How a Fortune 500 logistics company catches reconciliation variances the same day they post
This logistics giant used to discover reconciliation issues on day 8 of the close. Cortex now investigates variances as transactions post to the GL. Month-end is a formality.
Sixteen million packages a day generates millions of GL entries across hundreds of cost centers, 18 countries, and 12 currencies. The team performed reconciliations during the close window, starting day 3, finishing around day 10. Variances discovered on day 8 left no time for proper investigation. Roughly 40 percent of flagged items turned out to be false positives, but every one required manual review.
Cortex investigates as transactions post
Cortex monitors GL postings continuously and investigates variances the same day they occur. It pulls GL detail, compares against subledgers, checks IC counterparties, and generates findings with deterministic scores.
"Cortex does not wait for month-end," the reporting lead says. "When a transaction creates a variance above our threshold, Cortex investigates immediately. By month-end, every account has already been investigated."
The false positive rate dropped from 40 percent to 4 percent because Cortex evaluates multiple data sources simultaneously. The account reconciliation module tracks account status in real-time, not just during the close window.
Results
Close dropped from 14 to 4 days. Eight analysts redeployed to financial analysis. Auditors reduced substantive testing scope after reviewing the continuous reconciliation evidence.
Explore how Arvexi's Cortex AI and account reconciliation platform enable continuous variance investigation.
We used to discover reconciliation issues on day 8 of the close. Now Cortex catches variances the same day they post to the GL. Month-end is just a formality. The work is already done.
Head of Financial Reporting
Financial Reporting at Fortune 500 Logistics Company