Reconciliation Account

[Former Member]

hi.

Can any one provide information for "Reconciliation Account " account. in the customer master with example.

I would be greatful to them.

thanks

Kuntla

[former_member204513 · Accepted solution]

Hi Gopalakrishna,

Reconciliation account

Reconciliation account means a G/L account, to which transactions in the subsidiary ledgers (such as in the customer, vendor or assets areas) are updated automatically.

Typically, several subledger accounts post to a common reconciliation account. This ensures that the developments in the subledger accounts are accurately reflected in the general ledger (that is, in line with balance sheet conventions).

Example

A reconciliation account for all overseas customers.

A reconciliation account for all domestic customers.

I hope it will help you,

Regards,

Murali.

[Former Member]

Got the answer

[Lakshmipathi]

Dear Kuntla

With this field, you can differentiate a customer like

- Sundry Debtors A/c. Domestic

- Sundry Debtors A/c. Exports

- Sundry Debtors A/c. Scrap

- Advance Sundry Debtors - Scrap

as to how and in which accounting, a particular transaction to be accounted

thanks

G. Lakshmipathi

[Former Member]

Hello,

The reconciliation accounts are maintained in the master

record of customers/vendors,so that all postings made to

subsidiary ledger are also posted tothe G/L.when the items

are posted to subsidiary ledger the sap system

automatically poststhe same data to the G/L a/c's

via.Reconciliation a/c in the G/L.

Reconcilation account is the G/L account, to which transactions in the subsidiary ledgers, (such as in the customer, vendor or assets areas), are automatically updated.

In SAP IDES, for chart of accounts INT, the reconcilation account maintian is 140000 (trade receivable domestic) and for vendor masters it is 160000 (trade payable domestic).

Prase

[Former Member]

Hi Gopalkrishna,

The Purpose and Operation of the Reconciliation Account,

1.The Reconciliation Account is managed as an ordinary

account in the G/L component.

2.As in all G/L accounts there are two areas which contain

master data:

A chart of accounts area

A company code specific area

3.The chart of accounts area consists of specifications that

are necessary for functions across company codes. The

company code-specific area contains data that may be

defined differently in each company.

4.In all reconciliation account master records, line item display is deactiviated and a special entry is made to indicate that the G/L account is a reconciliation account

The required reconciliation account is entered in the master record of the customer account.

Regards,

Reddy.

[Former Member]

Hi Gopalkrishna,

Customer and Vendor accounts are maintained in a subledger. Posting to these accounts will also be posted to the A/R and A/P reconciliation accounts. All Reconciliation accouints are GL accounts.

All G/L accounts are not reconciliation accounts.

Why is this done?

In large businesses, there will be hundreds/thousands of customers/vendors. All these are personalaccounts (there are three types of accounts: nominal, personal and real). These personal accounts are grouped in to sub-ledgers and any posting to them is reconciled to the G/L

via the reconciliation accounts.

Reddy.

[Former Member]

Hi,

Recon account is parllely updated to the subledger account.

Regards,

Murthy

[Former Member]

hi.

The overseas customer and domestic customer is differentiated with account assignment group.

how why we use the reconciliation account

thnsk

kuntla

[former_member204513]

Dear Gopal,

The Reconciliation account is the top hyerarchy under this G/L account all the sub ledger G/L accounts will be there.

If you see the postings of the overseas reconcialiation accountG/L all over seas related postings(All overseas customer ,not the single customer) will get summurised in this G/L account.

When we post the invoice to accounting that will get entry as sub posting in the customer Reconcialiation account and main posting in G/L account which we assigned in VKOA transaction.

I hope it will clear for you,

Regards,

Murali.