Normally all company codes use the same operational chart of account irrespective of country. But some countries have legal requirement to prepare financial reports using specific accounts. This can be achieved using country chart of account in sap.
Consider below example to understand the concept of alternate chart of account.
Below picture explains the concept better
As shown in above picture, account in operation chart of account is mapped to country specific account.
When document is posted, account from operational chart of account is posted. Hence financial reports are available in accounts listed under operational chart of account. Since account in operational chart of account are mapped with specific account in country chart of account, hence financial report in country specific accounts is also available in sap.
Below picture just to give you a comprehensive view of mapping country chart of accounts with operational chart of account.
Account in operation chart of account is mapped to country specific account
When country specific chart of account is used, it’s mandatory to map every single account in operational chart of account to an account in country specific chart of account.
Normally, an account in operational chart of account is mapped to a single account in alternate chart of account.
But practically business might require mapping multiple accounts in operational chart of account to single account in country specific chart of account. This can be done by setting sap error message into warning message.
How general ledger account in operation chart of account is mapped with general ledger account in country chart of account?
Operational chart of account INT is mapped with country chart of account ZINT
After chart of accounts are mapped, general ledger accounts are mapped as shown below.
Account 1 belonging to INT is mapped with account 101 mapped with ZINT.
Alternate account no. refers to general ledger in alternate chart of account.
Does a separated document get generated for alternate chart of account?
No separated document is generated for country specific accounts. Document is posted only with accounts in operational chart of account.
If there is no document with general ledger accounts belonging to alternate chart of account, then how financial reports are available with country specific accounts?
Financial statement (balance sheet and profit & loss statement) can be drawn from operational chart of account or country chart of account or group chart of account as shown below.
In above example, group chart of account is shown to get data from only one company code. But in practical scenario, group accounts will pull data from multiple company codes. That is how group accounts help in arriving at consolidated financial statement.
GL ACCOUNTING
- What is SAP FICO ?What business requirement is fulfilled in this module?
- What is enterprise structure in sap fico?
- What is GL account? What is account group? What is operational chart of accounts?
- What is the need of country chart of account or alternate chart of account? How country chart of account helps fulfill a business requirement?
- What is the need for group chart of account? How group chart of account helps in consolidation of financial data?
- What is non leading ledger in sap fico?
- What is company code global settings? What global parameter is assigned to company code?
- What is fiscal year variant? Why fiscal year variant is assigned to company code?
- What is posting period variant? Why posting period variant is assigned to company code?
- What is field status variant? What is field status group?
- What is document type in sap? Explain the purpose of document type?
- Document date vs Posting date vs Entry date vs Translation date. Explain
- What is posting key? what is the use of posting key?
- Document header & line items capture information of business transaction.
- Everything about currency & exchange rate in sap.
- Foreign currency valuation in sap. Explain with example
- Retained earnings account helps in year end balance carry forward. Explain
- What is the significance of tolerance groups in sap?
- What parameters are maintained in GL master and how does it impact in document posting?
ACCOUNTS PAYABLE
- What is meant by accounts payable in sap?
- Understanding procure to pay (PTP) cycle and accounting document at each step.
- Understanding MM FI integration in very simple terms.
- Purchase order price determination in SAP. Explained in very simple words.
- House bank, Bank key, Account ID in SAP
- What configuration (FBZP) needed for executing F110 in sap ?
ACCOUNTS RECEIVABLE
- How sap overcomes challenges in accounts receivable process?
- What is customer reconciliation account?
- Understanding order to cash cycle in sap.
- Understanding SD FI integration in very simple terms.
- What is lock box? How lockbox helps in collection from customers?
TAX ACCOUNTING
- How sap helps in tax accounting?
- Tax configuration in sap: Tax procedure, Tax code & Tax jurisdiction code
- Concept of tax jurisdiction code & tax jurisdiction structure
- Significance of “Tax category & Posting without tax allowed” in GL master.
- Tax base amount and Discount base amount
- Assigning tax code V0 & A0 for non taxable transaction?
- Deductible input tax vs non deductible input tax
WITHHOLDING TAX
- Withholding tax in sap explained with example.
- How sap overcomes challenges in managing withholding tax?
- Withholding at the time of invoice or payment
- Withholding tax configuration in sap
- Business place & Section code in sap
- Withholding tax certificate numbering in sap
- Withholding tax report for filling tax returns
ASSET ACCOUNTING
- How sap helps in asset accounting?
- What is meant by asset accounting?
- What is the use of asset class?
- What is the use of depreciation key in asset accounting?
- Depreciation area and Chart of depreciation in sap.
- Derived depreciation area VS real depreciation area?
- Understanding asset accounting configuration needed in sap
- GL account determination for posting asset transaction
- Asset transaction and corresponding accounting document?
- How depreciation is posted in sap?
SAP CONTROLLING