In Co, we create Recon accts to keep Fi gl in balance with CO. Not all
transactions affect FI gls, best example of it is internal order settlements,
they use secondary cost elements and does not affect your G/l accts. To update
FI side of it we maintain recon accts. These are primarily for cross company,
cross functional and cross business area transactions.
The number of recon accts to be defined is dependant on various factors, like
how your management wants to see the reports.. whether they want to classify the
cost based on CO object class or by Co types etc..
However the basic config you got to follow is:
1. Activate Recon accts (if you have created CO area newly, it would be
use T.code: KALA
2. Assignment of Recon document type to the Controlling area.
3. Creating clearing accts (that you want to us! e for reconciliation. During
FI-Co recon.. inter company clearing accounts will be automatically credited or
debited and now you need to create offset acct which will show up in P&l acct).
Acct determination set up thru T.code: OBYA
4. Maintain accts for Automatic Recon posting.
5. Assign Number ranges to Recon activity.
Without creating of reconciliation account, can you create vendor? What is
the use of reconciliation?
Customer and vendor accounts are sub ledger GL's. We will have to create two
reconciliation GLs in viz. Reconciliation GL for Customer and Vendor in chart of
After, while creating customer and vendor master records, we have to mention
respective reconciliation GL in their company code segment details. This recon
a/c will show you the net balances in GL for customer and vendor a/cs.
Without creating Vendor you can still create individual GL for each customer
and vendor , but then
1) Your list of GL's in chart of account will be very lengthy.
2) Duplication of work as SD/ MM people are also required to create their own
3) Cross company code consolidation will not be possible as the chart of
accounts will be different.
4) Very difficult to keep track of individual customer/ vendor a/cs.
5) Not advisable even in real time accounting system i.e. manual book