The chart of accounts in SAP is a group of GL Accounts that controls the name of the General GL Master, the number of GL Master and some control information. In other words, the grouping of G/L accounts forms the framework for recording accounting transactions in a structured way.
Each G/L account is made up of an account number, account name and same control information. The control information decides how an account is created in a company code and posted to.
There are a number of Chart of accounts in SAP that meet the statutory and legal requirements of various countries. Likewise, the international chart of accounts (INT) works in a similar way and any country can use them.
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In SAP FICO, We have three types of Chart of Accounts. Let us understand them briefly.
The operating chart of accounts in SAP is used for recording the day-to-day transactions in a company code. We also call them the standard chart of accounts. Both FI & CO make use of this element.
Noteworthy, this can be different from the country chart of account. Each company code works with exactly one operating chart of accounts. However, we can assign the same chart to more than one company code.
The country chart of accounts in sap helps to meet the country-specific legal requirements. Although it is optional to assign to a company code, you need such a chart when you work with a different operating chart of accounts.
Subsequently, you can establish the linkage by entering the country chart of G/L account number in the alternate Account number field of GL Master Record.
We use a group chart of accounts in SAP for consolidating all company codes with a dissimilar operating chart of accounts belonging to a company.
However, the assignment of a group chart of accounts to a company code is not mandatory. We also call it the Corporate Chart of Accounts.
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After clicking on the “Edit Chart of Accounts List”, to create a new chart of accounts, click on New entry, Fill in the required details and Save.
So, now let’s see how to create COA in two different applications – ECC and S/4HANA.
However, before creating the chart of accounts you must understand that we need to maintain some values which are necessary for the defining process.
Now see the process to define chart of accounts in SAP.
Since we have two applications- ECC and S/4HANA. So there is a slight difference in the steps or path. I have put both here.
Create COA in SAP FICO with the following process:-
SPRO => SAP IMG-Financial Accounting (New) => General Ledger Accounting (New) => Master Data => G/L Accounts => Preparation => Edit Chart of Accounts List. – [Transaction Code – OB13]
SPRO=> SAP IMG => Financial Accounting => General Ledger Accounting => Master Data => G/L Accounts => Preparation => Edit Chart of Accounts List. – [Tcode is same – OB13]
Chart Account can be defined with a maximum 4 digit code. In my example, it is “C160”.
The process to create a Group Chart Of Accounts is the same as we create an Operating Chart of Account. Once you create it, assign it to one of the existing operating charts of accounts. Now the earlier one becomes a group chart of accounts.
For example, first, we create a chart of accounts with the name “A”. As mentioned, we will create it in the normal way as an operating chart of accounts. After creation, we assign this “A” chart of account to an already existing COA eg. name “B”.
Finally, after this assignment, the first COA i.e. “A” becomes a Group Chart of Accounts.
Since we create the chart of accounts at the client level, thus, the next logical step is to assign them to company codes.
SPRO => IMG => Financial Accounting (New) => General Ledger Accounting (New) => Master Data => G/L Accounts => Preparation => Assign Company Codes to Chart of Accounts. – [Transaction Code- OB62]
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It’s very simple. Just follow the below steps.
Click on the Edit Chart of Account List => Use TCode OB13 => Click on the Position => Search the specific Chart of Accounts.
Same as the image above. The steps are the same as creation. Just enter the specific COA Tcode.
It is OB13.
You must have known already. Since it is a common question by readers, so I put it here separately. We use it to see a specific Chart of Account.
The steps are the same as creating a new COA. After which certain things you need to do. Here is the whole process.
(Same Tcode is to use – OB13).
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Interestingly, this Chart of Accounts is a feature that SAP introduced in ECC as compared to its R/3 model. This added much functionality here in the SAP functional module.
In order to maintain the General Ledgers in SAP properly, you must create the Chart of Accounts in the proper format. Since the general ledger accounts are the backbone of the SAP Financial Management system. This is to say, in FICO and SAP S4 HANA Finance both it has their significance.
Thus, you must consider the chart of accounts as their internal structure.
Importantly, if you would like to understand the General Ledger system in SAP in a deeper way, you must learn the chart of accounts at its best. Also, that should be from a good source.
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Related Video: How to Chart of Accounts in SAP | Structure & Types
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