Reconciliation (accounting)

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In accounting, reconciliation refers to a process that compares two sets of records (usually the balances of two accounts) to make sure they are in agreement. Reconciliation is used to ensure that the money leaving an account matches the actual money spent, this is done by making sure the balances match at the end of a particular accounting period.

Well reconciliations refers to two sets of records (what is being put in the well to what actual costs are being spent). Each account is givin a work breakdown structure number (WBS) that will determin the cost of the well. The two numbers are compared to assure that they balance at the end of the accounting cycle. There is usually a difference.