G/L account and reconciliation account

[Former Member]

Hello Gurus,

what is G/L account and reconciliation account ? I want to know if we should use these two account at same time for one posting?

Many thanks,

[Lakshmipathi · Accepted solution]

Dear bo zhang

1) G/L Account

The General Ledger serves as a complete record of all business transactions. It is the centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at any time in realtime processing by displaying the original documents, line items, and transaction figures at various levels such as:

- Account information

- Journals

- Totals/transaction figures

- Balance sheet/profit and loss evaluations

To create accruals and post payables, the system must first of all determine the correct G/L accounts for posting in FI.

G/L account determination is carried out automatically. The following parameters are used for determination:

- Chart of accounts

- Valuation grouping code

- Transaction key

- Account grouping

- Valuation class

2) Reconciliation Account

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

G. Lakshmipathi

[Former Member]

Gello,

G/L Account:

A structure that records value movements in a company code and represents the G/L account items in a chart of accounts.

A G/L account has transaction figures that record changes to the account during a posting period. These figures are totals that are used for G/L reporting.

Reconciliation Account:

Recon account is also a Generl Ledger Account.

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.

Prase