Financial Accounting (FI)

G/L account, to which transactions in the subsidiary ledgers, (such as in the customer, vendor or assets areas), are automatically updated.

It is generally the case that several subledger accounts post to a common reconciliation account. This ensures that the developments in the subledger accounts are accurately reflected in the general ledger (i.e. in line with balance sheet conventions).

Example:

A reconciliation account for all overseas customers.