Reconilation Account

[Former Member]

While creating vendor master record.

In accounting view system asks for Recon Account.

I want to know whether we have to mention it or the system automatically takes it?

If system automatically selects it whats the link between Recon account and vendor?

And if we have to mention it how can i?

Also Whats the significance of Reconciliation account?

Points will rewarded.

Thanks in advance.

[deiva · Accepted solution]

Hai,

Generally, the Recon acct is nothing but a G/L acct for Vendor.

1.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).

2.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').

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

We have to give this recon acct manually as per logic, system will not picks this automatically.

[Former Member]

reconcillation account is a GL account related to the liabilities with the vendor

that shiuld be given manually

this is just like payment transactions between vendor and plant/company

[former_member459660]

Hii

Reconciliation account is a G/L account which captures all the liabilities towards the vendor.

While creating a vendor master record you have to enter the reconciliation account manually,system will not propose any account number

Reward if useful

Regards

SHYAM.R

[Former Member]

Hi,

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).

U have to give Reconcillation account otherwise it will remain blank.

Reconcillation account are like advance to suppliers,sundry creditors etc.It should be choosed logically.

regards.

Indranil