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What is a reconciliation in accounting? What is a bank reconciliation? What is a sub-ledger to general-ledger reconciliation? What is the difference between a two-column and a running reconciliation? Why are regular reconciliations important for fraud prevention? What is the frequency at which key reconciliations should be performed? What are reconciling items and how are they classified? How do you reconcile a supplier statement to the AP ledger? What is the GR/IR reconciliation and why does it matter? How do you reconcile intercompany AP/AR balances?
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Accounts Payable & Receivable › Reconciliations

What is a control account and how does it relate to reconciliations?

Beginner

Answer

A control account is a GL account whose balance summarizes a sub-ledger—e.g., the AP control account equals the total of all supplier balances. Reconciliations confirm the control account agrees with its sub-ledger detail. Postings should flow through the sub-ledger, not directly to the control account, to keep them in agreement.
Real-world example The AR control account in the GL should always equal the sum of every customer's balance in the AR sub-ledger.

Common follow-ups: Why avoid direct postings to a control account? | What does the control account summarize?

Aging Analysis Invoice Processing Reconciliations
All 23 Reconciliations questions