Resolve conversion exceptions and monitor the first close
Close rejected records, reconcile post-cutover activity and review the first reporting cycle for conversion errors.
Exam scope and assessment notes
Cambridge International AS & A Level Accounting 9706, 2026–2028 syllabus, Version 2. These lessons cover the process of transferring business accounts to a computerised accounting system and ways to maintain data integrity during conversion. No specific accounting application is required. Practice is self-checked, not an official Cambridge grade. Full timed Papers 1–4 and human subject-teacher review remain outstanding.
Before you begin
- Use the Topic 1.2 accounting-system skills: understand double entry, trial balances, control accounts, source documents and why complete records matter.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Why reconcile balances after the first close?
What you will learn
- Maintain and resolve an exception log
- Reconcile post-cutover transactions to source evidence
- Use the first close to confirm data quality and correct errors with approval
Track every exception to a clear outcome
An exception log records the affected account or transaction, source reference, difference, owner, status, correction, approval and retest. Prioritise by financial value, reporting impact, customer or supplier effect and security risk.
Do not close an exception merely because the import can continue. It is resolved when the cause is understood, the approved correction is entered, affected balances and reports are retested, and the reviewer signs off the evidence. Document any accepted limitation and its owner.
Review the first reporting cycle after go-live
Reconcile bank, receivables, payables, inventory, tax and control accounts after the first close. Compare transaction counts, rejected records, unusual balances and statement classifications with expected trends and source evidence.
Early monitoring can reveal errors that totals did not detect, such as wrong dates, tax codes, customer allocations or duplicated recurring entries. Correct through authorised journals or data changes with a clear audit trail, then investigate whether other records share the same cause.
Pause and explain
A rejected customer record imports after a manual correction. What remains before closing its exception?
Worked example
In the first month, a tax-code mapping error affects 18 invoices and $2,700 tax. What should the team record and check before closing the exception?
Show the worked solution
- Log the affected invoice IDs, source and new tax codes, total value, owner and reporting impact.
- Correct the mappings and invoices using approved evidence and record who made and approved the change.
- Retest all 18 invoices, reconcile the tax control and search for other transactions using the same faulty mapping.
Answer Record the 18 invoices and $2,700 effect, correct with approval, reconcile the tax control, retest the affected items and scan for other uses of the mapping.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
The first close shows payables control $3,100 above supplier detail. Give a three-step investigation and explain the evidence to retain.
Give me a hint
Trace the difference through cutover items, rejected records and supplier-level postings.
Compare my reasoning
- Compare the control balance and supplier detail at the same date and identify the $3,100 difference.
- Check duplicate invoices, omitted supplier credits, opening balances and late cutover transactions against source documents and import logs.
- Correct supported items, rerun the control-account reconciliation and retain documents, correction details and reviewer sign-off.
Trace the $3,100 difference to source records and import history, correct only supported items, reconcile again and retain the evidence and approval.
Look for these in your work
- Compare the control balance and supplier detail at the same date and identify the $3,100 difference.
- Check duplicate invoices, omitted supplier credits, opening balances and late cutover transactions against source documents and import logs.
- Correct supported items, rerun the control-account reconciliation and retain documents, correction details and reviewer sign-off.
An exception log has 22 items: 18 fixed and retested, 2 pending supplier confirmation and 2 low-value description differences. What should the project lead report at close and who should accept remaining exceptions?
Give me a hint
Report counts and impact separately, and use an authorised risk owner for accepted limitations.
Compare my reasoning
- Report 18 resolved items with retest evidence and list the four remaining items by value, risk and owner.
- Keep the two supplier items open until evidence arrives; assess whether the description differences affect identification, payment or reporting.
- Only an authorised finance or project owner should accept a documented residual risk under the agreed policy; do not claim all exceptions are closed.
Report 18 resolved and four outstanding. Keep evidence-dependent items open; obtain authorised, documented acceptance for any low-risk residual differences.
Look for these in your work
- Report 18 resolved items with retest evidence and list the four remaining items by value, risk and owner.
- Keep the two supplier items open until evidence arrives; assess whether the description differences affect identification, payment or reporting.
- Only an authorised finance or project owner should accept a documented residual risk under the agreed policy; do not claim all exceptions are closed.
A repeated wrong tax code is found during the first month. Explain why correcting only the sampled invoice is insufficient and what should be done next.
Give me a hint
A shared mapping rule can affect every record that used it.
Compare my reasoning
- The error may affect all transactions imported with the same source code or mapping rule.
- Identify the affected date range, invoices, tax reports and control balances using a complete query or list.
- Correct all supported affected records with approval, reconcile and retest the tax return figures, then fix and validate the mapping rule.
Trace every record using the faulty code, correct affected items with approval, reconcile tax controls and retest reports; repair the root mapping rather than one sample.
Look for these in your work
- The error may affect all transactions imported with the same source code or mapping rule.
- Identify the affected date range, invoices, tax reports and control balances using a complete query or list.
- Correct all supported affected records with approval, reconcile and retest the tax return figures, then fix and validate the mapping rule.
Common mistakes
- Closing an exception when the import completes but before retest
- Correcting one record without checking other records using the same mapping
- Making an adjustment with no link to affected source documents
What can you explain now?
When should a conversion exception be marked resolved?
Compare with the explanation
After an approved correction, retest and documented review
A status change alone does not establish that the balance and affected reports now agree.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
What fields belong in an exception log, and what three steps close an exception properly?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.