Introduction. The general ledger is an accounting document that provides a general overview of an organization’s financial transactions. An account, or general ledger (GL) code, is a number used to record business transactions in the general ledger.

What is a liability GL account?

A liability account is a general ledger account in which a company records its debt, obligations, customer deposits and customer prepayments, certain deferred income taxes, etc. that are the result of a past transaction. The company with the liability account for the debt or payables is known as the debtor.

How many types of GL accounts are there?

General ledger accounts are divided into five types of categories. The types include assets, liabilities, income, expense and capital.

What are GL accounts used for?

In accounting, a general ledger is used to record all of a company’s transactions. Within a general ledger, transactional data is organized into assets, liabilities, revenues, expenses, and owner’s equity. After each sub-ledger has been closed out, the accountant prepares the trial balance.

What is GL account and how it is used?

GL account is a master data where value are stored, the value may be inventory cost or may be cost incurred for particular expenses. Company code,plant and storage location are organization units in an enterprise/company in the SAP system. There is no such direct assignment of GL Account to organization units.

What does G / L account stand for in accounting?

What’s G/L Account ? First at all, G/L Account stands for General Ledger. The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts.

What is a GL account table in SAP?

What is a GL Account Table in SAP? Just like most ERP systems, creating a General Ledger Account in SAP ERP is also fairly easy by using tcode FS00. So, How to create a GL account in SAP FI?

How are subsidiary ledgers related to GL accounts?

In order to simplify the audit of accounting records or the analysis of records by internal stakeholders, subsidiary ledgers can be created. A subsidiary ledger (sub-ledger) is a sub-account related to a GL account that traces the transactions corresponding to a specific company, purchase, property, etc.