What is 'account type' in SAP FI - Financial Accounting?

account type - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: Key that specifies the accounting area to which an account belongs. &EXAMPLE& Assets Customers Vendors G/L Accounts The account type is required in addition to the account number to identify an account uniquely, because the same account number can be used for the each account type.

account type - Details

• 
  Key Concepts: 
  Account type is a classification of accounts in SAP Financial Accounting (FI). It is used to group accounts with similar characteristics together. Account types are used to determine the posting rules and the account balance. Examples of account types include customer, vendor, asset, and G/L accounts. 
  
  How to use it: 
  When creating an account in SAP FI, you must specify the account type. This will determine the posting rules and the account balance. For example, if you create a customer account, you will be able to post customer invoices and credit memos to it. The account balance will be a debit balance. 
  
  Tips & Tricks: 
  When creating an account in SAP FI, make sure to select the correct account type. This will ensure that the posting rules and the account balance are correct. 
  
  Related Information: 
  For more information on SAP FI account types, please refer to the SAP Help documentation.