Chart of Accounts

 

A chart of accounts is a structure containing the G/L accounts used by one or more company codes.

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

    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.

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

    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.

Note Note

The use of different charts of accounts has no effect on the balance sheet and income statement. When creating the balance sheet or the income statement, you can choose whether to balance the company codes that use different charts of accounts together or separately.

End of the note.

Structure

Charts of accounts can have three different functions:

  • Operating chart of accounts

    The operating chart of accounts contains the G/L accounts that you use for daily posting in your company code. Financial Accounting and Controlling both use this chart of accounts.

    You need to assign an operating chart of accounts to a company code.

  • Group chart of accounts

    The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This enables group reporting.

    Assigning a group chart of accounts to an operating chart of accounts is optional.

  • Country-specific chart of accounts

    A country-specific chart of accounts contains the G/L accounts needed to meet a specific country's legal reporting requirements.

    Assigning a country-specific chart of accounts to a company code is optional.

More Information

Cost Accounting and Chart of Accounts