Create COA Account Groups
Hello, now we’re going to create an account group. Let me explain what an account group is all about. See this balance sheet, I have put in the classification for each type of account here. Building and machinery should be under fixed assets, cash in bank, cash in hand, stocks, trade debtors, those are under current assets.
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Long term liabilities, capital and bank loans, current liability will be trade creditors, retained earnings. Alright, so these things which are highlighted in bold, current liability, long-term liability, fixed assets, current assets are known as the account group in SAP, which means that account group is used to categorize the individual G/L accounts. These are individual G/L accounts.
Okay, so we are going to show you how to create this account group. Now, this is the screen which we need to use to create the account group. The path is financial accounting (new). general ledger accounting (new), master data, G/L accounts, preparations, define account group. We created our chart of account using this just now.
Now we are going to go to the next step which is, define account group. Let me click here so we have all the groups created earlier for different chart of accounts. Now, the way the account group is created, it is created for each chart of account. You have to mention what the name of the account group is.
This is the code. This is the full name of the account group and the account interval. I’ll explain to you what it is. Let’s create now. I clicked on new entries. Chart of account is Sun. Enter it here. Now, the first one is fixed assets, right? Let me just put fixed assets. Just create a code for yourself. I am going to create fixed assets. Account interval is 100, 000. Remember we mentioned six digits for the G/L accounts in the chart of accounts, that’s why I’m entering six digits. You can enter seven. If you enter seven, the system will throw an error message because you already defined the length of the G/L accounts in the chart of accounts as six, so make sure you enter 6. Account interval is six. This is interval, 100, 000 to 199, 000, which means that any G/L account which is created in this range, also known as range or interval, this range will be considered as fixed assets. When we create a G/L account later on, I’ll show you a place where you can choose the account group of the G/L account. When you choose the account group or the G/L account using this code, the system will automatically assign a number, a running number, or you can also manually key in a number within this range to create the G/L account. I’ll show you later. Don’t worry too much about it.
Sun. The next one is current assets, so I just use the code CASS, current assets, 200,000 to 299,999.
Let me just show you something about the length of the G/L accounts if there’s any information for you. Financial Accounting (new), over here, over here and over here.
Chart of Accounts, position on Sun. Okay, this is our Chart of Accounts, right? Do you see this length of G/L account number is six since you have mentioned it as six, so you have to enter only six digits. That’s what I wanted to show you. Okay, let me close this.
Let me go to this first session. Let me create a long term liability and a current liability for this session. Here, long term liability. The range will be 300,000 to 399,999.
This is for current liability. I have a current liability, 400,000, 499,999. Okay, we have created all the four accounts required, but bear in mind, this guy here, this is retained earnings. If you know accounts, you know that you also need to have income accounts groups and expenses account groups.
Alright, I’m going to create that now. Income accounts, I don’t need to put accounts, just income. My range will be 599,999. Make sure you know accounting, otherwise you can’t understand why I’m creating income and expenses. Anyway, the prerequisite for this course is that you should know accounts. Okay, I’m not going to explain in detail. because you are expected to know accounts. Expenses, 699,999. I should name it as other incomes. Sorry about that. I forgot about the sales accounts. We need to have sales, let me just change this to sales because this is going to have the sales account range and this one will be the cost of sales. This will be the purchases accounts. Okay. Now comes the income as other income, other incomes account, which will be in this range.
We’re running out of ranges. Hopefully it’s good enough. Other expenses.
Alright, this should be good enough. We have fixed assets, current assets, long term liability, current liability, sales, cost of sales, other incomes, other expenses. Just save it.
All done. Alright, that’s the end of this topic. Let’s go back.
You may watch the full course on the following YouTube link
https://www.youtube.com/watch?v=IRO8pfecndk&list=PLN17Nn94liux88cwVwqbiRQQo1qK4sOdQ&index=5&pp=iAQB