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author's profile photo Former Member
Former Member

regarding Reconciliation Account

Hi,

what is Reconciliation Account.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 31, 2008 at 09:26 AM

    The Reconciliation account in General Ledger accounting is the account, which is, updated parallel to the sub ledger account for normal postings.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 31, 2008 at 09:33 AM

    Reconciliation Account works on Subledger concept.

    In the Balance Sheet we show the Balances of Vendors and Customers as Sundry Creditors and Sundry Debtors.

    In this concept you need to create the GL Account as with the field status group of G067,

    You need to specify that this gl account belongs to which group of vendor, customer, asset or contract accounts.

    When ever you are creating the maser record you need to specify this GL account as recon account.

    Due to this when ever u post the transaction to any vendor or customer or asset that automatically updates the reconciliation account.

    The total amount of all vendors/customers would be equal to the value of Reconciliation Accounts.

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  • Posted on Mar 31, 2008 at 09:40 AM

    Dear Vishal

    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.

    tahnks

    G. Lakshmipathi

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 31, 2008 at 09:51 AM

    The idea behind a reconciliation account is to hit G/L whenever a posting is done to sub ledger (vendor,customer,asset) accounts.

    Since the sub ledger accounts are not actual G/L accounts, they need to be linked to a G/L accounts, so that whenever a posting is done on them, a corresponding G/L is also effected.

    So, we establish that link between Sub ledger and G/L through reconciliation accounts

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