Concept Of Chart Of Accounts
The chart of accounts is the list of all the general ledger accounts that can be used by one or more company codes. As a good SAP business practice, the chart of accounts should be one of the first organizational elements which a company implementing SAP should finalize. This is because the chart of accounts decides which G/L accounts will be available for general as well as tax related postings.
The chart of accounts is defined at the client level i.e. above the company code level. This allows the same chart of accounts to be used by multiple company codes. This is helpful in case of sister companies which are defined as separate legal entities but require more or less identical general ledger accounts.
Types Of Chart Of Accounts
A single company code can have three types of charts of accounts. This is required in case the same company needs to prepare financial statements in more than one format. The different types of chart of accounts are: