What is a reconciliation account- Sapsharks

Reconciliation account

A reconciliation account is a G/L account that is linked to the subledger. Initially, when I was learning SAP, it took me a while to understand this concept of why there is a G/L account even when I post to a vendor account, customer account, etc.

A recon account is entered on the master data of a vendor, customer, etc.

Open a vendor master using Fk02 and go to the tab that has the reconciliation account.

 

Go to FB60 and make a posting. We are doing this so we can see where this recon account gets updated.

Go to FB60 and make a posting. We are doing this so we can see where this recon account gets updated.

 

click on the simulate icon

click on the simulate icon

 

This will show you the posting that it is going to make.  You will notice that there is a vendor account and a G/L account. Where is the recon account?

This will show you the posting that it is going to make.

You will notice that there is a vendor account and a G/L account. Where is the recon account?

 

The recon account is currently not shown in the screen. You have to change the layout to see this field.  Click on the change layout icon.

The recon account is currently not shown on the screen. You have to change the layout to see this field.

Click on the change layout icon.

 

The account field was on the right, I selected it and then selected a place on the left and click on the left arrow. and the field moved to the left.   We should see the account right below the G/L account. When an account doesn't have a recon account, then you will see the regular account in this field.

The account field was on the right, I selected it and then selected a place on the left and click on the left arrow. And the field moved to the left.

We should see the account right below the G/L account. When an account doesn’t have a recon account, then you will see the regular account in this field.

 

The recon account field shows up now.

The recon account field shows up now.

 

The 160000 field is the one that was entered in the vendor master. Basically, anytime you post to a subledger, it should update the G/L ledger as well through a recon account.

The 160000 field is the one that was entered in the vendor master. Basically, anytime you post to a subledger, it should update the G/L ledger as well through a recon account.

 

Enter the G/L account that was used in our posting from the previous step, click on all items and execute.  This account is managed on a line item basis which allows us to view all the postings for this account.

Enter the G/L account that was used in our posting from the previous step, click on all items and execute.

This account is managed on a line item basis which allows us to view all the postings for this account.

 

You wil see the postings for this account

You will see the postings for this account

 

repeat these steps for the recon account.  Note- A recon account might not be line item managed. I have made it as line item managed to show you that the postings got updated in the recon account as well.

repeat these steps for the recon account.

Note- A recon account might not be line item managed. I have made it as line item managed to show you that the postings got updated in the recon account as well.

 

 

Click on execute after entering the recon account account.

Click on execute after entering the recon account.

 

The posting got updated in the recon account as well. So our posting updated the vendor ledger, the G/L account that was the offset to the vendor posting and the recon acount that was used in the vendor master.  Make a few postings and run FBl3n and view the documens in FB03 to get fully understand the concept of a  recon account.

The posting got updated in the recon account as well.

So our posting updated the vendor ledger, the G/L account that was the offset to the vendor posting and the recon account that was used in the vendor master.

Make a few postings and run FBl3n and view the documents in FB03 to get fully understand the concept of a  recon account.

Pre-requisite- An Account group has to be set up for a recon account in configuration

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