Chart of Accts Question

[Former Member]

My client has 4 plants in 4 countries, so we're planning to go for 4 company code.

What would be more advisable to use

One chart of account or 4 different chart of account one for each country and then use a group chart of account for Consolidation.

What do you folks recommend.

Regards

Shine

[former_member188826 · Accepted solution]

Use one chart of accounts, assign to one controlling area.

Assign the chart of accounts to all the company codes, which can then be linked to the single controlling area.

Country specific chart of account can be added on.

[Former Member · Accepted solution]

Thanks for the reply Sridhar,

Why would i need to add country specific chart of account and how will it affect my existing chart of accounts?

[former_member188826 · Accepted solution]

The COA you assign to the controlling area is meant for operative purposes. This is required for managing your companies. However this can be different from the statutory requirements of the country in which the companies operate. Hence in order to facilitate that purpose, you may need a country specific COA.

This will never interfere with the current COA. Only mapping may be needed to address the requirement.

[Former Member · Accepted solution]

So lets Say, if GL acct # 100000 currency is Rand, belongs to my Operative chart of acct USA1. When i create my country chart of account, i can map this GL account to the country chart of account AFR1 (Africa). So basically the same postings are recorded in both the chart of accounts and they have a common GL acct.

Please correct me if i'm wrong

Regards

Shine

[former_member188826 · Accepted solution]

Posting only happens once based on operative COA.

The field Alternative account number in company code (GL master data, Control tab) is used it to enter the country specific chart of accounts' account number. You manage the the financial statement version to extract country specific P&L and BS.

[Former Member · Accepted solution]

Thanks a Lot Sridhar.

Regards

Shine Pillai