You are on page 1of 4

"Reconciliation Account for Account Type"

This page contains the following topics :


1. Reconciliation Accounts

2. General Ledger Master Record

"Reconciliation Account for Account Type"


For each sub-ledger account, you must keep at least one reconciliation account in the general ledger.
When you post to an account in the sub ledger, 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 sub ledger
accounts are also posted automatically in the general ledger.

http://www.hareshpradhan.com/FICO/SAP%20Notes-11-A-Reconciliation%20Account%20for%20Account%20Type.htm (1 of 4)3/30/2008 10:41:52 PM


"Reconciliation Account for Account Type"

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 .

You have created a reconciliation account "Receivables" for accounts receivable. You must specify the
account number of the reconciliation account in the master records of the customer accounts. The system
checks whether the named reconciliation account is permitted for the account type "customer". More
information on the reconciliation account can be found in the FI Accounts Receivable and Payable
Accounting documentation in the sections on customer master records and vendor master records .

Sub-ledger :
The accounting at the subsidiary ledger level are called sub-ledger, such as
Customer
Vendor
Asset
Subledgers give more details on the postings made to the reconciliation accounts in the general ledger.
Example of Reconciliation Account and Sub-ledger:

Sub-Ledger Accounts :
Customers
Maruit Udyog Limited A/c
Hyundai Motors A/c

Vendors
Mohan Industries
Rishi K. Industries

Main Ledger Accounts :


Accounts Receivable A/c
Accounts Payable A/c
Purchase A/c
Sales A/c

Reconciliation A/c
The main ledgers (Accounts Receivable A/c and Accounts Payable A/c ) are two ledger when

http://www.hareshpradhan.com/FICO/SAP%20Notes-11-A-Reconciliation%20Account%20for%20Account%20Type.htm (2 of 4)3/30/2008 10:41:52 PM


"Reconciliation Account for Account Type"

selected as Reconciliation type becomes reconciliation accounts. All postings to the subledger
accounts are automatically posted to the assigned reconciliation accounts. The general ledger is
therefore always up to date.

Graphical Presentation of Reconciliation Account

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 . You have created a
reconciliation account "Receivables" for accounts receivable. You must specify the account number of the
reconciliation account in the master records of the customer accounts. The system checks whether the
named reconciliation account is permitted for the account type "customer". More information on the
http://www.hareshpradhan.com/FICO/SAP%20Notes-11-A-Reconciliation%20Account%20for%20Account%20Type.htm (3 of 4)3/30/2008 10:41:52 PM
"Reconciliation Account for Account Type"

reconciliation account can be found in the FI Accounts Receivable and Payable Accounting
documentation in the sections on customer master records and vendor master records

Copyright Haresh Pradhan, Sai Technology, Mahipalpur, New Delhi-110037

No of Visitors.

http://www.hareshpradhan.com/FICO/SAP%20Notes-11-A-Reconciliation%20Account%20for%20Account%20Type.htm (4 of 4)3/30/2008 10:41:52 PM