Current Position:Home > Accounts Structure Urgent Questions

Accounts Structure Urgent Questions

Update:11-30Source: network consolidation
Advertisement
Hello,
Kindly, I have an Urgent Questions Regarding Accounts Structure as the Following:
Accounts Structure Example:
Multi National Company has branches at many countries, so can we design the following structure:
1D     2D     3D     2D     3D     2D     5D     5D     5D     5D
1D=1 Digit (from 0 to 9) represents the region (EMEA, ARIMu2026)
2D=2 Digit (from 00 to 99) represent the country (KSA, India, Egyptu2026.)
3D=3 Digit (from 000 to 999) represent the company (company1, company 2u2026.)
2D=2 Digit (from 00 to 99) represent the company Activity (Activity 1, Activity 2u2026.)
3D=3 Digit (from 000 to 999) represent Company departments (dept1, dept 2u2026.)
2D=2 Digit (from 00 to 99) represent the company projects (project 1, project2u2026.)
5D=5 Digit (from 00000 to 99999) represent company Assets (Asset1, Aseet2u2026)
5D=5 Digit (from 00000 to 99999) represent company Liabilities (Liabilitie1, Liabilitie2u2026)
5D=5 Digit (from 00000 to 99999) represent company Expenses (Expense1, Expense2u2026)
5D=5 Digit (from 00000 to 99999) represent company Revenues (Revenue1, Revenue2u2026)
Etc.
Kindly, we need answers of the following questions:
1- Can we create accounts structure like the given example or not? And what is the limitation of that?
2-What is the maximum length of the account structure and the account itself?
3-If this structure will not work what is the alternative scenario to build a GL like the given example?
4-Can we create many GLu2019s and each GL can represent a company?
5-Can we create a cost centers structure like the given example?
6-If we have 5 companies and we want to have consolidated reports how to design or create a GL or Accounts Structure to have those reports?
Thank You And,
Best Regards.
Tarek Salama

The Best Answer

Advertisement
1- Can we create accounts structure like the given example or not? And what is the limitation of that?
Best practice is to create the GL accounts by account group number range,
2-What is the maximum length of the account structure and the account itself?
10 digits
3-If this structure will not work what is the alternative scenario to build a GL like the given example?
SAP follows a what based chart of accounts model, i.e GL account signifies just what is the cost , the attributes of the cost are represented by account assignments like cost center profit center etc, so the departments projects activities etc that you have mentioned will be represented by the assignemnt of the Cost centers , Orders, Projects, and Profit centers to the GL.
i.e if you have Stationery EXP Gl lets say 100000, the GL will be the same but stationery exp for Dept 1 will be in combination of the 100000 and Dept 1s cost center, or dept 2s cost center etc.
4-Can we create many GLu2019s and each GL can represent a company?
Chart of accounts and GLs across the company codes should be identical, the assignment of the Gl account to the company code will signify the Gl account and the company
5-Can we create a cost centers structure like the given example?
Best practive is to create cost centers by Departments or responsibility centers
6-If we have 5 companies and we want to have consolidated reports how to design or create a GL or Accounts Structure to have those reports?
an expence account or an asset account in all the companies will be the same, the attribites of the accounts will be represented by the account assignments to the account. Its always the best practice to follow a single chart of accounts and same account numbers across the company codes
Br Naveen