The video below illustrates the concept of a transaction ID and how it applies to a general ledger analysis in MindBridge.
MindBridge relies on the transaction ID for control points that relate to account communication and monetary flow to score risk.
Learn more about which control points trigger at the transaction level in our Knowledge Base.
How do I know what my client uses for their transaction ID?
The transaction ID will vary depending on the accounting system and bookkeeping procedures used. As illustrated below, the most effective method of identifying which column reflects the transaction ID is to filter the data and check the resultant amount balance, with unique transaction ID values yielding a net of zero.
I've identified the transaction ID in the data, what next?
The transaction ID is created and applied in the Review Data stage of the general ledger data ingestion process.
Note: mapping the transaction ID during the column mapping stage not apply the transaction ID to your data. By mapping this column you are making it available to filter on.
Review data page: transaction graph
On the Review Data stage, use the Select transaction identifier drop-down menu to select which column from the data you would like to use as your transaction ID. If you don’t see your identified transaction ID column listed, select custom combination and apply the respective column from the data.
You can select a combination of column data for your transaction ID, for example, grouping entries with the same transaction number and transaction date. Combining multiple ID components can help break down larger transactions, creating a more accurate representation of the individual transactions that took place.
Once a transaction ID has been selected, the graph on the right will automatically generate a visualization of the transactional structure using this ID.
The data is broken down by the number of entries each transaction contains under the applied conditions. The number of entries indicates how granular your selected Transaction ID is; whether the ID defines smaller, more accurate transaction structures, or larger, less accurate batch transaction structures.
The objective should be to achieve a high level of granularity and reduce the number of very large batch transactions. Therefore, you should aim for most transactions to be made up of 2-4 entries only, while avoiding any single entry transactions.
Review data page: data integrity checks
The data integrity checks displayed below the transaction graph help validate whether the correct transaction ID has been applied. These checks indicate the presence of any single entry transactions, transactional imbalances, multiple posted dates, and more.
These integrity checks also highlight any overall imbalances or missing information in your data set, which will have an impact on your analysis.
The objective is to select a transaction ID that yields green checkmarks for all 6 data integrity checks:
- Your ledger has balanced debits and credits
- Your ledger does not contain single entry transactions
- Your ledger does not contain any unbalanced multi-entry transactions
- Your ledger does not contain any very large transactions
- No transactions span more than one effective date
- Your ledger has all mandatory information for all records
Anything else on your mind?