Sterling PlaybookUK payments · operating notesSearch this site

A comparison of records or balances that identifies and explains differences under a defined method.

Why the distinction matters

A useful reconciliation preserves its inputs, cut-off, transformations and conclusions. A final number without the supporting bridge is difficult to reproduce. Distinguish timing differences from unexplained breaks and keep the basis for that distinction.

In the working file

Illustrative example

A hypothetical requirement of £100,000 is compared with £98,500 of eligible resources. The £1,500 difference needs explanation and the appropriate response; a spreadsheet cannot determine legal compliance.

Use the term in context

Record the legal entity, activity, period and applicable source alongside the term. A familiar label does not remove the need to establish scope. Our operating playbook connects this definition to a practical process.

Read the related playbook

Sources & scope

Primary sources used for this research edition. Document dates and commencement dates are different fields. Recheck the issuing authority before acting.

  1. FCA Handbook: CASS 15: relevant fundsHandbook · source reviewed 12 November 2026