> For the complete documentation index, see [llms.txt](https://docs.morevy.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.morevy.ai/docs/how-the-numbers-work/what-reconciled-actually-means.md).

# What "reconciled" actually means

Every close carries a set of checks. It is worth knowing what they do and do not prove.

## The arithmetic check

The headline check is that the opening balance plus every leg equals the closing balance.

This one is real and it is worth having. It catches a dropped row, a leg computed on a different filter, a rounding error that compounds.

**But it is a check on the addition, not on the meaning.** The closing balance is *defined* as opening plus the legs, so the identity holds whatever the legs contain. A close where every leg is correctly computed from the wrong set of rows will tie perfectly.

That is why the other checks exist, and why Morevy never shows a bare "Reconciled".

## The checks that are independent

Each is graded on its own and shown on its own:

|                                 |                                                                                   |
| ------------------------------- | --------------------------------------------------------------------------------- |
| **Amounts**                     | The legs sum to the movement, to the cent.                                        |
| **Member counts**               | The people in each leg add up, and nobody is in two legs at once.                 |
| **Source row coverage**         | Every row in your file was either used or explicitly excluded. None went missing. |
| **Classification completeness** | Every payment was classified. Nothing fell into an unhandled case.                |
| **Provenance**                  | Every figure traces to the rows and answers it came from.                         |
| **Entity comparison**           | Whether a member-by-member comparison against the prior period was even possible. |

Morevy renders the specific claim, such as **"Amount reconciled"**, rather than a general one.

## Unknown is not a pass

If a dimension could not be measured, it is reported as **unknown**, not as passing.

This matters more than it sounds. A check that silently counts "I could not test this" as "this is fine" is worse than no check, because it produces a green screen that means nothing.

An entity comparison, for example, is impossible when the prior period has no data. That is a legitimate state, and it says so.

## Reading the panel

When every check passes, the reconciliation collapses to one line and stays out of your way:

> All 4 checks pass

When one fails, it opens by itself, because at that point it is the most important thing on the page.

## When a close does not tie

The headline says so, and by how much:

> $41,467 · does not tie, off by $312

It does not stretch the closing bar to meet the legs, and it does not round the difference away. A close that quietly presents a total the rows do not support is the one failure mode this whole system exists to prevent.

{% hint style="warning" %}
If a close does not tie, do not act on it. Ask what changed, or open the audit trail. A gap of a few dollars is usually rounding, which Morevy labels as such. A gap of hundreds is a data problem worth finding.
{% endhint %}


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