Harmonisation of charts of accounts for subsidiaries

09.10.2018

If you are a concern and have several subsidiaries in different countries, you are often required to provide consistent reporting. In most cases, each subsidiary has its own country-specific chart of accounts, which makes it difficult to assign country-specific G/L accounts. There are three options for setting up uniform reporting by including or matching all country-specific G/L accounts in the G/L accounts of the group reporting structure.

Option 1:

Several charts of accounts and one accounting plant per chart of accounts or country.

Advantages. Countries are clearly separated by different charts of accounts and accounting systems: Countries are clearly separated from each other by different charts of accounts and accounting plants. Material valuation and asset valuation can be determined separately for each accounting plant and differently for each accounting plant.

Disadvantages: A lot of maintenance work is required for several charts of accounts and the necessary settings for matching between the charts of accounts as well as for storing the posting logic for each chart of accounts. Material valuation and asset valuation must be maintained for each accounting plant and lead to susceptibility to errors.

Option 2:

One chart of accounts and several accounting works (per country).

Advantages. Multiple maintenance in different charts of accounts: Multiple maintenance in different charts of accounts and setting up matching between the charts of accounts is no longer necessary.

Disadvantages: Use only possible or useful if a uniform group chart of accounts exists. (For countries with a local mandatory chart of accounts, a second chart of accounts is required.

Option 3:

A chart of accounts and an accounting plant.

The requirement is solved using report structures. Each group report item is assigned one or more G/L accounts from the country-specific chart of accounts. The group report items are fixed and all country-specific G/L accounts are assigned in this structure.

This is a multiple advantage: This makes multiple maintenance of master data superfluous. Master data only has to be maintained for a single accounting plant. It is also no longer necessary to maintain several charts of accounts and the assignment between group-specific and country-specific G/L accounts is considerably easier.

Disadvantages: Can only be used if valuation is to be carried out in SAP according to an accounting plant. Material and asset valuation is not separated according to accounting plant. No details at G/L account level are recognizable for corporate G/L accounts. Reporting only takes place at G/L account level related to the group and not transaction-related.