Reconciliation Account:

Reconciliation a/c for vendor master records

When you post items to a subsidiary ledger, the system automatically posts the same data to the general ledger (see the following illustration). Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero. This means that you can draw up balance sheets at any time without having to transfer totals from the subledgers to the general ledger.

You have to specify a reconciliation account in every vendor master record. Settings made in a reconciliation account also affect the vendor accounts:

• You can use the reconciliation account to configure the screens for posting items to vendor accounts. Using the reconciliation account you could, for example, hide the fields for exchange rate hedges if these types of transaction are not made. For more information, see the documentation on Document Posting.

• You can also use the reconciliation account to specify which currencies you can use in posting to the corresponding vendor accounts.

For more information on reconciliation accounts, see the documentation on General Topics in Financial Accounting.

What is reconciliation account used for maintaining Customer master data

When i tried to create an customer via XD03, there is an reconciliation account which is mandory but i dont know what to input into....

I Use IDES...

Could anyone explain me what is reconciliation account and how to config it??

Thank you .

In SAP, users can specify an account type as being a reconciliation account. Each and every sub-ledger account should have a corresponding reconciliation account in the general ledger. SAP automatically posts an entry in the reconciliation account as and when an entry is made in sub-ledger. To take a simple example the "payable account for goods and services" is an example of a reconciliation account for suppliers. In the reconciliation account field, the user should enter vendor.

So you may be thinking what is the main use of a reconciliation account in SAP?

Well, with reconciliation accounts, one can generate a balance sheet or profit and loss account at any time, since amounts posted in sub-ledger are also reflected in the general ledger. One final note, I personally would advise SAP R3 users to check the balance of reconciliation account and match it with the corresponding sub-ledger account, to ensure that they match.

Now to configure it Please go to the link given below

http://www.sap-img.com/financial/how-to-configure-fico-reconciliation.htm

Reward Points if this helps

Regards

AK

How to Configure FICO Reconciliation

In Co, we create Recon accts to keep Fi gl in balance with CO. Not all transactions affect FI gls, best example of it is internal order settlements, they use secondary cost elements and does not affect your G/l accts. To update FI side of it we maintain recon accts. These are primarily for cross company, cross functional and cross business area transactions.

The number of recon accts to be defined is dependant on various factors, like how your management wants to see the reports.. whether they want to classify the cost based on CO object class or by Co types etc..

However the basic config you got to follow is:

1. Activate Recon accts (if you have created CO area newly, it would be active).
    use T.code: KALA

2. Assignment of Recon document type to the Controlling area.
    T.code: OKKP

3. Creating clearing accts (that you want to us! e for reconciliation. During FI-Co recon.. inter company clearing accounts will be automatically credited or debited and now you need to create offset acct which will show up in P&l acct).
    Acct determination set up thru T.code: OBYA

4. Maintain accts for Automatic Recon posting.
    T.code OBYB

5. Assign Number ranges to Recon activity.
    Tcode OK13                                                                                      *-- Radha Krishna

Without creating of reconciliation account, can you create vendor? What is the use of reconciliation?

Customer and vendor accounts are sub ledger GL's. We will have to create two reconciliation GLs in viz. Reconciliation GL for Customer and Vendor in chart of accounts.

After, while creating customer and vendor master records, we have to mention respective reconciliation GL in their company code segment details. This recon a/c will show you the net balances in GL for customer and vendor a/cs.

Without creating Vendor you can still create individual GL for each customer and vendor , but then
1) Your list of GL's in chart of account will be very lengthy.
2) Duplication of work as SD/ MM people are also required to create their own list.
3) Cross company code consolidation will not be possible as the chart of accounts will be different.
4) Very difficult to keep track of individual customer/ vendor a/cs.
5) Not advisable even in real time accounting system i.e. manual book keeping.        *-- Mahajan