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Former Member

Reconcilation a/c

Dear friends

What do you understand by reconcilation account

With regards

Sankalp singhai

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 28, 2007 at 09:16 AM

    Reconsilation account used as a link between subledger& GL account.

    Transation posted in Subledger automatically posted in the GL account using the Reconsilation Account.

    ex: accounts payable, accounts receivable, meterial accounts, asset accounts.

    Regards.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 28, 2007 at 09:37 AM

    Dear Friend,

    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).

    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').

    The replacement takes place due to the special G/L indicator which you

    must specify for these types of postings.

    >>Which means that it is a account whcih is maintained in parallel to G/L account.

    This Scenerio helps in reconcilling the data.....

    1.When a check is doposited in the Sytem...

    It goes to The Customer reconsil account also...Now if the Invoice is not knocked offed with the valid accounting documents .IN TC:FBL5 customer balances line item --Same shows as outstanding....

    Thus it is reconcilled with Reconcillation account and revalidates the result..

    2. Again for example when a Vendor gives payment and it is yet not cleared in the system.....We have the PIF that check is deposited ...The reconcillation account then is used forthe prevalidation of the same.....

    Apart for these there are neumerous secenrios where this reconcillation is used

    as in balance sheet preperation in the fiscal year ending for adjusting etc....

    regards,

    Amlan

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  • Posted on Dec 28, 2007 at 09:46 AM

    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.

    Reward if found useful.

    Vengat

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