adjusting the difference between two items (i.e., amounts, balances, accounts, or statements) so that the figures agree. The practitioner often has to analyze the deviation between two items, such as in preparing a BANK RECONCILIATION. For example, a reconciliation occurs when comparing the home office books account related to branch transactions with the corresponding account on the branch office books related to home office transactions. These two accounts are adjusted for the reconciling items causing the difference.