What is an account group in sap?
Chart of account in sap, is a list of general ledger accounts used by an organisation for recording its transaction into financial accounting and reporting to external stakeholders.
Account groups are used to group these general ledger A/c further for better presentation in the financial statement.
We use transaction code OBD4 to create account group and these account groups are assigned to the gl A/cs while creating it with transaction code FS00.
At least two account groups are created in account group i.e. balance sheet and profit and loss a/c. But we can further break these account groups into different groups like expenses a/c, revenue a/c, cash a/c, fixed assets a/c or current asset a/c etc. Account group creations are based on business decisions.
5 things are entered while creating an account group
- COA under which you are creating account group
- Account group name
- A description to the account group
- A/c number starting from
- A/c number ending with
In the last two points we define the number range of the general ledger account that can be created under the account group. We cannot create a gl account number which is not within the account group range.
What is the term FSG and where it is used in sap?
FSG means field status group. This is not a sap derived word but commonly used by sap consultants.
Field status groups are used while creating gl account master data in sap. Under the tab “create/bank/interest” we have a specific field called “field status group”. Based on the account type, we create the field status groups and assign it to the gl account. If we are creating an expenses account and that need a cost center assignment then field status group G004 is assigned to it.
These field status groups are used to manage the fields in transaction posting of the general ledger account.
Filed status groups are listed under a field status variant which is created by using transaction code OBC4 and assigned to a company code by using transaction code OBC5. We can change the fields to optional entry, mandatory entry or suppress or display based on our business requirement.
What is the relevance of business area in sap?
Business areas are defined basically to generate business area wise balance sheet. We can create business are based on the geography of our business or responsibility of our organization. Business area is also very helpful in segment reporting.
Business area is created at the client level and need not be assigned to a company code. All Company codes created under a client can use business area by which there will be reconciliation issues at the end of the fiscal year.
Business area functionality can be replaced by using profit center accounting concept in sap. This module is better managed and more flexible than business area.
What do you mean by FSV and why it is created in sap?
FSV stands for financial statement version. We create FSV for our year-end financial reporting.
In sap we create this variant by using transaction code OB58 which is then assigned with all the general ledger accounts under different groups to present the balance sheet and profit and loss accounts of the organization. You can assign general ledger accounts by using transaction code FS00 after its creation.
What is the difference between country chart of accounts (COA) and operating chart of accounts (COA)?
Operating COA is a must for all the company codes created in sap. We record all our day to day business transaction in an operating COA. Company codes under a controlling area must use the same operating COAs.
Any country having its special legal reporting can use country specific COAs which is created specifically for that country in order to full fill the legal requirement. Like operating COA this is not mandatory for the company codes to use. It’s optional for them. Company codes having assigned to different country COAs can also be assigned to controlling area as its not mandatory to use same country COAs to get assigned to controlling area.
What is group chart of account (COA) and how it’s different from country chart of accounts and operational chart of account?
Group COA is created and assigned to operating chart of accountCOA. We use group COA for consolidation purpose in sap. We can assign one group COA to different operating COAs by which all the company code’s financial data can be consolidated under one group.
Like operating chart of accounts and country COAs we do not use group chart of accounts for transaction posting.