Reconciliation Account in Vendor/Customer Master

[Former Member]

What is the function of reconciliation account in Vendor/Customer Master?

Regards

Kailash

[Former Member]

Dear Kailash,

2 understand the use of recon a/c in vendor / customer master, it's important 2 undertand the basic defn of recon account.

Recon a/c is nothing bt a consolidated a/c which gets input frm many subsidiary ledger accounts e.g many customers owe u money bt ultimately it al should show u in some "ac/ receivable" recon a/c.

Hence that's d reason that v link all vendors / customer 2 a particular a/c so that for management it's easy 2 c d overview of an a/c rather than gng into details of each n every vendor / customer.

Hope it answers ur query, if yes then plz close d thread.

regards

[Former Member]

GL account is map with vendor/customer reconciliation account.

Due to this when any account document generate for vendor or customer master at that type system put GL from reference of this reconciliation account of vendor or customer master.

Regards,

Mahesh Wagh

[Former Member]

Hi

The reconciliation account in the master record records all postings made to a subsidiary ledger.When you post items to a subsidiary ledger, the SAP system automatically posts the same data to the general ledger at the same time. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero. This means that you can draw up financial statements at any time without having to transfer totals from the subledgers to the general ledger.

You can use the reconciliation accounts to make settings:

You can use the reconciliation account to configure the screens for posting items to customer or vendor accounts. Using the reconciliation account you could, for example, suppress the fields for entering exchange rate hedges if these types of transaction are not made.

You can also use the reconciliation account to specify which currencies you can use when posting to the corresponding customer or vendor accounts.

You usually enter the local currency in the master record. Postings can then be made in all currencies to the customer and vendor accounts that the reconciliation account is assigned to. However, you can also enter a foreign currency key in the master record of the reconciliation account. If you do this, you can only post to the relevant customer and vendor accounts in the foreign currency specified.

Thanks & Regards

Sanil K Bhandari