SAP FICO: General Ledger Accounting

A ledger account is an account or record accustomed kind and store record and earnings report transactions. Samples of ledger accounts embody the asset accounts like money, accounts receivable, Inventory, Investments, Land, and instrumentation. samples of the overall ledger liability accounts embrace Notes due , Accounts due , accumulated Expenses due , and client Deposits. samples of earnings report accounts found within the ledger embrace Sales, service charge Revenues, Salaries Expense, Rent Expense, Advertising Expense, disbursement, and Loss on Disposal of Assets.

Some ledger accounts are outline records that are mentioned as management accounts. The detail that supports every of the management accounts are found outside of the final ledger in what's referred to as a subsidiary ledger. For instance, accounts receivable may be an impression account within the ledger, and there'll be a subsidiary ledger that contains every customer's credit activity. The final ledger accounts Inventory, Equipment, and Accounts due may even be management accounts and for every there'll be a subsidiary ledger containing the supporting detail.

Chart of Accounts List

The chart of accounts may be a listing of all accounts utilized in the overall ledger, typically sorted so as by account range. The accounts are typically numeric, however may also be alphabetic or alphanumeric. The account enumeration system is utilized by the accounting software to mixture info into an entity's money statements.

Accounts are sometimes listed so as of their look within the money statements, beginning with the record and continued with the earnings report. Thus, the chart of accounts begins with money, take through liabilities and shareholders' equity, then continues with accounts for revenues then expenses. Several organizations structure their chart of accounts in order that expense data is individually compiled by department; therefore, the sales division, engineering department, and accounting department all have a similar set of expense accounts.

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