what is reconciliation accounts?

[Former Member]

Hi all,

Can anyone explain me clearly about reconciliation accounts with real time scenario.

thanxs in advance

hari

[Chetanpatil2322]

The reconciliation account in SAP S/4HANA is an important concept used to manage and monitor financial transactions between a main account and its associated subledger accounts. In theoretic accounting, it is also commonly referred to as a control account.

[JiriStarek]

And for better controlling is possible setup and use Alternative Reconcilliation AP/AR accounts

[Former Member]

Hi all,

thanxs a lot for ur explanations. i have assigned points for everyone.

regds

hari

[Former Member]

Hi

<b>Recon account is not a sub ledger</b>.The reconciliation account ensures the integration of a subledger account into the general ledger.Transaction which we post to sub ledgers (such as in the customer, vendor or assets ) are updated automatically to G/L account if they are marked as recon account.

Pls assign points if useful.And pls reply for further clarification

[Former Member]

Hi Hari,

Reconciliation accounts are gl accounts when u post business transactions to subsidiary ledgers in real time system automatically updates same data in gl masters.each subsidiary ledger has one or more recon accounts in the system.we can maintain recon accounts for customes,vendors,assets etc

ex:salaries clearing accounts,gr/ir clearing accounts

hope u will get answer and pl assign points

Venkata krishna

[Former Member]

Hello Hari,

For each subledger account , you must keep at least one reconciliation account in the general ledger. When you post to an account in the subledger, the system automatically posts to the corresponding reconciliation account.

The "Receivables from goods and services" account is an example of a reconciliation account for customers. Enter Customer in the Reconciliation account for account type field. Enter a Vendor in this field for a vendor reconciliation account.

Using the reconciliation account procedure, it is possible to create a balance sheet and a profit and loss statement at any time, since the amounts posted to subledger accounts are also posted automatically in the general ledger.

During regular reconciliation, you check whether the balance of the reconciliation account matches the balance of the corresponding subledger account.

You define reconciliation accounts by specifying in the G/L account master record the account type (such as fixed assets, vendor or customer) for which the account is to be used. In this way, the account can only be assigned to accounts in the corresponding subledger. You set the assignment of the subledger account to a reconciliation account in the master record of the subledger account. You cannot post to reconciliation accounts manually .

Hope I had been able to help you. please assign points and let me know if you need anything specific.

Rgds

Manish

[sridevi_p]

Hi,

Reconciliation account is a sub ledger

for instance, instead of having a separate GL account for each vendor, we have a Vendor account - which is a reconciliation account and it holds all the vendor balances in a consolidated form.

reconciliation account is used for vendors, customers and assets/

Regards,

Sridevi

<i>Pls. assign points, if useful</i>