Assign Company Code To Chart Of Accounts

Significance: In this step we specify which chart of accounts we are going to use for our company. Since there are already a huge number of pre-defined chart of accounts, we can either choose from those, or assign one that we have custom-created. Only one chart of accounts can be assigned to one company.

T-Code: OB62

Path: SPRO>IMG>Financial Accounting>GL Accounting>GL Accounts>Master Records>Preparations>Assign Company Code to Chart of Accounts

The steps to be followed are:

Use “Position” to locate our company and fill in the required entries, and choose “Save“.

Define Chart Of Accounts List

Significance: Chart of Accounts List refers to the list of all GL account numbers. It defines the set of accounts within which the transactions of the company will take place. A cahrt of accounts list can be assigned to any number of companies, however one company can have only one chart of accounts list.

T-Code: OBY7

Path: SPRO>IMG>Financial Accounting>GL Accounting>GL Accounts>Master Records>Preparations>Edit Chart of Accounts List

The following steps need to be followed:

Choose “New Entries” from the Application Bar.

Fill in the required entries and choose “Save“(it is recommended to name the chart of accounts the same as the company code for future convenience).

GL Structure – Index

After the initial customisations regarding the enterprise structure, the next set of customisations involve customising the GL Structure. In this set of steps, we will be customising items relating to fundamental items of the General Ledger that define the broad outline within which the financial activities of the company will be conducted.

 

The following GL Structure steps will be dealt with as individual posts in the posts following this one. Visitors can click on the links below to directly navigate to any of the individual steps, or can use the steps outlined below in their order(which is the suggested order of customisation) given below, to get a better understanding of the inter-linked sequence that the steps follow.

 

1. Define Chart of Accounts List

2. Assign Company Code to Chart of Accounts List

3. Define Account Groups

4. Define Retained Earnings Account (Profit & Loss A/c)

5. Define Tolerance Groups for GL Accounts

6. Define Tolerance Groups for Employees