Questions on Auto Reconciliation

We are using 11.1.2.4.  Can you please confirm if my understanding is correct?

1.  For accounts set to auto-reconcile, the system looks at the Source System balance (e.g. GL balance) to satisfy the conditions like zero balance and no activity based on the Admin guide?  Does it mean, we do not have to load the SubSystem balance (for Balance Comaprison) or the Explained Balance (for Account Analysis)?

2.  For No Activity condition, the Source System balance for the current period should be the same as the Source System balance from prior reconciliation.  Therefore, if the total debits equal total credits for the current period, the system treats this as 'no activity' because the balance did not change.