Cost Accounting and Charts of Accounts

 

You need to assign an operating chart of accounts to each company code. This chart of accounts is also used by cost accounting. That is, the chart of accounts assigned to a controlling area must be the same chart of accounts as that of the company codes assigned to the controlling area.

If your organization uses multiple company codes (for example, in a corporate group) and you need different charts of accounts, you need to take this into account. How you organize your charts of accounts therefore depends on the hierarchy level at which you want to see cost information.

You have two basic methods for organizing your charts of accounts:

  • Central organization

    At the corporate group level, a chart of accounts is defined which contains all accounts and can be used by all company codes. This chart of accounts is the operating chart of accounts for all company codes. To meet specific country requirements, you can enter an additional (country-specific) chart of accounts for each company code.

    • Advantage: Cost accounting across company codes is possible. Consolidation uses the operating chart of accounts, which is the group chart of accounts.

    • Disadvantage: The accountants cannot work with their own country-specific charts of accounts.

  • Decentral organization

    Each company code uses its country-specific chart of accounts as the operating chart of accounts. For consolidation, you specify the group chart of accounts additionally for each company code.

    • Advantage: The accountants can work with their own country-specific charts of accounts. You can consolidate data using the group chart of accounts.

    • Disadvantage: Cost accounting across company codes is not possible.