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    Shivangii Sharma
    A company code represents the smallest organizational unit for accounting. A chart of accounts groups general ledger accounts by account number, name, and other fields. This document defines general ledger accounts as the master data used for transaction processing, and provides steps for creating a new general ledger account including filling fields for the account number, company code, account type, group, text, and currency.

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    End User Document

    Uploaded by

    Shivangii Sharma
    7 views5 pages
    A company code represents the smallest organizational unit for accounting. A chart of accounts groups general ledger accounts by account number, name, and other fields. This document defines general ledger accounts as the master data used for transaction processing, and provides steps for creating a new general ledger account including filling fields for the account number, company code, account type, group, text, and currency.

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    A company code represents the smallest organizational unit for accounting. A chart of accounts groups general ledger accounts by account number, name, and other fields. This document defines general ledger accounts as the master data used for transaction processing, and provides steps for creating a new general ledger account including filling fields for the account number, company code, account type, group, text, and currency.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7 views5 pages

    End User Document

    Uploaded by

    Shivangii Sharma
    A company code represents the smallest organizational unit for accounting. A chart of accounts groups general ledger accounts by account number, name, and other fields. This document defines general ledger accounts as the master data used for transaction processing, and provides steps for creating a new general ledger account including filling fields for the account number, company code, account type, group, text, and currency.

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    END USER DOCUMENT

    Company code - A company code is the smallest organization unit in which complete
    independent accounting can be carried out

    Chart Of Accounts (COA)


    COA is a group of General Ledger (G/L) accounts that records the transactions of an
    organization in a structured way. For each G/L account, COA consists of the account
    number, account name, language, and other control fields. Every company code must be
    assigned a chart of accounts. In accordance with the variant principle, it is possible to assign
    one chart of accounts to several company codes - if the company codes have the same
    requirements for the COA setup. The Controlling (CO) component and the Financial
    Accounting (FI) component use the same chart of accounts. If company codes use cross-
    company code controlling, then the company must use the same chart of accounts.

    1. General Ledger

    1.1 Overview
    General ledger accounts are master data that are used in day-to-day transaction processing
    in various modules of the system.

    Define How business transactions are posted in GL accounts and how posting data are
    processed. Master data for an account must exist before any posting can be made.
    T Code FS00

    2.2 General Ledger Creation


    Manu Path - SAP MENU → Accounting → Financial Accounting → General Ledger → master
    Records → GL Accounts → Individual Processing → FS00-Centrally
    T code- FS00
    When we Double-click on FS00-Centrally, we get the below screen

    Step 2.3 Fill data in the fields


    G/L Account - The G/L account number identifies the G/L account in a chart of accounts.
    Here we insert the number (4-digit alpha-numeric key) of the general ledger account that we
    want to create. The number should be within the number range for the type of account that
    we want to create. When creating we can do it with reference to an existing account (to copy
    existing data and speed up data entry) or we create without referencing any existing
    account.

    Company Code - The company code is the main organizational unit within financial
    accounting. When creating an account, we specify the company code so that the system will
    create the company code segment for that account. In other words, by specifying the
    company code we are making sure that the general ledger account is complete and ready
    for use in the specified company code.

    After entering the company code and general ledger account number you click on create
    icon and the following fields will be ready for input.

    G/L Account Types- Are classified into 4 types:


    1. Balance Sheet Account- Account that is posted from business transactions. The
    balance of a balance sheet account is carried forward at fiscal year-end.
    2. Nonoperating Expense/Income- Income statement accounts that records expenses
    or gains from activities that are not part of the main purpose of the company, such
    as gains realized from financial investments by a manufacturing company.
    3. Primary Costs or Revenue- Income statement account that functions as a cost
    element for primary costs or revenue. Primary costs reflect operating expenses such
    as payroll, selling expenses, or administration costs.
    4. Secondary Costs-Income statement account that functions as a cost element for
    secondary costs. Secondary costs result from value flows within the organization,
    such as internal activity cost allocations, overhead allocations, and settlement
    transactions

    Account Group- It determines the number interval from which the account number is
    selected when a G/L account is created. Standard COA are recommended in most
    countries. And these are created so that the number of accounts belonging to same
    functional area begin with same digits.
    Short Text- The general ledger account short text is used for online displays and
    evaluations which do not have sufficient space for the long text.

    G/L Account Long Text- When there is sufficient space, the general ledger long text is
    used for online displays and evaluations.

    Trading Partner- In this field we enter the company ID of the trading partner. The
    company ID is standard for the whole group.

    Now we go to the next tab -> Control Data


    Insert data in the fields.

    Account Currency- Auto Populated from company code setting. The account currency
    indicates the currency in which the account is held. If a currency other than the company
    code currency is specified, users can only post items in that currency to this account. If the
    company code currency is specified, users can post items in any currency to this account.

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