What is Chart of Accounts in SAP
A chart of Accounts is a list of General Ledger master records used by one or more company codes in SAP. It is the structure for the General ledger accounting.
Before configuring the enterprise structure in SAP, every organization must plan what the structure will look like.
Configuring a chart of accounts is one of the important design processes to overcome in a project. Before implementing SAP, it is important to have a conversion with the client and after having a clear picture of understanding with the client, you can configure COA as per business requirements.
Every G/L account is configured according to the chart of accounts. All the general ledger accounts are arranged in the order form, for e.g Current assets (1000-1500) if you are creating any current asset account, the account number is assigned from 1000 to 1500 only.
It is mandatory to define a minimum of one chart of accounts in the SAP R/3 System.
Types of Chart of Accounts–
Chart of Accounts (COA) are divided into three types, They are
- Operating Chart of Accounts
- Country Chart of Accounts
- Group Chart of Accounts
Operating Chart of Accounts: –
The company uses an operating COA to record daily transactions. It consists of General Ledger Accounts that are utilized for the purpose of postings in company code. The Operating chart of Accounts is used in both SAP Financial Accounts (SAP FI) and Controlling (CO).
Country Chart of Accounts: –
The organization uses this chart of accounts to meet the country’s legal requirements. For e.g. tax calculation may vary from country to country, so the Country COA helps to prepare the reports as per the country’s legal requirements.
Group Chart of Accounts (COA):
This chart of accounts is used by the corporate group and you can prepare consolidation reports for your entire group. While creating a chart of accounts, you can assign a group char of accounts as shown below.
Chart of Account Changes in S4 Hana
- In SAP ECC system, there is a field called controlling integration. This is used to how you can create the cost elements in SAP
- In SAP S4 Hana, this field is permanently removed.
Why Controlling Integration not available in SAP S4 Hana
- The controlling module is directly integration with the financial accounting module.
- New table called ACDOCA was introduced which all the components in a single table, so you can generate a single report with a single table.
- In S4 Hana, cost elements are created as G/L accounts & transaction codes: KA01/KA02/KA03 are absolute in Hana.