SAP financial accounting has several sub ledgers, including accounts receivable,

accounts payable and asset accounting. An account is maintained for each customer,
vendor or asset in the sub ledger. When preparing financial statements the details of
these individual accounts are not necessary. Instead, every asset, customer or vendor
account is linked to a certain SAP reconciliation account, also known as a control
account. Each SAP reconciliation account is used to reconcile the sub ledgers with the
general ledger. SAP reconciliation accounts are reported on the financial statements,
while the individual sub ledger accounts are not.

The SAP general ledger is linked to the sub ledgers. For every transaction posted in the
sub ledger, the same value will be updated to the corresponding reconciliation account.

For example, reconciliation account 160000 is used for trade vendors. Let’s assume we
have vendor A with account 36. If we post an invoice of $2000 to vendor A, account
36 will be debited for $2000 and the reconciliation account 160000 will also be debited
automatically for $2000.

Creating SAP Reconciliation Account

SAP reconciliation accounts are created very similar to all other general ledger
accounts. There are just a few attributes that need to be set correctly. Transaction
code FS00 is used to create reconciliation accounts centrally.

In this tutorial, we will not walk through the entire account creation process, as a
reconciliation account is created in much the same way as any other general ledger
account. Instead, let’s examine account 160000 for AP (Accounts Payable)
reconciliation. We will walk through the three main areas where a reconciliation account
differs from other accounts.