
562 Part III n Information Quality Applied to Core Business Value Circles
6.3. Place Order to Pay processes: Includes requisitions, authorizations,
Accounting transactions, ordering and receipt of materials or services,
and invoicing and payment activities
6.4. Reconcile and Validate transactions: Validation is a method or system to
verify that transactions adhere to business rules. Reconciliation ensures
that two sets of financial information correspond.
Common Information Quality Issues
Posting expenses or incomes in the
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wrong Accounts because the applicable
budget amount in the correct Account was insufficient
Failure to follow standard, applicable Accounting Business Rules
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Insufficient reconciliation process:
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Reconciliation is a common control
process for Financial Information. Reconciliation quickly identifies when
something is wrong with financial information; for example, reconcil-
ing a checkbook ledger to the bank statement. When they don’t match,
people find and fix errors iteratively until the two are reconciled. This
type of process happens thousands of times in large organizations in
support of maintaining the accuracy of financial information. While it is
a necessary step, Reconciliation is a “normal” form of waste and Rework.
If all Financial Information were gathered, entered, and moved between
systems perfectly, Reconciliation would not be needed. Reconciliation is ...