Chart of accounts
Quick answer
The COA structure shapes all financial reporting, so it is designed carefully and early.
Key takeaways
- The chart of accounts is a structured list of GL accounts, each with a number, description and type (balance sheet or…
- One operating chart of accounts can be shared by many company codes, which enables consistent, comparable reporting across a group.
- Operating COA: used day to day, assigned to company codes.
- Watch out: Designing the COA hastily, it constrains reporting for years.
What the COA contains
The chart of accounts is a structured list of GL accounts, each with a number, description and type (balance sheet or profit-and-loss). It defines the "language" in which all financial postings are recorded and from which financial statements are produced.
Types of chart of accounts
- Operating COA: used day to day, assigned to company codes.
- Group COA: for consolidated group reporting across entities.
- Country-specific COA: to meet local legal reporting requirements.
COA and company codes
One operating chart of accounts can be shared by many company codes, which enables consistent, comparable reporting across a group. Each company code, though, controls which accounts it actually uses and their local settings.
Design importance
The COA structure shapes all financial reporting, so it is designed carefully and early. A well-designed chart supports both statutory and management reporting; a poor one constrains the business for years.
Common pitfalls
- Designing the COA hastily, it constrains reporting for years.
- Confusing operating, group and country COAs.
- Inconsistent account use across company codes.
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Check your understanding
Which statement is true of Chart of accounts?
- A. It defines the "language" in which all financial postings are recorded and from which financial statements…
- B. VBAK is a key SAP table in SD (Sales).
- C. RFC-enabled function modules let ABAP code be called remotely, from another SAP system or an external…
Show answer
A. It defines the "language" in which all financial postings are recorded and from which financial statements…
Covered in the “What the COA contains” section of this lesson.
Which of these also applies to Chart of accounts?
- A. Using the wrong variant (e.g. create vs change vs display).
- B. Wrong tax code, wrong rate/account.
- C. One operating chart of accounts can be shared by many company codes, which enables consistent, comparable…
Show answer
C. One operating chart of accounts can be shared by many company codes, which enables consistent, comparable…
Covered in the “COA and company codes” section of this lesson.
Which part of the Learn SAP curriculum covers Chart of accounts?
- A. SAP fundamentals
- B. SAP labs
- C. SAP MM
Show answer
A. SAP fundamentals
This lesson sits in the SAP fundamentals section of the Learn SAP course.