What is reconciliation account in SAP SRD-FIN-GL - FIN-General Ledger?

SAP Term: reconciliation account

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: A G/L account to which postings are automatically made whenever a business transaction is entered on a subledger account such as accounts receivable, accounts payable, or fixed assets. For each subledger, the subledger accounts that are displayed in the General Ledger in the same reconciliation account are always grouped together in an account determination group. In account determination, at least one reconciliation account is assigned ot each account determination group. For example, the account determination group that groups together all foreign accounts payable is assigned to the Payables Foreign reconciliation account. All business transactions that are posted to a subledger account of a foreign supplier are displayed concurrently in this reconciliation account in the General Ledger.

Smart SAP Assistant

• Key Concepts: 
  A reconciliation account is a type of account in SAP's General Ledger (GL) component. It is used to compare the balances of two different accounts and ensure that they match. This is done by transferring the difference between the two accounts to the reconciliation account. 
  
  How to use it: 
  To use a reconciliation account, first create a new GL account in the system. Then, assign it as a reconciliation account in the GL configuration settings. When two accounts need to be reconciled, the difference between them is transferred to the reconciliation account. The balance of the reconciliation account should then be zero. 
  
  Tips & Tricks: 
  When setting up a reconciliation account, make sure to assign it as a “special” GL account type. This will ensure that it is not used for any other purpose and will make it easier to identify when reconciling accounts. 
  
  Related Information: 
  For more information on setting up and using reconciliation accounts in SAP's General Ledger component, please refer to SAP's official documentation.