Accounting and ERP Assignment 2022

Running Head: ACCOUNTING AND ERP
ACCOUNTING AND ERP
Name of the Student
Name of the University
Author Note

1ACCOUNTING AND ERP
Table of Contents
Answer to Questions..................................................................................................................2
Reference....................................................................................................................................5

2ACCOUNTING AND ERP
Answer to Questions
1)
Reconciliation is accounting concept. It is process to ensure that the two sets of the
records are in agreement. It is used for ensuring that money that goes out from account
matched with actual spent money. For example, when financial statements are prepared,
individual account details are not important. Instead, every customer, asset or the account of
vendor is linked to certain reconciliation account. It is also known as control account.
2)
A “chart of accounts” is the structure that includes GL accounts that can be used by
one or more than one entity codes. Same “chart of accounts” can be used for all the company
codes. For the internal purposes, it can be beneficial for using cross-company code. There is
no problem in using it as long as codes of company uses same charts of the accounts.
3)
“Chart of accounts” are of three kinds. The first one is “operating chart of account”.
It includes GL accounts, which can be used for daily posting in the company code. Second is
“group chart of account”. It contains GL accounts, which can be used by the overall
corporate. Last one is “country-specific chart of accounts”. It includes GL accounts required
for meeting legal reporting requirements of country (Abbasi, Zamani and Valmohammadi
2014).
4)
The seven significant mechanisms of “chart of accounts” includes following:
 Chart of account key
 Name
 Maintenance language