Assigning Organizational Units to the Chart of Accounts in SAP FICO

In SAP FICO (Financial Accounting and Controlling), the Chart of Accounts (COA) serves as the central repository for all the G/L accounts used by the company for financial transactions. A crucial part of setting up the COA is assigning the organizational units to it, as this allows different units within the organization to use the same set of G/L accounts for financial transactions. This article will walk you through the steps of assigning organizational units to the Chart of Accounts in SAP FICO, along with practical examples.

What are Organizational Units in SAP FICO?

Organizational units in SAP FICO are entities that define the structure of an organization, such as Company Code, Business Area, and Cost Center. These units help categorize financial transactions and reporting. Each organizational unit is linked to the Chart of Accounts to ensure that it can properly record financial data in the system. The most commonly used organizational unit in this context is the Company Code.

Why Assign Organizational Units to the Chart of Accounts?

Assigning organizational units to the Chart of Accounts is an essential step in the configuration process for the following reasons:

  • Consistency: Ensures that all organizational units within a company use the same set of G/L accounts for consistent financial reporting.
  • Transparency: Improves the ability to manage and track financial data across different organizational units.
  • Efficient Data Management: Helps centralize the management of financial transactions and account balances across the company.

Steps to Assign Organizational Units to the Chart of Accounts in SAP FICO

Step 1: Access SAP Customizing Implementation Guide (IMG)

To assign an organizational unit to the Chart of Accounts, you need to access the SAP IMG (Implementation Guide). Follow these steps:

  • Enter the transaction code SPRO in the command field to open the SAP Reference IMG.
  • Navigate to Financial Accounting > Financial Accounting Global Settings > Ledgers > Assign Company Code to Chart of Accounts.

Step 2: Assign the Company Code to the Chart of Accounts

Now that you are in the correct configuration area, you can assign a Company Code to the Chart of Accounts. Here's how to do it:

  • Click on Assign Company Code to Chart of Accounts.
  • You will see a list of existing Company Codes and their associated Chart of Accounts.
  • Click on New Entries to assign a new Company Code to a Chart of Accounts.
  • In the Company Code field, enter the Company Code you want to assign (e.g., 1000 for the main company).
  • In the Chart of Accounts field, enter the Chart of Accounts key (e.g., INT for the International COA).
  • Click Save to assign the Company Code to the Chart of Accounts.

Step 3: Assign Business Area to the Chart of Accounts (Optional)

If your organization uses Business Areas to track different segments of the business, you can assign Business Areas to the Chart of Accounts. This is particularly useful if you need segment-wise financial reporting.

  • Navigate to Financial Accounting > Financial Accounting Global Settings > Ledgers > Assign Business Area to Chart of Accounts.
  • Click on New Entries to create a new assignment.
  • Enter the Business Area key (e.g., 1000 for the Manufacturing Business Area).
  • Enter the Chart of Accounts key (e.g., INT for the International COA).
  • Click Save to complete the assignment of the Business Area to the Chart of Accounts.

Step 4: Assign Cost Center to the Chart of Accounts (Optional)

If you need to track costs and revenues for different departments or activities within your organization, you can also assign Cost Centers to the Chart of Accounts. This helps in tracking financial transactions specific to a cost center.

  • Go to Controlling > Cost Center Accounting > Master Data > Assign Cost Centers to Chart of Accounts.
  • Click on New Entries to create a new assignment.
  • Enter the Cost Center key (e.g., 1010 for the Sales department).
  • Enter the Chart of Accounts key (e.g., INT for the International COA).
  • Click Save to assign the Cost Center to the Chart of Accounts.

Step 5: Verify the Assignment

Once the organizational units (Company Codes, Business Areas, Cost Centers) are assigned to the Chart of Accounts, you should verify the assignment to ensure that the system is set up correctly:

  • Navigate back to Assign Company Code to Chart of Accounts or the respective assignment screen.
  • Check if the Company Code, Business Area, or Cost Center is listed under the correct Chart of Accounts.
  • Perform a test transaction to ensure that postings are being recorded under the correct Chart of Accounts and organizational units.

Example: Assigning a Company Code to a Chart of Accounts

Let’s consider a scenario where a company with Company Code 1000 is using the Chart of Accounts INT for its international operations. Here's how to assign:

  • Company Code: 1000 (Main company)
  • Chart of Accounts: INT (International Chart of Accounts)

Follow the steps outlined in the article to assign Company Code 1000 to the Chart of Accounts INT. After this, all financial transactions posted under Company Code 1000 will use the accounts defined in the INT Chart of Accounts.

Conclusion

Assigning organizational units to the Chart of Accounts is an essential part of setting up SAP FICO for financial accounting. By associating organizational units like Company Codes, Business Areas, and Cost Centers with a Chart of Accounts, you ensure consistency and accuracy in financial reporting and data management. The steps outlined in this article provide a detailed guide on how to complete this assignment, ensuring that your SAP FICO system is configured for efficient financial operations.




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