DEFINE CHART OF ACCOUNTS

Define chart of accounts

A Chart of accounts is at the client level and assigned to company code. It is a list of General Ledger account’s master data that fall under different account groups of a company code. All general ledger accounts in the chart of accounts will have account numbers, account names and same control information. The control information decides how the general ledger accounts can be created.

Chart of accounts code is denoted by 4 characters maximum. It can be numeric / alphabets/ alpha- numeric.

For giving account numbers SAP has given 2 options

• Option 1

All company codes will use the same set of accounts.

If lot of company codes prepare their own chart of account, then they will maintain data of chart of account segment and company code segment at a time.

• Option 2
  

Each company code in the group will have a separate set of accounts.

If lots of company codes using same chart of accounts then they will maintain data at chart of account segment and then at company code segment separately.
 
Type of chart of accounts

1. Group chart of accounts

These are accounts used by the entire corporate group. They help in generating reports at the corporate level.

2. Country specific chart of accounts

It helps to meet country-specific legal requirements. SAP has given for each country - country specific chart of accounts.

3. Operating chart of accounts

It is used to post daily expenses. In the operating chart of accounts, the accounts could be either expense or revenue accounts.

[T code - OB13]

PATH

STEP 1

Enter SPRO in the command field

STEP 2

Select SAP Reference IMG

             

STEP 3

Financial accounting(new) >> general ledger accounting(new) >> master data >> g/l accounts >> preparations >> edit chart of accounts list

STEP 4

Select new entries button

STEP 5

Add details:

Chart of accounts

Description

General specification: maintain language, length of G/L A/C number

Integration: controlling integration

Select save button and save in TR.

Questions related to:

1. What is chart of account?
Chart of account is nothing but it a list of general ledger account.

2. What is the use of chart of account?
Chart of accounts can used for recording day to day transactions.

3. Chart of accounts denoted with how many characters?
Chart of account can be denoted with 4 characters only.

4. One company code has how many charts of accounts?
Only one chart of account can use in a company code but one chart of account can be used in one or more company codes.

5. Can a chart of accounts be used in many company codes?
Yes, a single chart of account can be used in many company codes. 

6. How many types of charts of accounts are there?
There are 3 types of charts of accounts
1) Group chart of accounts 
2) Country specific chart of accounts
3) Operation chart of accounts