Setting up cash suspense account and reconciliation account

Use this procedure to define a relationship between a general ledger company and a cash code. This relationship is required so that the company can process transactions for a specific bank account.

Select Financials > Cash Management > Cash Setup > Company Cash Codes.
Click Create.
Select a Company and Cash Code.
Specify this information:

Cash Posting Account

Select the global ledger suspense account to use for posting Payables payments.
On Reconciliation tab, specify this information: select and specify the Reconciliation Account.

Reconcile Global Ledger Entry

Select this check box.

Reconciliation Account

This account is used to credit the actual cash account and debit (reverse) the cash posting suspense account after the payment has been cleared by the bank.