e-Reconciliation Turkey: Guideline and SAP Integration

What is Reconciliation?

Reconciliation is mostly the communication established between accounting units in order to mutually confirm the debit and credit relations of the companies with which there is a business agreement. It is a very important concept in terms of account control in accounting and is frequently used.

According to the Turkish Commercial Code, companies have an obligation to make a reconciliation at certain periods. In order to fulfill this obligation, companies must make a reconciliation at certain periods. If there is no legal requirement or agreement between the parties regarding the accounting periods, the last day of each year is deemed to be the day when the account will be closed by the parties.

How to Prepare a Reconciliation?

At the end of the period determined by the parties, mutual debit-credit information is shared. If both companies confirm the accuracy of the information sent, the reconciliation report is confirmed with a wet signature and sent to the other party. Thus, reconciliation is achieved.

In cases where a consensus cannot be reached, inconsistencies or errors in the information sent are shared with their reasons. Disputes are resolved by correcting deficiencies and mistakes.

There is an important nuance here; If the parties do not object within one month from the date of receipt of the information, by registered letter, through a notary public or with a letter containing a secure electronic signature, they are deemed to have accepted the balance.

What are the Main Types of Reconciliation in Turkey?

Current Statement Reconciliation

At the end of the year, firms that work together exchange debit credit information about current statements. This process includes correspondences and document sharing between them.

BA/BS Reconciliation

BA/BS reconciliation is the form that indicates received (BA) and sent (BS) invoices greater than 5.000 Turkish Liras (excluding value-added tax) in a month. These forms must be prepared and delivered to Tax Office.

What is e-Reconciliation?

With the development of e-Transformation solutions, many corporate transactions have been made easier by being transferred to the digital environment. One of the methods that significantly facilitates the work of the accounting department is e-Reconciliation. The Reconciliation application, in which the debit-credit relationship between the two companies and the current accounts are controlled, turns into a long and troublesome process for the accounting department when it is carried out with the old methods.

Businesses can easily send an e-mail, SMS or fax via the e-Reconciliation system instead of using telephone, mail or fax in their BA/BS and Current Balance reconciliations.

e-Reconciliation is a system that provides a secure, cheap, rapid, and easy reconciliation period in an electronic environment. How?

• Required data, such as those previously inserted in Excel, can be easily transferred without using any other program, which saves a lot of effort.
• Companies can carry out the confirmation-rejection process by only one portal with messages and status update notifications from other companies. This speeds the processes up.
• The probability of making mistakes decreases; therefore, results become more consistent, accurate, and reliable.
• Operating costs are decimated by saving papers and wiping long phone calls out.

In the sight of such opportunities, e-Reconciliation is a legal system with super-simplicity.

What is the SAP e-Reconciliation Solution?

• SAP e-Reconciliation solution enables preparing a declaration, tracking the reconciliation process and the receipts whenever needed, and listing past reconciliations via SAP.
• SAP e-Reconciliation process starts with sending an e-mail to the related person or organization. They can reach the reconciliation form by the link in the e-mail.
• With the SAP e-Reconciliation solution developed by MDP Group, besides the main reconciliation types, which are Current Statement Reconciliation and BA/BS Reconciliation, Audit Reconciliation and Collocutor Firm Reconciliation can be created.
• With the reconciliation form, receipts can be sent automatically, and the graphic reporting feature can be used via the portal.
• MDP SAP e-Reconciliation application can work with non-SAP systems. 
• MDP SAP e-Reconciliation application, which distinguishes thanks to rapid reporting, instant communication, and reconciliation archiving features, can be controlled by only one portal and provides an easy reconciliation process by sending mail notifications and reminders.