Recon Accounts assignment while creating a new GL Account

Question

Hey everybody,
I was wondering if there is any global rule to which accounts should be selected as Recon A/c while creating a GL master in fs00. From my point of understanding the only Recon A/c's are Accounts Receivable as recon account :Customer and Accounts Payable as recon account: Vendor! So in which situation do we select Recon account : Asset or Recon account: Contract Account Receivable?
If you could please help me figure this out, I would greatly appreciate.
Thanks in advance.
Nick
help.sap.com

Answer 1

General ledger is the main accounting record of a business which uses double-entry bookkeeping. In SAP, the central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Reconciliation Accounts are G/L accounts that receive postings from a subsidiary ledgers. Meaning, transactions data are not posted directly to recon accounts. Example of recon accounts are Accounts Receivable, Accounts Payable and Fixed Assets G/L. For accounts receivable G/L the subsidiary ledger is the customer account. All transactions with the customers are posted directly to the customer account and the recon account is automatically updated. How this thing happen? Well, when you create a customer account you specify under the Company Code data the reconciliation account.
Regards
Sanil