Скачать или смотреть TB1100-02-11 SAP Business One 9.3 - Chart of Accounts Concepts

Welcome to the Chart of Accounts topic.

In this session, we will discuss the chart of accounts structure and the effect of standard processes on the Chart of Accounts.

Imagine that you are implementing S A P Business One at a new customer.
You discuss with Maria, the accountant, the effect of the sales and purchasing processes on the chart of accounts, and as a result, on the financial reports.
Maria says that this structure will help her in presenting the financial reports in a clear and structured way.

How are the Business Partner Master Data balances presented in the Chart of Accounts?
The Business Partner Master Data balances do not appear in the Chart of Accounts.
The receivable and payable control accounts accumulate the customer and vendor transactions in their balances.
For example, when you post an AR invoice, the accounts receivable account related to the customer is used, in addition to the customer account.
Therefore, the Chart of Accounts presents the complete financial status of the company, as well as the Financial Reports (for example, Trial Balance and Balance Sheet).

The chart of accounts is an index of all GL accounts used by your business.
Every GL account has:
An account code
An account description, and
Additional information that determines the functions of the GL account.
When you implement S A P Business One you define (or import):
The Chart of Accounts, and
Default GL accounts to be used when transactions are created in the regular business processes: Sales, Purchasing, Inventory and more.
The documents in the Sales and Purchasing processes create automatic journal entries that are registered in the Journal Entry file and affect the account balances.
The account balances are also affected by manual journal entries and other accounting transactions, such as the Period End Closing process that transfers the balances of the Profit and Loss accounts to a Balance Sheet account.


The Chart of Accounts is organized by drawers and levels.
Let us look at this example of a chart of accounts. The chart of accounts varies according to the company’s localization.
The organization of the chart of accounts follows Generally Accepted Accounting Principles (GAAP).
The Chart of Accounts window organizes your accounts by drawers.


In the General Ledger, we distinguish between Balance Sheet drawers and Income Statement drawers, also called Profit and Loss.
Let us start with Balance Sheet Accounts:
The first 3 drawers: Assets, Liabilities, and Equity (or Capital and Reserves) typically hold the Balance Sheet Accounts, such as the Sales Tax and the Accounts Payable Account.
The bookkeeping balance of these accounts is kept from one fiscal year to the next.
The Balance Sheet Accounts – reflect the monitory value of the company - stock, assets, debt, etc.


Then, we have the Profit and Loss accounts:
The next 5 drawers: Revenues (or Turnover), Cost of Sales, Expenses (or Operating Costs), Financing (or Non-Operating Income and Expenditure), and Other Revenues and Expenses (or Taxation and Extraordinary Items) typically hold the Profit and Loss accounts, such as the income or expense accounts.
The bookkeeping balance of these accounts has to be cleared at the end of each fiscal year during the Period End Closing process.
The Profit and Loss accounts reflect the changes in the company value, such as: when you sell stock – the cost of goods sold account is affected and increases revenues.
Lastly we have two optional purpose profit and loss drawers.
These drawers have no fixed predefined purpose and in most cases are empty, depended on localization and chart of account template.
If needed, each company can designate the additional drawer to a certain accounting area.


Financial reporting requirements drive most of the initial settings and configuration decisions in the chart of accounts.
The different financial reports run on the account balances relevant to a selected date range and present them according to their drawer level:
The Balance Sheet summarizes the value of the business’ assets liabilities, and owner’s equity accounts.
The Trial Balance displays for each account: beginning balance for a particular period, all of the debits and credits, and the ending balance.
The Profit and Loss Statement is determined after the end of the fiscal year. The balances of the expense accounts will be subtracted from the balances of the revenue accounts to come up with the profit or the loss for the fiscal year.