This chapter contains the following topics:
Section 6.1, "Understanding the Reconciliation of Corresponding Accounts"
Section 6.2, "Running the Reconciliation of Corresponding Account Program"
Section 6.3, "Setting Processing Options for Reconciliation of Corresponding Accounts (R74Z9310)"
Corresponding accounts, also called contra accounts, are accounts that are used to balance journal entries in the general ledger. The contra account is usually a different account than the account that includes the primary journal entry. However, you can use the same account as you use for the primary entry if you use a positive entry for one journal entry and a negative entry for the corresponding journal entry.
Run the Reconciliation of Corresponding Accounts program to generate a report that produces a summarized or detailed list of amounts in an object account and its contra account. You can use this report to identify discrepancies in the balances of the accounts.
The report that is generated by the Reconciliation of Corresponding Accounts program includes a section that shows the positive amounts and a section that shows the negative amounts. The Turnover 1 field in the report shows the total of the specified object account. The Turnover 2 field in the report shows the total of the contra account. You can compare these amounts to determine whether the accounts balance.
You set processing options to specify the company, account, ledger type, and beginning and end dates for the records that the system reads.
Select General Ledger (G74Z09), Reconciliation of Corresponding Accounts.
Processing options enable you to specify default processing values.
Enter the code for the company for which you generate the report. You must complete this processing option.
Enter the object account for which you want to compare the contra account. You must complete this processing option.
Enter the subsidiary of the object account that you entered in the Object Account processing option. If you do not specify a subsidiary, the system reads records for all subsidiaries of the specified object account.
Enter the beginning date of the date range for which you process records.
Enter the ending date of the date range for which you process records.
Enter Y or leave this processing option blank to print the totals of the contra account by the subsidiaries of the account.