Different Areas In GL Accounts
Hello, let’s look at the next topic here under general ledger, different areas of chart of accounts. This is one of the very important topics.
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If you look at this, let me take you there. Zero, zero, chart of accounts. See these two things here In chart of accounts, In company code. This means that when you go to chart of accounts, you have three tabs of fields, and if you go to In Company Code, you’ll have another three tabs of information, so here are the three types combined centrally. See this, when I go to Centrally, I can see all the three types, one, two, three. I’ll show you once again. Close this.
See this? Here in the Chart of Accounts area, we have three tabs, and in the Company Code area, you have three. So these six tabs will be combined under the Central Maintenance. See, all of these tabs are combined. What this means is that any Chart of Account. Let me show you. These are the tabs under the General Area or Chart of Account Area. The general area is also known as the chart of accounts area, chart of accounts data. We have type, description, keyword translation, information tabs.
Okay, let’s go here. That’s what I mentioned here. In the company code area, we have these three tabs, control data, create bank interest information. Control data, create bank interest information. In the G/L account, the G/L master data. We’ll have two big areas called chart of account area, which is also called general area, and the company code area. Let me change this to COA area. COA area, chart of account area. So what it means is that the way chart of accounts is arranged is that it will have two main sections, chart of account section and company code area, these two areas. The chart of account area corresponds to the group company, which means that any information that is created at the COA area will be shared by all the subsidiaries, Sun Limited, Mercury, and Moon, and if you have any information that has to be maintained at the company code level, then you have to maintain it here in the company code area, so the information that remained in the company code area will be specific to that particular company, so that’s the difference. Once again, any global information that has to be shared by all the companies in a group should be maintained in the COA area. A typical example of this is a description of the account. A description of the account should be common to all of these company codes. We cannot have a different description for the same type of G/L account for each and every company code. The description is maintained in the durable area level, which is also called the general area or COA area. Description and also the type of account. This is what we call type of account. These two and three are maintained in the chart of accounts area level. That means that any settings made in the COA area will be shared by all the company codes under the group company. So if you have any information that has to be specific to the company code, such as currency of the account, or the fact of whether it’s a recon account or not, will be maintained at the company code level, which is here, this level.
For the same account, 200,000, I can have different currencies, USD, for Sun Limited, and for the Mercury company code, I can change this to Euro, but the G/L account remains the same. I can do that because this is company code specific, this area. Any fields that fall under any one of these tabs can be maintained differently for each company code because it’s company code specific. Okay, do you understand what I mean? But not this one. This is shared. You cannot have a different description for Sun Limited and Mercury. They have to be the same, that’s why it’s called COA Area. Similarly, that’s the reason we have, Create G/L Accounts, In Chart Of Account, In Company Code, separately. If you want to see both areas in a single screen, then go to Centrally.
See, we see all six tabs here on one screen. If a G/L account is already created at the Chart of Account area, it may not be created at the Company Code area. Okay, just remember this. If you have created a G/L account using this option in Chart of Accounts, you see there is no Company Code. In this screen, there’s no company code. We have G/L account and chart of accounts, but there’s no company code. So if you create a G/L account using this screen, this means the G/L account is created only at this level, COA area. It’s not created at the company code area, so to create a company code area, you come here. You see, the company code can be seen here.
You create a company, specify the company code, and create, so it’s created for the company code as well. Any G/L account can be created in the chart of account area, and then be extended to the respective company code later on. It doesn’t mean that if I create this G/L account for its Sun company code, it doesn’t mean that it’s also created for Mercury. You are to specifically create it for Mercury by specifying the Mercury company code here once it’s created. Once the Mercury company code is created, so as the Moon. Remember this.
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https://www.youtube.com/watch?v=laLFZYpwuno&list=PLN17Nn94liux88cwVwqbiRQQo1qK4sOdQ&index=66