Reg. Company Code and Charts of account

Hi All,
            I am trying to create a customer but Since there is no GL Account not able to complete the creation of Customer. I tried creating a GL Account but there also i am not able to save the GL Account becuase its throwing an error Select the Charts of Account.
             I need to know what is Charts of Account means (as of what I know is the chart which shows the Profit & Loss in country specific format)  and how does it link with the Company Code.
Regards,
Senthil Nattamai Sekar

Dear Senthil,
Chart of accounts
A classification scheme consisting of a group of general ledger (G/L) 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. Other charts of accounts include:
Country-specific charts of accounts -
These are structured in accordance with legal requirements of the country in question
Group chart of accounts -
This is structured in accordance with requirements pertaining to Consolidation.
IMG path do define and assign chart of accounts is
SPRO>IMG>Finnancial accounting>General Ledger Accounting>G/L Accounts>Master Records>Preparations>Edit Chart of Accounts List>Assign Company Code to Chart of Accounts
I hope it will help you,
Regards,
Murali.
Edited by: Murali Mohan.Tallapaneni on Jul 24, 2008 10:36 AM

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