General Ledger Accounting

SAP-FI General Ledger Accounting

What is a General Ledger Accounting

A general ledger account is an account or record used to sort, store and summarize a company's transactions. The ledger holds account information that is needed to prepare financial statements, and includes accounts for assets, liabilities, owners’ equity, revenues and expenses.

The general ledger is the backbone of any accounting system which holds financial and non-financial data for an organization. The collection of all accounts is known as the general ledger. Each account is known as a ledger account. 

The listing of the account names is called the chart of accounts. The Chart of Accounts (COA) is defined at the client level and assigned to each company code. It is a list of General Ledger account’s master data that fall under different account groups of a company code. 

Types of Chart Accounts

There are three types of chart of accounts

• Operating chart of accounts: Used to post daily expenses or revenue accounts, and there information is shared by finance as well as controlling Module.
• Group Chart of accounts: These accounts are used by entire company group and helps in generating reports.
• Country-specific chart of accounts: CCOA is a specific to the country for which you want to create it.

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