Chart of Accounts List

Definition The chart of accounts list is a directory of all charts of accounts that can be used in a client. Use You enter all the charts of accounts that you require for your company in this list. To do this, in the Financial Accounting Implementation Guide, choose General Ledger Accounting _ G/L Accounts _ Master Data _ Preparations _ Maintain Chart of Accounts List [Ext.]. In the FI system, you can use as many charts of accounts as you require within a client. You can thus meet the varying needs of the individual company codes regarding the chart of accounts structure. The following characteristics of the individual company codes could, for example, place various demands on how the chart of accounts is set up: _ Location (country) _ Branch _ Corporate structure _ Corporate size _ Legal requirements However, several company codes can also use a common chart of accounts if a different grouping of the chart of accounts is not required. CClliieenntt Co. code 0004 Chart of accts A Chart of accts B Co. code 0003

Co. code 0002 Co. code 0001 You must assign one chart of accounts to each company code. You therefore need at least one chart of accounts for your company in the system. General Ledger Accounting (FI-GL) SAP AG Chart of Accounts List 30 April 2001 The chart of accounts is shared by Financial Accounting as well as cost/revenue accounting. The items in a chart of accounts can be both expense or revenue

accounts in Financial Accounting and cost or revenue elements in cost/revenue

accounting. Structure If you enter a chart of accounts in the chart of accounts list, note the importance of the following settings: _ Maintenance language The chart of accounts is created and changed in one language, the maintenance language. This means that the names of the G/L accounts are created and changed in the maintenance language. If the chart of accounts is used by multiple company codes using varying languages, you can translate the account names into the languages needed. For more information on this, see Translating a Chart of Accounts [Page 35].

_ Group chart of accounts You can assign an alternative group chart of accounts to the chart of accounts. For more information, see Chart of Accounts [Page 31]. _ Length of the G/L account number You can define the length of the G/L account numbers. The maximum length is ten characters. Internally, the system keeps the account numbers with a ten character length. The system pads purely numeric account numbers with zeroes from the left, and alphanumeric account numbers from the right. To change the chart of accounts list, read Changing the Chart of Accounts List [Page 36]. SAP AG General Ledger Accounting (FI-GL) Chart of Accounts April 2001 31 Chart of Accounts Definition This is a list of all G/L accounts used by one or several company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code. Use You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code. 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 set up, assign all of the individual 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 company codes lie in multiple countries. The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes which use different charts of accounts together or separately. Structure Charts of accounts can have three different functions in the system: _ Operating chart of accounts The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts. You have 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 allows the company to provide reports for the entire corporate group. The assigning of an corporate group chart of accounts to a company code is optional. _ Country-specific chart of accounts General Ledger Accounting (FI-GL) SAP AG Chart of Accounts 32 April 2001

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements. The assigning of an country-specific chart of accounts to a company code is optional. Integration

The operating chart of accounts is shared by Financial Accounting as well as Controlling. The
accounts in a chart of accounts can be both expense or revenue accounts in Financial Accounting and cost or revenue elements in cost/revenue accounting. You can find additional information on this subject under Cost Accounting and Chart of Accounts [Page 33]. SAP AG General Ledger Accounting (FI-GL) Cost Accounting and Chart of Accounts April 2001 33 Cost Accounting and Chart of Accounts You have to assign an operating chart of accounts to each company code. Cost accounting also uses this chart of accounts, that is, the accounts of the operating chart of accounts can be revenue and expense accounts in Financial Accounting and can be cost or revenue elements in cost accounting. If your organization consisting of multiple company codes (such as a global company) needs various chart of accounts, you should note that cost account is only connected to the operating chart of accounts. How you organize your chart of accounts depends on the hierarchy level at which you want to carry out cost accounting. You have two basic methods for organizing your chart of accounts. _ Central organization At the corporate group level, a chart of account 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: Cross-company code cost accounting is possible. Consolidation is carried out using the operating chart of accounts, which is the corporate 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 enter the corporate group chart of accounts additionally for each company code. Advantage: The accountants can work in their own country-specific charts of accounts. You cannot consolidate data using the corporate group chart of accounts. Disadvantage: Cross-company code cost accounting is not possible. Charts of accounts Organizati on of the chart of accounts Cost accounting Corporate group chart of accounts Operating chart of

accounts Country-specific chart of accounts Central Cross company code Corporate group chart of accounts For local requirements