--- title: An Overview of Internal Reconciliation in SAP Business One description: SAP Business One's reconciliation features are powerful financial tools. Learn how to utilize internal reconciliation in SAP B1 in this SAP PRESS blog! image: https://blog.sap-press.com/hubfs/An%20Overview%20of%20Internal%20Reconciliation%20in%20SAP%20Business%20One.png --- [![rheinwerk-sappress-logo-header-1](https://blog.sap-press.com/hubfs/rheinwerk-sappress-logo-header-1.svg)](https://blog.sap-press.com/) [Blog](https://blog.sap-press.com) - Books - Get an overview of our books and courses on every relevant SAP topic. - [Programming](https://sap-press.com/programming/) - [Administration](https://sap-press.com/administration/) - [BI](https://sap-press.com/business-intelligence/) - [Finance](https://sap-press.com/finance-controlling/) - [Logistics](https://sap-press.com/logistics/) - [HR](https://sap-press.com/human-resources/) - [CRM & Sales](https://sap-press.com/marketing-sales/) - [HANA](https://sap-press.com/hana/) - [Introductions](https://sap-press.com/introductions/) - [E-Bites](https://sap-press.com/e-bites/) - [Certification Guides](https://www.sap-press.com/certification-guides/) - [Rheinwerk Courses](https://www.sap-press.com/online-courses/) - Book Subscription - Get unlimited access to all SAP PRESS books! - [SAP PRESS Subscription](https://sap-press.com/subscriptions/) [FICO](https://blog.sap-press.com/tag/fico) # An Overview of Internal Reconciliation in SAP Business One ![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg) by [SAP PRESS](https://blog.sap-press.com/author/sap-press) SAP Business One’s Internal Reconciliation function allows you to match transactions posted to business partner accounts.   Two types of reconciliation are available in the SAP Business One: *Manual reconciliation* (shown in the first figure below) is required when you have a payment on account or create a document such as a credit memo that is unrelated to a specific invoice or transaction, whereas *automatic reconciliation* is handled by SAP when you have incoming and outgoing payments that are applied to invoices and when credit memos are copied from an invoice (second figure). Reconciliation can be partial or full for a single business partner or for a group of partners.   To access the Internal Reconciliation function, navigate to the menu path **Module > Business Partner > Internal Reconciliations > Reconciliation** to bring up the **BP Internal Reconciliation Selection Criteria** window. Another route is to go through **Module > Business Partners > Business Partner Master Data > Account** and then use the golden arrow to drill down into **BP Internal Reconciliation** on the **Account Balance** window.   ![2207_07_047](https://blog.sap-press.com/hs-fs/hubfs/2207_07_047.png?width=1481&name=2207_07_047.png)   ![Posting date](https://blog.sap-press.com/hs-fs/hubfs/2207_07_048.png?width=1461&name=2207_07_048.png)   The table below lists the cumulative fields in the **BP Internal Reconciliation Selection Criteria** screens for both manual and automatic reconciliation.   **![Field types](https://blog.sap-press.com/hs-fs/hubfs/2207_table_07_012.png?width=1957&name=2207_table_07_012.png)**   Once you have input your selection criteria, the **Internal Reconciliation** window is available. For the reconciliation process to work, the total below the **Amount to Reconcile** column needs to be $0, as seen below. No items have been selected, so the **Reconcile** button is hidden in this screen.   ![Reconcile](https://blog.sap-press.com/hs-fs/hubfs/2207_07_049.png?width=1833&name=2207_07_049.png)   But let’s go ahead and select some items for Internal Reconciliation by putting a checkmark into the **Selected** column shown in the figure below. The **Amount to Reconcile** total is still $0.00; thus, the **Reconcile** button is now available. Select **Reconcile** to continue the reconciliation process. When the system generates a message inquiring whether you want to reconcile the selected transactions, select **Yes** to complete the reconciliation or **No** to abandon the process.   ![Amount to reconcile](https://blog.sap-press.com/hs-fs/hubfs/2207_07_050.png?width=1836&name=2207_07_050.png)   The client was issued a $16,000 credit memo and has requested it be applied to outstanding invoices. You’ll notice in the figure above that the $16,000 credit amount was applied to eight invoices with one invoice still short due to a remaining balance of $89.59. The short invoice will display a balance due of $637.85 when you drill down into the invoice detail using the golden arrow.   Sometimes, the transactions may result in small balances. When small balances occur, you can create an adjusting journal entry by selecting the **Create Journal Entry** and then the **Adjustments** button. Additional adjustments are available to add an incoming payment or an outgoing payment using the corresponding radio buttons shown below.   ![Adjustments](https://blog.sap-press.com/hs-fs/hubfs/2207_07_051.png?width=1618&name=2207_07_051.png)   You can adjust the print setting preferences by selecting the **Print Settings** button. The print setting options shown below give you option to select which reconciliations to print and how to sort unreconciled transactions. Press **Update** to set the preferences or choose **Cancel**.   ![Printing preferences](https://blog.sap-press.com/hs-fs/hubfs/2207_07_052.png?width=1181&name=2207_07_052.png)   Editor’s note: This post has been adapted from a section of the book *[SAP Business One: Business User Guide](https://www.sap-press.com/sap-business-one-business-user-guide_5456?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2207_chapter7&utm_content=2207)* by Carl Britton Lewis, Juanita Karan, and Keith Taylor. ## Recommendation [![SAP Business One: Business User Guide](https://blog.sap-press.com/hs-fs/hubfs/2207.jpg?width=170&name=2207.jpg)](https://www.sap-press.com/sap-business-one-business-user-guide_5456?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2207_chapter7&utm_content=2207) **SAP Business One: Business User Guide** Calling all SAP Business One users! Your must-have handbook is here. 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