china-gl-recon

china-gl-recon

Purpose

Perform A-share General Ledger Reconciliation — comprehensive general ledger reconciliation for Chinese companies.

Data Sources

Primary: iFind MCP (Tier-1 paid) / AkShare MCP (Tier-2 free alternative)

get_financials(ticker, "balance")    → Balance sheet accounts
get_financials(ticker, "income")     → P&L accounts

Secondary Sources

• Cninfo — financial statements
• Audit report — reconciliation notes
• Account balance table — trial balance

Workflow

Step 1: Understand the Chart of Accounts

Common Chinese COA structure:

Category	Account Code Range	Key Accounts
Assets (Assets)	1001-1999	Cash, AR, inventory, PPE
Liabilities (Liabilities)	2001-2999	AP, debt, provisions
Owner's Equity (Equity)	3001-3999	Capital, reserves, retained earnings
Cost (Cost)	4001-4999	COGS, production costs
Profit and Loss (P&L)	5001-5999	Revenue, expenses, gains/losses

Key accounts to reconcile:

Account	CAS Code	Reconciliation Item
Bank deposits	1002	Bank statement
Accounts receivable	1122	AR aging
Other receivables	1187	Related party, advances
Inventory	1403	Inventory count
Fixed assets	1601	Fixed asset register
Accounts payable	2202	Supplier statements
Employee benefits payable	2211	Payroll records
Taxes payable	2221	Tax returns
Undistributed profits	3405	P&L close check

Step 2: Balance Sheet Reconciliation

BS recon checklist:

Account	GL Balance	Supporting Docs	Reconciled Amount	Difference
Monetary funds		Bank statements
Accounts receivable		Aging report
Prepayments		Supplier statements
Inventory		Count sheets
Other receivables		Detail listing
Long-term equity investments		Investment records
Fixed assets		Asset register
Accounts payable		Supplier confirmations
Employee benefits payable		Payroll records
Taxes payable		Tax returns
Short-term borrowings		Loan agreements
Long-term borrowings		Loan agreements

Step 3: Bank Reconciliation

Bank recon:

Item	GL	Bank Stmt	Difference
Balance per GL	¥XX
Add: Deposits in transit		¥XX
Less: Outstanding checks		¥XX
Add/Less: Errors		¥XX
Adjusted GL balance			¥XX
Balance per bank		¥XX
Reconciled	✓ / ✗

Common reconciling items (China):

• Deposits in transit (Deposits in transit)
• Outstanding checks (Outstanding checks)
• Bank charges (Bank charges)
• Interest income (Interest income)
• Unrecorded items (Unrecorded items)

Step 4: AR Reconciliation

AR aging recon:

Aging	GL Balance	Aging Report	Confirmed	Difference
0-30 days
31-60 days
61-90 days
91-180 days
>180 days
Total

AR recon items:

• Aging analysis (Aging analysis)
• Allowance for doubtful accounts (Allowance for doubtful accounts)
• Related party AR (Related party AR)
• Notes receivable (Notes receivable)
• Advances from customers (Advances from customers)

Step 5: AP Reconciliation

AP recon:

Vendor	GL Balance	Vendor Statement	Confirmed	Difference
Total

Step 6: Inventory Reconciliation

Inventory recon:

Item	GL	Count	Difference	Reason
Raw materials
Work in progress
Finished goods
Total

Inventory recon items:

• Physical count (Physical count)
• Goods in transit (Goods in transit)
• Consignment goods (Consignment goods)
• Obsolescence reserve (Obsolescence reserve)

Step 7: Fixed Asset Reconciliation

FA recon:

Asset	GL	Register	Tag Count	Difference
Total

FA recon items:

• Asset tagging (Asset tagging)
• Depreciation calculation (Depreciation calculation)
• Impairment testing (Impairment testing)
• Disposal records (Disposal records)
• Capitalization vs expensing (Capitalization policy)

Step 8: Payroll Reconciliation

Payroll recon:

Item	GL	Payroll Records	Tax Filing	Difference
Wages
Social insurance
Housing provident fund
Individual income tax
Total

Step 9: Tax Reconciliation

Tax recon:

Tax Type	GL	Tax Return	Difference
Value-added tax
Corporate income tax
Surcharges
Individual income tax
Social insurance/housing provident fund

Step 10: P&L Close Check

P&L to retained earnings:

期初未分配利润
+ 本年净利润 (from P&L close)
- 提取盈余公积
- 提取任意公积
- 应付股利
= 期末未分配利润

Verify:

• P&L close → retained earnings
• Profit distribution entries
• Tax entries
• Dividend entries

China-Specific Recon Considerations

Common Issues

Issue	Detection	Resolution
Funds in transit	Bank recon	Timing difference
Unrecorded items	Bank recon	Follow up
Related party suspense	AR/AP aging	Related party recon
Invoice discrepancies	Tax recon	Timing/cut-off
Depreciation discrepancies	FA recon	Policy check

CAS-Specific Items

Item	Treatment
Value-added tax	Pass-through, check VAT output/input
Government grants	Verify classification
Share-based payment	Expense recognition check
Exchange gains and losses	FX difference verification

Quality Checks

Before completing:

• All significant accounts reconciled
• Differences investigated and resolved
• Documentation complete
• Sign-offs obtained
• Adjustments proposed (if any)

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

• ifind-only (strict): Use iFind only, error if unavailable
• ifind-fallback (default): iFind preferred, fallback to AkShare
• akshare-only, wind-only (Wind only), wind-fallback (Wind first, fallback to iFind → AkShare): Skip iFind, use AkShare only