are outlined in detail in each of the
user modules manuals available (5 in all).
Remember this, we reconcile, YOU analyse, interpret and correct!
Besides the steps which are specific to each module there are these basics steps which are relevant to
all modules. These are as follows;
 Upon completion of a reconciliation run, the results (reports) will be housed within the
RecIT! database which was setup by you (refer to user technical manual). These reports will
reside permanently within the database until such time that the database is either deleted, or
the report itself is deleted. This is done as follows.

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1. Right click on the report (in the desired module) you want to delete and the
following (as shown below) will appear.
2. A confirmation will appear to which you can either confirm or not.
3. If you decide to remove this report it will be permanently removed from your
database.
4. If you decide to delete all the reports within this module it will be
permanently deleted from the database.
5. The properties option allows you to see information pertinent to that specific
reconciliation run and to view or edit the comments entered therein.
6. All reports can be recalled at any time to be viewed or printed.
 As all of RecIT!’s RRI’s (RecIT Recommended imports) takes place only in the GL, one
important point to note is RecIT!’s usage of required source codes needed in the GL.
The RecIT! GL Source Codes to be imported are as follows;
AP Module
1. AP-RE. Entries in GL not AP and RecIT! regards these as errors to be reversed
2. AP-TR. Entries in AP not GL and RecIT! regards these as omissions
AR Module
3. AR-RE. Entries in GL not AR and RecIT! regards these as errors to be reversed
4. AR-TR. Entries in AR not GL and RecIT! regards these as omissions
IC Module
5. GL-TR. Direct entries in GL and RecIT! regards these as errors to be reversed
6. IC-RT. Entries in IC not in GL. RecIT! regards these as omissions
7. IC-TR. Entries in GL not IC and RecIT! regards these as errors to be reversed
8. ID-ER. Incorrectly allocated entries in GL from AR and RecIT! regards these as
errors to be reversed in the GL
9. ID-RT. Entries in AR not GL and RecIT! regards these as omissions
10. ID-TR. Entries in GL not AR and RecIT! regards these as errors to be reversed
11. IV-ER. Incorrectly allocated entries in GL from AP and RecIT! regards these as
errors to be reversed in the GL
12. IV-RT. Entries in AP not in GL and RecIT! regards these as omissions
13. IV-TR. Entries in GL not AR and RecIT! regards these as errors to be reversed
14. OE-ER. Entries in GL not OE (Debit / Credit notes) and RecIT! regards these as
errors to be reversed
15. OE-RE. Entries in OE (Debit / Credit notes) not GL and RecIT! regards these as
omissions
16. OE-RT. Entries in OE not GL and RecIT! regards these as omissions
17. OE-TR. Entries in GL not OE and RecIT! regards these as errors to be reversed

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18. PO-RO. Entries in PO not GL and RecIT! regards these as omissions
19. PO-TR. Entries in GL not PO and RecIT! regards these as errors to be reversed
 These RecIT! GL Source Codes above will be provided for you to import into your Sage
ACCPAC and the process would be as follows;
1. In the General Ledger, G/L Setup click on Source Codes and the following must take
place to import the provided file.
2. Click on file import and choose “Type” as “Excel 2000”
3. Make sure that the Tab is set to “Insert / Update”
4. Click on “Browse” and locate your import file (as shown below) which would be in
the root of the following C:Program FilesHWM TechnologiesRecIT!
5. Make sure the “Status is set to “Import Ready” and click on “Okay”.
 The import of this file would then allow all RRI’s to take place without any problems.
 Finally, all other technical information (Lanpacs, Microsoft SQL connector and so forth) can
be found in the user technical manual.

