Explain the difference before closing it
By the end, explain the diagram in your own words, solve the case and justify the correction.
Prerequisites : Crypto settlement and reconciliation
Level 3 · Advanced →Reading path · 12 / 17 · Advanced
Reconciliation compares independent views of the same economic position at a defined time.
The essentials
Reconciliation compares independent views of the same economic position at a defined time. Identify the on-chain balance, custody subledger and accounting balance separately. A difference may reflect timing, fees, decimals, a missed event or incorrect asset mapping. The number alone does not identify the cause.
How it works
Record the network, block reference, asset identifier and extraction time used by each system. Replaying data from incompatible cut-offs can create artificial differences. Preserve raw units alongside display amounts so that rounding and decimal conversion remain observable.
What to watch
Assign every break an owner, age, materiality, hypothesis and supporting evidence. Separate an explained timing difference from an unexplained position. A suspense entry can keep processing organized, but does not establish that the underlying difference is resolved. Closure needs evidence and independent review.
Build your analysis
Classify a break before correcting a ledger: timing, missing event, duplicate event, unit conversion, asset mapping or unexplained difference. Record the source observations, common cutoff and amounts in raw units as well as display units. A small displayed difference can be large in raw units and should not be dismissed simply because it looks like rounding.
Extend the workshop
Write an exception record for the workshop: expected balance, observed balance, difference, candidate causes, evidence checked, owner and next action. Resolve a timing difference by aligning observation points; resolve a mapping error by identifying the correct asset. Never use a balancing entry merely to make an unexplained exception disappear.
Understand the details
Use a movement bridge: opening position plus deposits minus withdrawals, plus or minus token-specific events, equals the expected closing position. Treat network fees according to the asset that actually pays them. A token transfer paid in ETH should not automatically reduce the token quantity.
Boundaries and common mistakes
Two matching reports can share the same faulty data source. Independence and completeness matter as much as equality. Do not eliminate an unexplained break by changing a balance to force agreement.
The mechanism at a glance
- Align cut-offs
- Bridge movements
- Investigate breaks
- Review closure
Apply the lesson to a case
A fictional ledger starts with 1,000 tokens, receives 200 and sends 150. It reports 1,048 at close, while the chain reports 1,050. The service paid a fee of 2 in a different asset. Reconstruct the expected token balance and investigate the posting rule.
1,000 + 200 − 150 = 1,050. The two-unit difference suggests a posting issue, but the conclusion still requires transaction and fee evidence. Correct the cause and review the correction.
Prepare a correction note
Describe the passage and the proposed correction. This creates a local note for you to share; it sends nothing. Do not include personal or confidential information.