Chart of Account

The Chart of accounts in SAP is a Group of

CHART OF General ledger account that’s help to records
ACCOUNT the organizational transaction in a structured
“BYTD”
way.
Each general ledger account consists account
number, name and control information.
• Multiple Company Code can use the Same
chart of account
• Chart of account can be defined with a
COMPANY COMPANY
maximum 4 digit
CODE “ABC1” CODE “ABC2” • It is created at the Level
 Type of Chart OF Account (COA)
1. Operating Chart of Account
2. Group chart of Account
3. Country specific chart of account

1. Operating Account - The Operating Account Known as company code chart of account. The
operating chart of account in SAP used for recording the day-to day
transaction in Company code. We also call them the standard chart of Account.

2. Group Chat Of Account- We use group chart of account in SAP for consolidating all company code
with dissimilar operating chart of accounts to belonging to a company.

For Example : We have two Company Code

 Example for understanding the use of group chart of account.

• A company has two company codes

• Company code 1 uses operational chart of account ABC1 and company code 2 uses operational chart of account
ABC2
• Both company codes prepare their own financial reports using operational chart of account. But for Group
financial reports of company both financial data needs to be consolidated. Since list of accounts in both company
codes are different hence consolidation becomes challenging. For resolve this problem we use Group Chart of
account

G/L Name Company Code ABC1 Company Code ABC2 Group COA
Rent Exp 5000 6000 80000

Country specific chart of account- Country Chat of account design as per your country Low
Create Chart of Accounts
• Step 1) Enter Transaction code SPRO in the command field

Step 2:- Click on SAP Reference IMG

Step 3) In next screen-“Display IMG” navigate the following menu path : SAP Customizing Implementation
Guide -Financial Accounting - General Ledger Accounting - G/L Accounts - Master Data - Preparations -Edit Chart
of Accounts List
.

Step 4) In the next screen, select New Entries

 Step 5) In the next screen, Enter Following Data :

1.Enter a unique Chart of Accounts Code , maximum length is four

2.Enter a Description for the Chart of Accounts
3.Enter 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
4.Enter the maximum length for G/L Accounts number, it could be maximum to ten digits if number is short then
it will prefix zero before it to make it to the maximum length
5.Enter the type of integration between G/L accounts and cost elements