Your question is Reconcile a Monthly Revenue Discrepancy. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
You just closed September for a mid-sized brokerage and wealth management business, and the CFO sees a material mismatch between the management P&L and the general ledger. The management report shows higher net revenue than the ledger, and the variance is large enough to affect month-end commentary to senior leadership. You have limited time before the close review meeting, so you need to isolate the source, quantify the impact, and explain whether this is a timing issue, a classification issue, or an actual error. Assume U.S. GAAP and that all figures are for the same September close.
| Metric | Amount |
|---|---|
| Management report net revenue | $128,400,000 |
| General ledger net revenue | $124,900,000 |
| Advisory fee accrual in management report not yet posted to GL | $1,800,000 |
| Trade correction reversals included in GL but excluded from management report | $900,000 |
| Cash sweep fee rebate reclassed to contra-revenue in GL but left in operating expense in management report | $600,000 |
| Manual journal entry posted twice in GL | $200,000 |
How would you reconcile the discrepancy, determine the true September net revenue, and communicate the issue and next steps to leadership?