KPIs

Unexplained residual

Value of balance differences that reconciling items do not account for.

Formula

Sum of |account difference − sum of its reconciling items| across all reconciliations

Illustrative target

Zero on all material accounts

KPI cautions1
  • Netting residuals across accounts, so that positive and negative unexplained amounts cancel and the total looks acceptable.
KPI lifecycle stages1
KPI read with1