sandy

• Oct 6th, 2007

 

The chart of account is the name given to the List of G/L Accounts of the Company Code. The chart of account that is used for the day to day transactions is known as the operative chart of account. Apart from this, we can also have a group chart of account and a country specific chart of account. Group chart of Account is used for consolidation purpose when there are more than 1 company codes and country specific chart of account is an optional COA which can be maintained in respect to the legal requirements of that country

ushabonthu

 Profile Answers by ushabonthu 

• Mar 11th, 2008

 

Chart of accounts is nothing but list of G/L account names and numbers used in Company's General ledger.

It is a variant, which contains the structure and basic information about company's General Ledger.

For every company code, we have to assign chart of accounts. One company code can have one chart of accounts and several company codes can have single chart of accounts.

 For a G/L account, Chart of account contains G/L account number and G/L account name.

There are 3 types of Chart of Accounts:

1.Operative chart of accounts:

It contains list of G/L accounts used in Day to day usage of company's General ledger.

2. Country specific chart of accounts:

  These are used in accordance with the legal requirements pertaining to Country.

3.Group chart of accounts:
  These are used in accordance with the requirements pertaining to consolidation.