Change in Reconciliation Account of Vendor/Customer

Question

Hi Experts,
Can any one please tell me the scenarios where in we change the reconciliation account for the customer and vendor. If we change, what are the precautions we have to take in terms of transferring balance or open items from old reconciliation account to new reconciliation account?
Thanks,
SravanK

Answer 1

Hi,
               There is no problem to change the account number in the vendor or customer master data, that is :
All Document Items that were created in the old account will be posted in the same old account when you have a payment posting, compensations, etc.
All document created after the change will be posted in the new account as well as the payment postings, compensations and others. 
The system will separate the postings in accordance with the moment at the documents were created. 
You can do a test in the development client before you do the change in the production. 
For example :-
You can create a new reconciliation account because you want the G/L accounts to separate out sales. Just switched the setting in Customer Master and off you go. SAP will recognized the old account for the old postings and used the new account for any new postings. 
You should run balance sheet adjustment program after any reconciliation account change. 
The system performs any adjustments required due to the change of reconciliation accounts or G/L accounts. The items from the old reconciliation accounts are allocated to the new accounts. 
Since you cannot post to the reconciliation accounts directly, the postings are made to temporary adjustment accounts. 
These adjustment accounts should be displayed along with the relevant reconciliation account in the balance sheet. The postings are then reversed after the balance sheet has been created. 
The program for sorting the payables and receivables makes the necessary adjustments automatically. This means that you have to define the adjustment account numbers and the posting keys for these postings in the system. 
If you purchase and install the FI-LC Consolidation application and have bought up a previous customer or vendor (thus also taking on his/her payables and receivables), please refer to the note in the report documentation on changed reconciliation accounts. To define the account numbers, select the activity Define adjustment accounts for changed reconciliation accounts in the Accounts Receivable and Accounts Payable Implementation Guide.
You should only run this program if your new reconciliation account is classified differently from the original in your FS. e.g.. AR to Intercompany accounts. It will just reclassify the existing balance. The line items will not be transferred. If not then no need to run the program at all.
Regards,
Sreehari