Chart of Accounts
ChA is a directory of G/L accounts . It is a variant which contains the structure and
basic information about general ledger accounts. We can modify the chart of accounts to
fit our requirements (for e.g. global, industry-specific, or country-specific) There 3 kinds
of ChA. Namely: Operational, Group, Country chart of accounts.
Operational Chart of Accounts - I guess everybody knows about this, without this there is no account in company code.
Group chart of Accounts ?
For internal purposes, cross-company code reporting may be useful, for example, financial statements that contain the items of several company codes. This is no problem as long as all company codes use the same chart of accounts. However, some company codes may have to use special chart of accounts because of legal requirements. In that case we use Group chart of accounts for cross-company code reporting. We assign this Group Ch Account number for each G/L account. If you give Group chart of accounts number here i.e. in chart of accounts creation list OB13, the group a/c number field in the
chart of accounts segment i.e. FSP0 of the operational chart of accounts becomes required entry field.
Country chart of Accounts (Alternative Account Number) ?
This is used for inter-company code controlling. An alternative to using a group chart of
accounts is to use country chart of accounts.
Hint: This ?alternative account number? is entered in every company code segment.
Group chart of accounts will be given in OB13 (chart of accounts creation) screen.
And Finally -> As somebody answered your question ...
operational -- it is used for day to day transactions it is mandatory
country -- it is for taxation purpose it is optional
group -- it is for consolidation purpose it is optional
Hope it helps!
3 types of chart of accounts provided by sap
operational chart of account -- it is used for day to day transactions it is mandatory
country chart of account-- it is for taxation purpose it is optional
group of chart of accounts-- it is for consolidation purpose it is optional
Thanks & Regards
A chart of account is the place where u r going to arrange your general ledgers in accordance with some specifications like account group & numbering
The single chart of accounts can be used by different company codes provided they use similar GL
The chart of accounts are of three type
1. Operating - used in both financial accounting and cost accounting ( mandatory )
2.Country Specific - structured in accordance with legal requirements of the country
3.Group Chart Of Accounts - structured in accordance with requirements pertaining to Consolidation
It is mandatory that at least one chart of account should be assigned to a company code
Thanks & Regards
Edited by: Arun R on Aug 28, 2008 9:12 AM
SAP provides with 3 types of COA:
2) Country-specific COA
It is not mandatory to have all the COA.
However an Operation COA is to be maintained for the company code, to record all transactions of the company. This COA is manadatory.
If there are multiple company codes in the company a Group chart of acounts and Country chart of accouts can be maintained. These are optional.
I hope this helps.
Need to verify the following:
Telecom business: We must enable bookeeping in 2 chart of accounts (common chart of account and mandatory). can you please explain what are the difference between the two and can you please send a model for both (telecom related would be highly appreciated).