Chart of Accounts

A Chart of Accounts is the list of GL accounts used in one or more Company Codes. All the GL accounts in a chart of accounts will have an account number, account name, and some control information. The control information decides how the GL account can be created.

A Chart of Accounts includes the following components:

• Chart of account key
• Name
• Maintenance language
• The GL Account Number
• Controlling integration
• Group chart of accounts (consolidation)
• Block indicator

This chart is used for day-to-day postings and is also known as an Operative or Standard chart of accounts. Both FI and CO use a chart of accounts. It is mandatory that the chart of accounts be assigned to a Company Code.

The Group Chart of Accounts, also known as the Corporate Chart of Accounts, is used for consolidating all Company Codes (with a dissimilar Operative Chart of Accounts) falling under a Company. This is the universe of all-inclusive GL accounts from where the Operative Chart of Accounts is derived. A Company Code is not mandatory.

One chart of accounts can be assigned to several Company Codes. However, the reverse is not possible; i.e., you will not be able assign more than one chart of accounts to a single Company Code.