Inter Entity Loan Reconciliation workpaper (IRN)

The Inter Entity Loan Reconciliation (IRN) workpaper reconciles loan balances between related parties. Differences between the two sides can highlight timing differences or bookkeeping errors. Each account mapped to this workpaper gets its own table.

CoA mapping prerequisites

Accounts mapped to this workpaper should sit under Loans Receivable, Related parties or Loans Payable, Related parties. If nothing is mapped, a warning is shown: "Related Party Loans have not been mapped in Trial Balance."

Sign convention

●        Receivables (the client is owed money) are shown as positive.

●        Payables (the client owes money) are shown as negative.

Both the client's Trial Balance and the related party's Trial Balance are normalised to this same convention before comparison.

Data extraction

●        Loan Account: the GL account name from the client's own Trial Balance.

●        Related Party Account: the corresponding account identified in the related party's Trial Balance. Where the match isn't clearly one-to-one, the system makes its best attempt and lets the user adjust the mapping (including mapping to multiple accounts) afterward.

●        Lender/Borrower Name: the legal name from the header of the matched Trial Balance.

●        Opening Balance and Closing Balance: extracted from both the client's and the related party's Trial Balance, debit values entered positive, credit values entered negative.

Matching multiple loans

Where there's only one GL account mapped to this workpaper and only one related-party Trial Balance available, matching happens automatically with no human intervention. Where there are multiple loans, the same manual matching approach used for bank loans applies, the user identifies how many loans exist and matches each to its supporting document.

Integrity checks

●        Both Trial Balances must cover the same period as the job's own Balance Date.

●        Where a prior-year IRN workpaper exists and was approved, its closing balances are checked against this year's opening balances.

●        Entity name on the related party's Trial Balance is fuzzy-matched against the client name in Job Setup (minor differences like Ltd/Pty Ltd/Inc endings are treated as the same entity); anything more different than that is flagged for human review with the reason "Client name doesn't match the name in the supporting document."

How to access

●        Go to Jobs and open the relevant job.

●        Click the Workpapers icon or navigate to Job Results then Workpapers.

●        Select IRN on the Workpapers Dashboard.