Tell about the Reconciliation account field in Vendor Master

Question

Accepted Answer

The Reconciliation account field in Vendor Master is used to track and manage the financial transactions between a company and its vendors.

The Reconciliation account field is a mandatory field in the Vendor Master record in SAP FICO.
It is a key element in the Accounts Payable (AP) module and is used to record and monitor vendor-related financial transactions.
The Reconciliation account is a general ledger account that represents the vendor's balance in the company's books.
It helps in tracking the outstanding payments, invoices, and credit memos for each vendor.
The Reconciliation account is used for automatic posting of vendor invoices and payments.
It enables the system to automatically update the vendor's balance and generate accounting entries.
For example, if a company has multiple vendors, each vendor will have a unique Reconciliation account assigned to them.
The Reconciliation account can be assigned based on various criteria such as vendor group, payment terms, or company code.
By maintaining separate Reconciliation accounts for each vendor, it becomes easier to analyze and reconcile vendor balances.
The Reconciliation account field also allows for the integration of vendor-related financial data with other modules like Controlling (CO) and Materials Management (MM).

Accepted Answer

Reconciliation account in SAP is a general ledger account assigned to the business partner master record to record all transaction in sub ledger. It ensures that the total of all general ledger account balances is always zero. This is a pre requisite for creating all balance sheet at any time.

Tell about the Reconciliation account field in Vendor Master

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