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Integrated Business Processes with ERP Systems Ch 4, Exam #1 - BSIS 301

Terms in this set (106)

Chart of Accounts: contains the accounts list of a company, which are to be included in the general ledger. The following are types of COA.

Operative or operational COA: records the financial impacts that happened due to the everyday transactions in the business. It is optional for the enterprise.

Country-specific COA: contains alternative accounts. It is mapped from the operational COA accounts and created by the companies, when there is a need of requirements of the country specific reporting. It is optional for the enterprise.

Group COA: has group accounts of the enterprise. It generates the financial reports for every company and also for the enterprise by consolidating all the financial reports in the enterprise. This consolidated report is a must for the enterprise.

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General Ledger Accounts: records the financial impacts that happened in business. It is an instantiation of the COA. The details of the ledger is available in the general ledger and it can include part or all the COA accounts. At the organization level the general ledger account is segmented. The following are segments of COA account: COA or client segment; company code segment. The details of assets, liabilities, and equity are stored in the balance sheet. Revenue expenses details are stored in profit and loss account.

Relationship between COA and General Ledger: Balance sheet and profit and loss account are included in the COA segments and they are stored and sorted in the general ledger account. That is, the relation between COA and general ledger is the COA is just blueprint, when opening the business. It lists the account of balance sheet and profit and loss account. However, the general ledger account is the last entry of the business which includes all transactions.