charts of account

[Former Member]

what is charts of account??

[Former Member · Accepted solution]

Hi Friend,

<b>Chart of Accounts</b>

Definition

An organizational structure, defined using accounting principles, that records values and value flows for orderly account management.

Use

The operational chart of accounts is used by financial accounting and cost accounting. The items in a chart of accounts can be expense or revenue accounts in FI and cost or revenue elements in cost accounting.

Integration

You need to assign each company code to a chart of accounts.

In addition, you may assign each company code to a country-specific chart of accounts. The chart of accounts and country-specific chart of accounts are linked using alternating account numbers.

The accounts from internal and external accounting are managed in an integrated accounting system. Therefore, when creating a controlling area, the charts of accounts used by the corresponding company code must be respected.

The controlling area adopts the chart of accounts belonging to the company code assigned. In cross-company code cost accounting the controlling area and all company codes assigned to it must use the same chart of accounts.

Nevertheless, you can also use a country-specific chart of accounts to apply the country-specific accounting requirements while using consistent cost accounting.

You assign a company code to the controlling area. The company code uses the INT chart of accounts (International Chart of Accounts). The controlling area also uses the INT chart of accounts.

Your organization has subsidiaries in France and Italy which produce balance sheets in different company codes. Uniform managerial accounting is to be performed for the entire enterprise.

In order to comply with the accounting regulations of each country, the company codes are assigned to different country charts of accounts.

In addition, you also define a uniform worldwide chart of accounts for internal accounting to which you assign the company codes and the controlling area.

For more information on the chart of accounts, see the SAP Library under FI Financial Accounting >G/L Accounting > General Ledger Account Master Data >Chart of Accounts List.

http://help.sap.com/saphelp_47x200/helpdata/en/46/c4d149673611d194e900a0c93031df/frameset.htm

[Former Member]

<a href="http://help.sap.com/saphelp_47x200/helpdata/en/c7/a88ab243dd11d182b30000e829fbfe/frameset.htm">http://help.sap.com/saphelp_47x200/helpdata/en/c7/a88ab243dd11d182b30000e829fbfe/frameset.htm</a>

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.

[Former Member]

In SAP General Ledger, a chart of account is a list of all G/L accounts used by one or several company codes. The chart of account contains the account number, account name and information that controls how an account functions for each of the G/L accounts.

To configure the chart of accounts, a chart of accounts has to be assigned to each company code. Such a chart of account is normally used for daily postings. In case one is using multiple company codes, one can use the same chart of accounts for all the company codes or use additional chart of accounts for each company code. Normally, if all company code lie in the same country, option of using same chart of accounts is feasible. On the other hand, in case company codes lie in different countries, a country specific chart of accounts can be used. SAP provides three functions for chart of accounts namely.

Operating Chart of Accounts - This chart of accounts contains G/L accounts used for daily posting.

Group Chart of Accounts - This chart of accounts contains G/L accounts used by entire corporate group.

Country Specific Chart of Accounts - This chart of accounts contains G/L accounts which are required to meet country specific legal requirements

Hope this is sufficent to understand.

Reward if it helpful.

Regards,

Chandra

[Former Member]

Hi

Chart of Accounts is noyhing but Grouping of G/L Accounts

Regards

S.Baskaran