Reconciliation account

[Former Member]

Hi friends,

what is a reconciliation account?what is the use of this reconciliation account?

Regards

RK

[Former Member · Accepted solution]

Hi

Recon account is used to get the total of the sub-ledger postings.

For Ex: Customer recon account will be used to know the Receivable from customer.

In SAP Vendor / Customer .... accounts are termed as Sub-ledger accounts and all these sub ledger accounts will be assigned to a particular recon account.

Let me know if you need any further info

Thanks

Kalyan

[Former Member]

In SAP we are Called Vendors / Customers and Assets as a sub ledgers, ther is no way to post by using subledgers,

SAP Provides this fecility you assign the Recon A/C only,

While posting doc in AP/AR/AA sys automatically updates records perticular recon a/c,

Recon A/C we are not post directly,

Regards,

TML

[Former Member]

Does Reconciliation Account fall into Balance Sheet Account or P&L Account? Can anybody also explain what balancing entries are made. Thanks.

AJ

[Former Member]

Hi,

It is a General Ledger Account which connects subledger to main ledger for instant information.

For ex. At a particular point of time, you want know total vendor outstanding amount, you don't need to total all vendor balances seperately, this information available in general ledger of vendor reconciliation account in T/B.

I hope it will clear your doubt. assign points if it useful.

Regards

Sarma BH