Reg. Company Code and Charts of account

[Former Member]

Hi All,

I am trying to create a customer but Since there is no GL Account not able to complete the creation of Customer. I tried creating a GL Account but there also i am not able to save the GL Account becuase its throwing an error Select the Charts of Account.

I need to know what is Charts of Account means (as of what I know is the chart which shows the Profit & Loss in country specific format) and how does it link with the Company Code.

Regards,

Senthil Nattamai Sekar

[former_member204513 · Accepted solution]

Dear Senthil,

Chart of accounts

A classification scheme consisting of a group of general ledger (G/L) accounts.

A chart of accounts provides a framework for the recording of values to ensure an orderly rendering of accounting data. The G/L accounts it contains are used by one or more company codes.

For each G/L account, the chart of accounts contains the account number, the account name, and technical information.

A chart of accounts must be assigned to each company code. This chart of accounts is the operative chart of accounts and is used in both financial accounting and cost accounting. Other charts of accounts include:

Country-specific charts of accounts -

These are structured in accordance with legal requirements of the country in question

Group chart of accounts -

This is structured in accordance with requirements pertaining to Consolidation.

IMG path do define and assign chart of accounts is

SPRO>IMG>Finnancial accounting>General Ledger Accounting>G/L Accounts>Master Records>Preparations>Edit Chart of Accounts List>Assign Company Code to Chart of Accounts

I hope it will help you,

Regards,

Murali.

Edited by: Murali Mohan.Tallapaneni on Jul 24, 2008 10:36 AM

[Former Member]

One chart of account contains its own set of G/L accounts.

These G/L accounts are unique to a Chart of account.

There are various Chart of Accounts, like

INT --- Chart of account International

IKR -

---

Chart of account industry Germany

CACA--- Chart of account Canada

CAJP --- Chart of account Japan,

etc.

These Chart of accounts are client independent.

Accounts are posted to one Company code in the different G/L accounts.

Therefore, Chart of account is assigned to Company code.

SPRO>IMG>Finnancial accounting>General Ledger Accounting>G/L Accounts>Master Records>Preparations>Edit Chart of Accounts List>Assign Company Code to Chart of Accounts

One Company code can have only one Chart of account, but same Chart of account can be used by many company codes.

Edited by: pradyumna on Jul 24, 2008 10:48 AM

[Former Member]

Hello,

I think you have created company code by selecting new entries. The best way to practice is to copy from standard company code 1000. While copying the system will prompt for copying the G/L account data with chart os account INT, just give yes, it will copy the chart of accounts INT. Once you do all, while creating the customer you can use the recon. account as 140000.

But as you have already created the company, I am not sure assigning a chart of account will wok or not.

Prase

[Former Member]

Hi,

Generally Chart of Accounts is created at client level, based on the client requirement. Chart of Accounts is nothing but List of all account groups. Only one COA can be assined to C.Code. C.Code Chart of account is itself Master Chart of accounts. It contains all account groups, it helps to creat of all general ledgers.

Chart of Accounts are 3 types

1).Operating COA - Mandatory

2).Group COA

3).Country Specific COA

But Country Specific and Group COA are optional. When we

use parllel COA like Country specific, we need to choose

which one shoud consider for B/Sheet and P&L account.

Thanks,

Raja

[Former Member]

Hi ,

Very simple explanation. chart of account means FI consultant will prepare the list of account say one for sales revenues , bank accounts , credit account, etc . these chart of accounts have a naming conversion in SAP . example for INDIA its INT.

company code. is where the profit and loss account will be generated. how to generate profit and loss account , so the chart of accounts will be assigned to the company code.

based on the all the profits G/l account and loss G/l accounts we can say that the company will be in loss or gain.

and perticularly where we are investing and where we don,t want to invest , these thing tells by G/L account.

thanks

Kuntla