revenue account and reconciliation account

[Former Member]

Hello Gurus:

what is revenue account and reconciliation account ? what does sales and distribution price connect with these two account respectively?

thanks very much!

[former_member184555 · Accepted solution]

Hi

Every business gets revenue out of sales activity and that revenue should be posted in some General Ledger Accounts. Those values are arrived out of different calculations which includes the Prices, discounts, taxes, freight(Pricing elements) and these can be maintained in different GL accounts. These values are arrived from the pricing done and they are connected to the GL Accounts with the help of the Account key specified in the pricing procedure and because of the Revenue Account Determination done using Tcode VKOA where in we specify the GL Account number corresponding to that account key(ERL,ERS,MWS etc.,)

Thanks,

Ravi

[jiteshmehta · Accepted solution]

Hi

Revenue Account

It is for Sales Revenue and is determined by SD-FI integration , which is linked in pricing procedure by Account key and other combinations as defined in Tcode VKOA. So sales revenue account is updated every time when billing document is posted.

Reconciliation account

A customer master record in SD is also an A/R (accounts receivables) in FI. When you create a customer master record you also have to specify the reconciliation account. Account in G/L accounting, to which automatic entries are posted during a business activity. It is generally the case that several sub ledger accounts post to a common reconciliation account.

This ensures that the developments in the sub ledger accounts are accurately reflected in the general ledger (i.e. in line with balance sheet conventions). You can set up a reconciliation account for, say, all overseas customers.

Regards

Jitesh

[Former Member]

Once you create your billing document and release it to accounting the prices are posted in revenue accounts.

In accounting tab of your billing document, you could see to which account your sales revenue is posted for e.g. account 800000.

This revenue account is determined from your pricing procedure for e.g. Account key ERL.

In transaction VKOA, you assign this your condition type, chart of accounts, sales orgn, account key to GL account.

Reconciliation account

You make an entry in the Reconciliation account field in the company code tab of customer master record for e.g.account number 140000

When you post items for example, invoice or payment, system updates reconciliation account in G/L accounting parallel to the subledger account for normal postings. These reconciliation accounts ensure that the balance of G/L accounts is always zero. This means that you can draw up balance sheets and profit and loss statements at any time without having to transfer totals from the subledgers to the general ledger.

[Former Member]

hi,

Revenue Account Determination: (Transaction Code: VKOA)

In revenue account determination for transferring billing values from the SD module to the FI module. Revenue account determination is carried out using the condition technique.

For controlling revenue account determination, the following criteria are important:

• Account determination table

In the account determination table, you define the criteria on which account determination should depend.

• Access sequence

Here, you define in which sequence fields are read from the billing document (header and item). An access sequence refers to the permitted field combinations stored in the condition table.

• Account determination type

The account determination type is a module of the conditions technique. You have to create at least one account determination type and allocate it to an account determination procedure.

• Account determination procedure

The account determination procedure contains the necessary account determination types with which the SAP System can automatically find the revenue accounts.

• Account key

With the three-digit account key, you finally allocate the revenue account.

Reconciliation Account:

Transaction Code: OV64

We maintain reconciliation account in Customer Master data Company code date Account determination