Chart of Accounts

CHART OF ACCOUNTS

Transaction Code :-OBY7

A Chart of Accounts is a detailed listing of all the accounts the company uses for recording transaction that represent both Balance Sheet and Profit & Loss accounts

    v Contains list of  G/L accounts in an ordered form

     v Each general ledger is set up according to a COA

     v Many company codes may use the same COA

     v All a group  Organizational units use the same Chart of Accounts

TYPES OF  COA:-

1. Operating Chart of Accounts
2. Group Chart of Accounts
3. Country specific Chart of Accounts

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

1.     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.

Operating COA- Used for recording day to day business transactions

2.     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.

Group COA- used for consolidation purpose in case you have more than one operating chart of account

3.     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.

                       

country specific COA- if you have two company codes , one is US and one in europe and you have chosen to use one chart of account for the two company codes, then to record country specific transactions , like tax, etc you can use country specific chart of account

Required information to create a chart of account:

Chart of Accounts = Key in four-character alphanumeric identifier

Description = Chart of Account for <your company name>

Maint Language = English

Length of G/L Account Number = 6 (the valid range is 4 to 10)

Controlling Integration = Manual creation of Cost Elements