Set up chart of accounts
A chart of accounts is a set of main accounts tracked by Finance. It captures financial information to make good financial decisions. Each account is assigned an account number as a unique identifier.
Each main account contains the account structures used by the chart of accounts to define the valid combinations of main accounts and financial dimension values.
Each chart of accounts is shared and contains the list of main accounts to be used for each legal entity, known as a ledger. The General ledger > Ledger setup > Ledger page holds the chart of accounts, which is used with the account structures, accounting and reporting currencies, default exchange rate types for accounting, reporting and budget, as well as the accounts for realized and unrealized gain and loss for a given legal entity.
Allocation terms can be set up for an account to distribute the amount to several accounts and account-dimension combinations, and system accounts help users handle automatic postings.
You must set up the following components when you set up the chart of accounts: