What is the chart of accounts? Excerpt from First Steps in SAP Controlling (CO)

The chart of accounts is a list of general ledger accounts. Accounts are broadly classified into assets and liabilities, and then in more granular detail as required by the organization. SAP is an integrated system and all transactions are recorded in the financials with GL accounts enabling data capture. The chart of accounts provides a structure for recording the transactions to enable an accurate depiction of the overall financial and operational health of the organization.

The chart of accounts can be used across multiple company codes and provides a common definition across all companies. Additionally, it streamlines the financial consolidation of the company’s financial books across multiple legal entities.

Being a global company, GCI adopted an international chart of accounts (INT) that would allow capture of assets, liabilities, income, and expenses as per the international accounting standards.

Chart of accounts is maintained with configuration transaction OB13 (see Figure 3.2). The menu path is as follows: Tools • Customizing • IMG • SPRO Execute Project • Financial Accounting (New) • General Ledger Accounting (New) • Master Data • GL Accounts • Preparations • Edit Chart of Accounts List.

Keep reading First Steps in Controlling (CO).

This book offers a comprehensive introduction to SAP ERP Controlling (CO). You will learn the basic fundamentals of the organizational structure, master data, and functions of SAP Controlling, including overhead controlling, product costing, month-end closing, and reporting. If you would like to understand the basic fundamentals of SAP Controlling, with examples based on a case study approach, this book is for you! Using a fictional chocolate manufacturing company case study, you will learn fundamentals based on several day-in-the-life scenarios of various key functions such as cost planning, production controlling, actual costing, and information systems.

Get detailed information on how SAP CO integrates with other SAP modules and obtain insight into the different functional areas typically used in manufacturing organizations. Dive into SAP ERP master data elements and get tips on how to maintain consistent and accurate data. Review the various planning methods available and get an overview of cost center planning, including overhead planning and labor cost planning. Understand how SAP Material Ledger can be used to accurately determine costs. Identify how actual costs are booked and absorbed.

By using a detailed case study, practical examples, tips, and screenshots the author brings readers new to SAP CO quickly up to speed on the fundamentals.

Author Ashish Sampat has been an SAP consultant for most of his career with various consulting organizations and now works as an independent SAP FI/CO consultant. He has provided solutions in several areas of SAP Controlling including product costing, material ledger, and cost center accounting to global clients in consumer packaged goods, life sciences, and industrial sectors.