Home >  Term: reconciliation account
reconciliation account

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). For example, a reconciliation account for all overseas customers.

0 0

Penulis

  • Kristen
  •  (Silver) 643 poin
  • 100% positive feedback
© 2024 CSOFT International, Ltd.