A chart of accounts provides a framework for recording accounting data in an organized way. It contains general ledger accounts with account numbers and names. A chart of accounts is assigned to each company code and used for both financial and cost accounting. Automatic postings are made to general ledger accounts for transactions like invoice verification and inventory management. These postings use transaction keys to determine the accounts based on posting rules and ensure postings are made to the correct accounts.
A chart of accounts provides a framework for recording accounting data in an organized way. It contains general ledger accounts with account numbers and names. A chart of accounts is assigned to each company code and used for both financial and cost accounting. Automatic postings are made to general ledger accounts for transactions like invoice verification and inventory management. These postings use transaction keys to determine the accounts based on posting rules and ensure postings are made to the correct accounts.
A chart of accounts provides a framework for recording accounting data in an organized way. It contains general ledger accounts with account numbers and names. A chart of accounts is assigned to each company code and used for both financial and cost accounting. Automatic postings are made to general ledger accounts for transactions like invoice verification and inventory management. These postings use transaction keys to determine the accounts based on posting rules and ensure postings are made to the correct accounts.
A chart of accounts provides a framework for recording accounting data in an organized way. It contains general ledger accounts with account numbers and names. A chart of accounts is assigned to each company code and used for both financial and cost accounting. Automatic postings are made to general ledger accounts for transactions like invoice verification and inventory management. These postings use transaction keys to determine the accounts based on posting rules and ensure postings are made to the correct accounts.
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Chart of accounts
A chart of accounts provides a framework for the recording of
values to ensure an orderly rendering of accounting data. The G/L accounts it contains are used by one or more company codes.
For each G/L account, the chart of accounts contains the
account number, the account name, and technical information.
A chart of accounts must be assigned to each company code.
This chart of accounts is the operative chart of accounts and is used in both financial accounting and cost accounting.
Automatic Postings
Postings are made to G/L accounts automatically in the case of
Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.
Example: Posting lines are created in the following accounts in the case of a goods issue for a cost center:
Stock account Consumption account
Valuation grouping code OR Valuation Modification
The valuation grouping code determines the G/L accounts to
which a goods movement is posted (automatic account determination).
Account determination
An automatic function that determines the accounts for posting
amounts is Financial Accounting.
Value String
Indicates the posting rule that always contains the same
account assignment characteristics for a certain transaction or event (for example a goods movement or an invoice receipt). The posting string is needed for the purposes of automatic account determination.
Movement Indicator
Specifies the type of document (such as purchase order or
delivery note) that constitutes the basis for the movement.
This indicator is necessary, for example, to enable a distinction
to be made between a goods receipt for a purchase order and a goods receipt for a production order. These two goods movements result in different data and account updates in the system.
Consumption posting
Specifies that the consumption is to be posted to a
consumption account (V) or an asset account (A).
Account Modification
The final subdivision of Transaction/Event Key in which G/L
account is linked during the process of automatic account determination.
determination for the various material and invoice postings.
The transaction keys are used to determine accounts or posting
keys for line items which are created automatically by the system.
The transaction keys are defined in the system and cannot be
changed by the user. Account grouping for offsetting entries to stock accounts.
Under Define account grouping for movement types ,
determine for which movement types an account grouping is defined for the transaction/event keys GGB (offsetting entry to stock posting), KON (consignment liabilities) and PRD (price differences). Transaction Keys
Supplementary entry for stock (BSD)
Stock posting (BSX) Purchase account (EIN) Purchase offsetting account (EKG) Freight purchase account (FRE) Freight clearing (FR1) Provision for freight charges (FR2) Customs duty clearing (FR3) Provision for customs duty (FR4) External service (FRL) External service, delivery costs (FRN) Offsetting entry for stock posting (GBB) BSA: for initial entry of stock balances INV: for expenditure/income from inventory differences VBO: for consumption from stock of material provided to vendor VBR: for internal goods issues (for example, for cost center) VKP: for project account assignment (for example, for individual PO) VNG: for scrapping/destruction VQP: for sample withdrawals without account assignment VQY: for sample withdrawals with account assignment ZOB: for goods receipts without purchase orders (mvt type 501) ZOF: for goods receipts without production orders (mvt types 521 and 531) Purchase order with account assignment (KBS) Consignment liabilities (KON) Price differences (PRD) Invoice reductions in Logistics Invoice Verification (RKA) Expenditure/income from revaluation (UMD) Revenue/expense from revaluation (UMB) Unplanned delivery costs (UPF) Input tax, Purchasing (VST) Goods issue, revaluation (inflation) (WGI) Goods receipt, revaluation (inflation) (WGR) GR/IR clearing (WRX)
Philippine Refining Company (Now Known As "Unilever Philippines (PRC), Inc."), Petitioner, vs. Court of Appeals, Court of Tax Appeals, and The Commissioner of Internal Revenue, G.R. No. 118794
