Lesson 2 of 5
Expected results by reconciliation
7 min
In many test plans the expected result for a finance step reads "document posted successfully" or "report displays correctly." Neither proves anything about the financial statements. A document can post to the wrong account, the wrong segment, the wrong ledger or the wrong period, and still post successfully. A report can display beautifully and show the wrong numbers. For finance, an expected result must be a number you can reconcile.
| Step | Weak expected result | Strong expected result |
|---|---|---|
| Supplier invoice | Invoice posts without error | Payable 11,000 on Lakeside; expense 10,000 by cost center; tax 1,000; GR/IR cleared for PO item |
| Depreciation run | Job finishes | Depreciation per asset and area matches the schedule; ledger balances agree with asset history sheet |
| FX valuation | Valuation log created | Unrealized loss of 2,000 on the CAD item in each ledger; matches hand calculation |
| Month-end close | Period closed | Trial balance by company code and ledger matches the independent expectation; subledgers reconcile |
The reconciliation toolkit
Four kinds of reconciliation cover almost every R2R expected result. Use them at the level of detail the test needs: a single document, a test cycle, or a full period.
| Reconciliation | Compares | Typical tool |
|---|---|---|
| Balance to expectation | Account balances against an independently prepared expectation | Trial Balance app per company code and ledger |
| Subledger to G/L | Customer, supplier and asset balances against their reconciliation accounts | Subledger balance reports and G/L account balances |
| Ledger to ledger | Leading against non-leading ledgers; differences against the design register | Trial balance per ledger |
| System to external | Bank balances against bank statements; intercompany against the partner | Bank statement monitor; intercompany reconciliation |
Four reconciliations behind R2R expected results.
Preparing an independent expectation
An expectation copied from system output proves nothing. Prepare it outside the system, before execution, from the test design: the documents you will post, their amounts and accounts, and the close tasks you will run. For a test month, Dan's team builds a simple model: opening balances, plus every designed transaction, plus the expected close adjustments, equals expected closing balances by account, company code and ledger. After execution, the system's trial balance is compared to the model line by line.
- DesignChoose transactions and amounts for the test month
- ModelExpected balances by account, company code, ledger, segment
- ExecutePost feeders, finance transactions and the close
- ExtractTrial balance and subledger balances from the system
- ReconcileLine by line; every difference explained or raised as a defect
Why a screen check is not acceptable
A tester who "checks the screen" sees the fields on one document. Finance correctness is about where the amount lands: which account, which ledger, which segment, which period, and whether the subledger and the ledger still agree afterwards. None of that is visible on the entry screen. Screen checks also cannot detect what is missing, such as an accrual that was never reversed. Reconciliations can.
Every reconciliation in the plan needs a preparer and a reviewer, just as it would in a real close. The preparer extracts the balances, compares them and documents each difference. The reviewer checks the comparison, challenges the explanations and signs. For Contoso, the G/L team prepares and Dan or his deputy reviews. This is not bureaucracy for its own sake: the same reconciliations will become monthly controls after go-live, and testing them now proves that the reports, the people and the timing work before the first real close depends on them.
What would you do?
Maria's UAT script for customer invoices says "Expected: invoice posts, no error." Dan rejects it. How should it be rewritten?
- "Posted successfully" is not an expected result for finance; a reconcilable number is.
- Use four reconciliations: balance to expectation, subledger to G/L, ledger to ledger, system to external.
- Prepare expectations independently and before execution.
- Agree tolerances in the plan, not after the result.
Check your understanding · not graded
Lesson check
1. Which is the strongest expected result for an R2R test month?
2. Why can a screen check not detect a missing accrual reversal?
3. When should tolerances be agreed?