Define Chart of Accounts in SAP Hana

Chart of Accounts in SAP Hana

A chart of accounts in SAP is a list or library of G/L (General Ledger) accounts that are required for company code to record real-time business transactions. For each general ledger account, a chart of accounts controls the

• Account Number
• Account Name
• Information that controls how to G/L account is created in company code

Chart of Accounts in SAP – Scenarios

1. Each chart of accounts must be assigned to a single company code, but one or more company codes can use the same chart of accounts
2. The chart accounts can be used in both financial accounting and cost accounting

Types of Chart of Accounts in SAP

1. Operational Chart of Accounts
2. Group Chart of Accounts
3. Country-Specific Chart of Accounts

Scenario: If you maintain the same chart of accounts for all the company codes, it helps you to generate consolidated reports. So the group level of reporting will become very easy if you are using one chart of accounts for your company codes (legal entities).

How to define chart of Accounts in SAP S4 Hana

You can define a chart of accounts in the SAP Hana system by using the transaction code “OB13” or IMG path.

• SAP IMG Path: – SAP Customizing Implementation Guide -> Financial Accounting  -> General Ledger (G/L) Accounting  -> Master Data -> G/L Accounts -> Preparations -> Edit Chart of Accounts List
• Transaction Code: – OB13

Step 1: Execute transaction code “OB13” in the sap command field to define a new chart of accounts in the SAP S4 Hana system.

Step 2: On the change view “List of All Chart of Accounts” overview screen, display a list of existing charts of accounts that are defined in the SAP S4Hana system. Click on the New Entries button to define a new chart of accounts in the SAP Hana system.

Step 3: On New entries on the Chart of accounts creation Hana screen, update the following details

• Chart of Accounts – Enter a new key that defines the chart of accounts in SAP S/4Hana
• Description – Update the description for a newly created chart of accounts in SAP S4Hana

General Specifications

• Maintain Language – Choose the maintained language as “English” or if you want to maintain a chart of accounts in other languages, choose the appropriate language key from the list
• Length of G/L Account Number – You can specify the length of the G/L account number up to 10. In real-time, we SAP consultants need to get the information from the clients. Based on the client’s business size, it will be decided the G/L account number.

Consolidation

• Group Chart of Accounts – Update the group chart of accounts key for consolidation.

Status

• Block – Uncheck the option block, check this option only to put a chart of accounts in block status.

Changes in SAP Hana: In the S4 Hana system, the option “Controlling Integration” has been removed.

After maintaining the details for a chart of accounts, click on the Save button and save the configured details.

Successfully we have maintained a chart of accounts in the SAP S/4Hana system.

Next Activity: After the configuration of the Chart of accounts in SAP, the next activity is you need to Assign company code to the chart of accounts.

Project Work – Space Work

Now, it is time to create a new chart of accounts in the SAP Hana system.  Refer to below table and create a new chart of accounts

Interview Questions on Chart of Accounts

1. What is a Chart of Accounts?

A chart of accounts is a list of general ledger accounts that are required for company code to record real-time business transactions.

2. How many chart of accounts you can assign to a company code

You can assign only one chart of accounts to a company code. One chart of accounts can be used by one or more company codes.

3. What is the maximum length of G/L account number that you can maintain

Ans: The length of the G/L account number can be up to 10 only and we can not go behind 10 lengths for G/L.