Hello,

Sub-ledgers are nothing but Accounts payable, accounts receivables, bank account s, fixed assets accounts in SAP.

All the vendors are part of accounts payable and hence considered as sub-ledger accounts in SAP. Similarly part all the customers are part of accounts receivable and hence consi dered as sub-ledger accounts in SAP.

But, ultimately, you need to prepare a TRAIL BALANCE, and prepare a balance shee t and profit and loss account for your organization. Just entering the entries i n sub-ledger accounts, you cannot make a trail balance. You need to linke this t o your General ledger Accounting. The link between your Sub-Ledger and General L edger is Reconciliation Account. To simplify, you need to assign a reconciliatio n account in customer or vendor master. This is a must. Otherwise, all your bala nces are out. When you assign a reconciliation account to vendor or customer mas ter, when any entries are being posted to them, paralelly a shadow entry (in sim ple words) will get posted to reconciliation account and make your TRAIL BALANCE equal.

Note: Trail balance is nothing but a postion statement of the balances of your a ccount on a particular date.

Please let me know if you need further clarification.

The concept of vendor subsidiary ledger comes from Accounts Payable ( AP ) Modul e.

Ex: There is a GL Account "Sundry Creditors" in your GL a/c List. This particula r GL account shows the balance of all Vendor a/c which which your company operat es. So In your balance sheet, TB and other financial statements only the cumulat ive balance of all Vendors would be displayed.

If I ask what could be the break up of my Sundry creditors by Vendor wise, then I have to go to Accounts Payable sub mobule which is a sub ledger to your GL Mod ule.

In Accounts Payable ( Sub ledger) you will find the break up by each vendor wise ............

so in the above concept we can understadnd Vendor subsidiary ledger as each vend or a/c in AP.

Average User Rating (0 ratings) Correct Answer Re: difference between recon and subledger accounts Ravi Sankar Venna Diamond Ravi Sankar Venna Feb 11, 2009 6:33 PM (in response to vinay k) Hello,

Sub-ledgers are nothing but Accounts payable, accounts receivables, bank acc ounts, fixed assets accounts in SAP.

All the vendors are part of accounts payable and hence considered as sub-led ger accounts in SAP. Similarly part all the customers are part of accounts receivable and hence c onsidered as sub-ledger accounts in SAP.

But, ultimately, you need to prepare a TRAIL BALANCE, and prepare a balance sheet and profit and loss account for your organization. Just entering the entri es in sub-ledger accounts, you cannot make a trail balance. You need to linke th is to your General ledger Accounting. The link between your Sub-Ledger and Gener al Ledger is Reconciliation Account. To simplify, you need to assign a reconcili ation account in customer or vendor master. This is a must. Otherwise, all your balances are out. When you assign a reconciliation account to vendor or customer master, when any entries are being posted to them, paralelly a shadow entry (in simple words) will get posted to reconciliation account and make your TRAIL BAL ANCE equal.

Note: Trail balance is nothing but a postion statement of the balances of yo ur account on a particular date.

Please let me know if you need further clarification.

Regards,

Ravi Report Abuse Like (1) Re: difference between recon and subledger accounts

vinay k Steel vinay k Feb 11, 2009 6:50 PM (in response to Ravi Sankar Venna) Hi Ravi shankar,

Thanks for teh reply, much of my doubt is clear now,

i understand from your explanation that:

for trial balance purposes we use Recon account for a group of vendors,

but how does the system know how much to pay to a vendor, because in ven dor master, i am not giving , a seperate GL account for that vendor, then how do es the system know the amount for a specific vendor.

Thanks for your time. Report Abuse Like (0) Re: difference between recon and subledger accounts Ravi Sankar Venna Diamond Ravi Sankar Venna Feb 11, 2009 7:00 PM (in response to vinay k) Hi,

When you are posting to a vendor, then entries will go and sit in ve ndor account. You can view the vendor balances in transaction code FBL1N. Parall elly, what system will do it will post to a reconciliation account which is atta ched to a vendor.

Let us take a business scenario, you do not have any foreign vendors and all are local vendors, hence you have created a single reconciliation accou nt 200000 and attached this to all vendors. ==================================================================== =====

Vendor 1 - Balance - GBP 10 Vendor 2 - Balance - GBP 20 Vendor 3 - Balance - GBP 30

At the same time if you see the balance of GL Account 200000 in FS10 N - it will be 60 (10 + 20 + 30)

Let us take another example, you have foreign vendors as well as loc al vendors. Reconciliation account for local vendors is 200000 and foreign vendo rs it is 210000 ==================================================================== ======

Vendor 1 - Assigned with reconciliation account 200000 - Balance - G BP 15 Vendor 2 - Assigned with reconciliation account 200000 - Balance - G BP 25 Vendor 3 - Assigned with reconciliation account 200000 - Balance - G BP 10

At the same time if you see the balance of GL Account 200000 in FS10 N - it will be 50 (15 + 25 + 10)

Vendor 4 - Assigned with reconciliation account 210000 - Balance - G BP 32 Vendor 5 - Assigned with reconciliation account 210000 - Balance - G BP 22

If you see the balance of GL Account 210000 in FS10N - it will be 54 (32 + 22)

Meaning that whatever is being posted to Sub-Ledger Accounts (for ex amples vendors or customers) will always be in sync with General Ledger Accounti ng with the help of RECONCILIATION ACCOUNT.

Hope this example clear your doubts.

Regards,

Ravi