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Define Chart of Accounts

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Define Chart of Accounts
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What is Chart of Accounts? 

A Chart of Accounts in SAP represents the combined list of GL Accounts and master data record used in one or more company codes. All the GL Accounts in Chart of Accounts will have the Account name, Account number and Control information. The Control information decides how the GL Accounts can be created.

Customizing Tr. Code for Creation of Chart of Accounts – OB13 

The chart of accounts are mostly defined at client level and the master chart must be allocated or marked for every company.

Types of Chart of Accounts 

1) Operating Chart of Accounts:

This chart relates to the day to day posting. In SAP it is mandatory that this Operating Chart of Accounts is assigned to the company code.

Group Chart of Accounts:

This chart of accounts is used for consolidating all company codes with a different operating chart of accounts falling under a company. It is not mandatory to assign this group chart of accounts to company code.

Country Specific Chart of Accounts:

This Chart of Accounts contains the GL Accounts to meet the specific statutory or legal requirements of a company from where a company code operates. Assigning Country chart of accounts to a company code is optional in SAP.

How to Define Chart of Accounts?

T-code (Ob13)

Path

  • Financial Accounting
  • General Ledger Accounting
  • GL Accounts
  • Master Records
  • Preparations
  • Edit Chart of Account List

In the chart of accounts list you enter the charts of accounts that you want to use in your organization (at client level).

The list already contains sample charts of accounts for some countries. Charts of accounts GKR and IKR, for example, have been entered for Germany.

Chart of Accounts

Here a Chart of Account that will be used by a company specific will be defined. By defining the COA the GL accounts will not be automatically created but only a variant for a chart of account will get defined

Option available is either to choose country specific COA defined by the SAP or to define new COA for a company code specific. For defining a new COA select the option new entries from the task bar and fill the required data.

Chart of Accounts

Chart of Accts: Key that uniquely identifies a chart of accounts.

Chart of accounts description: You enter a descriptive name for the chart of accounts here.

Maintenance language for the chart of accounts: Language in which the chart of accounts is created. All accounts have a description in this language. Master data can only be displayed or maintained in this language. If you carry out functions with the account, the account name can be displayed both in the maintenance language and in the available alternative languages.

Length of the G/L account number: This determines the length of a G/L account number in the chart of accounts. This number may have up to ten digits.

If you do not need ten digits for your accounts, you can avoid the need for proceeding zeros by reducing the length of the G/L account number.

The system adds zeros to the account numbers as follows:

• Numerical account numbers

The system includes zeros to the left of the number 0.
1234 -> 0000001234

• Alpha-numeric account numbers

The system includes zeros to the right of the number
1131DB -> 1131DB0000

Controlling Integration

Control of how a cost element can be maintained when maintaining a G/L account.

The following options are available:

• No maintenance of cost elements.
• Cost elements maintained manually. A push button is available for this purpose, with which you can go directly to the related cost element.
• Cost elements maintained automatically. When you save a new G/L account, the related cost element is automatically created. A prerequisite is that a default value for the cost element category has been set up for this cost element. If no default value is found, the system will not create a cost element.
Make Default Settings

Group chart of accts

Chart of accounts which is used in the corporate group.

Blocked

Indicator which blocks the chart of accounts from being released i.e. no G/L accounts can be created for this chart of accounts in the company codes.

This is only advisable if charts of accounts are created centrally and accounts are created locally. If this is the case, then the block prevents accounts from being created in the company codes for a chart of accounts. However the existing GL account within a chart of accounts can be used.

At last Save


Comments

  • 11 Apr 2018 9:08 pm

    Hi, If i can put block on this above screen so cannot able to post transaction on gl which is created locally.

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