Deciding upon COA during the implementation

[Former Member]

Hi Experts,

Does any one eloborate on the information that is required and that things that is taken into account while deciding and configuring the chartof accounts for the client.

with regards

Ramesh Y

[Former Member]

Hi

First check the requirements by finalising the organisation structure. This would decide on what is company, how many company codes are needed, and seperate geographical locations if any can be understood.

Assuming a requirement where seperate legal reporting is needed, it impacts the COA also.

Also look at the types of COA which need to be choosen.

Charts of accounts can have three different functions in the system:

Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group.

The assigning of an corporate group chart of accounts to a company code is optional.

Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements.

The assigning of an country-specific chart of accounts to a company code is option

Reg

Suresh