Comparing Custodian and Morningstar Transactions

When faced with an Out of Balance (OOB), the first step is to compare the Morningstar transactions against the original Custodian transactions. This will help you to identify the cause of the OOB.

To identify the cause of the OOB transactions in Morningstar Office, complete the following steps:

From the Import Blotter, click Positions … Reconciliation Results … Failed.

Determine when the holding reconciliation OOB occurred.
For each position listed on the blotter, click on the magnifying glass in the View Transactions column. This action will show you all transactions connected to the OOB in question. Transactions are color-coded, based on whether or not the transaction was successfully reconciled. The list below describes what each color represents.
1. Black: The transaction was part of a successful reconciliation.
2. Blue: The transaction was not part of a successful reconciliation.
3. Green: The transaction is in the import blotter and has not yet been posted in the account within Morningstar.

Note: If you have an OOB, most likely it occurred on the trade date of your first transaction listed in Blue.

For each OOB, in question, print out the Transaction window, using the Print button on the grid-view tool bar.

Generate a list of transactions from your custodian’s Web site. If there is a print option, it is suggested that you print out the transactions. Note: It may be helpful to filter your custodian Web site by the security you’re researching. However if you’re researching out a CASH OOB, you will want to see all transactions. Cash transactions can be connected to most transactions.
Compare Morningstar transactions against the Custodian’s transactions. As a best practice, mark each transaction off your print out as you compare against the custodian list. This will ensure that you check each transaction.

For Cash, use the Amount column on the Custodian Web site to compare custodian Cash transactions against those in Morningstar Office. When there is a transaction with a negative Amount at the Custodian, then there should be a Withdrawal transaction within Morningstar; likewise, when there is a transaction with a positive Amount at the Custodian, there should be a Deposit transaction within Morningstar.

Once you identify discrepancies, you may need to adjust transactions. Click here for information on adding, editing, or deleting items from the import blotters.