How Account Types are used in Chart of Accounts and Document types

Account types in SAP FI is denoted by one character out of the five default characters that sap has delivered. It specifies different area to which  a General Ledger A/c belongs.

In SAP, account types are required in addition to the general ledger A/c number otherwise same number range can be used.

All General Ledger Master data in sap has to be created under one of these standard SAP account types.

How Account Types are used in Chart Of Account and Document types

While posting a transaction, we use one of these account types in the header section of financial documents.
Followings are the list of account types and the description of the group that they represent.

S.No.  Account Type Description
 1 M Materials
 2 S General Ledger
 3 A Asset
 4 D Debtors ( Customers )
 5 K Creditors (Vendors )
 6 + Represents all of the above

When we do configuration for opening and closing financial posting periods, we take these account types into consideration and against each of them we mention posting period configuration that are required for a company code.

We also use these account types while defining document master data for transaction posting (transaction code OBA7).

The first character will represent the account type and the second one will be the posting allowed in it.

For Example, document master started with K is for creditors. Similarly;

  • KZ is for Vendor Payment
  • KG is for Vendor Credit memo.

By looking at KG and KZ one can easily identify that these document types are for vendor as K stands for vendor.

In financial transaction posting, we use posting keys from which these account types are determined. For this reason, we use different posting keys in sap to post different financial transactions into a company code.

The document and posting key will determine the account type of a transaction in sap.

In document master date, if you have not allowed a particular posting key against an account type then that posting key can not be used for the account type.