Resolving validation issues
Practical guidance for addressing validation issues efficiently and effectively.
After identifying validation issues through audit rules, the next step is to fix the issues in the source system and re-import.
Identify the specific issue through audit results
Diagnose the root cause in your source data
Correct the underlying problem in your source system
Re-import the corrected data
Verify that the issue has been resolved
This cycle continues until all Critical and High severity issues are addressed, creating a progressively cleaner dataset ready for submission.
Resolving common issue types
- Source data problems
Source data issues typically involve missing or incomplete information about core business entities such as customers, vendors, products, or accounts.
Resolution steps:Export a list of the specific source data records flagged in audit results
Identify the missing or incorrect data fields, such as tax IDs, addresses, or classifications
Update the information in your source data management system
Ensure the updated source data is included in your next data extraction
Re-import the corrected data to verify resolution
Example: If customer tax identification numbers are missing, work with your accounts receivable team to collect and update this information in your customer source database.
- Tax code application issues
Incorrect tax code application is among the most common validation problems and often results in Critical or High severity issues.
Resolution steps:Identify transactions with incorrect tax codes
Determine the correct tax code based on transaction type, product/service, and customer location
Update the tax determination in your source system
Re-extract and re-import the transactions with corrected tax coding
Verify both the tax code and resulting tax calculations are now correct
Example: If reduced-rate products were incorrectly assigned standard VAT rates, update the product tax classification in your master data and reprocess the affected transactions.
- Document sequencing problems
Many jurisdictions require complete and sequential document numbering, with validation rules checking for gaps or duplicates.
Resolution steps:Export the document sequence information flagged in audit results
Identify gaps or duplicates in the sequence
For gaps, determine if documents are missing from the extraction or if they were voided/canceled
For duplicates, correct the numbering in your source system
Re-import with complete document sequence information
Example: If invoice number gaps are identified, check if these represent canceled invoices. If so, ensure these are properly marked as voided in your data extract rather than omitted entirely.
- Balance and reconciliation issues
Balance-related validations check that various totals reconcile correctly, such as ensuring debits equal credits or that line items sum to header totals.
Resolution steps:Identify the specific accounts or documents with balance discrepancies
Check for rounding issues, missing transactions, or incorrect calculations
Correct the underlying calculations or add missing entries in your source system
Re-extract and re-import the corrected data
Verify the balances now reconcile correctly
Example: If general ledger trial balance doesn't balance, check for journal entries that were not properly closed or manual adjustments that were not fully processed.
- Format and structure issues
These issues involve data that doesn't conform to the expected format or structure.
Resolution steps:Identify the specific format requirements for the field in question
Check your data extraction process to ensure proper formatting
Update extraction parameters or add transformation rules to correct formatting
Re-extract and re-import with proper formatting
Verify format compliance
Example: If dates are formatted incorrectly, modify your data extraction process to ensure dates are formatted as YYYY-MM-DD.
Handling special cases
Not all validation issues represent actual errors that need correction. Some might be legitimate exceptions that require documentation rather than changes to your data.
The data accurately reflects your business reality but triggers a rule due to unusual circumstances
The issue relates to a legitimate exception under tax regulations
The validation rule is flagging an edge case not applicable to your specific situation
How to document exceptions
Drill down to the specific transactions or data elements in question
Use the notes functionality to document the reason for the exception
Include references to relevant tax regulations or business justifications
If appropriate, attach or reference supporting documentation
Save the note so it's preserved for audit purposes