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What RecIT! does not do!
Remember this, we reconcile, YOU analyse, interpret and correct!
 RecIT! is only functional from Sage ACCPAC version 5.5 onwards. All other versions (5.4
and prior) are dealt with on request to HWM Technologies.
 Currently, RecIT! only works with Sage ACCPAC 5.5/6 core modules and no other 3rd
Party/
Partner products. But bear in mind that there may be certain modules that are not affected by
3rd
Party products, such as AP, which means that RecIT will still work in that database for
that particular module.
 RecIT! only works with Microsoft SQL databases.
 Albeit multicurrency capable, RecIT! report only reports in your functional / home currency.
Furthermore, in certain reports, certain fields may be blank and these fields will be populated
at a later stage. These “blank” fields are not crucial in the reconciliation process but are purely
informative.
 RecIT! cannot and does not work with consolidated data at all.
 Allow customisation of the reports. Because of the sensitivity of the information contained
within the reports, these reports contain a tampering validation rule which occurs upon each
execution of RecIT! If any of the reports fails the validation rule due to tampering or other,
RecIT! will not be functional in that particular module wherein the reports were tampered
with. You will be compelled to restore the original reports which can be found in the
reports backup folder. Therefore RecIT will not function if these reports are tampered
with in any way.
 Albeit RecIT! is an accounting application that seeks accounting anomalies that may lie
within your Sage ACCPAC accounting system, once found, RecIT! does not self correct these
anomalies b.m.o. writing information back into your system. What RecIT! does do however is
to provide you with a RRI (RecIT! recommended import) CSV file which you can import
back into your system to correct these anomalies. This method of correction has only 2 basic
approaches;
1. All omissions (entries which exist in the sub-ledgers and not in the GL) are imported into
the GL as a consolidated entry for each period been reconciled (if your period range spans
over 3 periods and there are omissions found within each of these 3 periods, then there
will be 3 CSV files for you to import into your system).
2. All errors (entries which exist in the GL and not in the related subledgers) are corrected
b.m.o. a reversal in the GL. A RecIT! user has to examine these entries very carefully
because even though these entries emanates from the various sub-ledgers, the information
that lies within the GL differs from that of the entries in the sub-ledger. This may be due
to editing of the GL batch prior to it been posted in the GL. Editing of information which
RecIT! picks up would be inter alia, changing amounts, account numbers and so forth.
Once these entries have been corrected b.m.o. a RRI reversal, certain entries has to be
recaptured in the system and it is here where RecIT! renders no assistance as there
would be various methods of recapturing these entries that were reversed. The example
explained within each of the module manuals presents you with one of the many
scenarios that could possibly occur within your Sage ACCPAC system. Other entries
which do not require recapturing are direct postings to the ledger account been reconciled
and so forth.

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 RecIT! does not allow reconciliations over many years (2 or more) but restricts itself to one
fiscal year only.
 If RecIT! detects that there are situations whereby in which Vendors and / or Customers have
been moved from one Account Set to another, it will “lock down” the option of you having to
choose which Account Sets you want to reconcile and would do a reconciliation of all AR /
AP Accounts Sets. If this “lockdown” was not initiated by RecIT!, then certain results would
appear to be incorrect.
 Insofar as the 2 reconciliation modules for the clearing accounts (Shipment and Payables) are
concerned, RecIT! does not yet render assistance b.m.o. generating a RRI file to correct any
anomalies found therein. This will be offered in later versions of RecIT! as well as a Credit /
Debit note Clearing account.
 Reconcile Inventory Control by Locations if the Location override segment structure
composition is not the same as the default Inventory Control account found in your IC
Accounts Sets setup.
 If you have Lanpac’s (additional user access allowances), one user may access RecIT! up to
as many Lanpac’s that are available for that particular RecIT! module, thus depriving another
user from accessing RecIT! processing functionality. However, anyone else would still be
able to view any prior reconciled reports in any installed module. Therefore multiple
instances are permissible up to the number of installed Lanpac’s but a restriction will be
placed on other potential users from accessing RecIT!
 Guarantee results. This is so mainly due to external influences that reside within you
database. These are situations where data within your database was intentionally /
unintentionally altered or tampered with which would lead to RecIT!’s internal processes to
be obsolete as RecIT! relies solely on Sage ACCPAC processes to successfully interrogate all
accounting transactions residing therein.