Reconcilation Account in Account card.

Hi,

What is the use of Reconcilation Account in Account card.

I gone through the help, I am not able to understand .

Could u explain with practical example.

Make any account reco. and fill in some amount with that account on general journal line. Now do Ctrl+f9 and u will come to see what is the value for the account on the present journal line and what would be the affect on account after posting the journal. It is of no more use than that. Normally it is used for liquidity accounts.

Thanks Kapil,

I gone through what u explained .

Still I could not understand the actual use of that reconciliation.

If possible could u explain some more.

Thanks Kapil,

I gone through what u explained .

Still I could not understand the actual use of that reconciliation.

If possible could u explain some more.

Make an Account e.g. “Cash” check this boolean, now create a journal entry with the same account and then on Journal line click on reconcile then it will show u is the amount for this account on journal line and what will be the balance in this accaount after posting.

It is more like u r standing on a shop to buy something u want to know how many $ u have in ur pocket and how much u will be left with after making the purchase (i.e. transaction). And as i said earlier this boolean or functionality has this much use only.

Thanks Kapil ,

the example what u given is very good.

but i would like to know onething , is it good way to place a check mark in the Reconcilation Account field for all accounts ?

i am expecting the cool explanation from u.

U ca create a processing report and that too will be of only two lines.

Oh i did forget to metion this, u never do it for all the accounts. See ur client’s COA and check only for liquidity accounts.

Oh i did forget to metion this, u never do it for all the accounts. See ur client’s COA and check only for liquidity accounts.

Thanks Kapil,

first of sorry to continue this topic even you solved my issue .

Could u explain what is meant by Liquidity accounts .

Please throw some exple on this.

Please consult some Finance consultant in your company for a more detailed explanation on Liquidity account. In short Liquidity accounts represents balances of assets which can be realized instantly & can be used for payment of liabilities. These assets are considered equivalent to Cash. For e.g. Bank, Fixed Deposits. etc.