Reconciliation is the process whereby we apply a nominated set of rules to the calculation of Overs/Excess Usage.
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Without any "reconciliation" we would treat each billing period in isolation.

The most common form of reconciliation "basic" uses "to-date" history of a contract to calculate whether any excess should be levied. Excluding any Advance billings, it compares the volume billed against the actual volume used. If the volume used is greater, then it will calculate an excess usage.

The way this is implemented is that for every billing period we have an opening figure for  "usage to date"  which we subtract from it's opening figure for "billed to date" to give "available credits". If the usage for that period is in excess of the minimum volume, the "available credits" are then applied to the excess figure as "recon credits".

This form of reconciliation nominates a specific number of periods to be included in the calculation of excess usage. It uses a second parameter "reconciliation periods" to nominate the number of billings to include for each "excess usage" calculation. This in effect flags specific billings to be "reconciled" billings.

The way it works is that for each "non-reconcilable" billing it will bill the minimum volume, then for the "reconciled" billing, it takes the billed volume during that "reconciliation period" comparing it to the usage within the same period and then calculates the excess usage for that period.

This form of reconciliation is almost the opposite of PERIODIC. It uses the same concept of nominating a specific number of billings to include in the calculation of "excess usage", however, rather than billing the minimum each billing period, it bills the "usage" for the period, then for the "reconciliation period" it compares the usage billed to date with the minimum for the same period, and will then add an "minimum requirement" to increase the billed volume to the minimum.