Regarding : Reconciliation Account

[Former Member]

While Creating a Customer Master using a Transaction Code XD01,

We are asked to enter the Reconciliation Account in Company Code Data Section.

Can anybody tell us , what is Reconciliation Account?

And, How and Where can we create it?

[Former Member]

Hi,

You can create Reconciliation Account in FS00 t.code

select balance sheet account

In control data tab Recon account for acct type select customers

Credit/bank/interest tab select field status group.

When you create billing document, system generates accounting document.

Reconciliation account will be debited (cusotmer) and revenue account will be credited.

Regards,

Chandra

[Lakshmipathi]

Dear Mukesh

There are lot of posts in this forum on Reconciliation Account. Please make a search b4 posting any question. Check this thread

[What is reconciliation account used for maintaining Customer master data |]

thanks

G. Lakshmipathi

[Former Member]

Dear Mukesh,

As per Descipton in Performance Assistant:

Reconciliation Account in General Ledger

The reconciliation account in G/L accounting is the account which is updated parallel to the subledger account for normal postings (for example, invoice or payment).

For special postings (for example, down payment or bill of exchange), this account is replaced by another account (for example, 'down payments received' instead of 'receivables').

The replacement takes place due to the special G/L indicator which you must specify for these types of postings.

In Simple Words:

Reconciliation account is an account for reconciling with some other accounts. Reconciliation is done for matching something with something.

In SAP, reconciliation accounts are created for vendors, customers, assets, etc. Since these are separate subledgers, the transactions occured in them will not match with the general ledgers without a reconciliation account in General ledger. Hence a reconciliation account is maintained in general ledger area for these subledgers. Whatever transactions happening in these sub-ledgers are thus updated and reconciled with the general ledger.

Best Regards,

Amit