A company might have several company codes. Each company code prepares its own financial reports. But business requires consolidated reports of the entire group. To generate reports at group level, data from various company codes need to be pulled in together for consolidation. This consolidation of financial data is achieved by using group chart of account in sap.
Consider below example for understanding the use of group chart of account
A company has two company codes.
Company code 1 uses operational chart of account COA1 and company code 2 uses operational chart of account COA2.
Both company codes prepare their own financial reports using operational chart of account. But for financial reports of company both financial data needs to be consolidated. Since list of accounts in both company codes are different hence consolidation becomes challenging. Here comes group chart of account to resolve this problem of consolidation.
Below picture showing financial data in company code 1 and company code 2
Now below picture shows how these financial data can be consolidated in SAP to arrive at group’s data.
Consolidation in group chart of account
As you can see above, general ledger account in operational chart of account is mapped to general ledger account in group chart of account.
Multiple GL accounts in operational chart of account can be mapped to single GL account in group chart of account.
This mapping enables consolidation of data.
How operational chart of account is mapped to group chart of account in sap?
While setting up operational chart of account, group chart of account is also assigned as shown below.
In above example, operational chart of account ZRAK is mapped with group chart of account ZZZZ.
After above mapping, every general ledger account created in operational chart of account requires mapping to a group account as shown below.
General ledger account belonging to multiple company codes will be assigned to group account. This mapping enables to prepare 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