Chart of Account and Country COA

[Former Member]

Hi All,

Can some tell me difference between Chart of Accounts and Country Chart of Accounts. And for What purpose Country Chart of Accounts is used.

Regards,

Kiran.

[Former Member · Accepted solution]

Hi,

Chart of Accounts

Definition

This is a list of all G/L accounts used by one or several company codes.

For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Use

You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code.

You have the following options when using multiple company codes:

You can use the same chart of accounts for all company codes

If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country.

In addition to the operating chart of accounts, you can use two additional charts of accounts

If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.

The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes which use different charts of accounts together or separately.

Structure

Charts of accounts can have three different functions in the system:

Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group.

The assigning of an corporate group chart of accounts to a company code is optional.

Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements.

The assigning of an country-specific chart of accounts to a company code is optional.

Integration

The operating chart of accounts is shared by Financial Accounting as well as Controlling. The accounts in a chart of accounts can be both expense or revenue accounts in Financial Accounting and cost or revenue elements in cost/revenue accounting. You can find additional information on this subject under Cost Accounting and Chart of Accounts.

Thanks,

Rau

[Former Member]

There are some countries in which financial statements are to be prepared and reported to authorities using specific GL account numbers - I guess Spain is an example. You create the chart of accounts as usual in transaction OB13, create GL accounts specified by the authorities under this chart, and then assign it to company code in OB62 (besides the company code's operational chart of accounts). Once you do that, when you create GL accounts under operational chart of accounts, you can enter the GL account number from the Country Chart of Accounts in 'Alternative account no.' field in 'Control data' tab.

[Former Member]

HI,

Ch of Acc means like operating chart of accounts for daily business, whether it may be statutory purpose or reporting purpose. If your operating ch of accs requirements are not matching for country rules, you need to maintain country specific chart of accounts.

For example under one company you have two company codes. One is in India and anethor one is in USA. In this case for two companies you can use one operating ch of acc for reporting purpose and you need maintain one coutry specific ch of accounts for usa company code for statutory reporting.

reg

vishnu

[Former Member]

Thanks Rau and Vishnu,

In my case I have using Chart of account which is to be used for my germany coampny code and that chart of account is used by different coampny code. So Germany does not needs the current COA they have their own COA. So can I used germany COA in OBY6 in Country Chart of Account and my main COA in Chart of Accts field. And while creating the GL accounts for Germany in their COA I will mentioning the Alternative account.

Hope I am correct ?

Regards,

Arvind.

[Former Member]

Arvind,

If I am understanding what you are saying correctly, (a) you want to share the same operational chart of accounts between two company codes and (b) you want to assign an alternate chart of accounts to your German company code in OBY6 as country chart of accounts and then while creating GL accounts in the German company code, you want to assign the GL a/c. no. from the country chart of accounts in the Alternative account no. field.

This is perfectly possible. However, as far as countries' legal requirement goes, I know that France, Belgium, Spain, China and Latin American countries require financial reporting to be done in a pre-defined chart of accounts, but never heard of Germany having such a requirement.

Srikanth