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What is Chart of Accounts

Q.Whatischartofaccounts? ChartofaccountsisagroupingofGLaccountsthatusedtoposttransactionfromcrossmodulesandFImodules.Thesecanbefurtherusedforreportinglike Balance Sheet, P&L, and Trial Balance etc...Chart of accounts are usually very specific to an organization and you will not find the same chart of account across two different companies. SAP does give you standard set of accounts that can be used as template but it usually requires detail discussion with accounts so a list can be finalized. Q. How many types of Chart of Account? There can be only one primary chart of account per company code in SAP. You can have a different set of chart of account that can be used for Group Account and one for Alternative accounts. Three types of Chart of Account . 1.Operative Chart of account It is the COA you are opering for COA defines the Ledger account. 2.Country Chart of Account You can use this COA for the legal requirement for the country specific. 3.Group of Chart of Account Supposes for the same company , which uses different COA for their purposes, they can be grouped into Group of Chart of Accounts. Q.Whatisalternativechartofaccounts? Alternative chart of accounts is secondary grouping of account that is generally used for statuary reporting. For example you might have a company chart of account but due to statutory nature (for countries like Russia and China to name a few), you have to report your account activity in an account range that has been provided by the company stature. In this case you have a primary chart of account as explained above and alternative chart of account. Postings should always be made in the primary chart of account and in the GL account setup these primary accounts should be associated to alternative chart of accounts. This way updates can be made to both primary and alternative chart simultaneously. Q.WhatisgroupCOA? A group chart of account is way to group your primary accounts. For example from an operation perspective you can have several cash accounts but from a group reportingperspectiveyoumightwanttogroupallcashactivityunderoneaccount.TheseareusuallyusedforConsolidationreporting.Tips by : Jayaraman Q.CanwecreateourownCOAfromscratch(notcopyfromastd.version)? Yes, the procedure is: IMG side 1) Create Chart of acount (OB13) 2) Create account groups as per ur own list of GL's and give no range (OBD4) 3) Asign Chart of account to ur company code (OB62) 4) Define retained earning account (OB53) After, for creation in Chart of account segment FSP0 -forCompanycodesegmentFSS0 -forcentralcreationFS00 Related:
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SAP FICO Interview SAP FI Questions

SAP FICO Reference Books: SAP Financial and Controlling Interview Questions, Certification and Configuration, Books Back to SAP FI Tips: SAP FI (Financial Accounting) Configuration Hints and Tips Return to :SAP ABAP/4 Programming, Basis Administration, Configuration Hints and Tips (c) All material on this site is Copyright. Everyeffortismadetoensurethecontentintegrity.Informationusedonthissiteisatyourownrisk. is in no way affiliated with SAP AG. Any unauthorised copying or mirroring is prohibited.

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