Create Reconciliation Account in SAP FICO

Tutorial guides you how to Create Reconciliation Account in SAP FICO. In SAP, users can specify an account type as being a recon account for Vendor master records. 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.

So learn step by step how to Create Recon Account for vendor master records in SAP FICO. Hope it will be helpful of all my readers.

Create Reconciliation Account in SAP FICO (T.Code- FS00)

Sap Menu Path: IMG –> Financial accounting –> G/L Accounting –> GL Accounts –> Master Data–> Preparations –> GL Account Creation and Processing –> Edit G/L Account.

      Inventory RM ->> Under Current Assets & Loan and Adv.
      Sundry Creditors for RM ->> Under Liabilities and Provisions

G/L Account – 200120
Company Code – ITCI
Select with template button.

create reconciliation account in sap fico

Give G/L Account – 200100 (which was already created to G/L account creation post), Now we just copy from it to create new G/L account 200120
Company Code – ITCI

create reconciliation account in sap fico

Press Enter Button.
Change the Short text and long text – Inventory RM and Inventory Raw Materials
Always select the Balance Sheet Account Check box.

create reconciliation account in sap fico

Go to Control data.
Not need to change any thing.

create reconciliation account in sap fico

Go to Create/bank/Interest column.
Filed Status Group – G001.

create reconciliation account in sap fico

Then select relevant to Cash Flow Check box.
Finally Click on Save button.
We get message Data was Saved.

create reconciliation account in sap fico

Similarly, Create the 2nd G/L Accounts.

G/L Account – 100501.
Company Code – ITCI.
Select with template button.
Give G/L Account – 100500 (which was already created to G/L account creation post), Now we just copy from it to create new G/L account 100501.
Company Code – ITCI.
Press Enter Button.
Change the Short text and long text – S/C for RM and Sundry Creditors for RM
Always select the Balance Sheet Account Check box.

create reconciliation account in sap fico

Go to Control data.
Recon account to accounts type – Vendor.
De select open item management check box
Short keys – 012.

create reconciliation account in sap fico

Go to Create/bank/Interest column.
Filed Status Group – G067.
De select only balance local currency check box.

create reconciliation account in sap fico

Finally Click on Save button.
We get message Data was Saved.

create reconciliation account in sap fico

If you think it is helpful for beginner to getting a basic knowledge about how to define or create Reconciliation Account in SAP FICO. Then please share with your friends. Thanks for watching. Will see you in our next post.

About Pranab Guha

Pranab has experience, in SAP FI (Finance Accounting module) and domain experience in Accounts and Taxation. He has been involved in SAP Customization & Support Projects as a Functional Consultant also a creative writer and lover of all things tech, SAP modules and finance. Also an active member of this creative blog.

Leave a Reply

Your email address will not be published. Required fields are marked *