diffarance between reconsilation account and revinue account

[Former Member]

Hello SAP gurus,

What is the diffarance between reconsilation account and revinue accounts.

maximum points assured.

regards

sreenivas

[Former Member · Accepted solution]

Dear Sreenivas,

refer:

Generally all the revenue postings are made to the G/L account. We maintain reconciliation account for customers, vendors etc and the postings from the normal G/L account are updated automatically to the corresponding reconciliation account.

In other words, manual entries can be posted in the normal G/L account and the same is not possible in the

reconciliation account, as these are automatically updated.

Best Regards,

Amit

[Former Member · Accepted solution]

thanks for quick response,

can u explain with examples and little depth.

regards

sreenivas

[Former Member · Accepted solution]

Hi Sreenivas

Reconcilation account is the act of confirming that the balance in one's checkbook matches the corresponding bank statement.

It is type of general ledger account which contains a summary of sub-ledger accounts. Because the reconciliation account only provides a summary, no transactions are directly posted to the account.

The reviewing and adjusting of the balance in a personal checkbook to match your bank statement.

It is like a credit and debit entry maintained at one place, one account. It is just a record of funds transfer from cutomer to company/bank and viceversa.

While Revenue account is the account showing the inflow of money from sale of goods or services and the costs and expenses chargeable against it, over an accounting period.

It is an accounting system which records the revenue and expenditure incurred by a company during its normal business

It is the actual account maintained by company/bank, not accessible by customer, to record their profit and loss within that account.

Hope now it is clear to you. Revert if confusion is still there.