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Recon Accounts assignment while creating a new GL Account

Hey everybody,

I was wondering if there is any global rule to which accounts should be selected as Recon A/c while creating a GL master in fs00. From my point of understanding the only Recon A/c's are Accounts Receivable as recon account :Customer and Accounts Payable as recon account: Vendor! So in which situation do we select Recon account : Asset or Recon account: Contract Account Receivable?

If you could please help me figure this out, I would greatly appreciate.

Thanks in advance.

Nick

help.sap.com

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2 Answers

  • Jun 12, 2011 at 04:51 PM

    Dear,

    The ultimate purpose for recon account is its underlying functionality. For instance normal business scenario there may be thousands of customers. Now its completely out of sense to a new GL for every customer hence a main recon account for customers is created let us say Trade receivable-local. This will transfer all posting made to customer accounts. As a rule of thumb you can also create Trade receivable-foreign to reflect foreign customer in financial statements. Recon account has a different field status groups from others. I hope it will clear you the underlying logic for creating recon account and its usage.

    Regards

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  • Jun 13, 2011 at 04:21 AM

    General ledger is the main accounting record of a business which uses double-entry bookkeeping. In SAP, the central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Reconciliation Accounts are G/L accounts that receive postings from a subsidiary ledgers. Meaning, transactions data are not posted directly to recon accounts. Example of recon accounts are Accounts Receivable, Accounts Payable and Fixed Assets G/L. For accounts receivable G/L the subsidiary ledger is the customer account. All transactions with the customers are posted directly to the customer account and the recon account is automatically updated. How this thing happen? Well, when you create a customer account you specify under the Company Code data the reconciliation account.

    Regards

    Sanil

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