SAP Financial Accounting (SAP FI) Practice Exam

How can you prepare consolidated financial statements across several company codes with different operating charts of accounts?

1. Create individual statements for each company code

2. Create a group chart of accounts and assign it to all operating charts of accounts

3. Merge the company codes into one for reporting

4. Create a separate reporting company code

The correct answer is: Create a group chart of accounts and assign it to all operating charts of accounts

The correct choice involves creating a group chart of accounts and assigning it to all operating charts of accounts. This approach is essential in the context of consolidated financial statements because it allows for uniform reporting standards and successful integration of financial data across various company codes that may have different operating charts of accounts. When multiple company codes operate under distinct charts of accounts, it poses challenges in achieving comparability and consistency in financial reporting. By developing a group chart of accounts, all individual operating charts can be aligned under a common framework, facilitating the consolidation process. This setup ensures that all companies adhere to the same accounting principles and classifications, making it significantly easier to aggregate financial data and generate comprehensive consolidated statements. The other options do not effectively address the need for consistency in reporting. Merely creating individual statements for each company code leads to a lack of standardized financial data, making consolidation cumbersome and inefficient. Merging company codes is impractical and would defeat the purpose of operating as separate entities with distinct financial needs and operations. Establishing a separate reporting company code might streamline certain processes, but it would not inherently solve the discrepancies arising from different operating charts of accounts, nor would it ensure consistent data across all company codes. Thus, adopting a group chart of accounts is pivotal in ensuring that