Internal Reconciliation

In this topic, we discuss how to utilize the process of internal reconciliation, both system and user reconciliations, in G/L accounts and business partners.

You will learn how to review automatic and semi-automatic system reconciliations, and how to perform internal reconciliation manually.

Here are some key points to take away:

1. The term, Internal Reconciliation, refers to the matching and clearing of open credit items to open debit items internally within an account.
2. For vendor accounts, a liability (credit) is reconciled with an outgoing payment (debit).  For customer accounts, a receivable (debit) is reconciled with an incoming payment (credit).
3. Internal reconciliation can be system reconciliation or user reconciliation.
4. There are two statuses for both the system reconciliation and the user reconciliation: full and partial.
5. There are three user reconciliation types: manual, automatic and semi-automatic.  The manual type includes an option for reconciling multiple business partners with each other. 
6. An internal reconciliation is performed in one currency. The one currency can be either local currency or a foreign currency. The local currency is used if the business partner account is set as the local currency or set to all currencies. If the business partner is set to a foreign currency, then that currency is used for reconciliation.
7. SAP Business One can handle accounting in two parallel currencies: the local currency and the system currency.
8. All internal reconciliations, whether system or user reconciliations, need to balance in both the local currency and the system currency.
9. The system assigns a unique reconciliation number to each internal reconciliation for both system reconciliations and user reconciliations.
10. The Manage Previous Reconciliations function allows you to review or cancel a user reconciliation.

You can also download the document here for your records.