General ledger accounting is normally used for comprehensive picture of external financial report. It a known fact that from general ledger every financial statement of an organization is prepared.All definitions of general ledger are placed in charts of accounts in an organized array and every general ledger is organized and prepared according to charts of accounts.While we work world wide we have to follow the rules of that country in which we are working. It means that country specific charts of account are country dependent. It is optional part depending upon the business you have.
In this article we will work on the terminologies that are used for General Ledger Accounting that is designed for SAP FICO. You can get the basic concepts of basic terms in this article that is given below.
General ledger accounting is normally used for comprehensive picture of external financial report. It a known fact that from general ledger every financial statement of an organization is prepared. In general ledger all of our business transactions are recorded that is fully integrated all business area of an organization. In SAP it makes sure that company data is completely filled and posted. From here we can conclude that general ledger is very important part of the accounting. Because of these factors it is the first essence module of SAP FICO. In general ledger of SAP FICO training we will cover the following points.
The Chart of Account
All definitions of general ledger are placed in charts of accounts in an organized array and every general ledger is organized and prepared according to charts of accounts. There is possibility that many company codes may use the same charts of accounts. Moreover the groups within an organization use the same charts of accounts. In the simple language the chart of accounts contains the list of general ledger accounts that are used by any company and legal entity in a practical world. The chart of account contains the structure and the basic information about the structure master. For each G/L account the COD contains the account name, account number and the technical information about the G/L account. The technical information maintains the date of creation of general ledger and what are the changes made in the general ledger account. It is flexibility in the system the one chart of account many be used with many company codes depending upon the requirements
The charts of accounts are classified into three parts that are explained in the following sentences
- Operative Chart of Accounts
- Country Specific Chart of Accounts
- Group charts of accounts
The first COA is mandatory and last two are optional. The maximum length assigned to these COA is ten characters. While working in SAP creation of charts of accounts is the basic need that is later on assigned to the company code and this type of charts of accounts is known as operative charts of accounts. This type of account contains the day to day activity of the organization. This means that all the transactional values are updated because of this account. From here we conclude operative charts of accounts are mandatory for company code.
While we work world wide we have to follow the rules of that country in which we are working. It means that country specific charts of account are country dependent. It is optional part depending upon the business you have.
Suppose you have created separate charts of accounts for different country codes and now you want group accounting, in such cases we prefer group chart of accounts and it is optional.
If you want to learn in detail about these courses you must get training of SAP FICO training by Tekvdo. This is video based and very professional training that can help you in getting high paid job.
General Ledger Accounting, General Ledger, Ledger Accounting