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

Account types in SAP FI module 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, its 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 in SAP FI, we use one of these in the header section of financial documents.

S.No.  Account Types 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 above keys into consideration and against each of them we mention posting period configuration that are required for a company code. We also use these while defining document master data for transaction posting (transaction code OBA7).

The first character will represent the account types 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 types of a transaction in sap. In document master data, if you have not allowed a particular posting key against it then that posting key can not be used.

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