What is 'target chart of accounts' in SAP AP-ACC - FIN Accounting?

target chart of accounts - Overview

• Component: AP-ACC

• Component Name: FIN Accounting

• Description: The chart of accounts that is used for reporting purposes only. Its accounts are not stored in the financial documents. The system derives these accounts by means of a mapping the accounts of a source chart of accounts.

target chart of accounts - Details

• 
  Key Concepts: 
  A target chart of accounts is a chart of accounts that is used as a template for creating a company’s chart of accounts. It contains all the necessary account categories and sub-categories that are required for a company’s financial reporting. The target chart of accounts is used to ensure that all the necessary accounts are created in the correct order and with the correct structure. 
  
  How to use it: 
  In SAP, the target chart of accounts is used to create a company’s chart of accounts. The target chart of accounts contains all the necessary account categories and sub-categories that are required for a company’s financial reporting. To create a company’s chart of accounts, the user must first select the target chart of accounts from the SAP system. Once selected, the user can then create the company’s chart of accounts by entering the necessary account categories and sub-categories into the system. 
  
  Tips & Tricks: 
  When creating a company’s chart of accounts, it is important to ensure that all the necessary account categories and sub-categories are included in the target chart of accounts. This will ensure that all the necessary information is included in the company’s financial reports. Additionally, it is important to ensure that all account categories and sub-categories are entered in the correct order so that they can be easily accessed when needed.