SAP S4 HANA FICO Chart of Accounts Class 06

Main ideas / concepts covered

1) Recap of prior lesson

• The previous class successfully completed Enterprise Structure setup in SAP S/4HANA, including concepts like:
  • Company
  • Company code

2) “Global Parameters” list (what students must note down)

The instructor emphasizes noting these one by one as Global Parameters:

1. Chart of Accounts (CoA)
2. Fiscal year (shown as “Financial year” in some subtitles)
3. Posting period
4. Field status variant
5. Tolerance
6. Exchange rate
7. Currency settings
8. Company code
9. Document type
10. Number ranges

3) Chart of Accounts (CoA) in SAP — core lesson

• Chart of Accounts (CoA) = a list of GL accounts (GL = General Ledger accounts)

• Examples of GL accounts mentioned:

  • Rent account, Cash account
  • Commission paid, Commission received
  • Miscellaneous expenses, Other incomes
  • Land account, Buildings account
• Purpose:
  • Configure CoA/GL accounts
  • Post accounting entries using those GLs
  • Generate reports

4) Types of Chart of Accounts (CoA)

The instructor states there are three types:

1. Operational Chart of Accounts

   • Used for day-to-day business transactions
   • Examples: rent account, cash account, commission paid, etc.

2. Country-specific Chart of Accounts

   • Used for country/tax-specific requirements
   • Examples mentioned: tax-related GLs such as IGST/CGST/SGST (India), legal expenses, adjustment entries

3. Group Chart of Accounts

   • Used for high-level reporting
   • Can be used to merge/group multiple GLs

5) Mandatory configuration steps for Chart of Accounts (implementation focus)

The instructor repeatedly mentions 3–4 mandatory steps; later lists 4 steps:

1. Edit Chart of Account List
2. Assign company code to Chart of Accounts
3. Define accounts group
4. Define retained earning account

6) SAP configuration navigation + T-code approach

• The instructor refers conceptually to the SAP IMG path:
  • Financial Accounting / General Ledger Accounting
  • Master Records / GL Accounts Preparation
  • Edit Chart of Account List
• T-code guidance:
  • A T-code is typically shown under “Additional Information” / “Display Keys”
  • The relevant part is often the last 4 digits
  • Examples mentioned (partially as spoken): OB13, OB62, OB… (some appear partially in subtitles)

7) Hands-on creation flow for Chart of Accounts (methodology)

A) Create the Chart of Accounts

1. Go to Edit Chart of Accounts list
2. Click New Entries
3. Enter:
   • Chart of accounts ID (up to 4 digits) + description
   • Language (example: English)
   • Length of GL accounts
     • This is treated as an interview-style topic.

Number/length effect (as explained):

• If length of GL accounts = 2 → up to 99 GLs
• If length of GL accounts = 3 → up to 999 GLs
• Instructor claims minimum 1 and maximum 10
• “Suggestable” values: 6 or 8
• Example given for suggested 6 → “up to 9,99,999 GLs” (as stated in subtitles)

B) Assign Chart of Accounts to Company Code

• Use Assign company code to chart of accounts
• Enter:
  • Company code (examples: RM1, RM12)
  • Chart of accounts (example as spoken: RMOC / RM OC)
• Save

C) Define Accounts Group

• Use Define accounts group
• Accounts group is described as:
  • A classification of GLs
  • Linked to number ranges used when creating GL accounts
  • Similar analogy to Tally predefined under-groups
• Accounts group → GL accounts get a number range, ensuring unique generated numbers.

Examples mentioned:

• Expenses accounts group with number ranges:
  • Rent account: 100
  • Commission paid: 101
• Buildings accounts group example:
  • Office building: 31 (example mapping)
• Income accounts group example:
  • Rent received / commission received: 2x (as spoken)
• Liabilities example:
  • Secured loan: 41–500 type range (example given)

D) Create GL accounts later (implied by flow)

• After accounts group setup:
  • Create GL accounts under the relevant accounts group
  • Post accounting entries (documents) specifying the company code
  • Generate reports

8) “Flow” summary the instructor wants students to remember

1. Create Chart of Accounts
2. Assign company codes to that Chart of Accounts
3. Create Accounts Groups under the Chart of Accounts
4. Create GL accounts under the accounts groups
5. Post document entries (accounting entries) using those GL accounts and specifying the company code
6. Generate reports from the posted data

9) T-code examples mentioned for GL/Group/Accounts group creation

• Accounts group creation T-code: WD4 (as spoken)
• GL creation T-code hints mentioned: FS00 and something like FS0… (subtitles contain uncertainty)

10) Additional guidance / classroom rules

Students should:

• Join on time (punctuality emphasized)
• Be ready 5 minutes early
• Keep internet stable to avoid missing points
• Take notes

Instructor promises:

• Future interview question & answers (daily, as stated)
• Practice material via WhatsApp

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Detailed bullet list of instructions / methodology (as presented)

Global parameters: “note down one by one”

• Chart of accounts
• Fiscal year (financial year)
• Posting period
• Field status variant
• Tolerance
• Exchange rate
• Currency settings
• Company code
• Document type
• Number ranges

Chart of Accounts configuration steps (mandatory)

• Edit chart of account list
• Assign company code to chart of accounts
• Define accounts group
• Define retained earning account (called mandatory)

Chart of Accounts creation (practical procedure)

SAP configuration navigation

• Go to IMG → Financial Accounting → General Ledger Accounting → Master Records → GL Accounts Preparation → Edit Chart of Account List

Steps in SAP

1. Open Edit Chart of Account List
2. Click New Entries
3. Fill:
   • Chart of accounts ID (up to 4 digits) + description
   • Language (example: English)
   • Length of GL accounts
4. Press Enter
5. Press Save and confirm Okay

Assign CoA to company code

1. Open Assign company code to chart of accounts
2. Enter:
   • Company code (example: RM1/RM12)
   • Chart of accounts (example: RMOC/RM OC)
3. Save

Define accounts group

• Open Define accounts group
• Create group name + description
• Set number range for the group
• Save
• Later, when GL accounts are created inside that accounts group:
  • The number range controls GL numbering (as instructed)

Interview-ready explanation flow

• Create CoA → assign company code → define accounts group → create GLs → post document entries (accounting entries) with company code → generate reports

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Speakers / sources featured (identified from subtitles)

Speakers

• Instructor / teacher (main speaker; name not consistently visible in subtitles)
• Madavi ma’am (referenced by the instructor; exact role not fully clarified)
• Gangadhar (student introductions)
• Lakmi m / Lakshmi (mentioned as helping for practice material via WhatsApp)
• Additional students mentioned:
  • Vikas
  • Pr / Pru (name partial due to subtitles)

Sources

• WhatsApp group (practice material referenced)
• SAP IMG / SAP S/4HANA configuration screens (referenced for navigation/T-codes)
• No external documents are directly quoted beyond “a document” mentioned for extra reading (title/link not provided)