Reconciliation Account in General Ledger

[Former Member]

hi

Please explain Reconciliation Account in General Ledger with respect to customer master with example.

Thanks in advance

Ghassan

[Former Member · Accepted solution]

Hi Ghassan,

Reconciliation - as the name suggests is used for Reconciliation of customer balances.At any point of time i can login into T.code FS10n and give the reconciliation account number and check the balances due from customers.

EX: In your Company code you have 2 customers. All the customer master records are populated with reconciliation account YYYYY in the Company code data.

When ever the system records a sale transaction, the following FI entry is passed:

Customer Account Dr

to Sales A/c Cr

The accounts updated here are Customer account, sales account as well as the Reconciliation Account.(because we have entered this in master record of the customer,it also gets updated in real time)

If i have done Rs.1000 with customer X(with recon account YYYYY entered in the master record)Rs.2000 and with customer Z(with recon account YYYYY entered in master record), the total balance of recon account would be Rs.3000.

Hope Im clear.

Regards

A

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[Former Member · Accepted solution]

hi aravind,

Thanks for ur immediate reply..

Ghassan