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reconciliation account (FI)

Financial Accounting (FI)

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

Typically, 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 (that is, in line with balance sheet conventions).

Example

A reconciliation account for all overseas customers.

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