Configuration steps to Create Chart of Accounts in SAP FI
What is Chart of Accounts ?
- Contains the definition of all GL accounts in ordered form
- Each general ledger is set up according to chart of Accounts
- Many company code may use the same COA
- All group organizational Units use the same chart of Accounts
- In simple terms we can say chart of accounts the list of all General ledger accounts that is use by any company or legal entity.
- Chart of accounts contains the structure and the basic information about GL master.
- For each GL master chart of accounts contains accounts number accounts name and technical information about the GL accounts . Technical information who created the GL and date of creation. Changes in GL accounts.
- For each company code a chart of accounts is needed
Therefore for each company code a chart of accounts has to be assigned. You can use the same chart of accounts to multiple company code.
Company code 1100 and Company code 1200 thus both can have same chart of accounts COA 1000,if we have the same chart of accounts for two or more company code then we can have a consolidated reports. So we have corporate group reports.
In case of separate chart of accounts its difficult to have consolidated repots .Therefore we have same chart of accounts if it in the same country.
Chart of accounts are of three types
- Operative chart of accounts (mandatory)
- Country specific chart of accounts (optional)
- Group chart of accounts (optional)
The maximum lenth of COA is 10 characters
Operative chart of accounts (mandatory)
When we start working in SAP we need to create COA which is to be assin to company code that chart of accounts is known as Operative chart of accounts. That because operative chart of accounts contains the day to day activities of the organization. It means day to day daily transaction on the basis of that all the values of transaction are updated in the COA.Its mandatory.
Country specific chart of accounts
When a company has business in different countries to follow the legal rules and taxes of that country a company needs to have county specific chart of accounts.
Group of chart of accounts
If you have a separate chart of accounts for your different company code and now you have a group reporting for those case we assign a group chart of accounts to both the respective chart of accounts which are separate and consolidate as group chart of accounts for reports.
A chart of accounts defines what will be the code or length of character every ledger accounts. In SAP every ledger or GL has been given a unique number and that number can be of 1 digit or maximum 10 digit. It depends upon client to client how much digit they wants. It can be 4 ,6 8 or 10 character.
Create Accounts group:
Accounts group control the data that need to entered while creating master record creation. Accounts group consist definition of GL accounts vendor customer master etc.
So Accounts group is a classifying features with in the GL account master record. Account group control the number range and creation of GL master with in the specific number range.
P redefine a number interval for similar GL master records and GL master with the same number interval are created in the same account group.
In order to manager or arrange large number of ledger accounts accounts groups are created in SAP systems. There are huge list of ledger accounts and if you want to group them in certain parameter such cash group, bank group, income and expenditure group asset and liability group.
If you group them there numbering should be same means in the same sequence.
Accounts group control number range and creation of GL master. In this we group financial statement in different grouping like balance sheet can be grouped under Asset and liabilities .Such 1 is for assets and 2 is for liability 3 as an income and 4 as an expense.
One can even sub group this group also. Such as Assets can be subgroup as Current assets or non-currents
IMG-Financial Accounting (new)>General Ledger accounting(new)>master Data-GL accounts –preparation >Edit charts of accounts list
This the path to create charts of accounts in SAP FI
- Go to SAP Screen and type transaction code SPRO
As shown in picture below
A new screen appear SAP reference IMG which is implementation guide
- Now move to Financial accounting new > move to General Leger accounting (new)>master Data-GL Accounts > now move to edit charts list of accounts as image shown below
Now we will see list of chart of accounts already created in SAP shown below
Now we will create our own chart of accounts in SAP FI module
Now we will go to new Entries> a screen will open as shown below
Now in chart of accounts type the name of chart of accounts: 1000
Description type: name of chart of accounts
Main language: select the language in this case its English
Length of G/L account number: it can be 1 to 10 here its put 4
Controlling integration: It is part of CO module select manual creation of cost elements
Group chart of Accnts : leave it blanks