Automated Reconciliation Engines for Multi-Entity Financial Workflows Using Smart Contract Logic

Abstract

Reconciliation across multi-entity corporate financial ecosystems remains a persistent operational bottleneck due to fragmented ERP deployments, inconsistent document formats, and the high manual workload required to validate payment-reference details. Traditional reconciliation approaches depend heavily on linear rule engines embedded within disparate SAP finance modules, resulting in latency, error propagation, and audit inconsistencies. To address these limitations, this paper proposes an automated reconciliation engine driven by smart contract logic that enforces deterministic and entity-specific validation rules. The system leverages an on-chain verification registry to ensure tamper-proof compliance records, while off-chain adapters orchestrate data exchange between SAP modules, treasury systems, and corporate bank feeds. A unified payment-reference graph model is introduced to support atomic matching, detect anomalies, and ensure end-to-end traceability. Experimental deployment across a simulated multi-entity environment demonstrates significant reductions in processing time, manual interventions, and reconciliation failures. The proposed architecture enhances auditability, improves operational transparency, and provides a scalable framework for enterprise-grade financial automation. This work contributes an interoperable and trust-anchored solution suitable for high-volume transactional environments involving cross-entity settlements, intercompany transfers, and regulatory reporting workflows.