What is balance confirmation in SAP FI - Financial Accounting?

SAP Term: balance confirmation

• Component: FI

• Component Name: Financial Accounting

• Description: A method of correspondence listing individual amounts you want your customer or vendor to confirm. You request your customer or vendor to confirm these amounts regardless of whether they correspond to the amounts kept in their accounting system.

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• Key Concepts: 
  Balance confirmation is a process in SAP Financial Accounting (FI) that allows users to confirm the balance of an account. This process is used to ensure that the balance of an account is correct and up-to-date. It also helps to identify any discrepancies between the actual balance and the expected balance. 
  
  How to use it: 
  To use balance confirmation, users must first enter the account number and the period for which they want to confirm the balance. The system will then display the current balance of the account and allow users to compare it with the expected balance. If there are any discrepancies, users can make adjustments to correct them. 
  
  Tips & Tricks: 
  When using balance confirmation, it is important to check all accounts regularly to ensure accuracy. Additionally, users should always double-check their entries before confirming the balance of an account. 
  
  Related Information: 
  Balance confirmation is closely related to other processes in SAP FI such as reconciliation and closing activities. Additionally, it can be used in conjunction with other processes such as budgeting and forecasting.