Chart of Accounts

A chart of accounts is a structure containing the G/L accounts used by one or more company codes. As we know this COA is being maintained at client level.

?For each G/L account, the chart of accounts shows the account number, the account name, and information that determines the function of the account and that controls how the account is created in the company code and in the controlling area.

?You need to assign a chart of accounts to each company code. This chart of accounts is then the operating chart of accounts and is used for the daily postings in the company code. If cost and revenue accounting is active, the chart of accounts is also used for postings in the controlling area.

?Charts of Accounts with Multiple Company Codes

?You have the following options when using multiple company codes:

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

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

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

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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 the company codes are in different countries.

Types of Charts of Accounts in SAP S/4HANA

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1.????? Operating Chart of Accounts (YCOA): Used for daily financial postings in company codes. It is mandatory for all company codes in the system2.

2.????? Group Chart of Accounts (YGR1): Used for consolidation purposes across the entire corporate group.

3.????? Country-Specific Chart of Accounts: Meets specific legal reporting requirements of a country.

Useful T Code:        

1.????? S_ALR_87012326 - Chart of Accounts

2.????? S_ALR_87012328 - G/L Account List

3.????? S_ALR_87012333 - G/L accounts list

To create COA use TCode: OB13?

Transaction code: FS00 (to be use for creation of GL and assigned it to COA level)

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Note:? by using SE16N Tcode use table name : SKAT (G/L Account Master Record (Chart of Accounts: Description)

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By using table Name “T001”? , you able to see at company code level which COA is assigned.

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You will have more information about GL configuration like how the setup is and what is hierarchy of GL under financial statement.        

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G/L Account: XXXXX - within range of defined Series

Company Code: XXXX

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G/L Account Type:

1.????? Balance Sheet Account

·??????? This has balances of balance sheet items like Assets, Liabilities and Equity and being carry forward to next fiscal year.

2.????? Non-Operating expense or income

·??????? This account records expenses and gains from activities that are not part of the main purpose of company. Like rented income by manufacturing company.

3.????? Primary cost or Revenue

·??????? This account records expenses and gain from activities that are part of the main purpose of company. Like manufacturing company producing Atta and selling it to customer through Market.

4.????? Secondary cost

·??????? Income Statement account that functions as a cost element for secondary costs. Such as internal activity cost allocation, overhead allocation, and settlement transactions.

5.????? Cash Account

·??????? This is assigned for each house bank account. A G/L account is required to which payment transactions are posted with the cash account.

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Account Group: This group is depending upon Organization Structure.

1.????? Balance Sheet

2.????? Cash Account

3.????? Profit and Loss Account

4.????? External Bank account

5.????? Management Account

6.????? Secondary Cost Element

7.????? Secondary Costs

8.????? Reconciliation Account AR/AP

9.????? Fixed Assets Account

P&L statement acct type: XXXX or YYYY

Functional Area: as per organization structure

Account currency: Local Currency in which we need to maintain book.

Field status group: Its mandatory field to update (depends upon company structure)

Chart of Accounts: Assignment of GL to COA

Country/Region Key: IN (India)

Controlling Area: Assignment of GL to Controlling Area

Defining GL’s serial No. which representing COA and Financial Statement.??????????        

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