What is reconciliation account in SAP FI - Financial Accounting?

SAP Term: reconciliation account

• Component: FI

• Component Name: Financial Accounting

• Description: G/L account in which subledger accounting transactions such as the accounts receivable and accounts payable- and asset subledgers are kept. As a rule, multiple subledger accounting accounts post to a common reconciliation account. This ensures that the developments in the subledger accounts are accurately reflected in the general ledger that is, in line with balance sheet conventions. &EXAMPLE& Foreign debtors can post to a common reconciliation account.

Smart SAP Assistant

• Key Concepts: 
  A reconciliation account is a type of asset account in SAP Financial Accounting (FI) that is used to reconcile the balance of two accounts. It is used to ensure that the balances of two accounts are in agreement with each other. The reconciliation account is used to record any differences between the two accounts, such as differences in currency or differences in the timing of transactions. 
  
  How to use it: 
  In SAP FI, a reconciliation account is created by entering a reconciliation account number in the “Reconciliation Account” field when creating a new asset account. The reconciliation account number should be unique and should not be used for any other purpose. Once the reconciliation account has been created, it can be used to reconcile the balances of two accounts. To do this, the balances of both accounts must be entered into the reconciliation account. Any differences between the two accounts will then be recorded in the reconciliation account. 
  
  Tips & Tricks: 
  When reconciling two accounts, it is important to ensure that all transactions are accounted for and that all differences are recorded in the reconciliation account. It is also important to ensure that all transactions are entered into the correct accounts and that all entries are accurate. 
  
  Related Information: 
  For more information on how to use a reconciliation account in SAP FI, please refer to SAP’s documentation on Reconciliation Accounts.